Complete news archive

  • OGX issuer substitution info requested

    ISDA's Americas Determinations Committee is set to reconvene today (22 November) to continue its discussions about the OGX Petróleo e Gás Participações S.A. bankruptcy credit event and related CDS auction (SCI 11 November). The reference entity is understood to have ceased to be the issuer of the 8.500% senior notes due 2018 issued by OGX Petróleo e Gás Participações as .......

    News Round-up 22 November 2013

  • Collateral transparency tool launched

    Lewtan has announced a partnership with the European DataWarehouse (ED) which will form the cornerstone of its new ABSNet Loan Europe offering. ABSNet Loan Europe delivers collateral transparency to RMBS and SME securitisations via normalised data so that institutions can determine their credit risk exposure.

    Lewtan's new offering relieves organisations from the requirement to dedicate in-house development efforts to perform .......

    Job Swaps 22 November 2013

  • Sub tranches dominate CLO session

    US CLO secondary market trading saw a lot of sub tranches out for the bid yesterday. SCI's PriceABS data captured a number of names, with several achieving covers.

    Vintages varied, from 2006-vintage paper such as AMMC 2006-6A SUB (which was talked in the 20s and high-20s) to 2013-vintage paper such as LONGF 2013-1X SUB (which was talked in the .......

    Market Reports 21 November 2013

  • Spanish CDO-squared on the block

    Jefferies has been appointed liquidation agent for Caja San Fernando CDO I. The collateral - comprising European and US CLOs, CDOs and repacks - will be auctioned on 5 December. The sale will be conducted via two BWIC lists: one focused on European bonds and the second on US dollar-denominated bonds.

    .......

    News Round-up 21 November 2013

  • Second city considers eminent domain

    The city of Irvington, New Jersey, is set to perform a legal study of eminent domain as a way of buying mortgages that currently are in foreclosure. The New Jersey chapter of the American Civil Liberties Union is said to support the Irvington plan, as the city has been hard-hit by foreclosures. Nearly 1,800 homes have been foreclosed upon since .......

    News Round-up 21 November 2013

  • Footnote 513 interpretation undermined

    The CFTC last week released guidance that undermines a legal interpretation that dealers relied on related to Footnote 513 of the Commission's July 'Interpretive Guidance and Policy Statement Regarding Compliance with Certain Swap Regulations'. Footnote 513 had previously been interpreted as a way of keeping swap transactions off SEFs (SCI 31 October), with several banks reportedly asking their swaps brokers .......

    News Round-up 21 November 2013

  • RFC issued on PF CDOs

    S&P has requested comments on proposed changes to its methodology and assumptions for rating CDOs of project finance debt. The proposed criteria adopt the same basic methodologies, assumptions and modelling parameters currently used to rate cashflow and synthetic CDOs of corporate and structured finance debt, with some differences due to the characteristics of project finance debt.

    The changes address two .......

    News Round-up 21 November 2013

  • Aussie master trust proposals examined

    The Australian Prudential Regulation Authority's recent update of its proposed revision of the Prudential Standard APS 120 includes provision for master trust issuance (SCI 12 November), which should enable take-up of this structure in the country, Fitch says. But the agency notes that APRA's conditions may prevent Australian master trusts using credit-positive structural features prevalent in other jurisdictions.

    APRA has .......

    News Round-up 21 November 2013

  • FedTrade prepped for MBS

    The New York Fed's open market trading desk is set to test its ability to conduct agency MBS transactions over its proprietary trading platform FedTrade. It plans to conduct an exercise consisting of a series of small value purchase and sale operations of agency MBS beginning today (21 November), running through January 2014.

    The operations will not exceed US$500m in .......

    News Round-up 21 November 2013

  • Abenomics to have varied impact

    The Japanese structured finance market will perform well in 2014, according to Moody's, although the effects of 'Abenomics' for each sector may be varied (SCI 5 August). A continued strict lending and regulatory environment will ensure the good credit quality of Japanese RMBS and ABS will be maintained in 2014. At the same time, the performance of CMBS will benefit .......

    News Round-up 21 November 2013

  • CLO managers sticking to the familiar?

    Positive asset selection trends are emerging among US CLO 2.0 transactions. However, individual managers appear to be re-using collateral across multiple deals, thereby increasing concentration risk.

