Complete news archive

  • 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

  • Private student loan defaults drop

    Moody's reports that its private student loan default rate index dropped to 3.6% in 2Q13, the first time it has dipped below 4% since 2007. The agency expects the index to continue falling year over year in 2013, but remain above pre-recession rates.

    "The default rate index will continue to fall in 2013, but will remain higher than average pre-recession .......

    News Round-up 16 September 2013

  • Lincoln adds CDS, fixed income pair

    Lincoln Financial Group has added Andrew Yorks and Scott Pelkola to its team in newly-created positions. Yorks joins as svp and head of markets and investment strategy, while Pelkola becomes svp and head of fixed income.

    Yorks will lead Lincoln's overall markets and investment strategy. The credit derivatives specialist was previously cio at Four Wood Capital Advisors and has also .......

    Job Swaps 16 September 2013

  • Further dip forecast for CMBS late-pays

    US CMBS late-pays fell by 10bp in August to 6.68% from 6.78% a month earlier, according to Fitch's latest index results for the sector. The agency notes that the delinquency rate is poised for another dip once an impending modification of the US$678m Skyline Portfolio loan is finalised (see SCI's CMBS loan events database).

    The Skyline Portfolio is .......

    News Round-up 16 September 2013

  • Delivering unification?

    Common TBA proposal could ease GSE transition

    The concept of a unified conventional TBA deliverable for the GSEs has gained traction recently. Such a move could mark a first step towards unifying the GSEs themselves, which is one of many GSE reform options under discussion.

    Freddie Mac's securities consistently trade at a lower price than those of Fannie Mae and, despite compensating lenders with guarantee fee rebates, .......

    News Analysis 13 September 2013

  • Back to business for Euro CLOs

    Secondary markets surged yesterday and the European CLO sector was no exception. Activity is picking up as the market moves into autumn, with a significant list circulating yesterday and another one planned for the start of next week.

    "An ABS CDO BWIC came out yesterday, which was really interesting. Some of the bonds on that list were very well bid," .......

    Market Reports 13 September 2013

  • New law set to unlock Russian ABS

    The Russian government is reviewing a proposed legislative change that would allow banks to securitise a broad range of assets, including SME loans, consumer loans, credit cards and auto loans. Moody's notes in its latest Credit Insight publication that the move is credit positive for Russian originators, as it will: allow the domestic issuance of Russian-law governed non-mortgage ABS; facilitate .......

    News Round-up 13 September 2013

  • NCR proposals 'credit positive'

    The French government is proposing to create a National Credit Registry (NCR) that captures individual consumer loan indebtedness. Moody's notes in its latest Credit Insight publication that the creation of such a registry is credit positive for most French auto ABS, consumer ABS and RMBS, as it will improve the ability of lenders to assess borrower affordability.

    The agency suggests .......

    News Round-up 13 September 2013

  • Economic capital solution strengthened

    Moody's Analytics has released RiskFrontier 3.4, the latest version of its portfolio management and economic capital solution. A new risk measure has been added to the service that combines regulatory and economic capital into a single metric.

    The model in RiskFrontier treats regulatory capital charges as a binding constraint that reduces profitability, and produces a series of unified metrics that .......

    News Round-up 13 September 2013

  • High CDS liquidity reported for Nokia

    The credit default swap (CDS) market seems to be reacting favourably to Microsoft's plans to acquire Nokia, according to the latest case study from Fitch Solutions. Following the US$7.2bn acquisition announcement on 3 September, CDS spreads on Nokia have tightened by 59%, while Microsoft remains largely illiquid.

    The cost of credit protection on Nokia's debt is now at double-B plus .......

    News Round-up 13 September 2013

  • Punch restructuring progressing?

    Punch Taverns has disclosed that it is continuing its engagement with stakeholders, which now includes the ABI special committee of noteholders and its advisers. Barclays Capital European securitisation analysts suggest that this means class A bondholders could be actively involved and thus restructuring negotiations are likely being held on a more constructive basis (SCI passim).

    "We continue to take a .......

