Complete news archive

  • 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

  • IGA up-take signals regulatory cooperation

    GreySpark Partners has released a report exploring the emerging global regulatory landscape that is designed to provide an international perspective on what are often seen only as regional mandates. A key finding is that despite differences in regulations between territories, the up-take of intergovernmental agreements (IGAs) highlights the desire for cooperation among some jurisdictions.

    The report focuses on nine territories, .......

    News Round-up 23 August 2013

  • Futures groups unite, form new board

    The Futures Industry Association, FIA Europe and FIA Asia are set to form FIA Global. The new organisational structure will enable the associations to take a global position on cross-border issues and increase coordination and information flow among regions.

    FIA Global has named an initial board of directors of 14 members, with derivatives and OTC clearing representation prevalent. FIA president and .......

    Job Swaps 23 August 2013

  • Slower RMBS liquidation rates observed

    Morningstar projects that it will take 41 months to clear RMBS distressed inventory in the US, given current market dynamics. This is up by one month from the agency's estimate in 1Q13 and up by three months from its estimate one year ago.

    Overall distressed inventory has decreased by 21% from a year ago, while the number of liquidations declined .......

    News Round-up 23 August 2013

  • CMBS volume recovers as spreads widen

    At US$605m, US CMBS bid-list supply was relatively heavy yesterday, as the sector recovered from a mid-week dip. Spreads have continued to widen, however, as evidenced by SCI's PriceABS data.

    The bulk of the day's supply was concentrated in 2004- to 2007-vintage paper, although paper from 1998 and from post-crisis issuances was also circulating. In addition, PriceABS shows .......

    Market Reports 23 August 2013

  • Varied recovery for global CMBS

    A new S&P report highlights that as economic growth varies by region, so does the recovery of the CMBS market. Year-to-date through June the US and European CMBS markets were already ahead of 2012 CMBS issuance levels, while other regions - including Japan, Canada, Australia and Singapore - have seen limited to no issuance.

    In the first-half of 2013, US .......

    News Round-up 22 August 2013

  • 'Passporting' framework recommended

    SFIG has submitted a comment letter to the EBA regarding its consultation paper on revised proposed EU securitisation regulations. To mitigate the costly and potentially preclusive impact of differing regulatory approaches on cross-border securitisation transactions, the association recommends that the EBA adopt a framework for 'passporting' that would permit non-EU sponsors to comply with a non-EU jurisdiction's risk retention requirements.

    News Round-up 22 August 2013

  • Motion to dismiss denied

    A California Superior Court judge has denied S&P's motion to dismiss a lawsuit filed by California Attorney General Kamala Harris against the rating agency in February (SCI 6 February). The California case is notable for its asserted violations of unfair competition laws and the California False Claims Act, which allows the state to seek triple damages but has not previously .......

    Job Swaps 22 August 2013

  • QRM revision anticipated

    The federal agencies responsible for jointly promulgating the risk retention rule under the Dodd-Frank Act are expected to propose a revised rule on 28 August. In particular, the requirements for qualified residential mortgage (QRM) status are likely to be loosened, to mirror the CFPB's definition of qualified mortgage (QM) under its ability-to-repay rule (SCI 11 January).

    Meanwhile, the SFIG has .......

    News Round-up 22 August 2013

  • Credit futures calculator launched

    Quantifi has launched an industry price-spread calculator for credit index futures listed on ICE Futures US. The tool aims to allow market participants to better monitor and manage credit risk exposures.

    The calculator is designed to convert futures prices into the equivalent forward spreads for any given date. Key features of the tool include: easy accessibility via the ICE website; .......

    News Round-up 22 August 2013

  • LBUBS 07-C2 hit by further losses

    LBUBS 2007-C2 has been hit by a further US$568,000 of losses - despite no new property sales - which pushed interest shortfalls up to the class AM notes. This comes after a barrage of liquidations drove losses up to the AJ tranche last month (SCI 18 July).

    Barclays Capital CMBS analysts note that the losses are due to 'additional expenses' .......

