Complete news archive

  • Risk retention to spark loan tiering?

    The re-proposed US risk retention rule (SCI 29 August) favours larger CLO managers and could result in a two-tiered loan market. Issuance is also expected to drop after the regulation takes effect, potentially raising borrowing costs for below-investment grade corporates.

    The minimum 5% risk retention requirement for CLOs is unchanged under the re-proposed rule, but is now based on fair .......

    News 5 September 2013

  • RMBS BWIC volume returns

    US non-agency RMBS secondary supply began to pick back up again yesterday. BWIC volume for the session was over US$650m, with SCI's PriceABS data listing tranches from vintages as early as 1998.

    IMCHE 98-1 A5 was talked in the low-pars, while another PriceABS debutant from the 1990s - MLNHE 1999-1 A1 - was talked in the mid-80s. Most .......

    Market Reports 5 September 2013

  • Office rebound boosts UK CMBS

    An inflection point appears to have been reached in the UK secondary commercial property market, with office leading the way. The upturn in sentiment could result in several positive CMBS transaction outcomes.

    Deutsche Bank European CMBS analysts calculate that sales from UK CMBS office portfolio liquidations have averaged a 14% increase on their last valuations, with a net yield of around .......

    News 5 September 2013

  • REIT names new cfo

    AG Mortgage Investment Trust has appointed Brian Sigman as cfo, replacing Frank Stadelmaier who will continue to serve as a director. Sigman also becomes the REIT's principal accounting officer and treasurer.

    Sigman was previously cfo at Newcastle Investment Corp and served as md of Newcastle's external manager, an affiliate of Fortress Investment Group. Before joining Newcastle he was a senior .......

    Job Swaps 5 September 2013

  • CLO pro to build credit platform

    Livermore Investments Group has recruited Marc Boatwright to launch a credit investment platform. He specialises in managing credit portfolios and distressed investments and moves over from ING Investment Management, where he was a portfolio manager and svp in the senior loan group.

    .......

    Job Swaps 5 September 2013

  • Moving on from cheapest-to-deliver

    Collateral optimisation is evolving rapidly due to regulatory change, increasing demand for more sophisticated algorithms, according to a new report by 4sight Financial Software. The whitepaper discusses some of the recent advances in collateral optimisation, in particular how optimisation has progressed from the cheapest-to-deliver methodology.

    The paper describes some of the limitations of collateral optimisation and dispels a number of .......

    News Round-up 5 September 2013

  • Card performance reaches record levels

    US credit card ABS performance registered positive gains across the board in July, according to Fitch's latest index results for the sector. Several performance metrics managed to break record levels during the month.

    Fitch's 60+ Day Delinquency Index for August (covering the July collection period) registered yet another record low, dropping by 4bp. Late-stage delinquencies fell to 1.3%, a fifth .......

    News Round-up 5 September 2013

  • E-cigarette proliferation to hit MSA payments?

    A possible increase in market share for e-cigarette products in the US could reduce payments to settling states under the Master Settlement Agreement (MSA), Fitch suggests. E-cigarette sales are projected to pass traditional cigarette sales by 2047, which could put downward pressure on tobacco settlement ABS ratings.

    The annual MSA payment is determined based on inflation and the amount of .......

    News Round-up 5 September 2013

  • Spanish RMBS bond switches touted

    Using European DataWarehouse (ED) loan-level data, Deutsche Bank European securitisation analysts have examined the credit quality of 97 Spanish RMBS to uncover the extent of stressed mortgages across the sector. They identify relative value based on the ratio of credit enhancement relative to liquidation loss.

    The 97 deals in the sample account for 85% by volume of Spanish investor-placed RMBS .......

    News 4 September 2013

  • RMBS concentration concerns rising

    European RMBS issuance has been limited so far this year, with the bulk of supply coming from a handful of Dutch programmes. The lack of paper has sparked concerns over concentration risk, which may force investors to look elsewhere.

    European primary issuance has been focused on a handful of sectors, meaning that a growing number of investors are reaching their .......

    News 4 September 2013

  • OTC portfolio reconciliation partnership agreed

    REGIS-TR and TriOptima have agreed to cooperate in providing portfolio reconciliation of trade repository data for OTC derivatives portfolios. Impending European regulatory deadlines mean financial and non-financial firms will have to start reconciling their OTC derivatives portfolios by 15 September, with trade reporting beginning in the new year.

