Complete news archive

  • Autos bump up ABS volume

    US ABS secondary volume was up yesterday, driven by a list of short block sized auto bonds. SCI's PriceABS data shows a number of covers from the session as BWIC volume passed US$300m.

    ALLYA 2010-4 A4 is a particularly interesting tranche from the session. It was covered yesterday at 100.4, having first appeared in PriceABS one .......

    Market Reports 29 August 2013

  • Further g-fee rises under consideration

    Recent FHFA statements suggest the GSEs could further increase guarantee fees. How far they eventually rise will depend on what kind of housing finance system emerges as private capital is encouraged back into the US mortgage market.

    The FHFA believes the GSEs are not charging sufficient g-fees for certain risky loans. As the GSEs, FHA and VA have provided nearly .......

    News 29 August 2013

  • Euro CRE growth prospects 'weak'

    Financial conditions in many European countries will remain unsupportive of commercial real estate collateral value growth, says S&P. Another year of very weak or negative growth is expected, which will affect European CMBS transactions.

    Europe's five largest economies will all be impacted; despite signs of a slight pick-up in demand of good quality secondary real estate in the UK, values .......

    News Round-up 29 August 2013

  • Agency seeks SME CLO comments

    DBRS has released an RFC on proposed changes to its methodology for rating and monitoring European SME CLOs. Comments are due by 30 September.

    The proposed methodology updates correlation assumptions and introduces a new diversity model. It also brings recovery assumptions in line with those used for the agency's large credit CDO and European RMBS methodologies and clarifies the methods .......

    News Round-up 29 August 2013

  • Risk retention RFC released

    Six US federal agencies have issued a notice revising a risk retention rule proposed in 2011 as part of the Dodd-Frank Act. The rule would provide securitisation sponsors with several options to satisfy the risk retention requirements.

    The original proposal measured compliance based on the par value of securities issued in a securitisation transaction and included a premium capture provision. .......

    News Round-up 29 August 2013

  • Liquidations lead to subprime surge

    Subprime paper stole the show as US RMBS non-agency BWIC supply approached US$1bn yesterday. The glut of subprime names was driven by two CDO liquidations.

    SCI's PriceABS data shows one such subprime tranche to trade during the session was CWL 2005-1 MV5. The tranche was talked in the low-80s and covered at high-70. It was covered .......

    Market Reports 28 August 2013

  • Sales put GSEs on course

    Since announcing that the GSEs would reduce their less liquid holdings by 5% this year, at least six large non-agency BWICs have been brought to market (SCI passim). This has put them on course to achieve their reduction targets, although they may have begun with the better-performing tranches.

    The lists have totalled US$6.1bn so far, with Fannie Mae accounting for .......

    News 28 August 2013

  • Indices point to positive card performance

    US credit card ABS collateral performance is expected to stay positive and ratings should remain stable, says Fitch. Credit card ABS collateral continues to outperform as Fitch's preliminary prime chargeoff index is likely to hit a seven-year low.

    The preliminary prime chargeoff index is expected to decrease for the fourth consecutive month, driven by the continuing record decline of Fitch's .......

    News Round-up 28 August 2013

  • Macro impact of OTC reform assessed

    The Macroeconomic Assessment Group on Derivatives (MAGD) has published a report on the macroeconomic effects of OTC derivatives regulatory reform. The report finds that the net benefits of stricter OTC derivatives regulation outweigh the costs.

    MAGD's report focuses on the effects of mandatory central clearing of standardised OTC derivatives, margin requirements for non-centrally cleared OTC derivatives and bank capital requirements .......

    News Round-up 28 August 2013

  • More REO assets to be auctioned

    There will be US$322m of distressed US CMBS loans out for bid through Auction.com in the last weeks of August through September, including the office property at 401 E. Ocean Boulevard, which backs a US$22m loan in LBUBS 2007-C1. The loan has been in REO since November and a December appraisal pegged the value of the property at US$17m.

    Barclays .......

    News Round-up 28 August 2013

  • Improvement seen in Mexican RMBS

    Mexico's RMBS market has slowly caught up with the broader economy in the country, which began to recover in 2010. However, S&P notes that the progress in RMBS could be threatened by that wider recovery now slowing down.

