Complete news archive

  • Higher loss severities for non-QM RMBS

    US RMBS backed by non-qualified mortgages will incur higher loss severities on defaulted loans than those backed by qualified mortgages. Non-QM loans will therefore increase risk in new RMBS.

    Moody's notes that the higher loss severities will be driven by the higher legal costs and penalties for non-QM securitisations, where a defaulted borrower can more easily sue a securitisation trust .......

    News Round-up 5 December 2013

  • Euro CMBS performance to stabilise

    Weak European CMBS performance is set to stabilise in 2014 on improving market fundamentals, says Moody's. The rating agency's outlook on the sector also predicts bolstered commercial real estate values, although significant losses are expected on legacy deals over the next five years.

    Secondary property values are expected to stabilise and loans backed by prime properties should perform strongly in .......

    News Round-up 5 December 2013

  • Cross-border rule challenged in court

    ISDA, SIFMA, the Financial Markets Association and the Institute of International Bankers are suing the CFTC for defects in its cross-border rule. They allege that the CFTC failed to follow complete rulemaking procedures and their suit also challenges aspects of other CFTC Dodd-Frank swap rules and seeks broad relief, including that the cross-border guidance be vacated.

    The associations say that .......

    News Round-up 5 December 2013

  • Divergent Euro rating outlook

    Fitch's rating outlook for European structured finance (SF) transactions is geographically split. Almost 70% of ratings in the core European countries are predominantly stable, with the remainder related to transactions from the eurozone periphery, which are predominantly negative.

    The negative outlooks for the eurozone periphery reflect a combination of declining asset performance, uncertainty over timing and extent of recoveries, policy .......

    News Round-up 5 December 2013

  • Euro credit quality to remain stable

    The credit quality of European ABS and RMBS transactions will remain stable overall in 2014, says Moody's in its outlook report for the sector. Against the backdrop of stabilising macroeconomic drivers for most countries, affordability across Europe will be sustained by the low interest rate environment, prudent underwriting criteria and regulatory initiatives to boost credit supply.

    While considerable risks remain, .......

    News Round-up 5 December 2013

  • OGX price settled

    The final price of OGX PETROLEO E GAS PARTICIPACOES SA CDS was determined to be 9 at yesterday's auction. Twelve dealers submitted initial markets, physical settlement requests and limit orders to settle credit derivatives trades across the market referencing the name.

    .......

    News Round-up 5 December 2013

  • Pricing data access for CLO platform

    Vichara Technologies has integrated its V* CLO solution with Markit's pricing services. Mutual clients will be able to access Markit's pricing service within Vichara's platform and Markit will provide daily pricing feeds for leveraged loans, corporate bonds, CLOs and loan mapping services within the V* CLO framework.

    The V* platform allows for forecasting, valuation and analysis of CLOs, CBOs, CDOs .......

    Job Swaps 5 December 2013

  • IABF unwind to begin

    The Dutch government intends to start a competitive auction process to sell the non-agency RMBS underlying the ING Illiquid Assets Back-up Facility (IABF). BlackRock Securities will be responsible for the execution of the sale of the securities on behalf of the Dutch State Treasury Agency (DSTA).

    The IABF was created almost five years ago (SCI 28 January 2009) as one .......

    News Round-up 5 December 2013

  • CMBS servicer names new ceo

    Hatfield Philips International has appointed Blair Lewis as ceo, effective from next month. He has 17 years of experience in structured finance and joins from RBS.

    Lewis was head of structuring and origination for Europe at RBS and also served as corporate director for global banking and markets. He previously worked at ABN Amro as well as in various positions .......

    Job Swaps 5 December 2013

  • Volcker Rule set to be finalised

    The CFTC, FDIC and Federal Reserve Board are each set to discuss - and potentially approve - a final draft of the Volcker Rule next week. They will each meet separately on 10 December.

    The US SEC and OCC must also approve the rule. The SEC is also expected to vote on the rule next week, while the OCC has .......

    News Round-up 5 December 2013

  • Freddie settles BAML claim

    Freddie Mac has entered into a settlement agreement with Bank of America concerning the GSE's claims related to representations and warranties on single-family loans it was sold. Under the terms of the agreement, Bank of America agreed to pay Freddie Mac a total of US$404m, less credits of US$13m for repurchases already made and for reconciling adjustments.

