Complete news archive

  • Irish RMBS tendered

    EBS has commenced a tender offer for €853.81m Emerald Mortgages No. 4 class A, B and C RMBS bonds. Prices are to be determined pursuant to an unmodified Dutch auction, but the minimum purchase price for the paper is 88.5, 42 and 38 respectively. The acceptance amount for each class of notes is also to be determined.

    The lender says .......

    News Round-up 30 April 2014

  • Threat of losses despite settlement

    Payments received as part of a rehabilitation settlement with FGIC have benefited investors in some closed-end second-lien backed transactions. However, Moody's notes in its latest ResiLandscape publication that payments have been small and many insured bondholders still have sizable unreimbursed losses.

    Moody's rates 64 closed-end second-lien backed transactions with tranches backed by an FGIC insurance policy, of which 31 are .......

    News Round-up 30 April 2014

  • Italian ILS first

    GC Securities has closed an innovative European catastrophe bond, sponsored by Assicurazioni Generali. Dubbed Lion I Re, the €190m transaction is the first-ever 144A cat bond to provide indemnity protection against Europe windstorm risks and the first from Italy.

    The bond is rated single-B plus by Fitch and priced with a coupon of 2.25%. About 80% of the exposure is .......

    News Round-up 30 April 2014

  • No-action relief for CLO managers

    The US CFTC has granted no-action relief to CLO managers for failure to register as a commodity trading advisor (CTA). The no-action letter notes that a manager is engaged by the CLO to provide investment advice for compensation and that the CLO is not a 'commodity pool' pursuant. It also notes that the advice that the manager provides to the .......

    News Round-up 30 April 2014

  • Secondary surge for non-agency RMBS

    US non-agency RMBS secondary market supply picked up considerably yesterday as BWIC volume soared to more than US$900m. SCI's PriceABS data shows a range of unique non-agency tranches out for the bid, with 20 successful covers.

    Bid-list volume had been just US$155m on Monday and has been subdued for weeks (SCI 25 April). That changed yesterday .......

    Market Reports 30 April 2014

  • Language limiting Volcker extension?

    An LSTA interpretation of the language used by the US Fed in its extension of the CLO conformance period under the Volcker Rule (SCI passim) could mean that relief for the asset class is even narrower than previously envisaged. At issue is the phrase 'in place'.

    Only CLOs in place as of year-end 2013 are eligible for the extension. Initially, .......

    News 30 April 2014

  • TRACE expansion delayed

    FINRA is said to be delaying the implementation of ABS price dissemination, with technological changes required for the implementation believed to require additional time. The authority will announce a revised implementation date before 22 August, postponing it from the previous announcement date of 25 April. JPMorgan ABS strategists note that effective dates are typically set at least six months after .......

    News Round-up 30 April 2014

  • Low CLO exposure to largest default

    Energy Future Holdings (EFH) and its subsidiaries filed for Chapter 11 bankruptcy yesterday. S&P LCD says it is the largest loan market default in its history, however CLO exposure is low.

    Energy Future skipped around US$119m of coupon payments on 1 April within its Texas Competitive Electric Holding Company (TCEH) subsidiary. It has since reached an agreement with key creditors .......

    News Round-up 30 April 2014

  • Alstom CDS tighter on new bidder

    A potential new bidder for Alstom has led to significantly tighter credit default swap (CDS) spreads on the firm in recent days, according to Fitch Solutions in its latest CDS case study. Five-year CDS on Alstom have come in by 42% since last Thursday, with credit protection now trading in line with triple-B minus rated entities.

    CDS liquidity for the .......

    News Round-up 29 April 2014

  • Charge-offs hit new lows

    A steady decline in credit card delinquencies coupled with lower bankruptcy rates pushed US credit card ABS charge-offs to new lows in the first quarter, according to Fitch's latest quarterly index for the sector. Average charge-offs fell to 3% for 1Q14 from 3.04% in 4Q13, marking 15 consecutive quarters of improvement, with the level now approximately 25% lower year-over-year.

    "Consumers .......

    News Round-up 29 April 2014

  • 'Credit card' ABS first in China

    A deal generally being seen as the first credit card ABS in China came out last month, although Moody's notes in its latest 'Structured Thinking: Asia Pacific' publication that the transaction is essentially an auto loan ABS. The deal was sponsored by China Merchants Bank.

