Complete news archive

  • Interest rate hedges evolving

    A deeper examination of interest rate risk in structured finance deals is key when analysing structures that try to hedge this risk with interest rate caps, note rate caps or issuance of fixed rate notes, Fitch says. These increasingly popular structural features protect deals where the SPV pays a fixed or a capped rate on the notes in return for .......

    News Round-up 21 July 2014

  • Gleacher dissolution draws near

    Gleacher & Company has provided an update on its plan to dissolve and liquidate, which was announced earlier this year (SCI 13 March). The company intends to file a certificate of dissolution in Delaware, which is expected to become effective at the close of business on 28 July.

    Gleacher anticipates making an initial liquidating distribution of US$4.05 per share of .......

    Job Swaps 21 July 2014

  • BGLF placement exceeds expectations

    Blackstone/GSO Loan Financing (BGLF) has raised gross proceeds of €260.5m via its share placement (SCI 14 July). Correspondingly, the total number shares in issue and of voting rights in the company following admission will be 260.5 million.

    Charlotte Valeur, BGLF chairman, comments: "Investors have positively responded to Blackstone/GSO's presence and track record in the European loan market. The company will .......

    Job Swaps 21 July 2014

  • LCDS auction scheduled

    The auction to settle the credit derivative trades for Solocal Group (formerly known as Pages Jaunes Group) LCDS is to be held on 19 August. A failure to pay credit event was determined on the entity last month (SCI 13 June).

    .......

    News Round-up 21 July 2014

  • Cumulative defaults remain flat

    Fitch's quarterly US fixed-rate CMBS cumulative default rate remains flat at 13.5%, due to relatively stable default and new issuance levels. In 2Q14, 68 loans totalling US$974.5m were newly defaulted, down from 91 loans (US$1.1bn) in 1Q14 and 97 loans (US$1.4bn) in 2Q13. Of the loans sized at over US$20m, 12 accounted for approximately 62% of the total newly defaulted .......

    News Round-up 21 July 2014

  • TMAN 7 D bonds overvalued?

    Pricing on the TMAN 7 class D bonds does not reflect the risks involved, say Deutsche Bank CMBS analysts. An update call last month from special servicer Hatfield Philips has enhanced transparency around the transaction, but there are concerns about possible tax costs.

    Projected end dates were disclosed for the majority of the loans in the special servicer's update and .......

    News 18 July 2014

  • US RMBS supply stays steady

    US non-agency RMBS secondary market activity remained moderate yesterday as supply was driven mainly by subprime floaters. BWIC volume was around US$650m, with SCI's PriceABS data capturing tranches from vintages as disparate as 2003 and 2014.

    Among them was a US$5.621715m piece of the CWL 2003-1 M1 tranche, which was traded during the session. It marked .......

    Market Reports 18 July 2014

  • Spanish RMBS tender announced

    BNP Paribas and Santander have announced a tender offer for two UCI bonds - the ninth for UCI paper over the past five years. It will be the first Spanish RMBS tender offer of 2014.

    The offer is to repurchase the UCI 14 B and UCI 14 C bonds. Barclays Capital analysts note that this is the first time that .......

    News Round-up 18 July 2014

  • Depreciation could impact auto losses

    Depreciation rates on used vehicles are approaching levels not seen since the recession. However, a report by Black Book and Fitch says depreciation could soon lead to marginally higher losses for US auto ABS.

    Black Book notes that new and used vehicle markets are seeing positive growth, with depreciation increasing as a result. New vehicle sales next year are expected .......

    News Round-up 18 July 2014

  • Italian repurchases mask performance

    The number of loans repurchased by originators in Italian lease and SME ABS transactions accounts for between 10% and 20% of securitised pools in a third of the transactions Moody's rates. The agency believes actual default levels may therefore be higher than reported.

    Repurchases might be credit positive in the short term as cash injections benefit noteholders, but they mean .......

    News Round-up 18 July 2014

  • Fitch appoints product head

    Fitch Solutions has appointed Brian Filanowski as global product head. He will be based in New York and report to Gloria Aviotti.

