Complete news archive

  • Key person switch proposed

    The issuer and portfolio manager for Harvest CLO V intend to amend the provisions of the portfolio management agreement to replace Paul Carman as a key person with Peter Goody. The trustee has already concurred that the proposed amendments are not materially prejudicial to the interests of any noteholders.

    Goody has 17 years of experience in the leveraged loan market .......

    Job Swaps 17 January 2014

  • Low prepays for Euro CMBS

    Only 22% of the 31 CMBS loans - totalling €2.3bn - scheduled to mature in 4Q13 repaid at maturity or prepaid, lower than the four-quarter rolling average of 37%, Moody's reports. At the same time, Q4 had the highest proportion of defaulted or repaid-with-loss loans of any quarter in the last two years.

    Moody's says that the low prepayment rate .......

    News Round-up 17 January 2014

  • Surprise rally for Euro CLOs

    The European CLO secondary market has kicked off the year with a major rally, with prices significantly higher than they were in December. Activity has mainly focused on the mezzanine space, although tightening further up the stack is also possible and tightening in the primary market is expected.

    "Hedge funds have been very active over the last two weeks, particularly .......

    Market Reports 17 January 2014

  • Capital markets head named

    Montpelier Re has appointed Daniel Brookman as svp and head of capital markets. He will also serve as coo for Blue Capital Management.

    Brookman will take responsibility for managing capital markets relationships with an initial focus on developing Monteplier's underwriting partnership businesses. He will report to chief corporate development and strategy officer William Pollett.

    Brookman was previously global head of .......

    Job Swaps 17 January 2014

  • MiFID 2 rules agreed

    An agreement in principle has been reached by the European Parliament and the European Council on MiFID 2 rules. The rules are designed to close the loopholes in the existing legislation and include proposals to regulate high-frequency trading.

    The new rules will apply to investment firms, market operators and services providing post-trade transparency information in the EU. They are set .......

    News Round-up 17 January 2014

  • Solid execution seen for IABF sale

    The Dutch State Treasury Agency completed its second IABF sale yesterday (16 January). The auction comprised 360 individual securities totalling approximately US$4.27bn current face (SCI 13 January), which will leave the portfolio with just US$2.2bn remaining exposure.

    BWIC execution appeared solid and approximately 29 of the bonds out for the bid had observable re-offer levels in the immediate wake of .......

    News Round-up 17 January 2014

  • New SLM conduit minted

    Sallie Mae has closed a new US$8bn ABCP facility that matures in January 2016. The facility replaces a US$5.5bn conduit that is set to expire in January 2015, with the remainder available for federally guaranteed loan acquisition or refinancing. Deutsche Bank ABS analysts suggest that Sallie Mae could use the facility to call outstanding FFELP student loan ABS that are .......

    News Round-up 17 January 2014

  • CLO cushions being squeezed

    US CLO 2.0 deals now account for around half of the outstanding market. OC cushions among those transactions have been decreasing as leverage has increased, but structures appear to remain well protected against default shock.

    JPMorgan CDO analysts examined 229 arbitrage US CLOs issued from 2Q11 until 3Q13, representing about 70% of the deals in the CLO 2.0 market. The .......

    News 16 January 2014

  • Shortfall discrepancies examined

    Fitch is rolling out a series of comments highlighting lessons learned in EMEA CMBS, which aims to identify structural shortcomings in legacy CMBS transactions. The first of the reports examines discrepancies between loan maturity dates and loan interest payment dates, which can lead to note interest shortfalls.

    In recent years several transactions have suffered note interest shortfalls attributable not to .......

    News Round-up 16 January 2014

  • SFR structuring innovation unveiled

    FeatherStone Investment Group says it has designed a new class of security that will allow qualified institutional buyers to participate in the equity-like returns of single-family rental securitisations without a long-term capital commitment to the sector. Dubbed a residual tracking tranche (RTT), it is anticipated to have a three- to five-year maturity based on the longest issued debt tranche within .......

    News Round-up 16 January 2014

  • 'Qualified CLO' mooted

    The Loan Syndications and Trading Association, SFIG and SIFMA have submitted a further letter to the US regulatory agencies regarding risk retention as it pertains to CLOs. The associations propose an approach that would create a definition of a 'qualified CLO'.

