Complete news archive

  • Turkish covered bonds bolstered

    The Turkish Capital Market Board has released a definitive communiqué that unifies and improves two existing pieces of legislation that govern mortgage assets and other assets that back covered bonds. Moody's says in its latest Credit Outlook publication that the credit-positive legislation will enable issuers to better match cover pool assets with covered bond liabilities, reduce market risk and mitigate .......

    News Round-up 28 January 2014

  • Current loan sales slammed

    SN Servicing Corporation's recent sale of both current and delinquent mortgage loans from scratch and dent RMBS trusts exposes the transactions to market value risk and raises concerns about potentially high losses in the deals, Moody's notes in its latest ResiLandscape publication. In one of the trusts - Security National Mortgage Loan Trust 2002-2 - investors lost US$8.1m as a .......

    News Round-up 27 January 2014

  • ABS CDO auction due

    An auction has been scheduled for Crystal Cove CDO on 14 February. The trustee shall sell the collateral only if the sale proceeds are at least equal to the total senior redemption amount.

    .......

    News Round-up 27 January 2014

  • Italian government exposure analysed

    Fitch says that ratings on outstanding Italian CMBS will not be affected by recent legislative changes, which include further termination rights for certain public entity tenants. The agency has identified three CMBS with material exposure to Italian government leases.

    In an attempt to cut rental costs and optimise occupied space related to administrative functions, Law decree No. 151 of 30 .......

    News Round-up 27 January 2014

  • Collaboration sought in collateral management

    The DTCC says that financial firms could face significant cost, risk and operational challenges managing margin requirements in the years ahead. In its latest white paper, entitled 'Trends, Risks and Opportunities in Collateral Management', the organisation calls for collaborative solutions that leverage market infrastructures to help the industry meet increasing demands.

    The report notes that projections on rising margin calls .......

    News Round-up 27 January 2014

  • Innkeepers up for sale

    The Chatham/Cerberus joint venture has put the 51-hotel, 6,847-room Innkeepers portfolio up for sale via Eastdil Secured. The asset is being offered unencumbered by management contracts and has a US$950m interest-only loan in place that is assumable, subject to certain conditions.

    The portfolio benefits from US$171m (or approximately US$25,000 per room) in capital expenditures since 2007. Operating performance was strong .......

    News Round-up 27 January 2014

  • SCI Start the Week - 27 January

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

    Pipeline
    As market participants decamped to Las Vegas last week, only five new deals were added to the pipeline. The transactions consisted of two ABS, an RMBS and two CMBS.

    The ABS entering the pipeline were the £164m whole-business Arqiva Financing 2014-1 and €720m auto lease VCL 19 deals. The RMBS was ZAR1.59bn Fox Street 2, while the CMBS .......

    News 27 January 2014

  • Euro CLOs facing headwinds

    Fitch expects issuance of European CLOs to continue in 2014, after €7.5bn of the securities - consisting of 21 transactions by larger established managers - was placed last year. Issuance will be a function of availability of loan collateral, managers' capital reserves to fund the retention stake and the clarification of the treatment of CLOs under the Volcker rule, according .......

    News Round-up 24 January 2014

  • ABS CDO liquidated

    Proceeds from the sale and liquidation of Altius I Funding will be distributed on 28 January. The trustee for the ABS CDO had been directed by at least two-thirds of the aggregate principal amount of the controlling class to sell the collateral, following the occurrence of an EOD (SCI 6 January).

    All of the securities were sold or terminated via .......

    News Round-up 24 January 2014

  • Conduit credit quality hits 2005 lows

    US CMBS conduit loan credit quality has decreased to the levels of the late 2005 issuance, requiring more credit enhancement to offset increased credit risk, according to Moody's. The agency says that credit enhancement levels for deals in 1Q14 will be nearly 9% to achieve a Baa3 rating, 300bp higher than the levels necessary for a Baa3 rating in early .......

    News Round-up 24 January 2014

  • RMBS loss severities up

    US RMBS loss severities rose last quarter, following six straight quarters of declines, according to Fitch's latest quarterly index for the sector. Home price growth began to slow in 4Q13, while timelines continued to lengthen.