    CMB's credit card operation originated the receivables, but there are a couple of very different .......

    News Round-up 29 April 2014

  • Trups deferrals continue to cure

    The number of US bank Trups CDO combined defaults and deferrals declined to 24.5% at end-March, compared with 25.8% at end-February, according to Fitch's latest index results for the sector.

    In March, 18 banks deferring interest on a total notional of US$523m in 42 CDOs cured. Ten of these banks, or US$391m in notional, were due to reach the end .......

    News Round-up 29 April 2014

  • Loan resolutions to 'remain stable'

    US CMBS loss severities ticked up slightly year-over-year, while the pace of loan resolutions fell, according to Fitch's latest annual CMBS loan loss study. The agency expects the pace of loan resolutions to remain constant this year and average loss severities to remain stable, compared to 2013.

    Average loss severities rose to 51.2% in 2013 from 50.5% in 2012. Special .......

    News Round-up 29 April 2014

  • RFC issued on credit card ABS

    Moody's is requesting feedback from market participants on proposed changes to its approach to rating securitisations backed by credit card receivables and revolving consumer loans across all jurisdictions. The proposal modifies assumptions about credit card portfolio performance under stress and more explicitly incorporates the credit quality of the sponsor into the agency's rating analysis.

    The proposed changes will address key .......

    News Round-up 29 April 2014

  • APRA to simplify securitisation approach

    The Australian Prudential Regulation Authority (APRA) has released for consultation a discussion paper on its proposals to simplify the prudential framework for securitisation for authorised deposit-taking institutions (ADIs). The authority says that the prudential framework for securitisation needs to be "clear and simple for stakeholders to understand".

    APRA's proposals take into account the lessons learned from the financial crisis and .......

    News Round-up 29 April 2014

  • US ABS supply inches higher

    US ABS BWIC volume was subdued yesterday, just creeping above US$50m. SCI's PriceABS data shows supply dominated by auto ABS paper, although a mix of other collateral types also appeared on bid-lists.

    Most of the action was in the auto space, where the AESOP 2012-3A A tranche was talked at 100 handle and covered at 99.34. .......

    Market Reports 29 April 2014

  • Industry vet boosts info firm

    Algomi has appointed Hugh Willis as a strategic advisor. He is also an investor in the firm. Willis is co-founder of BlueBay Asset Management, where he currently serves as executive chairman and will help Algomi to expand and enhance its offering.

    .......

    Job Swaps 29 April 2014

  • Mizuho adds CLO chief

    Mizuho Securities USA has appointed Jim Stehli as md and head of CLOs. He is based in New York and brings over 20 years of experience in structured products.

    Stehli was previously securitised products principal at CRT Capital Group. He has also worked at Sirona Advisors, UBS, PaineWebber, Kidder Peabody and JPMorgan.

    .......

    Job Swaps 29 April 2014

  • Real estate group grows strategic unit

    The Carlton Group has appointed Kevin Swill to lead its crowdfunding platform alongside Navish Chawla (SCI 25 April). Bill Ohlsen has also joined Carlton Strategic Ventures (CSV).

    Chawla serves as cio of the CSV. He was previously at Madison International and BlackRock.

    Swill becomes coo and takes responsibility for institutional equity distribution and managing relationships with broker dealers, family offices .......

    Job Swaps 29 April 2014

  • Landmark CMBS ruling issued

    A judgement has been delivered on directions sought by US Bank as trustee with respect to the Titan Europe 2007-1 (NHP) CMBS. The judgement provides guidance on the termination without cause of the appointment of a servicer and confirms that a contrary disclosure in an offering circular should not modify the terms of contractual securitisation documents.

    US Bank sought direction .......

    News 29 April 2014

  • CDOs on the block

    An auction call redemption auction is to be conducted with respect to the ICONS CDO. The auction call date is scheduled for 8 May, with an auction call redemption occurring on the payment date following the auction call date.

    An auction has also been scheduled for the Crystal Cove CDO on 19 May. The collateral shall only be sold if .......

    News Round-up 28 April 2014
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