Complete news archive

  • Euro ABS, MBS outlooks mixed

    After declining this year for the first time since 2008, European ABS volumes are expected to rise again in 2014. European RMBS volumes are anticipated to be broadly steady next year, while the growth seen in investor-placed European CMBS issuance could slow, according to S&P.

    Investor-placed ABS issuance reached about €20bn in 2013, down from €27bn in 2012. That is .......

    News Round-up 24 December 2013

  • Lehman Australia claims progressing

    Amicus Advisory notes in its latest client memo that the outcome of the Lehman Brothers Australia Claims Resolution Process (CRP), when combined with the Insurance Only Scheme, is likely to lead to recoveries of around 50 cents on the dollar. The process for calculating losses is based on losses as assessed by Judge Rares in the Wingecarribee court case.

    "Similarly, .......

    News Round-up 24 December 2013

  • Loss criteria updated

    Fitch has updated its criteria for estimating losses on US mortgage pools for RMBS transactions to address updates to the treatment of borrower reserves and loan origination channel. The adjustments are not expected to affect any outstanding ratings, but the updated variable treatment may result in more conservative credit enhancements on newly-issued transactions.

    The core principle of the framework remains .......

    News Round-up 24 December 2013

  • ABCP outstandings to decline

    S&P believes that the US ABCP industry will continue to face obstacles to growth in 2014, specifically the complex regulatory environment, the sluggish economy and prolonged low interest rates. US ABCP outstandings reached a peak of US$1.2trn in July 2007, but declined sharply to US$254.1bn, as of 18 December 2013. The agency expects outstandings to modestly decline to US$210bn-US$240bn next .......

    News Round-up 24 December 2013

  • Positioning for new CDS definitions

    The implementation of the 2013 ISDA Credit Derivatives Definitions (SCI passim) is expected to tighten the CDS contract in favour of protection buyers, who should be motivated to roll to the new contract anyway for liquidity reasons. An implementing protocol is set to be introduced ahead of the 20 March implementation deadline, but Morgan Stanley credit derivatives strategists suggest that .......

    News 24 December 2013

  • Liquidation timelines lengthening

    With the US housing market seemingly on the path to recovery, the volume of distressed non-agency mortgages has this year dropped to less than half of what it was at its peak in February 2010, according to S&P. As of November 2013, US$232bn of non-agency mortgages remains in the shadow inventory, down from US$495bn at the beginning of 2010. However, .......

    News Round-up 24 December 2013

  • SAC Re sale completed

    Hamilton Insurance Group has completed its acquisition of SAC Capital Advisor's hedge fund-style reinsurer SAC Re after entering into a definitive agreement earlier this month (SCI 13 December). The acquired company is being renamed Hamilton Re and Brian Duperreault will serve as ceo.

    .......

    Job Swaps 24 December 2013

  • G-fee hike delayed

    Incoming FHFA director Mel Watt intends to delay the increase in GSE guarantee fees announced earlier this month (SCI 11 December), after he is sworn in on 6 January. The implementation will be delayed until he has had "the opportunity to evaluate fully the rationale for the plan".

    Limiting g-fee increases is a high-priority demand from consumer advocacy groups and .......

    News Round-up 24 December 2013

  • NAIC changes 'mildly positive'

    The US National Association of Insurance Commissioners (NAIC) last week released its 2013 model results for RMBS and CMBS bonds owned by insurance companies, which will be used to determine their capital requirements in 2014. The 2013 valuation process incorporates improvements in underlying macroeconomic assumptions, especially for the most conservative scenario.

    Approximately 68% of RMBS experienced an increase in NAIC .......

    News Round-up 24 December 2013

  • Cherry picking

    Euro relative value trades explored

    The European securitisation market offers a number of relative value opportunities going into 2014. Top picks include CLO 1.0, mezzanine CMBS and peripheral RMBS bonds.

    European ABS relative value is being driven by seemingly irrational investor behaviour and US appetite, according to Peter Nowell, head of ABS trading at BNP Paribas. He cites Dutch RMBS as an example: the sector .......

    News Analysis 24 December 2013

  • Rules of engagement

    Dialogue helps take edge off regulatory requirements

    Regulatory decisions and indecision have set the tone for structured finance around the world since the financial crisis. The European market in particular has been choked by tight guidelines, but there are signs of a softening regulatory stance as the industry continues to engage with regulators and policymakers.