    News Round-up 13 September 2013

  • Insurance private debt strategy offered

    Twelve Capital has launched an insurance private debt strategy, which aims to provide small and medium-sized insurers with an additional source of regulatory capital while generating attractive risk-adjusted returns for the firm's investor base. This will take the form of bilateral loans or private placement bonds, benefitting from Twelve Capital's existing expertise in collateralised reinsurance and insurance fixed income. As .......

    News Round-up 13 September 2013

  • Richmond lawsuit 'not ripe'

    Wells Fargo and Deutsche Bank's lawsuit, on behalf of bondholders affected by Richmond's eminent domain proposal, was heard in Federal Court yesterday. The trustees are seeking preliminary and permanent injunctions against the city from implementing its seizure programme (SCI 13 August).

    US District Judge Charles Breyer stated the request to block the plan was "not ripe". SIFMA responded by stating: .......

    News Round-up 13 September 2013

  • CDO issuers file suit

    A number of CDO issuers - including Phoenix Light SF, Blue Heron Funding and Kleros Preferred Funding V - have filed a lawsuit in New York state court against Credit Suisse in connection with the purchase of over US$362m in RMBS. According to the complaint, the bank made numerous misrepresentations and omissions regarding the quality of loans underlying the RMBS.

    Job Swaps 13 September 2013

  • RMBS reshuffle targets trading focus

    Amherst Securities is changing its focus to concentrate more on facilitating day-to-day trading. To that end, Lidan Yang and Brian Landy will report directly to the non-agency and agency MBS desks, respectively, replacing departing head of RMBS strategy Laurie Goodman.

    Yang and Landy will be responsible for producing material for internal and external distribution with a greater focus on issues, .......

    Job Swaps 13 September 2013

  • Bank boosts SF efforts

    United Bank & Trust has promoted Jeff Billig to structured finance evp. He was previously svp in business banking, responsible for growing United's commercial loan portfolio. Before joining United, Billig was at First National Bank and Bank of Ann Arbor.

    .......

    Job Swaps 13 September 2013

  • Trade finance leader brought in

    JPMorgan has appointed Kah Chye Tan as md and global head of trade finance securitisation, based in London. It is a new role at the firm which will see Tan work directly with the global trade and markets teams.

    Tan was previously at Barclays, where he was corporate banking vice chairman, having earlier served as global head of trade and .......

    Job Swaps 13 September 2013

  • Mix of paper in busy ABS session

    A US$110m bid-list of dealer floorplan bonds boosted auto ABS secondary supply yesterday. Credit card and utility ABS paper was also represented, as BWIC volume for the sector reached US$285m.

    SCI's PriceABS data shows that the majority of the auto names were from 2012 and 2013 issuances. An exception to that was the HERTZ 2010-1A A2 tranche, which .......

    Market Reports 12 September 2013

  • FFELP SLABS value touted

    FFELP student loan ABS spreads have generally lagged the tightening witnessed in other US consumer ABS sectors since early July and remain substantially wider than they were a year previously. Wells Fargo structured product analysts suggest that the asset class offers good relative value for its wider spreads and income potential, especially given one-month Libor is likely to stay low.

    News Round-up 12 September 2013

  • Verizon CDS hit three-year wides

    Verizon Communications' proposed deal with Vodafone Group has sent the company's credit default swap (CDS) spreads to their widest level since 2010, according to the latest case study from Fitch Solutions. Verizon CDS have widened by 38% over the past month alone.

    "Verizon's plans to acquire Vodafone's US group - thereby increasing the company's leverage, as well as higher debt .......

    News Round-up 12 September 2013

  • Asia hedge fund appoints ceo

    Greg Donohugh has joined Double Haven Capital in Hong Kong as ceo and will lead strategy and capital raising efforts at the company. He was previously at Wells Fargo, where he led regional fixed income and capital markets operations in Asia.

    Prior to Wells Fargo, Donohugh was svp at Lehman Brothers where he worked in global real estate and structured .......

    Job Swaps 12 September 2013
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