Complete news archive

  • Servicer performance compared

    In its latest 'Servicer Dashboard' publication, Moody's continues its comparison of Nationstar Mortgage, Ocwen Financial Corporation and Walter Investment Management Corporation. By focusing on key differences in their operations, technology, staffing and servicing, the aim is to gain a more nuanced understanding of their servicing performance and loss mitigation outcomes.

    For example, in their operations, Ocwen and Nationstar both focus .......

    News Round-up 7 May 2014

  • Cortland makes European expansion

    Cortland Capital Market Services has opened a London office and appointed Juliana Ritchie as its head of business operations for Europe. The office and appointment mark a significant expansion of Cortland's business activities.

    Ritchie was previously co-founder and svp of LaSalle Bank Global Trust Services in Europe. She has also worked in global securitisation trust services for ABN Amro, where .......

    Job Swaps 7 May 2014

  • RMBS trading director added

    RED Capital Markets has appointed Michael Franzoni as a sales and trading director. He will be based in Columbus, Ohio and take responsibility for placing multifamily debt and recycling capital through RMBS executions and trading RMBS and municipal securities.

    Franzoni was previously capital markets avp at Arbor Commercial Mortgage and an analyst at UBS. He has also worked at Deloitte .......

    Job Swaps 7 May 2014

  • US, European CLO firm founded

    An independent advisory firm focused on global credit has been formed with offices in London and New York. Fair Oaks Capital will also launch its Fair Oaks Income Fund on the specialist fund market of the London Stock Exchange.

    The firm currently advises GLI Finance and its new fund will acquire GLI's CLO portfolio and look to raise up to .......

    Job Swaps 7 May 2014

  • Repayment plans positive for SLABS

    The US Department of Education (DOE) last week released data showing a sharp increase in Federal Direct Loan recipients' use of student loan debt repayment programmes that lower monthly payments if federal student loan debt is high relative to the borrower's income. Moody's notes in its latest Credit Outlook publication that the use of income-driven repayment plans by Direct and .......

    News Round-up 6 May 2014

  • Smaller CRA network proposed

    The European Commission has adopted a report addressed to the European Parliament and Council on the feasibility of a network of smaller credit rating agencies (CRAs) in the EU. The report assesses how the establishment of such a network could contribute to the strengthening of smaller CRAs, facilitating their growth to become more competitive market players.

    The report proposes the .......

    News Round-up 6 May 2014

  • Turkish RMBS criteria finalised

    Moody's has published its approach to rating Turkish residential mortgage-backed loan pools, using the MILAN framework. The move implements the proposals outlined in the agency's recent RFC (SCI 10 March).

    Moody's says it did not receive comments in connection with the RFC and, as a result, did not make any changes to the proposed approach. The agency notes that benchmarking .......

    News Round-up 6 May 2014

  • Financial data firm to float

    Markit has filed for a US IPO. The IPO is understood to be currently valued at US$750m, although that is thought to be a placeholder subject to change.

    The firm was valued at around US$5bn when Singapore's sovereign wealth fund Temasek purchased a stake last year (SCI 22 May 2013). Joint bookrunners for the proposed offering will be: Bank of .......

    Job Swaps 6 May 2014

  • Liquidation volumes drop

    US CMBS liquidation volumes reached US$844.16m in April, less than half of March's US$1.95bn, according to Trepp. Of the loans that were liquidated, 67% by balance fell into the greater than 2% loss severity category.

    April loss severity came in at 39.77%, down from March's 52.49% and well below the 12-month moving average of 47.57%. The number of loans liquidated .......

    News Round-up 6 May 2014

  • SLM ratings affirmed post-split

    Moody's has affirmed the ratings of 475 classes of Sallie Mae's FFELP and private student loan securitisations, impacting approximately US$117bn of ABS. The affected collateral is sponsored, administered and serviced by Navient, following the 1 May restructuring of SLM Corp (SCI 15 April).

    Under the split, Navient Corp retains all of the former company's FFELP and private educational loan portfolios, .......

    News Round-up 6 May 2014

  • Credit card issuance set to rise

    DBRS has published the second edition of a Europe-wide index of credit card securitisations. The latest report includes the addition of recent ABS from Carrefour and El Cortes Ingles.

