Complete news archive

  • CMBS resolutions hit lows

    US CMBS delinquencies were unchanged in July at 4.87%, bringing an end to 15 consecutive months of declines in which the rate dropped by 276bp from 7.63%, according to Fitch's latest index results for the sector. Resolutions of US$462m and new delinquencies of US$398m last month marked post-recession lows, with the overall rate unchanged due to a decrease in the .......

    News Round-up 18 August 2014

  • SCI Start the Week - 18 August

    A look at the major activity in structured finance over the past seven days

    Pipeline
    Only a handful of deals joined the pipeline last week amid the summer lull. Of these transactions, two were CMBS - US$355m BBCMS 2014-BXO and AYR Issuer. The other newly announced deals were US$285.69m Macquarie Equipment Funding Trust 2014-A (an ABS) and US$350m Monroe Capital CLO 2014-1 (a CLO).

    Pricings
    ABS accounted for the majority of pricings last week. .......

    News 18 August 2014

  • Auto lending examined

    In its Q2 report on household debt and credit, the New York Fed finds that housing-related debt shrank, while non-housing debt balances increased across the board - with especially strong gains in auto loans. Auto loan balances - including leases - have increased for thirteen straight quarters and originations have not been this high since 3Q06.

    Against the backdrop of .......

    News Round-up 15 August 2014

  • Alta Group adds ABS pro

    The Alta Group has appointed Daryl Ching as md in Canada. He has more than 10 years of securitisation experience and was most recently at RBC Capital Markets, having previously worked at Coventree.

    .......

    Job Swaps 15 August 2014

  • Servicing 'hubs' identified

    The top seven cities for US commercial servicing operations are Kansas City, Charlotte, Dallas, Miami, Washington, New York and Hyderabad (India), according to S&P. The findings are based on data from the agency's ranked commercial mortgage loan servicers, pinpointing major geographic locations for commercial mortgage servicing.

    "We believe Hyderabad is the newest servicing hub," S&P notes. "It represents a key .......

    News Round-up 15 August 2014

  • RFC issued on servicer advance approach

    S&P is requesting comments on proposed changes to the methodology and assumptions it uses to rate US servicer advance securitisations. The criteria revisions aim to promote comparability in ratings across all sectors of the RMBS market.

    The proposed criteria would involve modifying the reimbursement curves between the single-B and triple-A rating categories to factor in changes to S&P's outlook in .......

    News Round-up 15 August 2014

  • SF legal vet joins Canada firm

    Borden Ladner Gervais (BLG) has added Paul-Michael Rebus to its banking and financial services group in Toronto. He has broad structured finance experience across credit derivatives and securitisation.

    Rebus joins BLG from Addleshaw Goddard, where he was a partner in the DCM, securitisation and structured products group in London. He has also worked at Eversheds where he was a partner .......

    Job Swaps 14 August 2014

  • CRE CDO manager transfer proposed

    The controlling class of Cedarwoods CRE CDO II is proposing to replace Angelo Gordon with Torchlight affiliate Collateral Management as collateral manager. Moody's has determined that the proposed collateral management assignment and assumption will not impact the current ratings of the notes.

    For other recent CDO manager transfers, see SCI's database.

    .......

    Job Swaps 14 August 2014

  • RFC issued on RMBS update

    Moody's is requesting feedback on a proposed update to its approach to rating US prime RMBS. A new version of the MILAN model will be the main quantitative tool for the agency's collateral analysis under the proposal.

    Based on an extensive analysis of performance data and incorporating leading-edge statistical methods, Moody's says the new model supports a robust analysis of .......

    News Round-up 14 August 2014

  • Argentine CDS auction scheduled

    An auction to settle Argentine Republic senior CDS trades has been scheduled for 21 August, following ISDA's determination of a failure to pay credit event (SCI 4 August). The initial list of deliverable obligations consists of 11 bonds. The Americas Determinations Committee notes that it is aware of four additional bonds issued by the Argentine Republic, but it has been .......

    News Round-up 14 August 2014

  • Backing away

    Canadian government reducing RMBS role

    Private RMBS has traditionally only constituted a small part of Canadian residential mortgage funding. However, with the dominant government-backed RMBS programme being scaled back, the sector has room to grow.

