Complete news archive

  • Clearing repository formed

    IOSCO has established an information repository for OTC derivatives central clearing requirements. The aim is to provide regulators and market participants with consolidated information on the clearing requirements of different jurisdictions.

    By providing this information, IOSCO seeks to assist authorities in their rule-making and help participants comply with the relevant regulations in the OTC derivatives market. The repository sets out .......

    News Round-up 6 August 2014

  • Euro RMBS activity up sharply

    It was a busy session for the European RMBS market yesterday as SCI's PriceABS data captured more than 60 unique European RMBS bonds out for the bid. Covers were recorded for tranches across the length of the capital structure.

    Among the names circulating on yesterday's bid-lists was FEMO 1 A1, which was talked at low-98, the 98 area .......

    Market Reports 6 August 2014

  • APAC downgrade rate trends higher

    Moody's reports that in 2013 the 12-month downgrade rate for its Asia-Pacific (ex-Japan) structured finance portfolio trended higher on a year-on-year basis, rising from 4.2% to17.5%. Over the same period, the 12-month upgrade rate increased slightly from 0.7% to 1.7%.

    The average notches per downgraded issuer rose to 6.2 notches, more than double the 2.5 notches observed in 2012. The .......

    News Round-up 6 August 2014

  • RFC issued on transformer criteria

    AM Best is requesting feedback on a new draft criteria report on rating reinsurance/insurance transformer vehicles. The report describes the rating agency's approach and highlights rating considerations unique to the evaluation of ILS transformer vehicles and the process by which the transformer vehicles act as an intermediary to transfer insurance risks to various counterparties.

    The new criteria generally apply to .......

    News Round-up 6 August 2014

  • ABB credit event called

    ISDA's EMEA Credit Derivatives Determinations Committee has resolved that a bankruptcy credit event occurred in respect of ABB International Finance, after the firm was dissolved last month. Since there are no deliverable obligations for the entity, the Committee is unable to publish any auction settlement terms for this event and, as such, no auction will be held in respect of .......

    News Round-up 6 August 2014

  • Fed launches mortgage pilot

    The New York Fed has launched a Mortgage Operations Counterparty (MOC) Pilot Program for counterparties in agency MBS operations. The objective of the programme is to explore ways to broaden access to open market operations and gain further experience in dealing with a wider range of firms.

    The move follows the conclusion of the Fed's Treasury Operations Counterparty (TOC) Pilot .......

    News Round-up 6 August 2014

  • ESFG credit event determined

    ISDA's EMEA Credit Derivatives Determinations Committee has resolved that a bankruptcy credit event occurred in respect of Espírito Santo Financial Group, after the company requested the Luxembourg Courts for controlled management (Gestion Contrôlée) because it is unable to meet its obligations under its CP programme and standalone debt instruments. The Committee resolved that no auction would be held in relation .......

    News Round-up 5 August 2014

  • Accounting to drive tender activity

    European securitisation analysts at Citi suggest that only securitisations that are consolidated on bank balance sheets are likely to be tendered going forward because the originator will not recognise any accounting gain from the buyback of bonds issued by deconsolidated entities. The implementation of IFRS 10 could prompt more originators to reassess their control over SPVs and may lead to .......

    News 5 August 2014

  • Smaller agencies gain market share

    The use of smaller rating agencies has become more common for US CMBS 3.0 deals, particularly as Moody's, S&P and Fitch have tightened their criteria in response to perceived weakening in credit quality. The move could potentially limit liquidity on these bonds if some investment mandates still require investment grade ratings from one of the top three agencies, according to .......

    News 5 August 2014

  • Working capital specialist firm acquired

    JRJ Group, TomsCapital and 76 West Holdings have partnered to acquire Demica from the J.M. Huber Corporation. No staff changes are anticipated, with ceo Phillip Kerle remaining in his post in London.

    Demica provides working capital solutions to a wide range of clients. It will now be able to combine its existing position in the working capital sector with the .......

    Job Swaps 5 August 2014

  • Timeshare delinquencies hit post-crisis lows

    Total US timeshare ABS delinquencies for 2Q14 stood at 2.92%, down from 3.19% in 1Q14 and 3.05% in 2Q13, according to Fitch's latest index results for the sector. This marks two years of consistent year-over-year improvement and is the lowest level of delinquencies reported by the Fitch index since 2007.