    "The structured finance market is not dead. It has restarted in the .......

    News Analysis 24 December 2013

  • Multi-state servicing settlement sealed

    Ocwen Financial Corporation has entered into a US$2.1bn settlement with 49 states, the District of Columbia and the Consumer Financial Protection Bureau, which resolves allegations that the company engaged in mortgage servicing misconduct. Also included are Ocwen Loan Servicing, Homeward Residential and Litton Home Servicing.

    The alleged misconduct resulted in premature and unauthorised foreclosures, violations of homeowners' rights and protections and the .......

    Job Swaps 23 December 2013

  • KBC PPA amended

    The Belgian government has amended the Portfolio Protection Agreement (PPA) for KBC's CDO and ABS portfolio and added an incentive for the bank to accelerate reduction of the remaining exposure. Additional clauses have been added to the revised agreement that grant KBC a conditional discount on the outstanding premiums, under certain strict conditions and limited to a set maximum amount.

    News Round-up 23 December 2013

  • Korean covered bond act to spur issuance

    The passing of the Korean Covered Bonds Act makes South Korea the first Asian country to have dedicated covered bond legislation, which Fitch considers as a positive development for the wider Asia-Pacific covered bond market. The agency expects issuance under the Act to occur soon after it comes into force in March 2014.

    The Act is little changed from the .......

    News Round-up 23 December 2013

  • Panasonic tighter on improved sentiment

    Panasonic Corporation credit default swap (CDS) spreads have firmed up by 32% over the past month, according to the latest case study from Fitch Solutions. Another sign of growing market confidence for Panasonic is the year-over-year tightening seen on the name, with CDS spreads 77% tighter compared to 2012.

    "The cost of credit protection on Panasonic's debt is now testing .......

    News Round-up 23 December 2013

  • Modest rise for Indian ABS delinquencies?

    Fitch reports that a continued deceleration in India's economic growth in 2014 will hurt the payment ability of all commercial vehicle (CV) loan obligors in the country. The agency expects the 90+ days past due rate of all Fitch-rated CV loan ABS transactions to increase in 2014, with the increases more marked in recent vintages. Fitch expects 180+ day delinquencies .......

    News Round-up 23 December 2013

  • Punch downgraded ahead of restructuring

    Moody's has downgraded the ratings of six classes of notes issued by Punch Taverns Finance (Punch A) and three classes of notes issued by Punch Taverns Finance B (Punch B). The Punch A M1 and M2, as well as Punch B B1 and B2 notes remain on review for possible downgrade.

    The rating action was prompted by the progress update .......

    News Round-up 23 December 2013

  • LORDS 2 restructuring welcomed

    An extraordinary resolution to restructure the £237.7m LORDS 2 CMBS was duly passed by class A, B and C noteholders on the 20 December meeting (see SCI's CMBS loan events database). All conditions precedent to the restructuring were subsequently met and accordingly the restructuring documents have been executed.

    The loan has been extended to October 2014, with two further one-year .......

    News Round-up 23 December 2013

  • GSP Trust critiqued

    Moody's says it would have been unable to reach a rating higher than A1 for the US$375m RBS 2013-GSP Trust CMBS because it lacks a reserve or support class to absorb potential trust expenses not reimbursable by the borrower that otherwise would be passed through to certificateholders as an interest shortfall or principal loss. Fitch and S&P rated the transaction's .......

    News Round-up 23 December 2013

  • Budget to pressurise SLABS servicers

    Fitch expects the budget agreement that passed in US Congress last week to pressurise FFELP guarantors and smaller student loan servicers, as well as add incremental risk to student loan ABS pools. The US$1.01trn budget removes approximately half of the sequestration cuts and reduces government payments to FFELP guarantors and non-for-profit servicers servicing federal direct loan programmes. It also decreases .......

    News Round-up 23 December 2013

  • FHFA supporting return of private capital

    Numerous initiatives by the FHFA in recent weeks support the return of private capital to the US mortgage market, Fitch notes. The FHFA recently put out a request for feedback on future decreases in loan purchase limits for Fannie Mae and Freddie Mac, as well as moving to stay the current loan limits for another year and announcing higher guaranty .......

    News Round-up 23 December 2013
×