Complete news archive

  • FCA names investment banking head

    The UK Financial Conduct Authority (FCA) has appointed Julia Hoggett as head of investment banking in its supervision division, beginning in early May. She joins from Bank of America Merrill Lynch, where she is currently md responsible for a range of debt capital markets products, including European commercial paper, covered bonds and green bonds in EMEA.

    Hoggett was previously the .......

    Job Swaps 12 March 2014

  • Refinancing promises big savings

    Up to US$30bn of US CLO 2.0 deals could be candidates for refinancing this year, with refinancing or repricing potentially saving equity holders 20bp-50bp in liability costs. However, the pace of such activity will depend on factors such as upfront cost and secondary CLO paper providing competition for buyers.

    Individual tranche refinancing or repricing options began with the arrival of .......

    News 12 March 2014

  • ABS CDO auctions due

    A special majority of Fourth Street Funding class A1 noteholders have directed the trustee to liquidate the collateral. It is currently anticipated that this will be effectuated by means of one or more public sales. The move follows the occurrence of an EOD and the subsequent acceleration of the deal's maturity.

    Meanwhile, a separate auction is to be conducted for .......

    News Round-up 12 March 2014

  • US RMBS gathering steam

    US non-agency RMBS supply picked up yesterday as BWIC volume reached around US$664m. That level is set to rise with Freddie Mac preparing to sell US$1.15bn of legacy paper.

    The Freddie bid-list, which is due tomorrow, is expected to be the biggest bulk secondary sale of non-agency RMBS bonds since the final ING liquidation a month ago (SCI 31 January). .......

    Market Reports 12 March 2014

  • Housing reform to progress?

    US Senate Banking Committee chairman Tim Johnson and ranking member Mike Crapo have reached an agreement on a housing finance reform proposal. While most of the detail isn't new, the requirement for 10% private capital coverage upfront has caused some surprise.

    SFIG notes that the proposal includes: winding down and ultimately eliminating Fannie Mae and Freddie Mac; promoting a smooth .......

    News 12 March 2014

  • Trader convicted of TARP offences

    A federal jury in New Haven, Connecticut has convicted former Jefferies md Jesse Litvak of multiple offences connected to a scheme to defraud customers trading in RMBS. He was convicted on 10 counts of securities fraud, a count of defrauding TARP and four counts of making false statements within the jurisdiction of the US government.

    Litvak is the first person .......

    Job Swaps 12 March 2014

  • Google buys into online marketplace

    Google Capital has invested US$50m in Auction.com. A Google representative will join the online marketplace's board of directors and another will take a board observer position.

    Auction.com will be able to tap into Google's digital marketing expertise and target a bigger share of the global real estate market. Google joins other strategic shareholders in the company, including Starwood Capital Group, .......

    Job Swaps 12 March 2014

  • US ABS ratings stability underlined

    S&P reports that the creditworthiness of US ABS generally remained stable in 2013. Specifically, 99.8% of the transactions rated triple-A at the start of year had the same rating at the end of the year or were paid off in full, while none defaulted.

    From 1983 through 2013, 82.8% of US ABS originally rated triple-A kept that rating or were .......

    News Round-up 11 March 2014

  • Trups CDO on the block

    An auction is to be held for InCapS Funding II on 14 March. Keefe, Bruyette & Woods has been engaged as auction call redemption agent. Completion of the auction is subject to receipt of at least two bids of a threshold amount of proceeds at least equal to the auction call redemption required amount of approximately US$168.14m.

    .......

    News Round-up 11 March 2014

  • ESAIL 2007-6NCX restructured

    First stage restructuring proposals have been affected for the Eurosail-UK 2007-6NC RMBS, following the sale of the remaining Lehman Brothers claims, as per the extraordinary resolution passed by all noteholders on 10 February (SCI 10 January). The claims were sold to the winning bidder for US$32.88m.

    The first stage restructuring proposals include: the conversion of the realised termination amounts from .......

    News Round-up 11 March 2014

  • Cards support US ABS secondary supply

    US ABS bid-list supply during yesterday's session was mainly accounted for by credit card names. BWIC volumes reached almost US$150m with auto, aircraft and student loans paper also circulating.

    SCI's PriceABS data captured a varied mix of credit card tranches out for the bid in yesterday's session. Among them was the BOIT 2004-C2 C2 tranche, which .......