    The agency notes that defaults are consistent with last quarter, .......

    News Round-up 5 August 2014

  • RMBS buyouts eyed

    Ocwen Financial disclosed in its Q2 EPS reporting that it plans to invest in RMBS buyouts for loans that it services beginning in 3Q14, which is expected to generate returns that meet the servicer's 25% hurdle rate. The firm is also set to exercise servicer clean-up calls, as it owns the call rights to deals totalling an estimated US$150bn-US$200bn.

    Excluding .......

    News Round-up 5 August 2014

  • Queen Street III defaults

    S&P has lowered to D (default) from double-C its rating on the US$150m Queen Street III Capital catastrophe bond, sponsored by Munich Re. The transaction covered losses due to major European windstorms between July 2011 and July 2014.

    The downgrade reflects the fact that noteholders did not receive at least 99.99% of the outstanding principal back on the notes' redemption .......

    News Round-up 5 August 2014

  • Subprime auto investigation underway

    The US Department of Justice has issued a subpoena to General Motors Financial Company, directing the firm to produce certain documents relating to its origination and securitisation of subprime auto loans since 2007. The move is in connection with a DOJ investigation in contemplation of a civil proceeding for potential violations of the Financial Institutions Reform, Recovery and Enforcement Act .......

    News Round-up 5 August 2014

  • Steadfast buys into reinsurance broker

    Steadfast Group has agreed to take a 50% equity interest in Steadfast Re, formerly known as Beach & Associates Sydney. The firm will be the only Australian-owned reinsurance broker supporting Australian and New Zealand insurers and will be supported by Steadfast Group and Beach & Associates.

    Steadfast Re will now benefit from Steadfast Group's network of broker businesses. It will .......

    Job Swaps 5 August 2014

  • Most trustees accept JPM settlement

    Trustees for most of the deals covered by JPMorgan's recent settlement offer (SCI 29 July) have accepted the modified proposed settlement agreement. Trustees for 27 trusts and loan groups negotiated to extend their acceptance deadline, while six rejected the settlement.

    The modified proposal allows for RMBS trustees to accept or reject the settlement based on an individual loan group level .......

    Job Swaps 5 August 2014

  • Credit benefits

    Reach for yield outweighs macroeconomic concerns

    The US credit markets enjoyed a positive first half, with some sectors seeing returns in the high single-digits due to consistent spread tightening and rate compression. The strongest performing segments were those with exposure to interest rate duration.

    "Credit has benefited from several helpful trends: accommodative central bank policy, low default rates and benign treasury rates," confirms Chris Acito, ceo .......

    News Analysis 5 August 2014

  • Dixons CDS tighten on merger

    Five-year CDS on Dixons Retail Inc have tightened by 35% over the past month, according to Fitch Solutions. The entity has outperformed the broader European retail sector, which widened by 5% over the same period.

    "The boost in CDS market sentiment for Dixons Retail is likely attributed to shareholders approving the merger with Carphone Warehouse Group to create the UK's .......

    News Round-up 4 August 2014

  • Loan recoveries to support ratings

    S&P is incorporating additional information on loan recoveries into its analysis of CLO transactions. The new information aims to provide additional insight into the agency's view of potential recovery outcomes within the bands associated with certain of its recovery rating categories.

    The initial report providing additional guidance on recoveries for approximately 80 loans was published on 18 July, but the .......

    News Round-up 4 August 2014

  • Basel 3 jurisdictional differences emerging

    Moody's reports that while Basel 3 implementation is proceeding globally, notable differences are evident between jurisdictions in a number of areas, including pace, the degrees of strictness relative to Basel Committee guidance and the resulting challenges that banks face. The agency suggests that some of the weaknesses associated with Basel 2 have not been sufficiently addressed and that it is .......

    News Round-up 4 August 2014

  • Greek sovereign ceiling raised

    Moody's has raised the maximum achievable rating for Greek structured finance transactions to Ba3 from B3, after it upgraded Greece's government bond rating to Caa1 from Caa3 and the local and foreign currency bond and deposit ceilings to Ba3 from B3. The agency says the move reflects the country's reduced economic, legal and political risks.

    Specifically, Moody's notes that the .......

    News Round-up 4 August 2014
×