    The report finds that credit card transactions across Europe are experiencing continually decreasing charge-off levels, falling to 3.5% in February 2014 from 4.8% in February 2013. French credit card charge-offs in .......

    News Round-up 6 May 2014

  • Jumbo cat bond priced

    Citi and Bank of America Merrill Lynch have closed the largest-ever catastrophe bond - the US$1.5bn Everglades Re series 2014-1 - for Citizens Property Insurance Corp. The three-year notes cover losses in Florida from hurricanes on an annual aggregate basis.

    Rated single-B by S&P, the transaction priced at 750bp over US money-market fund yields. It is the third issuance from .......

    News Round-up 6 May 2014

  • RMBS postponed after ratings spat

    S&P has withdrawn its preliminary ratings on the US$184.9m Bayview Opportunity Master Fund IIIa Trust 2014-9RPL re-performing RMBS, after the issuer stated that it intends to delay the offering beyond the expected close of 12 May. The agency had previously requested additional information pertaining to property valuations and loss severity experience, following the publication of the deal's presale report.

    The .......

    News Round-up 6 May 2014

  • Phased compliance for package transactions

    The US CFTC has issued a no-action letter, providing a phased compliance timeline for certain package transactions that include at least one interest rate or credit default swap that has been made available to trade. Beginning on 16 May, market participants executing swaps subject to the trade execution requirement that are part of a package transaction must be traded on .......

    News Round-up 6 May 2014

  • Ratings vet takes lead role

    Scope Ratings has appointed Stefan Bund as head of asset based finance. He takes responsibility for managing credit rating analytics for structured finance, project finance and asset based funds.

    Bund was previously head of business development at Portigon, the legal successor to WestLB, where he served as md. He has also worked at Fitch and Landesbank Baden-Wuerttemberg and will divide .......

    Job Swaps 6 May 2014

  • CMBS spreads stay steady

    US CMBS BWIC supply was over US$200m yesterday as spreads stayed mostly unchanged. CMBS 2.0 and 3.0 single-A rated securities tightened in slightly.

    Much of the bid-list supply consisted of agency paper, with SCI's PriceABS data recording a number of covers. There was also significant derivatives activity.

    In the agency space, the FHMS K017 X1 tranche .......

    Market Reports 2 May 2014

  • Structured credit pro returns to bank

    Sumit Chaudhary has rejoined Deutsche Bank and takes the role of co-head of CEEMEA structured credit. He is based in London and will report to Brad McKee and Alok Bhalla.

    Chaudhary joins from UBS, where he spent the last four years and was md in the special situations group for Europe. Before that he spent almost nine years at Deutsche .......

    Job Swaps 2 May 2014

  • P2P market presents challenges

    Hurdles remain before ratings can be assigned to peer-to-peer (P2P) securitisations, says S&P. The market is evolving, but the rating agency says it is still too early to know how it will look in its mature state.

    "We believe the novelty of this sector and its wide range of players presents unique challenges in assessing the overall risks in future .......

    News Round-up 2 May 2014

  • Equipment ABS credit performance improves

    Credit performance continues to improve for the more recent vintages of equipment loan and lease ABS. The mid-ticket sector tends to have lower cumulative net defaults than small-ticket, largely due to differences in borrower base and collateral.

    The 2011-2013 small-ticket vintages have outperformed 2007-2010, note Bank of America Merrill Lynch analysts. Cumulative net default curves have moved lower with every .......

    News Round-up 2 May 2014

  • Rating withdrawal process outlined

    Moody's has clarified its global process for determining the minimum number of borrowers in the pools underlying securitisations below which excessive exposure to the idiosyncratic credit risk of a few borrowers may prevent it from assigning or maintaining ratings. The report updates a previous version which dealt with only RMBS (SCI 6 November 2013).

    As consumer ABS and RMBS transactions .......

    News Round-up 2 May 2014

  • CMBS market continues to stabilise

    April marks the eleventh straight month of improvement in the delinquency rate for US commercial real estate loans in CMBS, says Trepp. The rate fell 10bp to 6.44% and is now 259bp lower than it was a year ago.

    The delinquency rate has consistently fallen 15bp-50bp over recent months and Trepp attributes the relative slow-down last month to the completion .......

    News Round-up 2 May 2014
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