Complete news archive

  • Data centre CMBS discussed

    Retail co-location businesses are behind a move to begin securitising data centre contracts, Moody's reports in its latest ABS Spotlight publication. But the agency notes that while the contractual cashflows from data centres could be attractive to the securitisation market, the high rents these centres currently command are unlikely to continue in the long term.

    "Trends for the data centre .......

    News Round-up 20 September 2013

  • SLABS EOD forecast

    Moody's notes in its latest ABS Spotlight that Access Group's series 2004-2 FFELP securitisation class A2 notes will not pay down in full by their final maturity date of 25 January 2016, a failure that will constitute an EOD. The remaining class A3 through A5 notes should pay down before their final maturity dates, while the class A2s should pay .......

    News Round-up 20 September 2013

  • Better underwriting seen in tertiary CRE

    Morningstar has undertaken a study of over 90,000 US commercial real estate loans with origination dates between 1997 and 2008. The agency says that the performance history of these loans implies default risk endogeneity in tertiary market loan origination.

    As the CRE sector continues to recover, secondary and tertiary markets are becoming an attractive alternative to the standard core markets, .......

    News Round-up 20 September 2013

  • Investment bank adds SF vet

    GreensLedge has appointed Lesley Goldwasser as a managing partner in New York. She will help define the firm's strategic direction and support the business' growth.

    Goldwasser was previously at Credit Suisse, where she had global responsibility for the hedge fund strategic services unit. Before that she was co-head of global debt and equity capital markets at Bear Stearns, where she .......

    Job Swaps 20 September 2013

  • Euro CMBS reacts to taper delay

    The Fed's decision not to taper (SCI passim) - and the subsequent boost to risk assets - appears to have caught many market participants off-guard. European CMBS secondary activity was lifted by the tide, with many tranches trading yesterday.

    "Thursday was really busy after the 'no taper' announcement. I do not think desks were expecting it and we saw plenty .......

    Market Reports 20 September 2013

  • Aussie RMBS downgraded on tail risk

    Moody's has downgraded 27 tranches and 11 counterparty instrument ratings (CIRs) across 19 Australian RMBS. These ratings were placed on review after the agency published its approach to addressing tail risk in Australian RMBS that pay principal pro-rata (SCI 20 June).

    The affected tranches are senior and mezzanine bonds from transactions that pay principal pro-rata with ineffective or no triggers .......

    News Round-up 20 September 2013

  • Limited impact from SME CLO update

    S&P has published a transition study in connection with the implementation of its updated criteria for assessing European SME CLOs (SCI 11 January). The agency says the move has had a relatively limited negative ratings impact, affecting approximately one-third of its SME CLO ratings universe.

    Following the publication of the updated criteria, S&P placed its ratings on 100 European SME .......

    News Round-up 20 September 2013

  • Increased mortgage, RMBS volume expected

    The unexpected decision by the US Fed to maintain its bond purchases will likely spur increased mortgage volume over the near term, Fitch says. In recent months mortgage rates have increased sharply in response to concerns over a Fed pull-back, with the average 30-year mortgage rate standing at 4.46%, according to the Freddie Mac Primary Mortgage Survey published on 28 .......

    News Round-up 20 September 2013

  • Suit dismissed as time-barred

    The US Court of Appeals for the Third Circuit has affirmed a district court decision dismissing as time-barred a securities class action against UBS in connection with a pension fund's losses from RMBS. Plaintiffs alleged that UBS - which securitised mortgages obtained from loan originators Countrywide and IndyMac Bank - misrepresented in the RMBS offering documents the quality of the .......

    Job Swaps 20 September 2013

  • Heavy penalty for derivatives group failings

    Regulators in the US and UK have fined JPMorgan for failings related to its chief investment office (CIO) (SCI passim). Collectively, it will pay the US SEC, Federal Reserve, OCC and the UK FCA approximately US$920m.

    The size of the total fine is one of the largest on record, potentially marking a move towards stricter enforcement by regulators. The fact .......

    Job Swaps 20 September 2013

  • OTC operator names credit chief

    Cactus Raazi has joined Tradeweb Markets as head of North American credit. He will report to Tradeweb president Bill Hult. Raazi was previously at Nomura, where he was global head of spread product sales and has also worked at Goldman Sachs.

