Complete news archive

  • 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

  • Model integration issues persist

    Principia Partners has released the findings of a survey focusing on ABS, MBS and CDO investors' use of cashflow and waterfall models. The results show that while the growing commoditisation of issuer reporting, collateral performance and loan level data has benefitted the modelling of cashflows, it is not enough to lighten the burden investors carry when building and managing cashflow .......

    News Round-up 18 September 2013

  • Dutch NHI plan weighed

    The Dutch government is set to purchase - via the National Mortgage Institute (NHI) - up to €50bn of RMBS backed by NHG mortgages from banks over the next five years (SCI 4 April). The NHI will issue bonds guaranteed by the government to finance these purchases.

    Fitch suggests that the initiative is unlikely to materially reduce overall funding costs .......

    News Round-up 18 September 2013

  • Market value criteria updated

    S&P has published its revised methodology and assumptions for rating market value securities. These criteria apply to leveraged closed-end funds regulated in the US under the Investment Company Act of 1940, diversified market value CDOs and certain extendible ABCP programmes.

    The criteria are being updated to determine the price depreciation applicable to financial assets backing rated notes. Haircuts will vary .......

    News Round-up 18 September 2013

  • Innkeepers paid down

    September remittances indicate that the US$656m Innkeepers portfolio - securitised in LBUBS 2007-C6 and LBUBS 2007-C7 - has paid down. The move was widely expected, given that the asset has been open for prepayment since its December 2011 modification and owner Cerberus was shopping for a new loan in June (see SCI's CMBS loan events database).

    The large .......

    News Round-up 18 September 2013

  • NCUA's misrepresentation suit to proceed

    The Kansas District Court last week allowed the NCUA to proceed with its claims against a number of financial institutions in connection with the sale of RMBS to credit unions. The NCUA alleges that the originators of the loans underlying the RMBS systematically abandoned the stated underwriting guidelines, resulting in securities that were riskier than defendants disclosed.

    A Lowenstein Sandler .......

    Job Swaps 18 September 2013

  • Swap risk remedies discussed

    Providing collateral with significant cushion remains an important remedy to counterparty ineligibility in a structured finance cross-currency swap, according to Fitch. The agency adds that only allowing replacement as a remedy with little or no collateral posting beforehand exposes noteholders to extra risks.

    "Without collateral providing ample support, both structured finance and covered bond issuers can accumulate significant exposure to .......

    News Round-up 18 September 2013

  • Week starts with WBS flurry

    A number of UK whole business securitisation bonds were out for the bid yesterday. Some noteworthy credit tenant-linked CMBS were also seen in secondary, with SCI's PriceABS service recording covers ranging from 113 to 280 for the names.

    Among the WBS bonds circulating in yesterday's session were a trio of pub names. The tightest cover among them was .......

    Market Reports 17 September 2013

  • Fixed-, floating-rate income compared

    US fixed-rate ABS should provide significantly more income than floating-rate bonds, unless the Fed tightens policy sooner or more aggressively than expected, according to Wells Fargo ABS strategists. In addition, fixed-rate bonds may offer better total return potential as they roll down the steeper yield curve.

    The three-year swap rate has risen from about 0.5% at year-end 2012 to just .......

    News Round-up 17 September 2013

  • Loan financing shortfall possible

    JPMorgan CDO analysts estimate that US$304bn US and €81bn European CLOs remain outstanding, representing a global CLO market of US$416bn. They forecast that by 2016 or 2017 the CLO 1.0 market could shrink by half to around US$72bn, with triple-As paying down entirely by 2021.

    The JPMorgan sample comprises 1,086 US CLOs (US$486bn face value) and 276 European arbitrage CLOs .......

    News 17 September 2013

  • ABS CDO on the block

    An auction is slated for RFC CDO I on 30 September. The collateral will only be sold if the proceeds are greater than the redemption amount.

    .......

