Complete news archive

  • LMI sensitivity examined

    Moody's says that most Australian RMBS transactions with lenders' mortgage insurance (LMI) insuring the mortgage loan payments are insensitive to changes in the credit quality of mortgage insurers. The agency analysed 215 Australian RMBS notes with LMI and found that the ratings of only 11 senior and two mezzanine tranches were reliant on the credit quality of mortgage insurers.

    The .......

    News Round-up 8 October 2013

  • Common GSE platform progresses

    A year after the FHFA released a white paper on a proposed framework for a common securitisation platform for Fannie Mae and Freddie Mac (SCI 5 October 2012), the joint venture is closer to becoming a reality. Among other developments, a certificate of formation has now been filed in Delaware to establish Common Securitization Solutions (CSS) as a limited liability .......

    Job Swaps 8 October 2013

  • Customised stress-test options offered

    Moody's Analytics has added customisation options to its Portfolio Analyzer (PA) suite of stress-testing products, including Mortgage Portfolio Analyzer (MPA), Auto Portfolio Analyzer (APA) and PA-ABS, a credit model for asset-backed securities. The aim is to allow financial institutions to create custom credit models using their own historical data and lending patterns, thereby reflecting the needs of their own data .......

    News Round-up 8 October 2013

  • PFI CLO restructured

    NIBC Bank has restructured its project finance CLO, Adriana Infrastructure CLO 2008-I, and placed the entire £477.8m class A1 notes with Aviva Investors. The £620.6m transaction is backed by sterling-denominated loans to operational public-private partnership projects across 47 borrowers in the UK originated by NIBC.

    The restructuring involved an increase in the credit enhancement of the class A1 notes (from .......

    News Round-up 8 October 2013

  • NewOak partners with risk specialists

    NewOak Advisors has formed a strategic alliance with Smith Regulatory Strategies (SRS). The alliance will combine NewOak's market expertise with SRS's risk management and regulatory compliance capabilities.

    The alliance will initially focus on Basel 3 risk-based capital compliance, including stress testing, asset valuation, risk assessment and model validation. The firms will also work together on bank-owned life insurance separate accounts .......

    Job Swaps 8 October 2013

  • Collaboration produces OAS model

    Deutsche Bank has partnered with Bloomberg to launch a new option-adjusted spread (OAS) model. Together with the bank's prepayment model, the OAS model seeks to provide a standard, accurate way to value agency RMBS and CMOs.

    The Bloomberg OAS model enables users to generate future interest rate paths using methods that significantly reduce the risk of negative rates. Users are .......

    Job Swaps 8 October 2013

  • Firm censured for ABS sales

    The UK FCA has censured Catalyst Investment Group for misleading investors while selling bonds between November 2009 and May 2010. Former compliance officer Alison Moran has also been fined £20,000.

    Catalyst would have been fined, but is in default and unable to pay. The firm offered life insurance securitisation bonds issued by ARM Asset Backed Securities despite knowing that ARM .......

    Job Swaps 7 October 2013

  • SEF licensing agreements signed

    Markit has licensed its Markit CDX North America IG, Markit CDX North America HY and Markit iTraxx Europe indices to four swap execution facilities (SEFs). As of 2 October - the first day of SEF trading under CFTC rules - Bloomberg, MarketAxess, Tera Exchange and Tradeweb Markets are licensed to facilitate trading in Markit's CDS indices. The firm says that .......

    News Round-up 7 October 2013

  • Codere auction scheduled

    The auction to settle the credit derivative trades for CODERE FINANCE (LUXEMBOURG) S.A. CDS is to be held on 9 October. The move follows the determination of a failure to pay credit event on the name (SCI 19 September).

    .......

    News Round-up 7 October 2013

  • Chenavari launches listed company

    Chenavari Capital Solutions has closed an IPO for an aggregate of 130,300,000 ordinary shares, raising gross proceeds of £130.3m. The strategy of the listed investment company is designed to allow European banks to reduce their risk-weighted assets under the Basel 3 rules via capital solutions transactions, while providing attractive returns to investors.

    Advised by Chenavari Investment Managers, the company is .......