    Delinquencies were generally stable for the first half of the year and upgrades outpaced downgrades for the first time since S&P began .......

    News Round-up 28 August 2013

  • Bank builds up UK SF team

    RBS has made three new appointments to its corporate and institutional banking division's financial institutions structured finance business. They join a team focused on originating and executing structured credit facilities to finance companies, debt purchasers and specialist lenders in the UK.

    Nick Parkhouse will lead the team. He joined RBS two years ago from Commonwealth Bank of Australia, before which .......

    Job Swaps 28 August 2013

  • Structured credit pro brought in

    GoldenTree Asset Management has appointed Brian Marshall as business development md. He is based in New York and reports to head of business development Thomas Humphrey.

    Marshall was previously structured credit products md at Barclays Capital, where he focused on credit and mortgage products including CLOs, leveraged loans, credit correlation, esoteric ABS and RMBS CDOs. Before joining the bank he .......

    Job Swaps 28 August 2013

  • Bank breached RMBS guidelines

    JPMorgan has been told to pay Leonard Blavatnik US$42.5m plus interest in a breach of contract lawsuit centred on RMBS investments. The decision was made by a New York state court after Blavatnik sued the bank for investing twice as much of his money in RMBS as his investment guidelines allowed.

    The RMBS cap was set at 20% but reached .......

    Job Swaps 28 August 2013

  • C tranches cause CLO market stir

    SCI's PriceABS data shows a mix of US CLO names out for the bid yesterday. Offered tranches were biased towards 2006- and 2012-vintage paper, with talk largely concentrated in the 80s and 90s.

    Many of the bonds circulating in Monday's session were C tranches or lower. ALM 2012-5A C and ALM 2012-6A C were talked at .......

    Market Reports 27 August 2013

  • Consultancy adds derivatives vet

    Kevin McPartland has joined Greenwich Associates as principal to lead a new market structure and technology advisory service. The new initiative will help clients to navigate market changes driven by regulatory and economic changes.

    McPartland joins from BlackRock and has previously worked at TABB Group, JPMorgan, UBS and Deutsche Bank. He specialises in fixed income and OTC derivatives.

    .......

    Job Swaps 27 August 2013

  • Portuguese RMBS picture improves

    The rate of deterioration in Portuguese RMBS collateral eased in 2Q13, according to S&P's latest index report. Total delinquencies decreased slightly quarter-on-quarter for the first time in two years.

    The pace of delinquencies has been softened by low interest rates and increased forbearance measures. However, continuing struggles for the broader economy will continue to constrain performance.

    The real estate market .......

    News Round-up 27 August 2013

  • Multifamily, hotels lead CMBS NOI growth

    Net operating income (NOI) has improved nearly 3% year-over-year for Fitch-rated US CMBS. This has been driven by stability in the multifamily sector and a continuing recovery for hotels.

    Servicer-reported NOI improved by 2.7% year-over-year in 2012, compared with just 0.8% in 2011 and a 0.9% decline in 2010. Multifamily NOI growth in 2012 was broadly positive, with states such .......

    News Round-up 27 August 2013

  • Auto ABS losses on the rise

    US auto ABS prime and subprime losses rose last month after reaching lows in the spring, according to Fitch. Despite the uptick in losses, asset performance has remained strong, as have used vehicle values.

    In the prime sector 60-plus day delinquencies rose 10% to 0.33% in July month-over-month. That said, delinquencies remain 13% lower than in the same month last .......

    News Round-up 27 August 2013

  • Credit manager adds four

    CVC Credit Partners has strengthened its teams in Europe and the US with four new hires. Ran Landmann, Mitchell Glynn and Lucie Bonnieux join in London, while Caroline Benton is based in New York.

    Landmann, who was previously at Owl Creek Europe Management, the New York-based hedge fund covering distressed credit in Europe, joins as md. Before that he was .......

    Job Swaps 23 August 2013

  • Ratings reviewed on bank linkage

    Moody's has placed on review the ratings of a number of securities directly exposed to the credit quality of certain US banks, on which the agency took rating actions on 22 August. The action affects 20 tranches in 12 structured finance deals and 32 tranches in 18 structured credit deals.

    The move is driven by the linkage between the ratings .......

    News Round-up 23 August 2013
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