    Freddie Mac, subject .......

    Job Swaps 4 December 2013

  • Credit platform coming together

    Covenant Credit Partners, the credit investment platform set up by Livermore Investments Group, has wasted little time assembling a team. The unit is led by Marc Boatwright (SCI 5 September) and is understood to be planning to issue a series of deals.

    Andrew Chung, Matt Raubach, Nick Lawson and Christopher Brogdon have all joined in analyst positions and will be .......

    Job Swaps 4 December 2013

  • Real estate group targets MENA

    Carlton Group has hired Edwin McClendon to lead its new Middle East and North Africa unit. He is based in Dubai and has over 30 years of experience in real estate and investment banking, including as ceo of McClendon, Morrison & Partners.

    McClendon has particular experience of senior credit facilities and mezzanine financings. He will work with vp Chase Chehade, .......

    Job Swaps 4 December 2013

  • Pulled loans augur bondholder risk

    The removal of loans from two recent US CMBS could be an early warning sign of risk for bondholders, Fitch notes. The agency suggests that borrowers' eagerness to lock in historically low interest rates and originators' enthusiasm to maintain volumes are putting pressure on securitisations to come to market quickly, raising the risk of errors in loan oversight.

    Recently a .......

    News Round-up 4 December 2013

  • Timeshare delinquencies up on seasonality

    Total US timeshare ABS delinquencies for 3Q13 were 3.14%, up slightly from 3.05% in 2Q13, according to Fitch's latest index results for the sector. The increase reflects the seasonal trend that takes hold in the autumn and winter. Nevertheless, delinquencies are down from 3.28% in 3Q12 and have largely normalised at their historical levels following the dramatic increases of 2008 .......

    News Round-up 4 December 2013

  • Resolutions drive delinquency decline

    The Trepp US CMBS delinquency rate continued its impressive turnaround in November, which marked the sixth consecutive month of improvement. With a decrease of 32bp, the delinquency rate now stands at 7.66%.

    Last month's rate decrease was driven by almost US$1.2bn in previously delinquent loans being resolved with losses. By removing these delinquent loans from Trepp's numerator, the rate saw .......

    News Round-up 4 December 2013

  • Recourse rankings implemented

    Moody's reports that the European housing market remains full recourse in nature in that, following default and foreclosure, borrowers are still liable for any remaining shortfall after the property sale. That said, considerable variation exists within different European jurisdictions in terms of the use of bankruptcy procedures and the efficiency and timing of the foreclosure process.

    To reflect these differences, .......

    News Round-up 4 December 2013

  • Distressed exchange for ESAIL juniors

    Fitch has downgraded the single-C rated B1c, C1c and D1c classes of Eurosail-UK 2007-5NP to D, following the restructuring of the transaction (SCI passim). In addition, it has placed the double-C rated A1a and A1c classes on rating watch positive (RWP).

    The RMBS received US$35.1m on 21 November through an auction of its remaining claims against the Lehman Brothers bankruptcy .......

    News Round-up 3 December 2013

  • Refi challenge forecast for 2014

    Over €10bn of outstanding loans backing the European CMBS that S&P rates could be in need of refinancing in 2014. The agency notes that over €13bn of loans are scheduled to mature next year, of which about €3bn have already prepaid.

    While the refinancing challenge is not expected to be as acute next year as it was this year, 2014's .......

    News Round-up 3 December 2013

  • Stable outlook for APAC ratings, performance

    Fitch expects both the ratings and asset sector performance of Asia-Pacific (APAC) structured finance (SF) transactions to remain stable over the course of next year. Most public long-term ratings on APAC SF transactions are anticipated to remain at their current level throughout 2014. Of the 10 non-stable outlooks in place at end-3Q13, six were on positive outlook and four were .......

    News Round-up 3 December 2013

  • BRRD to have neutral counterparty impact

    Fitch does not expect its counterparty criteria for structured finance (SF) and covered bonds (CVB) to change if the European Bank Recovery and Resolution Directive (BRRD) is implemented as currently drafted by the European Council. The agency says it considers the proposed directive to have a largely neutral impact upon the seniority of counterparty exposures.

    Fitch believes that eligible rating .......

    News Round-up 3 December 2013
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