    News Round-up 22 August 2013

  • CHAIT bonds boost ABS supply

    Over US$300m of BWIC supply hit the US ABS secondary market yesterday and a significant portion of that was credit card paper from JPMorgan's CHAIT shelf. Several aircraft ABS bonds were also out for the bid.

    SCI's PriceABS data shows that large slices of 2007-vintage CHAIT tranches were traded during the session. CHAIT 2007-A2 A2 was talked in .......

    Market Reports 22 August 2013

  • Commodity trade finance deal debuts

    BNP Paribas has completed what it describes as a first-of-its-kind commodity trade finance securitisation. Dubbed Lighthouse Trade Finance Issuer I, the US$131.6m transaction is designed to increase liquidity in the commodity transportation market and provide investors with access to a new asset class.

    The transaction's capital structure comprises a US$100m senior A loan (that priced at 85bp over Libor), US$20m .......

    News 22 August 2013

  • Asset manager boosts CRE capacity

    Insight Investment has agreed an advisory relationship with DTZ Investment Management and appointed DTZ chairman Robert Peto to its commercial real estate investment committee. It has also hired Duncan Westbrook as a CRE analyst, who will join next month from Cushman and Wakefield, where he was part of the capital markets team for EMEA.

    Under the terms of the agreement .......

    Job Swaps 22 August 2013

  • Credit vet named fixed income chief

    Juan Landazabal has joined Deutsche Asset & Wealth Management as global head of fixed income trading, based in London. He joins from Fidelity Investments, where he was also head of fixed income trading.

    Landazabal worked his way up at Fidelity from a senior credit trading position, where he focused on investment grade bonds and CDS, with additional responsibilities in high .......

    Job Swaps 22 August 2013

  • MarkitSERV volumes jump

    Over 600,000 trades have been submitted to clearinghouses by MarkitSERV in the period between 11 March, when the CFTC made clearing of certain OTC derivatives mandatory, and the end of July. In the first half of 2013, the volume of trades submitted for clearing using MarkitSERV increased by 48% from the same period in 2012 and included more than 120,000 .......

    News Round-up 21 August 2013

  • Petrobras CDS hit four-year wides

    Market concerns over Petroleo Brasileiro's ability to carry out its future investment plan have sent the company's credit default swaps (CDS) to their widest levels in four years, according to Fitch Solutions.

    Petrobras' CDS have widened by 89% year-over-year. At 300bp, credit protection on the oil company's debt stands at levels not seen since April 2009. The likely reason for .......

    News Round-up 21 August 2013

  • RFC cashflow errors corrected

    Moody's has confirmed the ratings of 13 tranches and upgraded the ratings of five tranches across seven RMBS from Residential Funding Corporation's RAMP and RASC shelves. The rating actions reflect the recent performance of the underlying pools, as well as Moody's updated expected losses on the pools. They also reflect corrected errors in the Structured Finance Workstation (SFW) cashflow models .......

    News Round-up 21 August 2013

  • FHFA settlement costs increasing?

    UBS last month agreed to settle FHFA claims relating to misrepresented US RMBS sold to Fannie Mae and Freddie Mac for US$885m (SCI 23 July). The settlement amount appears to be relatively high, however, which could result in other banks currently in the FHFA's sights making additional litigation provisions.

    The FHFA filed lawsuits two years ago against 18 banks, alleging .......

    News 21 August 2013

  • Mexican loan modifications due

    Mexican servicers Patrimonio and Tertius are set to apply a number of loan modification proposals (LMP) to certain securitised mortgages. The LMP comprise Apoyo con Quita, Programa Finiquito/Venta de Derechos Litigiosos, Reduccion Permanente de Mensualidad con Quita and Dacion en Pago con Incentivo Economico.

    The servicers' collection policies already include these loan modification products. They are to be applied under .......

    News Round-up 21 August 2013

  • Forbearance-related downgrades hit

    S&P has lowered its ratings on 31 classes from 19 US RMBS and removed 26 of them from credit watch with negative implications. At the same time, the agency affirmed the ratings on 319 classes from 66 transactions and removed 99 of them from credit watch negative.

    The rating actions follow the announcement by Ocwen Loan Servicing that US$1.4bn of .......

    News Round-up 21 August 2013
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