Complete news archive

  • 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

  • Auctions exposed to LNR assets

    US$589m of allocated balance from US$775m in US CMBS loans is set to be sold via Auction.com in late August and early September. Three deals have a high concentration of loans out for bid and the properties appear to be exclusively specially serviced by LNR, according to Barclays Capital data.

    The COMM 2006-C8 deal has the largest exposure to the auctions, .......

    News Round-up 4 August 2014

  • CMBS 2.0 defeasance emerging

    Fitch says it has provided rating confirmations for 26 defeased loans in US CMBS thus far in 2014, three of which were from CMBS 2.0 transactions that occurred in July. Two others were in 2011 transactions and another in a 2010 transaction. Each of the loans has five-year terms.

    The appearance of 2.0 requests marks the beginning of an expected .......

    News Round-up 4 August 2014

  • Argentine credit event confirmed

    ISDA's Americas Credit Derivatives Determinations Committee has resolved that a failure to pay credit event occurred in respect of the Argentine Republic (SCI 1 August). An auction will be held in due course in respect of outstanding CDS transactions on the entity.

    Separately, ISDA's EMEA Determinations Committee is deliberating over whether a succession event has occurred in respect of Banco .......

    News Round-up 4 August 2014

  • Bank fined for mortgages 'hustle'

    A US federal judge last week ordered Bank of America to pay US$1.27bn for Countrywide's role in the sale of risky mortgages to the GSEs during the financial crisis. The loans were sold through a programme known as 'the hustle' from August 2007 to May 2008, for which the bank was found liable for fraud last year (SCI 28 October .......

    Job Swaps 4 August 2014

  • SCI Start the Week - 4 August

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

    Pipeline
    It was another busy week for deals joining the pipeline. Seven ABS, four RMBS, six CMBS and three CLOs remained by Friday.

    The newly-announced ABS comprised: US$1bn CarMax Auto Owner Trust 2014-3; US$800.2m Enterprise Fleet Financing Series 2014-2; US$95m NYCTL 2014-A; US$148.76m Orange Lake Timeshare Trust 2014-A; NZ$283.25m Q Card Trust; US$382m SMB Private Education Loan Trust 2014-A; .......

    News 4 August 2014

  • Punch B upside expected

    With the ABI special committee now supporting the latest Punch restructuring proposal (SCI 22 July), it now appears likely that the restructuring could be completed within the next six months. European asset-backed analysts at Barclays Capital see most upside in the Punch B securitisation under this scenario, given that the Punch A class B notes have more value as currently .......

    News 1 August 2014

  • Derivatives group to buy GFI

    CME Group and GFI Group have entered into definitive agreements through which CME will purchase all outstanding shares of GFI Group and acquire subsidiaries Trayport and FENICS. A consortium of GFI Group management will then buy back GFI Group's wholesale brokerage and clearing businesses.

    CME will acquire the GFI Group shares in exchange for US$4.55 per share in CME Group class A .......

    Job Swaps 1 August 2014

  • Auto losses maintain lower levels

    Annualised US prime auto losses were flat month-over-month through June this year at 0.24%, but remain far lower than the rates seen in 2005-2006, according to Fitch's latest index results for the sector. Annualised net losses (ANL) ranged from 0.52%-1.32% back in 2005-2006, while ANL were just 0.17%-0.49% in 2013-2014.

    Fitch's prime auto loan ABS 60+ days delinquency index stood .......

    News Round-up 1 August 2014

  • UK NC RMBS performance supported

    Moody's expects improving macroeconomic drivers and credit conditions in the UK, combined with low domestic interest rates, to boost UK non-conforming RMBS performance. However, the rating agency acknowledges that high household indebtedness could pose some risks to continued positive performance.

    "Inflationary pressures on living costs will likely ease because of stronger forecast GDP growth. These costs typically affect more vulnerable .......

    News Round-up 1 August 2014

  • Specially serviced loans decrease

    The accelerating US economic recovery led to a further decline in CMBS delinquency rates and a decrease in the share of loans in special servicing, according to Moody's 2Q14 surveillance review. The agency's base expected loss for conduit/fusion transactions fell to 8.2% during the quarter from 8.6% in Q1.