    Market Reports 11 March 2014

  • Further CWCapital outcomes reported

    A further three CMBS with significant exposure to the CWCapital bulk sales have reported US$146m in liquidations, based on March remittance reports. The deals are BACM 2008-1, GMACC 2006-C1 and GMACC 2004-C3.

    Overall proceeds from the sales beat appraisals, with US$142m in gross proceeds compared to appraisals of US$134m, according to Barclays Capital CMBS analysts. Losses came in at a .......

    News Round-up 11 March 2014

  • IOSCO examines prudential standards

    IOSCO has published a consultation report on prudential standards in the securities sector, looking at key capital frameworks for securities firms. While many key themes are covered by previous reports, the organisation highlights prudential regulatory and supervisory areas that might be updated.

    The report's comparative analysis focuses on the net capital rule (NCR) approach and capital requirements directive (CRD). It .......

    News Round-up 11 March 2014

  • Credit card maturities to decline

    US credit card ABS maturities will decline sharply in the next few years, says Fitch. The rating agency projects maturities to top US$41bn in 2014 before falling to just over US$21bn in 2016.

    Historically low rates during the credit crisis led to many credit card issuers pulling back on securitisation, but levels may soon rise again. Overall issuance this year .......

    News Round-up 11 March 2014

  • Tiering forecast for water WBS

    Fast-tracking of business plans among certain UK water companies is expected to drive tightening across their securitised bonds. The move follows the release of Ofwat's guidance on allowed weighted-average cost of capital (WACC) for the 2015-2020 regulatory period (PR14) (SCI 10 February).

    Allowed returns are likely to fall to 3.85% for PR14, versus 5.1% for the previous regulatory period (PR09). .......

    News 10 March 2014

  • RFC issued on Turkish methodology

    Moody's is seeking comments on the methodology it is proposing for analysing the credit risk of residential mortgage pools in Turkey. The agency plans to use the proposed approach in conjunction with its existing methodologies to rate RMBS and covered bonds backed by such pools.

    To derive the calibration of country-specific values and assumptions for Turkey, Moody's benchmarked the Turkish .......

    News Round-up 10 March 2014

  • Mapping approach reviewed

    S&P is reviewing the methodology it uses when establishing a correspondence table - or mapping - of a third-party institution's internal credit scores to its global rating scale. The objective of the criteria review is to promote transparency on how institutions' internal credit scoring systems can be mapped to the agency's global rating scale.

    The correspondence table is used to .......

    News Round-up 10 March 2014

  • CMBS upgrades to increase

    Fitch expects US CMBS upgrades to increase in 2014. As the market stabilises, delinquencies decline and loans continue to be resolved, downgrades have already lessened.

    The agency expects upgrades to increase overall from the last several years as property values stabilise and its pool-level loss expectations decline. Through February 2014, Fitch has upgraded 44, downgraded 43 and affirmed 964 tranches.

    News Round-up 10 March 2014

  • SCI Start the Week - 10 March

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

    Pipeline
    After a busy couple of weeks, the pace of deals joining the pipeline increased even further last week. Eight new ABS, one ILS, five RMBS, one CMBS and three new CLOs were announced.

    The ABS were: US$731.4m AmeriCredit Automobile Receivables Trust 2014-1; US$774.18m Chrysler Capital Auto Receivables Trust 2014-A; US$180m CPS Auto Receivables Trust 2014-A; US$672m Hyundai Auto .......

    News 10 March 2014

  • PAYE expansion to boost FFELP prepays

    President Obama's proposed expansion of the existing Pay as You Earn (PAYE) plan for student loan borrowers could decrease default risk and increase prepayments in FFELP ABS portfolios, Fitch says.

    The PAYE plan only applies to borrowers from the direct loan programme, but FFELP borrowers could benefit by consolidating their FFELP loans into direct consolidation loans. Fitch believes that the .......

    News Round-up 10 March 2014

  • Ukraine concerns contained

    The five-year credit default swap spread for Russia has widened by 13bp to 212bp over the past 30 days, according to S&P Capital IQ, reflecting the credit market's concern over the country's intervention in Ukraine. At the same time, the Ukraine protection premium widened by 58bp to 1,116bp - a level that indicates an imminent risk of default.

    Rising premiums .......

    News Round-up 7 March 2014
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