Complete news archive

  • ABS CDO transfer due

    Declaration Management & Research is set to transfer the asset management responsibilities for the Independence II CDO to Cairn Capital. The replacement is expected to become effective on 30 September, provided noteholders do not object before that date. Terms of the proposed replacement collateral management agreement have remained almost identical, with only minor differences that are not material to the .......

    Job Swaps 27 September 2013

  • Fraud suit to proceed

    The US District Court for the Southern District of New York has allowed the US Department of Justice to proceed with its civil mortgage fraud lawsuit against Wells Fargo in connection with the bank's participation in the FHA's Direct Endorsement Lender Program. DOJ filed its complaint in October 2012, accusing Wells Fargo of falsely certifying to the US Department of .......

    Job Swaps 27 September 2013

  • Euro ABS, RMBS markets 'calm'

    The European ABS and RMBS markets continue to exhibit healthy if unspectacular levels of activity. Primary issuance continues, while secondary market supply has picked up since the summer slow-down.

    One trader reports that this past week has been "calm" in the absence of strong positive or negative drivers. Secondary market activity has been steady.

    "We have certainly seen a bit .......

    Market Reports 27 September 2013

  • Master stroke?

    Aussie regulator considers master trust merits

    Speculation is growing that the Australian Prudential Regulation Authority (APRA) might allow securitisation through master trusts. Such a move could transform the Australian RMBS market and open up new asset classes.

    While common in other markets, master trusts have not taken off in Australia before now. One investor believes that it is post-crisis comparisons with those other markets which are .......

    News Analysis 27 September 2013

  • SFIG continues to build

    SFIG has hired Sonny Abbasi as director for RMBS policy issues and Sairah Burki as director for ABS policy issues. They will both report to executive director Richard Johns.

    Abbasi will focus on GSE reform and efforts to support a return of private capital to the RMBS market. He was previously director of MBS policy at Fannie Mae and has .......

    Job Swaps 26 September 2013

  • Servicer replacement approach outlined

    Fitch says it is increasingly being asked by new controlling class holders (CCH) to provide 'no downgrade letters' for the appointment of replacement special servicers, as losses continue to erode the control positions of legacy CMBS transactions. The agency notes that it will no longer provide individual rating confirmation letters with regard to these transfers as long as the transfer .......

    News Round-up 26 September 2013

  • Green bank to boost renewables ABS

    The New York State Energy Research and Development Authority (NYSERDA) is seeking to establish a green bank, with a primary mandate to facilitate securitisation for renewable energy technologies. It is anticipated that the bank will offer: warehouse lines for pooling financial assets, such as solar panel leases and power purchase agreements; take first loss positions in renewable energy securitisations; and .......

    News Round-up 26 September 2013

  • Further delay for Countrywide pay-out

    The September session of the US$8.5bn Countrywide settlement hearing has ended, without a conclusion. The objectors' one remaining witness - Georgetown law professor Adam Levitin - is now scheduled to provide his testimony on 14-15 November, after which both sides will offer their closing arguments.

    Closing arguments are expected to continue for three days, suggesting that the trial could be .......

    News Round-up 26 September 2013

  • Credit-checked index trade completed

    MarketAxess SEF Corp has completed the first live credit default swap (CDS) index trade using Traiana's CreditLink service as the credit hub to verify pre-trade credit limits. JPMorgan acted as the clearing member for the buy-side participant on the trade.

    "Our clients require efficient and effective pre-trade credit checking processes," comments Andres Choussy, global co-head of OTC clearing for JPMorgan. .......

    News Round-up 26 September 2013

  • Risk retention to impact SLABS advance rates

    Proposed changes to retention rules could reduce issuers' advance rates in securitisation and limit their options to sell the equity stake or move down the risk spectrum in student loan ABS deals, Fitch suggests. State issuers would be exempted from the rules, however.

    If the proposal is accepted in its current form, Fitch says it would expect most FFELP ABS .......

    News Round-up 26 September 2013

  • Basel 3 incorporation rules issued

    The US Fed has issued two interim final rules that clarify how companies should incorporate the Basel 3 regulatory capital reforms into their capital and business projections during the next cycle of capital plan submissions and stress tests. The horizon for the next capital planning and stress-testing cycle runs from 4Q13 to 4Q15, thereby overlapping with the implementation of Basel .......