    Cooperation between REGIS-TR and TriOptima will help their mutual clients to meet .......

    Job Swaps 4 September 2013

  • Second rescue fund closed

    GSO Capital Partners has announced the final closing of its second capital solutions fund, GSO Capital Solutions Fund II, with total commitments of US$5bn. This represents an increase of over 50% from GSO's first capital solutions fund raised three years ago (SCI 14 July 2010).

    GSO received support from both existing and new investors, with demand surpassing the fund's US$5bn .......

    News Round-up 4 September 2013

  • UK RMBS affirmed after modelling error

    Fitch has affirmed 55 tranches of 18 UK non-conforming RMBS. The action follows the detection of an error in a model used in the agency's surveillance analysis of UK RMBS ratings.

    The error was related to the formula that calculates recovery rate assumptions in rating scenarios. The error marginally increased the assumed recoveries that the model takes into account.

    The .......

    News Round-up 4 September 2013

  • Private rating service unveiled

    Moody's has launched a new service - dubbed Private Monitored Rating (PMR) - which seeks to deliver all the benefits of full credit analysis to companies without the assignment of a public rating. The product will be available to companies in all Moody's service areas, except Japan.

    The agency says it has developed the new service in response to growing .......

    News Round-up 4 September 2013

  • CMBS delinquencies hit three-year low

    The Trepp US CMBS delinquency rate fell in August for the third consecutive month. The rate dropped by 10bp to 8.38%, the lowest reading in three years, and has now fallen by 69bp over the last three months and 175bp over the last year.

    About US$2.5bn of loans became newly delinquent in August, which was slightly higher than the July .......

    News Round-up 4 September 2013

  • Regulatory equivalence assessments underway

    ESMA has published its advice to the European Commission on the equivalence of regulatory regimes for OTC derivatives clearing, central counterparties and trade repositories (TR) of non-EU countries with EMIR. The authority considers third-country regimes equivalent where the legal provisions and the level of supervision and enforcement is similar to that of EMIR.

    ESMA has assessed the equivalence of the .......

    News Round-up 4 September 2013

  • Peripheral RMBS takes centre stage

    Peripheral European RMBS has seen an up-tick in activity over the last couple of weeks and a plethora of Spanish and Italian names were out for the bid yesterday. SCI's PriceABS data recorded several successful covers from the session, including for TDAI 2 C, which was talked in the mid/high-60s and talked and covered in the low-60s.

    AYTGH .......

    Market Reports 3 September 2013

  • Another UCI tender underway

    UCI has launched a tender offer for nine bonds across six of its RMBS. The bank is offering to buy back up to €200m of paper from UCI 10, 11, 12, 14, 15 and 17.

    Three class A notes are being targeted for purchase prices of between 83 to 86, with a class A2 targeted at 76. Three class B .......

    News Round-up 3 September 2013

  • Wage pressures weigh on Arsenal bonds

    Arsenal Football Club's record signing of Mesut Ozil for £42.5m could be a concern for Arsenal Securities bondholders if it is followed by more significant transfers in the January transfer window, according to securitisation strategists at Barclays Capital. Increased wage pressures at the club raise the risk of the wage-to-revenue ratio rising above 70% - a level at which Fitch .......

    News Round-up 3 September 2013

  • Bank names new credit chief

    Sun National Bank has appointed Imran Riaz as chief credit officer and svp. He will lead Sun's credit team and oversee the asset quality of the company's loan portfolio.

    Riaz has experience across structured credit, asset-based lending and enhanced portfolio analysis. He was previously managing senior credit officer at TD Bank, where he spent 23 years in a variety of .......

    Job Swaps 3 September 2013

  • STACR to receive NAIC designation?

    NAIC appears to have abandoned its proposal to alter the process used to derive ratings for RMBS and CMBS positions held by insurance companies, which would have reduced NAIC breakpoints for most bonds taking losses or interest shortfalls (SCI 17 April). The organisation is now said to be examining the accounting and reporting framework for Freddie Mac's recent STACR deal .......

    News Round-up 3 September 2013
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