Complete news archive

  • Theatre restructurings on the cards

    The main obstacle to a restructuring of the Theatre (Hospitals) No. 1 and No. 2 CMBS appears to have been removed. A short-term extension to 15 January 2014 has been agreed to by 50.1% of the class A noteholders in both transactions, to enable ongoing discussions in connection with a long-term solution.

    An earlier ruling regarding voting rights in the .......

    News 17 October 2013

  • Russian mortgage proposal welcomed

    The Russian Ministry of Economic Development recently proposed several amendments to certain articles of the Federal Law 'On Mortgages', as well as the National Tax Code. Moody's notes that the proposed amendments are credit positive for future Russian RMBS issuance, as they will reduce interest rates on mortgage loans, improve mortgage loan affordability and increase the frequency with which participants .......

    News Round-up 17 October 2013

  • CCMA insufficient to solve Irish distress?

    A recent survey conducted by Moody's shows that Irish RMBS originators have welcomed the revised Irish Code of Conduct Mortgage Arrears (SCI 6 August), particularly with regard to clarifying the definition of 'not cooperating' borrowers and removing the ban on effective repossession. Irish lenders expect that the revisions will increase repossessions and reduce long-term delinquencies among not cooperating borrowers. An .......

    News Round-up 17 October 2013

  • RWN placements follow US rating action

    Fitch says it expects to take limited rating actions on US CMBS transactions as a result of its placement of the US sovereign rating on rating watch negative. Bonds in five deals are directly linked to the US rating and have already been placed on rating watch negative, while many others have exposure to defeased collateral and the US government .......

    News Round-up 17 October 2013

  • JPM pays penalty for CDX sales

    The US CFTC has issued an order against JPMorgan Chase, bringing and settling charges for employing a manipulative device in connection with its trading of certain CDS. JPMorgan admits the CFTC's finding and will pay a US$100m civil monetary penalty.

    The manipulative device was a high volume sale of CDS in a concentrated period of time, which the CFTC says .......

    Job Swaps 17 October 2013

  • ARM, subprime names circulating

    US non-agency RMBS BWIC volume picked up yesterday to reach around US$560m, with a focus on ARM and subprime bonds. Bid-side levels appear to be firming across the ARM sector, with POAs up by two points and hybrids up by a point.

    One noteworthy name from the session was SABR 2006-FR1 A2C, which SCI's PriceABS data shows was .......

    Market Reports 17 October 2013

  • US fundamentals index launched

    Fitch has launched the Fitch Fundamentals Index (FFI) to track changes in the strength of the US economy by monitoring the shifting credit fundamentals for key economic attributes. The FFI is based on Fitch's proprietary data and complements credit ratings, but is not tied to any rating, including the US sovereign rating.

    The US FFI fell into the neutral zone .......

    News Round-up 17 October 2013

  • CMBS recovery rates examined

    A new Moody's analysis suggests that the shorter the time a US CMBS loan is in special servicing, the higher its recovery rate is. The study examines recovery rates in US$60.5bn outstanding CMBS transactions for each of the largest special servicers, dissecting the data by strategy, vintage, property type, year of liquidation and months to recovery.

    "For the first time, .......

    News Round-up 17 October 2013

  • Convexity packages gaining traction

    The cash-CDS basis has drifted steadily more negative over the last two months, driven largely by underperformance in the bond market. Against this backdrop, convexity packages appear to be gaining traction.

    "We see a tactical opportunity to own the basis by pairing long-dated lower-priced bonds with shorter-dated CDS," credit derivatives strategists at Morgan Stanley confirm. "These convexity packages are a .......

    News 16 October 2013

  • Short duration fund launched

    Palmer Square Capital Management has launched its third mutual fund. Dubbed Fountain Short Duration High Income Fund, it will be managed on a day-to-day basis by Palmer Square's fundamental credit team and the firm's majority-owned affiliate Fountain Capital.

    The new fund will focus on generating income for investors by investing in short-duration, high-yield fixed, variable or floating rate debt securities. .......

    News Round-up 16 October 2013

  • Stable outlook for Indian SF

    Indian structured finance delinquency rates will continue rising in the next 12-18 months, due to the country's falling economic growth rate and rising fuel prices weakening debt-servicing ability, Fitch says. But the agency notes that collateral performance remains within its base-case assumptions, while loss-absorption mechanisms and credit enhancement build-up will continue to support stable ratings performance and outlook.

