Complete news archive

  • Fair value standards released

    The EBA has published its final draft regulatory technical standards (RTS) laying out the requirements related to prudent valuation adjustments of fair valued positions, including calculating additional valuation adjustments (AVAs). Under the standards, two approaches are proposed to take proportionality into account, in particular for those institutions with limited exposure to fair valued positions.

    First is a simplified approach, which .......

    News Round-up 1 April 2014

  • CMBS note sales scheduled

    Auction.com has scheduled note sales for properties backing US$144m in US CMBS loans over the next two months. The deal with the largest exposure is MLMT 2005-CIP1, with US$21m out for the bid, according to Barclays Capital estimates.

    One of the assets up for auction is the US$16.2m Kirkwood Bend Office in St. Louis, which is appraised for US$10m, as .......

    News Round-up 1 April 2014

  • ABS supply leaves MBS trailing

    Healthy US ABS secondary market activity yesterday contrasted sharply with the non-agency RMBS and CMBS segments, where bid-list volumes were muted. SCI's PriceABS data shows that supply was dominated by auto, equipment and student loan paper.

    ABS BWIC volume was up markedly from the previous session, totalling around US$340m. By contrast, volumes in non-agency RMBS only reached around .......

    Market Reports 1 April 2014

  • SEC urged to re-propose ABS releases

    SIFMA and the Financial Services Roundtable (FSR) have submitted comments to the US SEC that express significant concerns with its proposed approach to disseminating asset-level and other offering information under Regulation AB 2 (SCI 26 February). The two associations urge the Commission to abandon the "flawed" approach to the disclosure of asset-level information outlined in its Memorandum, which they say .......

    News Round-up 1 April 2014

  • Marking milestones

    Growth ahead for Chinese ABS

    The Chinese securitisation market passed two milestones - in October and February respectively - when foreign banks and non-bank finance companies were permitted to participate in the origination of domestic transactions. These developments coincide with the market-opening reform agenda announced in China's third plenum and lay the foundations for further growth of the country's ABS sector.

    "There is broad recognition .......

    News Analysis 1 April 2014

  • SCI Start the Week - 31 March

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

    Pipeline
    It was back to normal for the pipeline last week as ABS additions once again led the way. Nine new ABS were announced, as well as two RMBS and four CLOs.

    The ABS were: US$535.2m ARI Fleet Lease Trust 2014-A; C$644.34m Ford Auto Securitization 2014-R2; US$718m GEEST 2014-1; US$705m GMALT; US$1bn John Deere Owner Trust 2014; US$1.37bn MBALT .......

    News 31 March 2014

  • Information portal offered

    Chapman and Cutler has introduced a new tool - dubbed Structured Finance Insights - that is designed to offer quick and easy access to information regarding laws and regulations impacting the structured finance market. Industry participants can visit the portal or subscribe to update feeds to keep up-to-date on the latest regulatory developments affecting a rapidly changing marketplace.

    .......

    News Round-up 31 March 2014

  • SBA methodology revised

    S&P has revised its methodology and assumptions for rating US small business loan-backed securitisations. The agency is updating its loan default assumptions and will now use a 'targeted output' approach for these assumptions under triple-A stress scenarios, while incorporating recent collateral performance observed under moderate economic stress.

    In addition, S&P will use a scoring framework through which it can adjust .......

    News Round-up 31 March 2014

  • Atlas VI notes affirmed

    S&P has affirmed its ratings on the US$125m series 2011-1 class A, US$145m series 2011-1 class B and €50m series 2011-2 class A notes issued by Atlas VI Capital. The move follows the bonds' annual resets of the probability of attachment. In each case, the probability of attachment was reset to a percentage consistent with the transaction documents and the .......

    News Round-up 31 March 2014

  • Tax lien criteria released

    Moody's has published its methodology on rating US tax lien ABS. Its adoption will not result in any rating changes to currently outstanding transactions.

    "Tax lien securitisations are backed by liens on properties with charges that a municipality, township or county impose, such as delinquent property taxes, assessments, sewer rents, sewer surcharges and water rents," says Moody's vp Xiaochao Wang. .......

    News Round-up 31 March 2014

  • Reg AB 2 comment period extended

    The US SEC has extended the re-opened comment period on two releases related to ABS shelf-eligibility under Regulation AB 2 - Asset-Backed Securities and Re-Proposal of Shelf Eligibility Conditions for Asset-Backed Securities (SCI 26 February). The Commission re-opened the comment period to permit interested persons to comment on an approach for the dissemination of potentially sensitive asset-level data. The comment .......