    Job Swaps 7 October 2013

  • Clydesdale redress 'credit neutral'

    The UK Financial Conduct Authority's recent judgment against Clydesdale Bank is anticipated to be credit neutral for its post-crisis Lanark Master Issuer and Lannraig Master Issuer RMBS. A payment system error in place since 2005 led 22,000 borrowers to underpay on their loans, some of which are securitised in Lanark 2011-1 and 2012-1, as well as Lannraig 2012-1, 2012-2 and .......

    News Round-up 7 October 2013

  • Fannie debuts risk transfer deal

    Fannie Mae is in the market with its inaugural risk transfer transaction. Dubbed Connecticut Avenue Securities Series 2013-C01, the US$675m RMBS references a pool of 117,745 high-quality prime mortgage loans acquired by the GSE during 3Q12.

    Arranged by Bank of America Merrill Lynch and Credit Suisse, the deal comprises two tranches: US$337.5m class M1 floating-rate 10-year hard bullet notes, rated .......

    News Round-up 7 October 2013

  • Servicing standards lawsuit filed

    New York Attorney General Eric Schneiderman has filed a lawsuit against Wells Fargo so that the bank can be compelled to honour its commitments under the 2012 National Mortgage Settlement. Wells Fargo is accused of multiple violations of the servicing standards outlined in the settlement.

    Violations of the timeline servicing standards increase the likelihood of distressed homeowners losing their homes. .......

    Job Swaps 7 October 2013

  • London legal partners appointed

    Mayer Brown has added two securitisation partners to its banking and finance group in London. Richard Todd and David O'Connor join from Berwin Leighton Paisner and Allen & Overy, respectively.

    Todd has worked at Mayer Brown before, as well as at Lloyds, JPMorgan and VTB Bank. He specialises in trade receivables and auto loan ABS as well as RMBS.

    O'Connor's .......

    Job Swaps 7 October 2013

  • SCI Start the Week - 7 October

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

    Pipeline
    Many deals joined the pipeline last week only to price soon afterwards. By the end of Friday, only two new ABS, one RMBS, one CMBS and two CLOs remained.

    The ABS were Eagle Credit Card Trust Series 2013-1 and €732m Red & Black Auto Germany 2, while the RMBS was US$500m Springleaf Mortgage Loan Trust 2013-3. The CMBS was US$675m .......

    News 7 October 2013

  • US shutdown slows Euro CMBS

    The European CMBS secondary market has been dominated by talk this week, with trading activity easing off slightly. Market sentiment is positive but no significant changes are expected until the US debt ceiling dilemma is resolved.

    "It has been quiet this week, ever since the US government shutdown on Tuesday. Last week and the week before were more active with .......

    Market Reports 4 October 2013

  • CDO sale on the cards?

    Another auction has been scheduled for Trainer Wortham First Republic CBO IV, which was previously on the block in July (SCI 3 July). The next auction will take place on 23 October, when the collateral will only be sold if the sale proceeds are greater than or equal to the auction call redemption amount.

    .......

    Job Swaps 4 October 2013

  • CLO strategic partnership formed

    Sound Harbor Partners and Macquarie Credit Investment Management have formed a strategic partnership to launch a series of CLO funds. The deal brings the scale and resources of Macquarie to the boutique investment house's investors, enabling Sound Harbor to expand its client base, investment talent and assets under management.

    .......

    Job Swaps 4 October 2013

  • Extraordinary expenses impact ratings

    How US RMBS transactions account for extraordinary expenses has implications for both potential credit loss and potential rating volatility, reports Kroll Bond Rating Agency. Extraordinary expenses can fluctuate considerably, making them hard to anticipate.

    One way of treating extraordinary expenses is as amounts paid by the trust fund for the benefit of all noteholders which therefore should be borne by .......

    News Round-up 4 October 2013

  • Conduit balloon payoffs highest in years

    The percentage of US CMBS conduit loans paying off on their balloon date reached 74.5% by balance in September, which is the highest reading since December 2008, says Trepp. It is more than two points higher than the 72.1% reading for August and well above the 12-month moving average of 63.9%.

    By loan count, 70.1% of loans paid off, which .......

    News Round-up 4 October 2013

  • Japanese CMBS, autos improve

    Japanese CMBS and auto loan ABS performance continued to improve in July and August, according to Moody's Japan. High job security is expected to keep performance trends stable.

    The CMBS default rate fell to 17.6% in August, down from 21.8% in July and down from 33.1% a year earlier. The annualised auto loan ABS default rate for July fell to .......

    News Round-up 4 October 2013
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