Complete news archive

  • 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

  • Record settlement for RMBS claims

    JPMorgan has agreed to a settlement of US$13bn with the US Department of Justice to resolve federal and state civil claims arising from RMBS issued by JPMorgan, Bear Stearns and Washington Mutual prior to 1 January 2009. It is the largest settlement with a single entity in American history.

    The resolution also requires JPMorgan to provide relief to underwater homeowners .......

    Job Swaps 20 November 2013

  • Credit pro joins info firm

    Algomi is growing its European credit capabilities with the appointment of Stefano Vaccino as sales manager. The firm provides information-matching solutions to optimise liquidity and Vaccino will use his technology background and experience of working in the credit space to support Algomi's team in working with clients to change their approach to trading fixed income and credit products.

    Vaccino joins .......

    Job Swaps 20 November 2013

  • Invitation to begin

    First deal heralds arrival of SFR securitisation

    The arrival of Invitation Homes 2013-SFR1 - the first-ever single-family rental (SFR) securitisation (SCI 1 November) - has finally provided the spark for the long-mooted REO-to-rental asset class in the US. Further issuances are expected, although the sector's success in the long-term will depend on several factors, not least changing home prices.

    "Single-family rental securitisations could become a considerable market. .......

    News Analysis 20 November 2013

  • Soft landing predicted for Canadian home prices

    Nominal home prices in Canada would fall by no more than 10% over the next five years in a down scenario, after taking into account momentum and inflation, Fitch suggests. Though the agency projects a decline in home prices in the country, there are several factors that could point to a soft landing, where nominal prices simply flatten out or .......

    News Round-up 19 November 2013

  • B-note may complicate Lincoln Square resolution

    Morningstar says it is not currently projecting a loss on the US$220m Lincoln Square A-note, following the CMBS loan's transfer to special servicing (see SCI's loan events database). However, the B-note debt may complicate the ultimate resolution of the loan.

    The Lincoln Square loan - US$160m of which is securitised in CD 2007-CD5 and US$60m is in CGCMT .......

    News Round-up 19 November 2013

  • JPM settlement is RMBS positive

    JPMorgan has agreed to make a payment of US$4.5bn to the 330 non-agency RMBS trusts issued by JPMorgan, Bear Stearns and Chase to settle mortgage repurchase and servicing claims (SCI 18 November). The settlement appears positive for senior mezzanine and subordinated triple-A tranches.

    Morgan Stanley RMBS analysts note that the settlement re-affirms the notion that put-back optionality is valuable in .......

    News 19 November 2013

  • Slow session for non-agency RMBS

    The US RMBS secondary market was dominated by agency paper yesterday, with non-agency BWIC supply remaining light. SCI's PriceABS data reveals a range of non-agency names out for the bid, although several were recorded as DNTs.

    Non-agency supply was mainly driven by senior adjustable-rate hybrids, with little in the way of fixed-rate or subprime paper. Despite .......

    Market Reports 19 November 2013

  • New ILS manager appoints ceo

    XL Group has appointed Chris McKeown as ceo of New Ocean Capital Management. New Ocean was recently established by XL and funds managed by Stone Point Capital to provide investors with access to the ILS market.

    McKeown has worked in reinsurance for three decades. He has previously held senior positions at Guy Carpenter, ACE Tempest Reinsurance Company, CIG Reinsurance and .......

    Job Swaps 19 November 2013

  • Trups CDO defaults, deferrals flat

    Combined defaults and deferrals for US bank Trups CDOs declined to 27.3% at end-October from 27.4% at the end of the previous month, according to Fitch's latest index results for the sector. Five issuers, with a total notional of US$58.5m, cured in October and the cumulative cure balance was retroactively increased for a September cure with a notional amount of .......

    News Round-up 19 November 2013

  • Mixed metrics seen for CMBS

    Legacy US CMBS market metrics are continuing to improve, while several key indicators for new issuance finished the quarter somewhat mixed, according to Fitch's latest quarterly index report for the sector.