    For transactions .......

    News Round-up 16 October 2013

  • RFC issued on CCP disclosures

    The CPSS and IOSCO have published for public comment a consultative document on public quantitative disclosure standards for central counterparties. The document is designed to complement the disclosure framework released by the two organisations last year (SCI 14 December 2012).

    The proposed disclosures in this latest consultative document are intended to support the objectives of enabling stakeholders to: compare CCP .......

    News Round-up 16 October 2013

  • New hires to lead EM debt push

    Babson Capital Management has appointed Brigitte Posch and Ricardo Adrogue to lead its new emerging market debt investment team. Posch will be based in London and Adrogue will be based in Boston.

    Posch joins from PIMCO, where she was evp and head of emerging market corporates. Before that she established a Latin American securitisation and trading platform at Deutsche Bank .......

    Job Swaps 16 October 2013

  • Limited construction boosts CRE growth

    All US commercial real estate sectors continued to post moderate growth in 3Q13, which should continue into 2014 as the unemployment rate declines, according Moody's latest CMBS and CRE CDO surveillance review. As in the previous quarter, growth was helped by a limited amount of construction and positive absorption.

    Retail growth continued at a more moderate pace, but benefited from .......

    News Round-up 16 October 2013

  • EMEA downgrade trends discussed

    Fitch reports that asset underperformance was the dominant driver of EMEA structured finance (SF) downgrades since the onset of the credit crisis in 2007, accounting for 69% of negative rating actions. At the highest rating levels, asset underperformance is a far less dominant driver of rating downgrades, however.

    "This suggests that structured finance structures have operated as intended, with senior .......

    News Round-up 16 October 2013

  • Indicative information released on bulk sale

    Indicative information on geography, property type and outstanding loan balance has been disclosed by CBRE in connection with CWCapital Asset Management's forthcoming CRE liquidation (SCI 14 October). Based on this information, CMBS analysts at Barclays Capital have compiled a tentative list of the 67 assets out for the bid.

    They suggest that four CMBS deals account for 85% of all .......

    News Round-up 16 October 2013

  • EMC 3 to set precedent?

    An event of default has been declared for Victoria Funding (EMC III), in what is believed to be the first instance of balance sheet insolvency for a European CMBS. The move could set a precedent that expedites the resolution of a number of other transactions.

    The final property under the last remaining loan (Brisk) backing EMC 3 has been sold .......

    News 15 October 2013

  • Accounting change to hurt TBA liquidity?

    A new rule amendment being considered by the FASB, if adopted, is set to change the accounting treatment for TBA dollar rolls. The move could reduce the attractiveness of dollar rolls for some investors and thus lower liquidity in the market.

    The new guidance clarifies that a TBA dollar roll without stipulations would not result in the return of a .......

    News Round-up 15 October 2013

  • Greek flavour to RMBS secondary

    The periphery continues to outperform in secondary European RMBS. Among the bonds circulating on BWICs yesterday were a number of Greek tranches, where price talk is trending upwards.

    Among these bonds was the ESTIA 2 A tranche, which was talked at around 70, at 73-74 and at 78-79 during the session. The tranche was covered at 70.5 on 11 July, .......

    Market Reports 15 October 2013

  • Economic confidence drives UK CDS tighter

    UK CDS spreads experienced the biggest percentage tightening during 3Q13, according to S&P Capital IQ's latest quarterly global sovereign debt credit risk report, with the cost of protection tightening by 33bp from 50bp. Confidence was driven by domestic economic policy as the prospect of low interest rates and government lending schemes fuelled the housing market - a traditional growth driver .......

    News Round-up 15 October 2013

  • Special servicer replaced

    The controlling party of Titan Europe 2007-2 has replaced Capita Asset Services with Mount Street Loan Solutions as special servicer for seven loans, representing 18.5% of the pool. Capita remains special servicer for the other loans backing the CMBS.

    Mount Street is now special servicer for the Cobalt (8.2% of pool), Skoduv Palace (5.5%), Six Hotels (1.6%), Toy Box (1.1%), .......

    News Round-up 15 October 2013
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