Complete news archive

  • CMBS collateral quality 'barbelled'

    A decline in Moody's debt service coverage (MDSCR) has led to an increase in conduit credit risk in the US CMBS transactions the agency rated in Q3, it reports. MDSCR fell to1.59 in the third quarter from 1.68 in the second quarter, and is expected to continue falling in the fourth quarter.

    "The levels of debt service coverage are still .......

    News Round-up 28 October 2013

  • Successor CLO manager proposed

    Natixis Asset Management is set to propose its appointment as successor collateral manager for Vallauris II CLO. The move follows notice given by the current manager - Natixis - that, in accordance with a letter of resignation dated 24 October, it intends to resign in accordance with clause 9.1 of the collateral management agreement.

    For other recent CDO manager transfers, .......

    Job Swaps 28 October 2013

  • Counterparty classification tool launched

    ISDA, the British Bankers' Association, the Investment Management Association and Markit have launched an EMIR Counterparty Classification Tool on ISDA Amend, ISDA and Markit's online service that facilitates compliance with certain EMIR and other regulatory requirements. The tool provides an online system that will allow all businesses to classify themselves according to the EMIR taxonomy by answering a series of .......

    News Round-up 28 October 2013

  • Further PLS settlement for FHFA

    The FHFA has reached a settlement with JPMorgan and related companies for US$4bn to address claims of alleged violations in the sale of private-label mortgage securities purchased by Fannie Mae and Freddie Mac. JPMorgan will pay approximately US$2.74bn to Freddie and US$1.26bn to Fannie.

    The claims relate to securities sold between 2005 and 2007 by JPMorgan, Bear Stearns and Washington .......

    Job Swaps 28 October 2013

  • BofA liable for 'hustle'

    A federal jury in New York has found Bank of America's Countrywide unit liable for civil fraud in the first mortgage-fraud case brought by the US government to go to trial. Countrywide executive Rebecca Mairone has also been found liable for fraud.

    The lawsuit was filed last year (SCI 25 October 2012), alleging that Countrywide implemented a loan programme known .......

    Job Swaps 28 October 2013

  • SCI Start the Week - 28 October

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

    Pipeline
    Last week was slightly quieter in terms of new deals joining the pipeline. Six new ABS deals were announced, as well as one RMBS and one CLO.

    The ABS consisted of: Driver UK Master Compartment 2; US$280m Global Container Assets 2013; US$450m LATAM 2013-1; US$300m Sierra Timeshare 2013-3 Receivables Funding; €740m Silver Arrows Compartment 4; and £265m Temese Funding 1. .......

    News 28 October 2013

  • JCP CDS hit record wides

    Significant widening in JC Penney's five-year credit default swap (CDS) spreads underscores continued investor concern as the retailer struggles to find its footing, according to Fitch Solutions. The firm reports that JCP CDS spiked by more than 300bp over the course of the last week and are now trading at record wide levels, reflecting a higher risk of default.

    Earlier .......

    News Round-up 25 October 2013

  • Action seen in secondary US ABS

    US ABS secondary supply remained moderate yesterday, with BWIC volume reaching US$180m. The focus was on student loan and credit card paper, including five block-sized bonds from the CHAIT shelf out for the bid.

    Among those bonds, SCI's PriceABS data shows that CHAIT 2012-A5 A5 traded during the session, with price talk in the mid-teens. The tranche was .......

    Market Reports 25 October 2013

  • RFC issued on leverage ratio disclosure

    The EBA has launched a consultation on draft implementing technical standards (ITS) on disclosure for the leverage ratio, which seek to provide institutions with uniform templates and instructions. These draft ITS include all the items that are relevant for disclosure under the provisions set out in the Capital Requirements Regulation (CRR) and are aligned with the Basel disclosure framework.

    The .......

    News Round-up 25 October 2013

  • Further stipulated claims received

    Eurosail UK 2007-5NP has received US$5.42m from Lehman Brothers Special Financing Inc and US$5.84m from Lehman Brothers Holdings Inc in respect of the issuer's class 4A and 9A claim. The amounts represent 3.18% and 3.43% respectively of the transaction's US$170m stipulated claim for failure of the hedging contracts.

    RBS European securitisation analysts note that the deal has previously received 33.18% .......

