Complete news archive

  • JPA sought to implement eminent domain

    The city council of Richmond, California has adopted a resolution to seek other cities with which to form a Joint Powers Authority (JPA) that would be able to use eminent domain to acquire underwater mortgages in private label RMBS. Such a move could enable the council to sidestep existing barriers.

    While the city council has failed to achieve a super-majority .......

    News Round-up 14 January 2014

  • ABCP to feel regulatory squeeze

    Global ABCP credit quality should be stable in 2014, says Moody's. Regulatory uncertainty remains a challenge on both sides of the Atlantic, with European sponsoring banks feeling the squeeze first.

    The credit quality of US ABCP should remain stable this year. Bank credit quality has improved and the continued economic and financial recovery is expected to support steady asset performance.

    News Round-up 14 January 2014

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  • French consumer lending change 'negative'

    French consumer lenders are now offering credit to borrowers on temporary employment contracts who were not previously eligible for loans. This loosening of underwriting criteria is credit negative, says Moody's, because it allows personal loans to be granted to borrowers who carry a higher risk of credit default.

    However, lenders are adding conservative terms and conditions to the loans, which .......

    News Round-up 14 January 2014

  • Foundation for continued growth?

    The US CLO and CMBS sectors saw impressive issuance in 2013, as the recovery in the asset classes continued apace. European volumes, meanwhile, reflect the growing diversity of jurisdictions on offer across the region's ABS market.

    Last year proved to be impressive for US CMBS 3.0 issuance, with conduit volumes totalling US$53.1bn, a 65% increase from US$32.2bn in 2012. US single-borrower/single-asset .......

    News 14 January 2014

  • China risk retention update 'credit positive'

    The People's Bank of China and the China Banking Regulatory Commission last month jointly updated the 5% risk retention rule on Chinese securitisations. The update expands the types of notes that are part of a securitised transaction that originators must retain beyond just the equity tranches to include potentially 5% or more of all tranches, according to Moody's latest Credit .......

    News Round-up 13 January 2014

  • Counterparty relationships under pressure

    The implementation of the US Treasury Market Practices Group's (TMPG) margin practices appears to have met its near-term goal of covering a significant amount of agency MBS trading volumes (SCI 16 April 2013). However, the broad-based implementation of the guidelines could have an unexpected impact on the structure of counterparty relationships across the Street, according to Deutsche Bank MBS analysts. .......

    News 13 January 2014

  • Insurer CRE participation polled

    Preliminary results for the CREFC/Trepp Portfolio Lender Survey of commercial mortgage investment performance within the insurance company sector have been released. The survey was used to gather previously unavailable industry data for use in assessing investment performance and general benchmarking purposes.

    The results indicate the continuation of the superior investment performance achieved by US insurance companies through allocations to commercial .......

    News Round-up 13 January 2014

  • Auto recoveries set to fall

    Average recoveries on defaulted auto loans in both prime and non-prime ABS pools will fall over the next 12 months and start to stabilise at the beginning of 2015, according to Moody's. Based on an analysis of Manheim Index data, the agency expects recoveries on defaulted auto loan ABS to decline to 50%-60% in the prime segment and to 40%-50% .......

    News Round-up 13 January 2014

  • Special servicer rankings released

    DBRS suggests that there is now enough data and performance history to control for the important differences across US CMBS special servicing portfolios. As such, the agency has put together a quantitative ranking of special servicer performance.

    Torchlight Investors comes top in the rankings, followed by ORIX Capital Markets, Midland Loan Services, Wells Fargo Bank and Situs Holdings. The results .......

    News Round-up 13 January 2014

  • CRE expectations surveyed

    US commercial property finance professionals are increasingly focused on how high and how quickly interest rates will rise, as well as how commercial and multifamily loan underwriters will react, according to the inaugural CRE Finance Council 2014 Outlook Survey.

    "Commercial real estate finance industry participants are watching for market reaction as the Fed begins its tapering programme of government bond .......

    News Round-up 13 January 2014

  • Data reconciliation tool offered

    Traiana has launched a new service that reconciles client reference data from disparate sources provided by CCPs, SEFs, futures commission merchants (FCMs), buy-side firms and swap data repositories. Using technology provided by Duco, the offering aims to ensure that clients are not prevented from trading by clerical errors or mismatches in static data regarding accounts, limits or SEF trading identifiers. .......