    "Judicial foreclosure states were a particular problem spot with respect to longer timelines last quarter, even as timelines in non-judicial states start to level off. .......

    News Round-up 24 January 2014

  • CMBS 2.0 prepayments on the rise

    The JPMCC 2011-C5 US$49.7m class A1 notes paid off this month after three loans - the US$26.43m Lehigh Valley Portfolio, US$6.45m Morningstar of Chapel Hill and US$3.55m Morningstar of Virginia Beach - prepaid with yield maintenance. The move is part of a growing trend of CMBS 2.0 loans prepaying with yield maintenance as both commercial real estate prices and Treasury .......

    News 24 January 2014

  • Subprime auto ABS remain 'protected'

    A potential slow-down in the growth of US auto sales and increased competition to maintain market share could encourage lenders to reach out to borrowers with weaker credit. Based on a comparison of credit metrics of subprime auto ABS deals that were issued in 2011 - when underwriting was tighter - with deals from 2012 and 2013, Wells Fargo ABS .......

    News Round-up 23 January 2014

  • DSCRs under pressure

    Every major CMBS underwriting metric declined in 2013 except for debt service coverage ratio (DSCR), but with interest rates likely to rise over the next two years DSCR will likely decline too, according to Fitch. In turn, the agency is likely to raise credit enhancement levels if higher interest rates push DSCRs down.

    Even if current levels of DSCR are .......

    News Round-up 23 January 2014

  • CBO on the blocks

    An auction is to be held for Trainer Wortham First Republic CBO III on 13 February. The collateral shall only be sold if the proceeds are greater than the auction call redemption amount.

    .......

    News Round-up 23 January 2014

  • FpML gets reporting functionality

    ISDA has published its recommendation for FpML version 5.6, which is designed to allow the industry to fulfill reporting requirements in jurisdictions where reporting to trade repositories is expected to go live this year. Version 5.6 provides support for data and reporting requirements in Singapore, Australia and Canada as detailed by the regulators in those jurisdictions. Further functionality has also .......

    News Round-up 23 January 2014

  • Loss reimbursements to diverge?

    The recent loss recoupment to the D tranche of CWCI 2006-C1 (SCI 20 January) appears not to have been reflected in the January settlements for the CMBX.3 index, of which the transaction is a constituent. The loss on the AJ tranche resulted in pay-outs on the AJ.3 sub-index, however.

    CMBX documentation allows for a 'write-down reimbursement' payment - made by .......

    News Round-up 23 January 2014

  • CMBS secondary bucks quiet trend

    US CMBS BWIC volume picked up considerably yesterday to about US$200m. Generic GG10 spreads remained largely unchanged, however, at swaps plus 165/163.

    SCI's PriceABS data shows a number of bonds from various collateral and vintages out for the bid during yesterday's session. Among them was the COMM 2006-FL12 C tranche, which was talked at 98 and covered at .......

    Market Reports 23 January 2014

  • International credit alliance formed

    Serone Capital Management and Swiss Capital Alternative Investments have entered into a strategic alliance to further develop their activities in the international credit markets. The union allies Serone's structured credit and credit derivatives expertise with Swiss Capital's programme of enhanced credit solutions in the private debt markets.

    .......

    Job Swaps 23 January 2014

  • Law firm strengthens finance team

    Alexandra Margolis has joined Nixon Peabody's global finance team as a partner in New York. She joins from Skadden, Arps, Slate, Meagher & Flom, where she served as counsel.

    Margolis has significant leveraged finance and banking experience and specialises in leveraged cashflow and asset-based syndicated and bilateral credit facilities as well as acquisition financings, first and second lien facilities, repurchase .......

    Job Swaps 23 January 2014

  • Trups CDO cures trending up

    The number of combined US bank Trups CDOs defaults and deferrals declined to 26.5% at end-December, compared with 27.3% at end-November, according to Fitch's latest index results for the sector. Approximately 0.33% of this drop is attributed to the removal of the defaulted and deferring collateral of one Trups CDO that no longer has outstanding ratings from the agency, with .......

    News Round-up 23 January 2014
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