Complete news archive

  • CMBS pay-offs drop

    The percentage of US CMBS loans paying off on their balloon date slipped noticeably in June to 67.3%, about 10 points lower than the May reading of 77.1%, according to Trepp. In comparison, the 12-month moving average stands at 71.7%.

    By loan count as opposed to balance, 74.1% of loans paid off last month - marking a slight decrease from .......

    News Round-up 4 July 2014

  • Hertz delay to trigger lease EOD?

    The Hertz Corporation has delayed filing its 1Q14 10-Q financial statement, triggering a potential lease event of default within its US rental car ABS structures that could cause an amortisation event for each series of notes secured by the lease. After applicable grace periods expire and absent a cure, a vote by more than 50% of class A noteholders of .......

    News Round-up 4 July 2014

  • HY single-name clearing introduced

    ICE Clear Credit has launched clearing for non-investment grade single name CDS constituents of the Markit CDX.HY index. The move means that the clearing house will clear nearly 500 CDS instruments through ICE Clear Credit and ICE Clear Europe, including North American, European and emerging market indices, as well as sovereign and corporate single names. Since launching CDS clearing five years .......

    News Round-up 3 July 2014

  • Green light for ABS, RMBS ratings

    Morningstar Credit Ratings' designation on the NAIC credit rating provider (CRP) list has been extended to cover all ABS and MBS. Previously the designation only covered CMBS.

    The amendment became effective last month and provides insurance companies with an extra option among rating providers for determining risk-based capital under NAIC guidelines. Investors using a designated CRP are exempt from making .......

    News Round-up 3 July 2014

  • German MFH performance to remain strong

    German multifamily (MFH) CMBS performance has been strong since transaction origination in 2012 and 2013, Fitch notes. The agency expects this trend to continue in the coming quarters, due to the stable economy in Germany.

    "The collateral performance of the largest MFH transactions has remained stable to positive over the last 12 months, visible through increasing rental levels, stable vacancy .......

    News Round-up 3 July 2014

  • Hedge fund assets top US$3trn

    Total assets in hedge funds surpassed US$3trn for the first time in May, according to eVestment. The US$22bn of new capital added brings year-to-date flows to US$93.3bn, the largest five-month total to begin a year since 2007.

    Performance gains added US$37.8bn to total AUM for an estimated asset-weighted return of 1.28% in May. This compares to the 1% the industry .......

    News Round-up 3 July 2014

  • 'Core' arrangers dominate US CLOs

    Underlining the flourishing market, 119 US CLOs priced in 1H14 for a total value of US$63.2bn, according to Appleby's latest 'CLO Insider' report. Volumes surpassed the total for 2H13 by US$22bn.

    "The first half of 2014 not only marked the biggest dollar amount in terms of CLOs priced since the market started picking up in 2010, but the average deal .......

    News Round-up 3 July 2014

  • Maturity repayment index inches up

    Fitch reports that six of the 10 EMEA CMBS loans maturing in 3Q14 have a Fitch loan-to-value ratio above 100%. The agency further observes that the percentage of loans formally in default and/or special servicing continues to increase as loans hit maturity.

    "Among the loans maturing in the third quarter, losses will likely be incurred, barring restructuring or injection of .......

    News Round-up 3 July 2014

  • Cat bond pricing floor emerging?

    Munich Re last week withdrew its latest catastrophe bond issuance - Queen Street X - due to weak demand. Pushback on the deal's pricing could be a sign that investors are approaching a limit on acceptable catastrophe risks, according to Fitch.

    Ratios of risk premiums to expected loss have fallen dramatically in the cat bond market over the past several .......

    News Round-up 3 July 2014

  • ABS CDO manager replaced

    Dock Street Capital Management has replaced Strategos Capital Management as collateral manager on the Kleros Preferred Funding II ABS CDO. Moody's confirms that the move won't impact the deal's ratings, noting that the amended and restated management agreement does not alter the responsibilities, duties and obligations of the manager in a meaningful way. In reaching its conclusion, the agency considered .......