    .......

    Job Swaps 19 September 2013

  • Interactive portal launched

    Fitch has launched 'The Why? Forum', an interactive website where leading thinkers from the rating agency and beyond share insights about the important themes at play in global markets and the economy. The portal includes articles, videos, interactive data presentations and event previews, with aim of allowing Fitch analysts to be even more accessible and Fitch data to be more .......

    News Round-up 19 September 2013

  • London law firm adds two

    Cadwalader, Wickersham & Taft has appointed Bruce Bloomingdale and Jeremiah Wagner to its capital markets practice in London. They each focus on securitisation and structured finance.

    Bloomingdale specialises in financial transactions, cross-border securitisation and asset-backed lending. He joins from Mayer Brown in the US, where he was head of the finance practice.

    Wagner also joins from Mayer Brown, where he .......

    Job Swaps 19 September 2013

  • Codere credit event called

    ISDA's EMEA Credit Derivatives Determinations Committee has resolved that a failure to pay credit event occurred in respect of Codere Finance (Luxembourg) SA. An auction is to be held in due course in respect of outstanding CDS transactions on the name.

    .......

    News Round-up 19 September 2013

  • Waiting for tapering

    The Fed's meeting this week was widely expected to herald the dawn of tapering, but rising interest rates have forced a delay. The announcement that QE will continue for the foreseeable future provided a boost for US RMBS.

    "Household spending and business fixed investment advanced, and the housing sector has been strengthening, but mortgage rates have risen further," the Fed .......

    News Round-up 19 September 2013

  • Supply sought

    Increased loan issuance not enough for CLOs

    Sourcing appropriate collateral is becoming tougher for European CLOs. Refinancing deals providing competition, new loan spreads flexing tighter and lingering regulatory concerns are holding back issuance in the sector.

    Unlike loan issuance for parts of the European RMBS or consumer ABS markets, leveraged loan issuance for CLOs has been stronger than at any time since the crisis, but is still .......

    News Analysis 19 September 2013

  • Co-op redemption concerns emerge

    The fortunes of the Co-operative Bank's outstanding Leek and Silk Road deals are more closely tied to the originator's financial health than most UK RMBS, due to noteholder put options inserted after the lender failed to call the transactions (SCI 14 April 2011). Investors are concerned that the bank may not be able to fund the note redemptions, given the .......

    News 18 September 2013

  • Diversification play

    Cat bond-lites, new exposures gain traction

    Catastrophe bond-lite structures appear to be gaining traction as a way of reducing transaction costs. At the same time, demand for exposure to new perils and jurisdictions is rising as investors seek increased diversification.

    Investors are calling for a reduction in the fixed cost of full-size catastrophe bonds to make them more competitive with collateralised reinsurance. Cat bonds typically cost .......

    News Analysis 18 September 2013

  • FAB vehicle debuts

    Spanish bad bank SAREB last month completed its first sale of an REO portfolio, dubbed project Bull. The transaction was structured as a Fondo de Activos Bancarios (FAB), a new vehicle that is a hybrid between asset securitisation funds and collective investment vehicles.

    The portfolio comprises 939 residential units and 750 parking and storage units, valued at €100m. It was .......

    News Round-up 18 September 2013

  • ABCP issuance drops on RPI offload

    EMEA ABCP issuance fell by 16% to US$72bn in 2Q13, after levelling out in the previous quarter, Moody's reports. The decline was driven almost entirely by the winding down of three single-seller programmes: Atlantis One Funding Corporation, Atlantis Two Funding Corporation and Royal Park Investments (RPI) (SCI 29 April). All three conduits decreased their USCP issuance dramatically as part of .......

    News Round-up 18 September 2013

  • Trups defaults, deferrals remain stable

    The number of combined defaults and deferrals for US bank Trups CDOs remained stable at 27.7% at the end of August, according to Fitch's latest index results for the sector. One deferring bank, representing US$10m of collateral, cured during the month and subsequently redeemed as the result of an acquisition.

    Only one new bank, representing US$10m of collateral in one .......

    News Round-up 18 September 2013
×