Complete news archive

  • 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

  • Dutch RMBS default drivers examined

    High loan-to-foreclosure values (LTFV) will remain the key default driver in 2014 for Dutch RMBS, according to Moody's. Secondary drivers include employment type, larger loans and affordability - each of which will have a more pronounced impact on performance than in 2013.

    "High LTFVs are likely to remain a key factor for Dutch loan default because these loans are generally .......

    News Round-up 9 January 2014

  • Card performance hits 'historic' levels

    Fitch reports that most of its prime credit card ABS indices touched historic levels in 2013. The Fitch Prime 60+ Day Delinquency and Charge-off Indices may be approaching their troughs, however.

    Fitch's Prime 60+ Day Delinquency Index increased by 2bp in December to 1.27%, albeit 60+ day delinquencies remain relatively low compared to one year ago when they were 1.73%. .......

    News Round-up 9 January 2014

  • AlphaCat sidecar formed

    Validus Holdings has joined with other investors in capitalising its AlphaCat 2014 collateralised sidecar, which fully deployed its capital for the 1 January 2014 renewal season. The vehicle was funded with US$160m of equity capital, with third-party investors contributing US$138m and the balance provided by Validus. AlphaCat Managers will underwrite business for AlphaCat 2014, for which it will be paid .......

    News Round-up 9 January 2014

  • Underperformance for directional strategies

    Hedge funds gained an average of 1.2% in December and ended 2013 returning 9.2%, according to eVestment figures. In comparison, 2012 and 2011 returned 7.4% and -3.1% respectively.

    However, last year credit strategies posted their third lowest annual return (6.26%) since 1998, besting only 2011 (2.3%) and 2008 (-8.7%). "Performance was dragged down by directional credit strategies underperforming in the .......

    News Round-up 9 January 2014

  • CMBS pay-offs dip

    The percentage of US CMBS loans paying off on their balloon date hit 76.5% in December, a modest decline from the November rate of 81.3%, according to Trepp. Last month's pay-off percentage is well above the 12-month moving average of 67.9%, however.

    By loan count as opposed to balance, 74.6% of loans paid off in December, also a slight decline .......

    News Round-up 9 January 2014

  • CMBX.6 lessons learnt?

    CMBX.7 is expected to launch on 27 January. While its exact composition is yet to be confirmed, the index is predicted to compare favourably to CMBX.6 in terms of credit enhancement and JC Penney exposure - although credit metrics may point to slipping underwriting standards.

    Morgan Stanley CMBS strategists expect CMBX.7 to reference the 25 most recent CMBS 2.0 deals .......

    News 9 January 2014

  • Securitisation pro to take top role

    Securitisation specialist Pat Quinn is set to take over leadership responsibilities at Cadwalader, Wickersham & Taft alongside Jim Woolery. Quinn will serve as managing partner and Woolery will serve as chairman, with the pair replacing current chairman Chris White from the start of next year.

    Quinn will focus on managing the firm's operations. He is currently co-chair of the firm's .......

    Job Swaps 9 January 2014

  • Good start for Euro CMBS

    The European CMBS secondary market has made a positive start to 2014. SCI's PriceABS data shows several covers from yesterday's session, while one trader predicts that increased activity should drive spreads tighter in the coming weeks.

    "Last week was still fairly quiet as everyone returned to their desks, but this week has been better. There have been more .......

    Market Reports 9 January 2014

  • FINRA urged to revisit TRACE proposal

    SIFMA has submitted a comment letter to the SEC on FINRA's proposed rule change relating to TRACE reporting and dissemination of transactions in additional ABS (SCI 5 November 2013). The association requests that FINRA not implement this proposal and instead engage in further discussion with the industry as to how best to preserve ABS market liquidity and re-propose this proposal .......

    News Round-up 9 January 2014

  • Clearing set to see more efficiency

    Increased efficiency in the clearing of swap trades and increased clearing costs for swap investors will be two key trends to watch in the global derivatives markets in 2014, according to a new Greenwich Associates report. Entitled 'The Top 10 Market Structure Trends to Watch for 2014', the report identifies major changes coming in the year ahead, including the coming .......