    News Round-up 25 October 2013

  • Single-B benefits bring buyers

    CLO single-B tranche supply has totalled US$731m so far in 2013. The nascent market segment offers attractive yields while retaining more protection than equity.

    JPMorgan CLO strategists note that 68 single-B tranches have been issued year-to-date, mainly in the US. Investors have bought the paper both for its high current coupon and convexity and also alongside equity as a hedge, .......

    News 25 October 2013

  • SASB performance meets expectations

    US single-asset and single-borrower (SASB) CMBS performance is on track to meet expectations for cumulative lifetime defaults, according to a review undertaken by Moody's. Approximately 95% of 4- to 5-year-old SASB tranches originally rated Aaa and more than half of those originally rated in lower investment grade categories stayed within their original rating category through the end of 2012.

    Part .......

    News Round-up 25 October 2013

  • JCP distress unlikely to impact CMBS

    If JC Penney's financial challenges result in the closure of a portion of its stores, some malls would likely struggle to replace the retailer, Fitch says. The agency does not expect such a move to impact rated CMBS deals, however, because they represent relatively small amounts of those transactions.

    One mall that could struggle if its JC Penney anchor were .......

    News Round-up 25 October 2013

  • LCR impact weighed

    The Federal Reserve has proposed a rule that would for the first time in the US create a standardised minimum liquidity requirement for large and internationally active banking organisations and systemically important non-bank financial companies. The proposal presents two key issues for the securitisation market: the Level 2 treatment of GSE securities and the assumed 100% draw-down of commitments to .......

    News 25 October 2013

  • Life settlement vet takes ILS role

    Sundance Strategies has appointed Matthew Pearson as coo. He brings 25 years of experience across the life settlement industry, corporate finance and real estate brokerage and will oversee the acquisition, securitisation, ownership and management of senior life settlement policies.

    Pearson joins from life settlement securitisation company EHI. He has also worked for Evolution Capital Partners.

    .......

    Job Swaps 25 October 2013

  • Chinese pilot programme back on track?

    Chinese ABS activity appears to be back on track, after the country's regulatory authorities re-committed themselves in August to its credit asset securitisation (CAS) pilot programme. SFIG estimates that the move could result in as many as 20 participating institutions collectively issuing up to US$49bn in securities during the first half of 2014.

    China's Pilot Measures define a securitisation framework .......

    News Round-up 24 October 2013

  • Euro CLO asset composition analysed

    S&P's 3Q13 European CLO performance index report considers how assets in post-crisis CLOs differ from those in pre-crisis deals. Assets rated above the single-B rating level are more prominent in pre-crisis CLOs. These pre-crisis transactions also contain more lower-rated assets, in the triple-C and single-D category.

    In addition, European CLOs are predominantly invested in loans to borrowers operating in the .......

    News Round-up 24 October 2013

  • PF CDO approach outlined

    Moody's has published its approach to rating CDOs backed by project finance and infrastructure assets (PF CDOs), following its recent RFC (SCI 14 August). Based on preliminary analysis, the agency expects that the rating impact on existing transactions will be limited to up to two notches, which may affect one or two PF CDO transactions.

    The approach is in line .......

    News Round-up 24 October 2013

  • ABS CDO on the block

    An auction for the Trainer Wortham First Republic CBO III transaction is scheduled for 14 November. The collateral shall only be sold if the proceeds, together with the balance of all eligible investments and cash in the accounts, are greater than or equal to the auction call redemption amount.

    .......

    News Round-up 24 October 2013

  • Canadian MBS pricing offered

    Thomson Reuters has rolled out evaluated pricing for Canadian MBS to assist customers in accessing accurate end-of-day pricing. The new pricing offering is part of Thomson Reuters Pricing Service (TRPS) and employs a mark-to-market methodology to price the universe of Canadian MBS pools on a daily basis, providing coverage for approximately 10,000 fixed and floating rate instruments.

    .......

    News Round-up 24 October 2013

  • Richmond ruling appealed

    Trustees for investors including BlackRock, PIMCO and DoubleLine Capital are appealing US District Judge Charles Breyer's dismissal of the Richmond eminent domain case (SCI 24 September). They are asking a federal appeals court in San Francisco to review the ruling. A SFIG memo notes that lawyers for the trustees allege the majority of the targeted loans are still performing, while .......

    News Round-up 24 October 2013
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