    The majority of residential mortgage securitisation is conducted through the National Housing Act Mortgage-Backed Securities (NHA MBS) programme, which is sponsored by the Canada Mortgage and Housing Corporation (CMHC), a .......

    News Analysis 14 August 2014

  • Second 2.0 loan liquidated

    The US$6.2m Langtree Ventures Portfolio loan - securitised in GSMS 2013-GCJ14 - has been resolved with a 1% loss severity, becoming the second-ever CMBS 2.0 loan to liquidate. Morgan Stanley CMBS strategists note that the payment distribution was consistent with their understanding of the CMBS 2.0 waterfall, in contrast to the first 2.0 liquidation - The Cove at Southern, securitised .......

    News Round-up 14 August 2014

  • Further capital charge reductions for Solvency 2

    Fitch reports that under the latest revisions to Solvency 2, capital charges for type 1 securitisation positions rated double-A, single-A and triple-B will be reduced by 29%, 46% and 41% respectively. The changes appear to be targeted at the issuance of securitisations backed by residential mortgages, consumer loans and particularly SME lending from southern European countries that cannot achieve triple-A .......

    News Round-up 14 August 2014

  • Genworth CDS widen on subpar results

    Subpar results posted last quarter have sent credit default swap spreads on Genworth Financial to their widest levels since February, according to the latest CDS case study from Fitch Solutions. Five-year CDS on the name have widened by 56% over the past month.

    After pricing consistently in the triple-B minus space since April, the market is now pricing Genworth's credit .......

    News Round-up 13 August 2014

  • Strongest recovery seen for apartments

    US major market apartment prices have risen above their pre-crisis peak by 32%, according to the latest Moody's/RCA CPPI national all-property composite index. The CPPI itself increased by 1.2% in June and is now 64.1% above its January 2010 trough and only 2.4% below its November 2007 peak. The apartment component rose by 2.7%, while the larger core commercial component .......

    News Round-up 13 August 2014

  • Euro markets unexpectedly busy

    Weakness in the broader financial markets brought volatility to the European ABS sector last week. An unseasonably high number of ABS bid-lists were observed, while activity is building in RMBS and the focus on CMBS has been on the unexpected postponement of a new issue.

    "The last week and a half has seen activity picking up strongly. It was quiet .......

    Market Reports 13 August 2014

  • SNC enforcements could have mixed impact

    The US Fed, the OCC and the FDIC have warned that banks found to have unsound practices - based on leveraged lending guidance released in 2013 - could be subject to enforcement actions. Such actions would have a mixed impact on CLO investors, Moody's suggests.

    Enforcement actions could follow the regulators' annual Shared National Credit (SNC) review of syndicated loans, .......

    News Round-up 13 August 2014

  • Chinese ABS to 'build on recent successes'

    S&P reports that 23 financial institutions issued 43 securitisation transactions in the Chinese interbank bond market between the market's inception in 2006 and 31 May 2014, with an aggregate issuance amount of RMB179.3bn. The agency notes that recent growth of the sector has been significant, with about 40% of this volume being issued this year.

    "The market expects securitisation in .......

    News Round-up 13 August 2014

  • Workout fees accrue on defeased loan

    The US$50m Ridgeview Apartments loan - securitised in DBUBS 2011-LC2A - was fully defeased in June, but workout fees continue to accrue. Morgan Stanley CMBS strategists note that this is due to a prior technical modification.

    The servicer on the transaction issued a default notice in March 2012, after the borrower refused to use the lockbox under the current terms .......

    News Round-up 13 August 2014

  • RFC issued on single GSE security

    The FHFA has released a request for input on the proposed structure for a single security that would be issued and guaranteed by Fannie Mae or Freddie Mac. The initiative aims to improve the overall liquidity of GSE MBS by creating a single security that is eligible for trading in the to-be-announced (TBA) market.

    In particular, the FHFA is seeking .......

    News Round-up 13 August 2014

  • CLO firm adds RBS pair

    CIFC Corp has boosted its capital markets and distribution group with the appointments of Matt Andrews as md and Mark Sanofsky as executive director. They both join from RBS Securities.

    Andrews was head of CLO origination and structuring for RBS' CLO business and had previously worked in RBS' asset-backed finance group. Sanofsky was a senior member of RBS' US CLO .......

    Job Swaps 13 August 2014
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