    News Round-up 17 September 2013

  • EU repository registration delayed

    ESMA has updated its EMIR implementation timetable. The key change relates to the registration of the first trade repositories (TRs), which was not expected to occur until 24 September.

    ESMA now doesn't anticipate making registration decisions before 7 November. Consequently, trade repository reporting is not expected to start before February 2014. The change in the timetable is related to a .......

    News Round-up 17 September 2013

  • Polygon appoints business head

    Polygon Global Partners has added Douglas Ross to its team in New York. He joins as North America head of business development and will market Polygon's hedge fund products, including CLOs.

    Ross joins from Field Street Capital Management, where he also held a senior business development role. Before that he worked at Normandy Hill Capital and Tiger Management.

    .......

    Job Swaps 17 September 2013

  • Real estate group builds sales team

    Carlton Group has formed an international investment sales team to provide investment sales services to clients worldwide. The group will focus on Manhattan and major cities throughout the US and Europe, with a focus on assignments of US$100m or more.

    Carlton chairman Howard Michaels will lead the team with Carlton Hospitality president John Bralower and Javier Beltran, who runs Carlton's .......

    Job Swaps 17 September 2013

  • FADE issuance limit upped

    Fitch has confirmed that Fondo de Titulizacion del Deficit del Sistema Electrico's (FADE) ratings - currently triple-B - will not be affected by the latest modifications included in the programme documents. This follows the Royal Decree 9/2013 approved in July by the Spanish Government.

    The agency has analysed the documents provided by FADE's management company (Titulizacion de Activos SGFT) and .......

    News Round-up 17 September 2013

  • Acquisition weighs on Neiman CDS

    Credit default swaps (CDS) on The Neiman Marcus Group have widened by 80% over the past month, significantly underperforming the Fitch North America Retail CDS Index, which moved just 1% wider over the same time period. While credit protection on The Neiman Marcus Group's debt had been pricing at double-B levels for much of the past year given its strong .......

    News Round-up 17 September 2013

  • Timeshare delinquencies hit post-2007 lows

    Quarterly US timeshare ABS delinquencies have fallen to the lowest level since 2007, according to Fitch's latest index results for the sector. Total delinquencies for 2Q13 were 3.05%, down from 3.27% in 1Q13 and 3.29% in 2Q12.

    Defaults for 2Q13 remained consistent with 1Q13, finishing at 0.72%. However, they are down from the 0.82% observed at the same time last .......

    News Round-up 17 September 2013

  • SCI Start the Week - 16 September

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

    Pipeline
    Deals entered and left the pipeline in quick succession last week, with many new arrivals printing before the weekend. Several transactions remained as well, including five new ABS, two RMBS, five CMBS and three CLOs.

    The ABS comprised: US$200m Dong Fang Container Finance series 2013-1; US$231.9m DriveTime 2013-2; US$446.85m GEEMT 2013-1; US$325m Leaf Commercial Capital 2013-1; and €750m VCL 18. .......

    News 16 September 2013

  • Australian legal team poached

    Squire Sanders has hired a team of lawyers in Sydney from DibbsBarker, to be led by Tom Lennox, who joins as partner. Lennox specialises in structured finance and has particular experience in aviation and real estate.

    Kate Prior and Abigail Sardinia also join in Sydney, having spent six years at DibbsBarker. They each have experience in asset finance and project .......

    Job Swaps 16 September 2013

  • Hedge fund adds CLO pro

    Joe Matteo has joined Credit Value Partners in New York. The CLO specialist was previously at Par-Four Investment Management and began his career at Merrill Lynch.

    .......

    Job Swaps 16 September 2013

  • Mexican reform 'credit negative' for RMBS

    The Mexican Congress is expected to pass a new fiscal reform bill that could take effect next year. The bill aims to increase tax revenues for the federal government, but is credit negative for outstanding Mexican RMBS because it would lead to higher delinquencies and higher losses, according to Moody's latest Credit Outlook.

    The bill calls for: a new 16% .......

    News Round-up 16 September 2013
×