    News Round-up 9 January 2014

  • MAS rules 'lack guidance'

    The Monetary Authority of Singapore's (MAS) updated rules for covered bond issuance clarify important points on liquid assets and disclosure, which will be beneficial for investors, Fitch says. However, specific guidance is still lacking in some areas, including the means of asset segregation and the appointment, duties and powers of a covered bond administrator.

    The updated rules make liquid assets .......

    News Round-up 8 January 2014

  • RMBS BWICs make return

    After US ABS BWIC volumes picked up on Monday, it was the turn of non-agency RMBS supply to rise yesterday. Bid-list volume approached US$550m, with activity up across fixed rate, hybrid and subprime bonds.

    Fixed rate supply came from a mix of senior prime, Alt-A and re-performing fixed bonds, while adjustable rate supply mainly came from senior Alt-A hybrids and .......

    Market Reports 8 January 2014

  • CFPB rules 'challenging' smaller servicers

    Fitch expects smaller US residential mortgage servicers to be challenged by the increased costs of new servicing requirements as they seek to opportunistically grow through strategic acquisitions. The new requirements, issued by the Consumer Financial Protection Bureau (CFPB), become effective on 10 January.

    The new servicing requirements include changes to how servicers handle borrower notifications and interaction, as well as .......

    News Round-up 8 January 2014

  • Broader credit strategies favoured

    Cairn Capital has closed its Cairn Subordinated Financials Fund after just over two years. All proceeds have been returned to investors, two-thirds of whom are expected to reinvest in other Cairn products, primarily in broader multi-credit asset class strategies.

    The fund generated a net return of 64.92% from launch in October 2011 to 31 December 2013 (25.89% annualised). Annualised weekly .......

    News Round-up 8 January 2014

  • FHFA set for new course?

    The swearing in of Mel Watt as FHFA director on Monday (6 January) marked the official end to the DeMarco era. While there is little context for Watt's views on specific issues at this stage, how he re-shapes the agency has significant implications for agency MBS (SCI passim), including increased policy uncertainty.

    RMBS analysts at Barclays Capital suggest that Watt's .......

    News 8 January 2014

  • Advisory adds SF specialist

    Simon Greaves has joined Berkeley Research Group in London as a director. He was previously head of Duff & Phelps' European advisory practice, delivering valuation and risk solutions for structured finance assets, and before that led the sales team for Fitch's CDO and credit derivative business. He has also worked at Application Networks, Sumitomo Finance, Credit Suisse and KPMG.

    .......

    Job Swaps 8 January 2014

  • CLO portfolio manager appointed

    3i Debt Management has appointed Michael Curtis as a portfolio manager. He has over 14 years of experience in the CLO and structured finance markets and will be based in London.

    Curtis was previously at Alpstar Capital where he was responsible for managing two CLOs, credit funds and separately managed accounts and he has also worked at CIBC World Markets. .......

    Job Swaps 8 January 2014

  • UBS credit vet moves on

    Coherence Capital Partners has hired Michael Cannon as a senior portfolio manager and partner in New York. He was most recently co-head of investment grade credit trading at UBS Investment Bank. Previous roles at UBS saw him take responsibility for distressed credit trading and credit derivatives trading.

    .......

    Job Swaps 8 January 2014

  • New investment platform launched

    Former ORIX president and ceo Jim Thompson has set up a new investment company called Preston Hollow Capital. The firm is located in Dallas, Texas and will initially focus on fixed income, private equity, venture capital and alternative investing.

    Preston Hollow Capital aims to hire more than 25 people this year with a range of investment and portfolio management backgrounds. .......

    Job Swaps 8 January 2014

  • CLO credit quality to remain strong

    The total number of US CLOs in 2013 increased by 56% on the previous year, according to Appleby. The 182 CLOs in aggregate issued last year represents a total value of US$86bn, eclipsing the total issuance for 2012 by US$33.5bn.

    "The CLO market in the second half of 2013 continued to expand as the low interest rate environment has pushed .......

    News Round-up 8 January 2014
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