    News Round-up 26 September 2013

  • Vintage variety for CLO session

    Paper from 2006 and 2007 dominated US CLO secondary trading yesterday. Bonds from deals issued as recently as this year and as long ago as 2003 were also captured by SCI's PriceABS data, however.

    Price talk for the 2013 tranches was concentrated from the mid-80s to the mid-90s. An example of the former was the APID 2013-12X F .......

    Market Reports 26 September 2013

  • SF lawyer moves to London

    Milbank, Tweed, Hadley & McCloy has boosted its leveraged finance practice with the addition of Laetitia Costa as special counsel in London. She was previously based in Paris and her structured finance expertise will expand the firm's offering. Costa joins from Clifford Chance and has also worked for Allen & Overy, Ashurst and Freshfields Bruckhaus Deringer.

    .......

    Job Swaps 26 September 2013

  • Resolutions required

    CMBS debt forgiveness set to increase ahead of maturity wall

    As US commercial real estate liquidity has improved and prices have increased over the past year, CMBS special servicers have availed of a greater number of resolution options, with loan modifications playing a less significant role. However, there is growing concern that balloon risk is not being fully priced in as the 2016-2017 maturity wall approaches.

    CMBS analysts at Bank .......

    News Analysis 26 September 2013

  • US supply sees sharp up-tick

    US secondary market activity has picked up significantly across the board, with SCI's PriceABS archive listing over 700 line items for yesterday's session. Bid-lists in each of the ABS, CMBS and RMBS sectors boosted supply.

    While a wide variety of collateral types were out for the bid in the ABS sector, a sizeable list of student loan floaters .......

    Market Reports 25 September 2013

  • Eximbank debuts MIGA guarantee

    Jefferies has acted as sole arranger and joint lead manager of a €400m structured financing for the Export-Import Bank of Hungary. Dubbed MAEXIM Secured Funding, the transaction represents the first time the World Bank's Multilateral Investment Guarantee Agency (MIGA) has guaranteed a bond with non-honouring of sovereign financial obligation coverage.

    The deal comprises two Fitch-rated tranches: €380m triple-A class A1 .......

    News Round-up 25 September 2013

  • Servicer turnaround times improving

    US CMBS special servicer turnaround times are improving, S&P reports. If a servicer doesn't respond to a borrower consent request in a timely manner, it impacts borrower performance and could lead to loan defaults.

    The length of time it takes a servicer to respond to a consent request may be affected by factors outside its control, however - including the .......

    News Round-up 25 September 2013

  • NCUA files RMBS, Libor suits

    The NCUA has filed lawsuits against Morgan Stanley and eight other institutions over the sale of nearly US$2.4bn in RMBS to Southwest and Members United corporate credit unions. As with similar suits filed by the agency (SCI passim), it alleges that the securities were faulty and led to the two credit unions collapsing.

    As well as Morgan Stanley, the NCUA .......

    Job Swaps 25 September 2013

  • New hire to boost CRE capabilities

    Jason Carney has joined Atalaya Capital Management in New York as the firm looks to expand into CRE financing. He joins as principal and has previously worked at Ridgeline Partners, Palatine Capital Partners, Silver Point Capital, Mission Capital Advisors and Third Avenue Management.

    .......

    Job Swaps 25 September 2013

  • Cross-border representation doc launched

    ISDA and Markit have launched the ISDA Cross-Border Swaps Representation Letter on ISDA Amend. The document allows market participants to provide counterparties with the representations for US person status needed to determine whether compliance with various swap regulations is required by the CFTC's Interpretive Guidance.

    The guidance is related to when the CFTC will assert jurisdiction over swap transactions that .......

    News Round-up 25 September 2013

  • CMBS recovery rates 'remain uncertain'

    Recovery rates for US CMBS loans in special servicing remain uncertain, Fitch says. The agency notes that the 66% recovery rate on loans liquidated during the first half of 2013 and the decline in volume of CMBS loans in special servicing are signs that the commercial real estate market is improving. The rise in commercial real estate values has supported .......

    News Round-up 25 September 2013
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