    Delinquencies of Fitch-rated CMBS fell by 61bp quarter over quarter in 3Q13, compared with 45bp between the first and second quarters. Similarly, the volume of loans in special servicing .......

    News Round-up 19 November 2013

  • SIDCO rules finalised

    The CFTC has finalised rules to establish additional standards for systemically important derivatives clearing organisations (SIDCOs). The rules, together with the existing derivatives clearing organisations rules, establish Commission regulations that are consistent with the Principles for Financial Market Infrastructures (PFMIs) and would allow SIDCOs to continue to be qualifying central counterparties for purposes of international bank capital standards.

    The final .......

    News Round-up 19 November 2013

  • SCI Start the Week - 18 November

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

    Pipeline
    The number of deals joining the pipeline declined a little last week. However, there were still five new ABS, one ILS, one RMBS, three CMBS and three CLOs which were added and yet to price at the weekend.

    The ABS were: €696m Cars Alliance Auto Loans Germany V 2013-1; US$878m Education Loan Asset Trust I Series 2013-1; €516.7m Globaldrive Auto .......

    News 18 November 2013

  • GE split-off 'credit negative'

    Moody's says that General Electric Company's decision to split off its North American retail finance business - which includes its credit card operations - in 2015 is credit negative for the GE Capital Credit Card Master Note Trust. However, the agency is not placing the trust's notes under review at this time as it believes GE is incentivised - from .......

    News Round-up 18 November 2013

  • Non-EU counterparty rules drafted

    ESMA has issued final draft regulatory technical standards (RTS) related to derivative transactions undertaken by non-EU counterparties under EMIR. EMIR provisions regarding central clearing and risk mitigation techniques also apply to those OTC derivatives entered into by two non-EU counterparties that have a direct, substantial and foreseeable impact on EU financial markets.

    The draft RTS clarify that OTC derivative contracts .......

    News Round-up 18 November 2013

  • OTC trade data team-up announced

    Clarus Financial Technology is set to distribute ICAP's benchmark OTC derivative pricing data within its SDRView service. The offering will overlay ICAP's pre-trade data with Clarus' post-trade reporting to provide enhanced trade transparency and help to meet new regulatory requirements.

    .......

    Job Swaps 18 November 2013

  • Disclosure recommendations released

    ESMA has published a review of the comparability and quality of disclosures in 2012 IFRS financial statements of listed financial institutions. The review makes recommendations aimed at enhancing the transparency of financial statements through the improvement of disclosures in certain key areas, including credit risk and impact of forbearance practices, liquidity and funding risk, asset encumbrance and fair value measurement .......

    News Round-up 18 November 2013

  • CVA enhancement rolled out

    SuperDerivatives has expanded its eValueX, CorporeX and SDX services with the ability to perform credit value adjustment (CVA) for OTC derivatives portfolios. The firm says the move is in response to significant demand from corporate treasurers and auditors for a solution to the complex challenge of evaluating counterparty credit risk. The solution aims to allow users to define a CVA .......

    News Round-up 18 November 2013

  • Dutch servicing strategies maturing

    Fitch reports that more effective mortgage servicing strategies originally developed in the UK are being adopted in the Netherlands in response to rising arrears. These sophisticated servicing strategies often focus on more timely and targeted intervention to prevent or remedy arrears, although factors such as cost concerns and data availability mean it is not clear that Dutch servicers can replicate .......

    News Round-up 18 November 2013

  • JPM, Bear Stearns RMBS claims settled

    JPMorgan has reached a US$4.5bn agreement with 21 institutional investors to make a binding offer to the trustees of 330 RMBS. The institutional investors have committed to support the settlement and requested that the trustees accept the settlement offer.

    The cash payment will settle all representation and warranty claims as well as servicing claims that have been or could have .......

    Job Swaps 18 November 2013

  • Securitisation chief appointed

    VEB Capital's former head of debt capital markets, Sergei Kaduk, has joined Sberbank CIB as debt capital markets director in charge of securitisation and structured products. In previous roles he has also served as head of research at RuMAC and as a senior associate at KPMG.

    .......

    Job Swaps 18 November 2013
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