    "The improving economy contributed to the decline in Moody's base expected .......

    News Round-up 1 August 2014

  • CMBS credit metrics slide again

    Leverage and other key metrics for US CMBS slipped again in Q2, driving credit enhancement levels for new deals higher still, according to Fitch's latest quarterly index report on the sector. Average triple-A CE for Fitch-rated transactions rose to 24% during the quarter, up by 1.125 percentage points from the prior quarter and 2.375 percentage points from one year ago. .......

    News Round-up 1 August 2014

  • Loss severity ticks up

    The US$82.9m Babcock & Brown FX 2 loan last month liquidated with a 95% loss, after being delinquent for more than two years (see SCI's loan events database). Coupled with low volume, Trepp notes that this large loss contributed to an up-tick in aggregate loss severity, which jumped from 45.32% in June to 60.80% in July.

    Liquidated loan .......

    News Round-up 1 August 2014

  • First loss for FREMF programme

    The US$3.7m Green Meadows Apartment loan - securitised in FREMF 2010-K6 - has been liquidated at a realised loss to the trust of US$374,943, representing a loss severity of approximately 10%. CMBS strategists at Morgan Stanley believe that this is the first loan securitised across any FREMF CMBS to realise a loss.

    According to special servicer commentary, the property was .......

    News Round-up 1 August 2014

  • Argentine credit event mooted

    ISDA's Americas Determinations Committee is due to meet today to discuss whether a failure to pay credit event has occurred in connection with Argentine Republic CDS. The move comes after S&P lowered the country's foreign currency sovereign credit ratings to selective default, citing failure to make a US$539m interest payment on its discount bonds maturing in December 2033. Argentina had .......

    News Round-up 1 August 2014

  • New broker-dealer targets ILS

    Minova Insurance Holdings has launched a new broker-dealer, BMS Capital Advisory. The firm will advise on and facilitate ILS offerings as well as mergers and acquisitions.

    BMS Capital Advisory is an affiliate of BMS Intermediaries. Rom Braga will serve as ceo.

    .......

    Job Swaps 1 August 2014

  • Valuation solution to ease EMIR burden

    Confisio Managed Services is launching a collateral valuation solution along with Dion Global Solutions and Traiana. The solution will be available across all asset classes for exchange traded and OTC derivatives.

    The new service is timed to precede the EMIR deadline on 11 August, when financial and non-financial counterparties will be required to provide daily reports on mark-to-market valuations of .......

    Job Swaps 1 August 2014

  • Loan resolutions slow

    The US CMBS delinquency rate dropped by just 1bp to 6.04% in July, according to Trepp. Loan resolutions totalled only US$600m during the month: with fewer distressed loans removed from the delinquent loan pool, newly delinquent loans pushed the monthly total back up. Trepp currently counts US$32.1bn in delinquent CMBS loans, which is down from June's total.

    "After so many .......

    News Round-up 31 July 2014

  • Duration benefits seen in Seaco deal

    Seaco's latest container deal - the US$500m Global SC Finance II series 2014-1 - is noteworthy not only for its size, but also for its structure. The transaction was last week upsized from US$400m before pricing, becoming the largest issuance seen in the sector since 2011.

    The structure features two pari passu tranches, each with a 10-year expected final maturity .......

    News Round-up 31 July 2014

  • Trade finance ABS to prepay

    Lighthouse Trade Finance Issuer I is to be redeemed on 18 August at the request of the originator BNP Paribas. The move comes almost a year after the transaction was completed (SCI 22 August 2013).

    Fitch, which rated the deal, notes that the originator has exercised an optional redemption and prepayment provision of the documentation. It is understood that the .......

    News Round-up 31 July 2014

  • Conduits benefitting from full support

    Moody's expects EMEA ABCP conduits to no longer be exposed to asset performance risk, as transactions financed by these conduits will almost exclusively be fully supported by liquidity support. The agency notes that the trend to fully supported transactions financed by EMEA ABCP has recently accelerated, with the conversion so far this year of two partially supported conduits - Scaldis .......

    News Round-up 31 July 2014
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