    The average collateral overlap between any two 2012- or 2013-vintage CLO 2.0 deals is 22.8%, according to Morgan Stanley figures. That falls to an average of 22.4% for deals managed by different managers, but .......

    News 21 November 2013

  • Master trust performance to improve

    Moody's expects the performance of UK RMBS master trusts to improve in 2014. However, the agency notes that some borrowers will continue to struggle to make payments as a result of inflationary pressures on prices, as exemplified by recent energy price hikes.

    "We expect that the performance of UK RMBS master trusts will improve in 2014, on the back of .......

    News Round-up 21 November 2013

  • Japanese mezz fund partnership formed

    Nomura and Intermediate Capital Group are forming a partnership to facilitate the structuring and distribution of Japanese domestic mezzanine investments and funds. The funds will be managed by a local fund management company, which will be established.

    The demand for Japanese mezzanine debt is expected to rise as a result of the government's economic initiatives. Any funds structured as a .......

    Job Swaps 21 November 2013

  • Funding margin index debuts

    Bloomberg Indexes has launched the Bloomberg European Banks Funding Margin Index, a new benchmark that provides what the firm describes as the first market-driven measurement of credit risk and funding rates of high-quality European banks. The index calculates the average spreads of Euro currency bonds to ensure transparency in risk assessment and is intended to be licensed to financial institutions .......

    News Round-up 20 November 2013

  • Italian CMBS marketing

    Goldman Sachs is in the market with Gallerie 2013, a €363m Italian CMBS. The transaction securitises a loan granted to real estate fund Krypton, to enable it to acquire 13 shopping centres and one retail park located across Italy.

    Rated by DBRS and Fitch, the deal comprises €271m single-A rated class A notes, €50m single-A minus class Bs and €42m .......

    News Round-up 20 November 2013

  • Autos dominate varied ABS session

    US ABS BWIC volumes came close to US$150m yesterday, with auto paper leading the charge. Several credit card, equipment, student loan and container bonds were also out for the bid.

    Auto paper constituted the bulk of supply. The session saw a number of round-lot bonds circulating, with mixed offering levels.

    There were four separate AMCAR tranches out for the bid .......

    Market Reports 20 November 2013

  • GSE reduction targets met?

    The retained portfolios of Fannie Mae and Freddie Mac stand at well below their US$552.5bn limit for year-end 2013. The GSEs are also believed to have already achieved their 2013 targets for reducing their non-agency mortgage-related assets.

    Per the GSEs' quarterly statements, the targeted reduction amount for non-agency mortgage-related assets was US$15.7bn for Freddie Mac and US$21.1bn for Fannie Mae. .......

    News 20 November 2013

  • Value seen in Unique juniors

    Enterprise Inns disclosed in its full-year 2013 results that it placed a £97m convertible bond, the proceeds of which were used to cancel £70m of its forward start bank facility. The issuance has been welcomed for creating subordination for the pubco's securitisation.

    European securitisation analysts at Barclays Capital suggest that the convertible bond issue is positive for Enterprise Inns' debentures .......

    News 20 November 2013

  • Investor optimism highlighted

    Results from Fitch's 4Q13 European fixed income investor survey suggest that investors are slightly more optimistic than they were earlier this year. Only 40% of survey respondents see a prolonged recession as a high risk to the European credit markets - down from 71% in July and less than half the all-time-high of 86% in April.

    Eurozone debt problems and .......

    News Round-up 20 November 2013

  • Inaugural research publication released

    A new S&P Capital IQ bimonthly research publication aimed at credit risk professionals shows that risk levels as a whole have dropped off in the last year, although certain industries and regions remain higher risk areas. Dubbed Credit Market Pulse, the six-page research note aims to help those seeking deeper understanding of the risks and opportunities underlying their investment or .......

    News Round-up 20 November 2013

  • CSOs reviewed on methodology update

    Moody's has updated its approach to rating CSOs, resulting in a more conservative view of rated notes in the sector. Approximately US$1.76bn of securities are affected by the move.

    The updates to the methodology primarily include lowering the average recovery rate assumptions for all types of debt other than subordinated bonds, increasing the number of asset correlation states with varying .......

    News Round-up 20 November 2013
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