    Filanowski will take responsibility for the delivery and global expansion of existing and new analytical products and services from both Fitch Solutions and Fitch Ratings. He joins from Bloomberg, where he was a business manager focussed on real-time .......

    Job Swaps 18 July 2014

  • US card indices to break records

    Prime US credit card ABS collateral performance metrics are set to break records in the next reporting period, says Fitch. Improving employment rates and strong credits underlying trusts are creating powerful support for the asset class.

    The agency expects its charge-off index to decline to a new low, while the prime 60-plus day delinquency index is also expected to reach .......

    News Round-up 18 July 2014

  • Canadian card performance improves

    The charge-off rate in S&P's Canadian credit card quality index decreased to 3.5% in May, down 4% year-over-year. The 30-plus day delinquency rate also decreased to reach 2.2%, while the payment rate, yield and excess spread rose to 40.9%, 23% and 15.7%, respectively.

    The rating agency partly attributes the performance improvement to the removal of Gloucester Credit Card Trust from .......

    News Round-up 18 July 2014

  • US CMBS abuzz with bid-lists

    There was heavy BWIC volume in the US CMBS market yesterday. Bid-lists totalling over US$500m were circulating, with SCI's PriceABS data picking up a range of vintages out for the bid.

    Among the pre-crisis names available was the BACM 2005-3 AJ tranche, which was talked at around 500 and covered at plus 575. The tranche was .......

    Market Reports 17 July 2014

  • RMBS risk if Korean regulations relax

    A relaxation of LTV and DTI regulations on Korean banks' mortgage loans could increase household debt and pressure Korean banks' asset quality, says S&P. In a scenario where banks compete aggressively on underwriting standards or pricing to grow business, the rating agency notes that the credit risk of residential mortgage loan portfolios could increase quickly.

    Current LTV and DTI requirements .......

    News Round-up 17 July 2014

  • Structured pro named PM

    Black Diamond Capital Management has appointed Jerome Shapiro as md and structured product portfolio manager. He is based in Greenwich, Connecticut and takes responsibility for structured product investments across the Black Diamond platform.

    Shapiro was previously svp at One William Street, managing an asset-backed portfolio across multiple commercial and consumer sectors. He has also worked at Merrill Lynch and Bear .......

    Job Swaps 17 July 2014

  • Agency to update impairment definition

    Moody's intends to align the definition of impairment used for structured finance securities in Japan with the definition used in all other geographies, whereby securities are considered impaired if poor collateral performance or failure by any transaction party to perform under its obligations causes previously scheduled interest or dividend payments to be suspended. This is the case even if payment .......

    News Round-up 17 July 2014

  • Mod adds two hope notes

    The US$54m Colony V portfolio located in the Chicago and Washington DC metro areas has received a modification creating two hope notes. The portfolio previously backed a US$53.7m loan in JPMCC 2007-LDPX.

    The loan went into special servicing in March 2013 after failing to pay off at its maturity and subsequently went into delinquency. Barclays Capital analysts note that it .......

    News Round-up 17 July 2014

  • Driver China One presale updated

    Fitch has updated the presale for Volkswagen's Driver China One Trust (SCI 3 June). While the update reflects that references to Fitch were removed from the transaction documents, there should be no rating impact.

    The most significant change is the removal of rating thresholds designed to maintain the rating of the account bank at a minimum level commensurate with a .......

    News Round-up 17 July 2014

  • Securitisation vet enlisted

    Starwood Capital Group has hired Jeffrey DiModica. He will serve as md and assist in finding new business opportunities as well as supporting the growth and expansion of Starwood Property Trust and its affiliated entities.

    DiModica was previously head of ABS, RMBS and CMBS sales and strategy for the Americas at RBS. Before joining RBS he sold derivative and MBS .......

    Job Swaps 17 July 2014

  • Global RMBS claims settled

    American International Group has reached a global resolution of its RMBS-related disputes with Bank of America. The resolution also covers AIG's obligations to the US$8.5bn settlement of Countrywide's mortgage repurchase obligations to various investors (SCI passim) as well as disputes concerning the issuance of mortgage guaranty insurance by AIG's United Guaranty subsidiaries to Bank of America and Countrywide.

    AIG will .......

    Job Swaps 17 July 2014
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