    News Round-up 31 March 2014

  • TBA maintenance margin opposed

    SIFMA has submitted comments to FINRA regarding the agency's proposed amendments to FINRA Rule 4210 to establish margin requirements for transactions in the TBA market (SCI 3 February). The association submitted two parallel letters: a general SIFMA letter focused on the impact to FINRA member firms and another from SIFMA's Asset Management Group (AMG) that highlights specific insight and feedback .......

    News Round-up 31 March 2014

  • Liquidation volumes remain high

    US CMBS liquidation volumes remained high this month as the rest of CWCapital's REO asset sales flowed through remittance reports. Liquidation volume ended March at US$1.95bn, according to Trepp, down from February but still the fourth highest monthly total since 2010.

    Of the loans that were liquidated during the month, 97% by balance fell into the greater than 2% loss .......

    News Round-up 31 March 2014

  • ISDA updates DC compositions

    The new constituents of ISDA's five regional Determinations Committees (DC) have been confirmed and will serve from 28 April. Each regional DC contains 10 voting dealers, five voting non-dealers, two consultative dealers and one consultative non-dealer.

    All five regions will share eight common voting dealers. These are Bank of America, Barclays, BNP Paribas, Citibank, Deutsche Bank, Goldman Sachs, JPMorgan and .......

    Job Swaps 31 March 2014

  • Standardised approach finalised for CCR

    The Basel Committee has published a final standard on the treatment of derivatives-related transactions in its capital adequacy framework. The standardised approach for measuring counterparty credit risk exposures is designed to improve on existing non-modelled methodologies for assessing the counterparty credit risk associated with derivative transactions and replaces both the current exposure method and the standardised method in the Basel .......

    News Round-up 31 March 2014

  • Further PLS settlement reached

    The FHFA has reached a settlement in cases involving Bank of America, Countrywide Financial, Merrill Lynch and certain individuals totalling US$5.83bn. The cases alleged violations of federal and state laws in connection with private-label mortgage-backed securities (PLS) purchased by Fannie Mae and Freddie Mac between 2005 and 2007.

    The agreement provides for an aggregate payment of US$9.33bn by Bank of .......

    Job Swaps 31 March 2014

  • US housing finance bill released

    New legislation released by the US House Financial Services Committee's Maxine Waters would significantly reform the current US housing finance system. The Housing Opportunities Move the Economy (HOME) Forward Act creates a new regulator and issuer, as well as providing for the transfer of the GSEs' multifamily programmes.

    The legislation establishes the National Mortgage Finance Administration (NMFA) as a new regulator to .......

    News Round-up 28 March 2014

  • London firm adds data leader

    Capital market data firm Xtrakter has hired Kevin Swann as head of data. He will be based in London and take responsibility for the development and commercial direction of the company's data products.

    Swann was most recently head of third-party broker data at Thomson Reuters. He has also held senior roles at DirectFN, TradeWeb and Bloomberg.

    .......

    Job Swaps 28 March 2014

  • EC package promotes securitisation

    The European Commission has adopted a package of measures to stimulate a return to sustainable economic growth. The proposals include a push to promote "high-quality securitisation" to ease SMEs' access to capital markets financing.

    Among the actions the Commission will take are a proposal to revise the rules for occupational pension funds and a communication on crowdfunding to offer alternative .......

    News Round-up 28 March 2014

  • CMBS pricing tool launched

    Trepp has launched a new tool for bond cashflow and price yield calculations. TreppTrade Quick Analysis is designed to allow qualified institutional buyers to price bonds quickly and easily.

    The free tool allows participants to calculate CMBS bond cashflows under pre-defined assumptions such as prepayments and other factors. Users can access tranche-level Trepp cashflows and perform price analysis using live .......

    News Round-up 28 March 2014

  • US CMBS recovery rate drops

    Recovery rates on US CMBS liquidated loans dropped significantly last year compared to 2012, according to the latest quarterly index results from Fitch. The rate of CMBS loans in special servicing has continued to fall.

    From 74.8% in 2012, the recovery rate for liquidated CMBS dropped to 66.5% last year. The final quarter of the year saw the recovery rate .......

    News Round-up 28 March 2014
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