    News Round-up 13 January 2014

  • CMBS losses projected

    S&P has published its expected loss projections for the North American conduit-fusion CMBS transactions that it rates. The report addresses losses by transaction, vintage, property type and MSA.

    "Our estimates of projected losses focus on our observed performance of CMBS transactions over time," notes S&P credit analyst Barbara Hoeltz. "They incorporate up-to-date performance information provided by the master and special .......

    News Round-up 13 January 2014

  • CMBS resolutions to continue apace

    The US CMBS delinquency rate could fall by another two percentage points to below 4% by year-end, should the pace of resolutions continue and new issuance remain strong, according to Fitch. Delinquencies improved by roughly two percentage points in 2013, having started the year at 8% and expected to close it out at just under 6%.

    A continuation of the .......

    News Round-up 13 January 2014

  • Manager adds capital markets head

    The Carlyle Group has appointed Boris Okuliar as head of capital markets for global market strategies, which is a newly created position. He will also serve as head of capital markets for Carlyle GMS Finance.

    Okuliar was previously md and head of leveraged capital markets in London for UBS, but will be based in New York at Carlyle. He has .......

    Job Swaps 13 January 2014

  • SCI Start the Week - 13 January

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

    Pipeline
    The pipeline has begun to grow again as new deals have already been announced to kick off 2014. Last week saw one ABS, one ILS, three RMBS and a CMBS added.

    The ABS entrant was ¥25.2bn Driver Japan Three and the ILS was US$200m Vitality Re V Series 2014-1. The RMBS were US$705m CAS 2014-C01, US$300m HLSS Servicer .......

    News 13 January 2014

  • IABF auction scheduled

    Six broker-dealers have been invited to submit bids for the second IABF auction, based on the strength of their reverse inquiries (SCI 7 January). The dealers are: Bank of America Merrill Lynch, Barclays, Citi, Credit Suisse, Goldman Sachs and Morgan Stanley.

    The auction will comprise US$4.27bn current face across 360 non-agency RMBS. Bids are due on 16 January and the .......

    News Round-up 13 January 2014

  • Italian SME review released

    Fitch has published its latest SME market review, focusing on the Italian SME securitisation sector. The majority (99.9%) of enterprises active in the Italian economy are SMEs, accounting for 81% of the workforce. Yet SMEs in the country face an unfavourable business environment: the 2013 World Bank Doing Business survey ranked Italy 30 out 31 OECD countries in the ease .......

    News Round-up 10 January 2014

  • US CMBS tightens further

    US CMBS spreads continued to tighten yesterday as bid-list activity grew. BWIC volume reached around US$219m, with a large number of 2.0 and 3.0 below-investment grade bonds circulating.

    SCI's PriceABS data shows a range of vintages out for the bid, with deals issued as long ago as 2005 and as recently as last year represented. Included among these .......

    Market Reports 10 January 2014

  • Light shed on IABF sale

    An Interactive Data analysis of last month's US$5.1bn IABF sale suggests that the Dutch State Treasury Agency (DSTA) divested itself of the riskier holdings first. The firm notes that while pre-BWIC dialogue and information-sharing on the sale appeared to be robust, post-trade market colour was limited.

    The sale comprised primarily pay option ARM bonds (totalling around US$4.8bn), with the remainder .......

    News 10 January 2014

  • Second ESAIL restructuring on the cards

    Separate meetings for all classes of Eurosail-UK 2007-6NC noteholders have been convened on 10 February to consider an extraordinary resolution to approve the sale of the remaining Lehman claims, as well as a restructuring proposal. If successfully implemented, this will be the third restructuring of a UK Lehman RMBS to resolve 'broken swap' issues (SCI passim).

    The sale relates to .......

    News Round-up 10 January 2014

  • RFC issued on life settlement criteria

    AM Best has requested comments on its draft life settlement securitisation criteria report. The report reflects changes and refinements the agency made to an earlier draft, released in September, after receiving comments and having discussions with market participants.

    The changes and refinements to the initial draft criteria report include: an assumption that the excess mortality ratings produced by medical underwriters .......

    News Round-up 10 January 2014
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