    Specifically, under the approach, open market CLOs that meet a series of criteria would qualify to satisfy the credit .......

    News Round-up 16 January 2014

  • Euro issuance to rise in 2014

    S&P expects investor-placed European securitisation issuance to rise in 2014. However, several ongoing regulatory initiatives continue to threaten the future viability of securitisation investment for banks and insurers and pose the greatest risk to issuance volumes.

    Issuance in 2013 was slightly lower than 2012, although this was largely due to a disproportionate decline in UK volumes, which is expected to .......

    News Round-up 16 January 2014

  • CRA launches in London

    A new credit rating agency has been formed in London. ARC Ratings will have a global reach and profile and promises a unique and innovative approach to empower investors to make better decisions through its ratings of structured products, sovereign debt and financial institutions.

    ARC is independent of issuers and investors and its corporate governance code and rating methodology are .......

    Job Swaps 16 January 2014

  • JCP closures to hit CMBS

    JCPenney is set to close 33 underperforming stores beginning this year. Nine US CMBS loans have exposure to these properties.

    CMBS analysts at Barclays Capital note that the largest of these loans is the US$115m Centre at Salisbury, securitised in JPMCC 2006-LDP7, which is reporting a DSCR NCF of 1.31x. The next largest is the US$36.79m Laurel Mall loan, securitised .......

    News Round-up 16 January 2014

  • Call for CLO carve-out

    The Financial Services Roundtable (FSR), the Loan Syndications and Trading Association (LSTA), SFIG and SIFMA have submitted a letter to the regulatory agencies regarding the definition of 'ownership interest' under the Volcker Rule as it pertains to CLOs. Specifically, the associations request that regulators provide confirmation in a FAQ or other guidance that CLO debt securities that have a contingent .......

    News Round-up 16 January 2014

  • Equity upside benefit in Punch proposal

    Punch's restructuring proposal (SCI 15 January) includes a number of modifications from December, including increased PIK coupons on junior notes. Barclays Capital analysts believe the proposal for Punch A represents a transfer of upside in the recovery of the Punch group from the junior bondholders to Punch equity as a result of the principal write-off in the class B, C .......

    News Round-up 16 January 2014

  • CWCapital sale results emerging

    Results from the US$2.57bn CWCapital CMBS auction (SCI passim) are beginning to trickle out. Over 700 potential buyers signed confidentiality agreements in mid-October after the liquidation was announced, with 153 of them eventually lodging bids.

    Starwood Capital, Lone Star and an Oaktree Capital Management/Sabal Financial Group venture are said to be among the successful bidders. Additionally, Blackstone is believed to .......

    News Round-up 16 January 2014

  • Law firm promotes three

    Cadwalader, Wickersham & Taft has named three new partners. The trio specialise in different areas of structured finance and are each based in the US.

    Joseph Beach specialises in CLOs, CDOs and other asset-backed classes. He has particular experience in ABCP facility origination and restructurings.

    Shlomo Boehm works on securitisations, investment fund structuring, structured finance transactions, derivatives and financial product .......

    Job Swaps 16 January 2014

  • IDC adds OTC data

    Interactive Data has signed an agreement to provide BGC Partners' OTC data via its consolidated feed and through its 7ticks network. BGC's pricing and data contains executable prices sourced directly from its global electronic platform and voice-hybrid broking operations. The move expands Interactive Data clients' access to data to support their front, middle and back office operations and will help to .......

    Job Swaps 16 January 2014

  • Margaux asset sold

    Hatfield Philips International has agreed the sale of the Margaux portfolio, securitised in the Titan Europe 2006-2 CMBS, for a purchase price of €268m (see SCI's CMBS loan events database). IN-WEST Partners managed the purchase and also co-invested alongside the purchasing institutional investors.

    The portfolio comprises of circa 8,500 residential units mainly located in Berlin, Dusseldorf, Neuss, Leipzig, .......

    News Round-up 16 January 2014

  • Master ABS structures examined

    French auto originators have over the past 12 months made increasing use of master ABS structures, which provide for the possibility of additional note issuances out of an existing structure. Moody's notes in its latest Credit Insight publication that the use of such structures has credit positives and negatives for French ABS transactions because while these structures provide some protective .......

    News Round-up 15 January 2014
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