    Job Swaps 3 July 2014

  • CCRIF sees cat bond firsts

    GC Securities has placed the first catastrophe bond directly issued by the World Bank, via member institution the IBRD. The US$30m CCRIF catastrophe-linked capital at risk notes provide three years of annual aggregate protection for hurricane and earthquakes affecting 16 Caribbean countries participating in the Caribbean Catastrophe Risk Insurance Facility (CCRIF), representing the first time that the initiative has tapped .......

    News Round-up 3 July 2014

  • Auction.com sales continue apace

    US$477m in US CMBS loan allocated balance is slated for sale on Auction.com in July and early August. Unlike previous auctions, most deals have only 1-2 loans up for bid.

    The largest loan up for sale is the US$67m HSA Memphis Industrial Portfolio securitised in MLCFC 2007-5, with the final nine assets in the portfolio listed (see SCI's CMBS loan .......

    News Round-up 3 July 2014

  • DVA approach published

    The EBA has published its technical advice to the European Commission on the use of a prudential filter for gains and losses arising from banks' own credit risk of derivatives. The authority considers as appropriate not to deviate from the current prudential approach applied at the international level under the Basel 3 rules.

    The EBA's analysis highlights that at present .......

    News Round-up 3 July 2014

  • Securitisation task force established

    The Basel Committee and IOSCO are co-leading a task force that will undertake a wide-ranging survey of global securitisation markets. To gain a better understanding of market participants' views, the cross-sectoral Task Force on Securitisation Markets has set up an online survey, which should be completed by 25 July.

    Established in consultation with the International Association of Insurance Supervisors (IAIS) .......

    News Round-up 3 July 2014

  • FirstKey set up CRE platform

    FirstKey Lending has established a commercial real estate lending programme - FirstKey Commercial. The new unit will offer bridging loans of up to US$25m to clients looking to purchase, refinance or reposition commercial properties and will be led by ceo Randy Reiff.

    Reiff was previously global head of CRE finance and CMBS at JPMorgan and global co-head of CRE finance .......

    Job Swaps 3 July 2014

  • CLO lawyer becomes partner

    Appleby has promoted Benjamin Woolf to partner. The structured finance specialist is a member of the corporate and commercial practice group.

    Woolf has particular expertise in CLOs. Before joining Appleby in 2011 he worked at Clifford Chance and Mayer Brown, where he focussed mainly on securitisation and asset-backed financing.

    .......

    Job Swaps 3 July 2014

  • GSE risk-sharing delinquencies 'immaterial'

    One year after GSE risk-sharing RMBS deals were introduced to the market, delinquencies and defaults remain immaterial, according to Fitch. Loan repurchases due to issues identified through GSE quality control reviews have outnumbered non-performing credit events by more than two-to-one. All but one of the loans repurchased were performing at the time of the repurchase.

    "Though repurchases are outpacing credit .......

    News Round-up 2 July 2014

  • Italian servicers adapting to NPL increase

    S&P suggests that the recent rise in Italian non-performing loan volumes could create new growth opportunities for Italian loan servicers. The agency reports that the Italian servicers it ranks have positioned themselves well to be able to manage some of the NPLs that banks and financial institutions could either sell to investors or outsource the servicing.

    The volume of NPLs .......

    News Round-up 2 July 2014

  • Derivatives exposure remains concentrated

    Insured US commercial banks and savings associations reported trading revenue of US$6.1bn in 1Q14, up by US$3.2bn or 108% from US$2.9bn in 4Q13, according to the OCC's 'Quarterly Report on Bank Trading and Derivatives Activities'. At the same time, credit exposures from derivatives fell for the seventh consecutive quarter.

    Net current credit exposure (NCCE), the primary metric the OCC uses .......

    News Round-up 2 July 2014

  • CDO auction due

    An auction will be held for Trainer Wortham First Republic CBO IV on 23 July. The collateral shall only be sold if the proceeds are greater than or equal to the auction call redemption amount.

    .......

    News Round-up 2 July 2014

  • Continued improvement for CMBS delinquencies

    June marked the thirteenth straight month of improvement in the US CMBS delinquency rate. Dropping by 22bp to 6.05%, the reading is 260bp lower year-over-year and 429bp below the all-time high from 2012, according to Trepp.

    Industrial loans saw the most improvement in June, dropping by 55bp, after being the only property type to worsen in May. The retail segment .......

    News Round-up 2 July 2014
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