Complete news archive

  • 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

  • Container ABS remains resilient

    Container leasing ABS issuance has remained resilient this year, despite sluggish global economic and trade growth. S&P believes that issues rated single-A should be able to withstand substantial stress and still meet their financial obligations.

    The agency rated six new container lease ABS transactions in the first half of 2013, roughly matching the record-setting pace of 2012. "Currently, we believe .......

    News Round-up 21 August 2013

  • RMBS ratings reviewed

    S&P has completed a review of over 60,000 ratings across more than 5,500 US RMBS. The transactions are backed by pre-2009 collateral and primarily reflect criteria changes that occurred in August 2012 and March 2013.

    Between August 2012 and July 2013, S&P downgraded 15,100, upgraded 1,532 and affirmed 43,611 tranches. The agency focused on first-lien, re-REMIC and second-lien transactions to .......

    News Round-up 21 August 2013

  • Regulatory comparison principles released

    ISDA has outlined a set of principles designed to help achieve a more harmonised framework of international derivatives regulations. The principles are intended to guide the development of frameworks and processes for inter-jurisdictional recognition of derivatives regulation through a principles-based substituted compliance methodology.

    In its Methodology for Regulatory Comparisons, ISDA suggests that an effective framework should be grounded in the .......

    News Round-up 21 August 2013

  • Chinese securitisation challenges outlined

    Securitisations in China continue to face key challenges in legal enforceability, data robustness and integrity, as well as underwriting and servicing standards, according to Fitch. The agency notes that true sale and bankruptcy remoteness are yet to be tested in Chinese securitisations under the specific asset management programme (SAMP).

    Such transactions have weak legal structures since they rely on rules .......

    News Round-up 21 August 2013

  • Legal, banking vet joins Sutherland

    Sutherland Asbill & Brennan has appointed Brian Barrett as capital markets partner in New York. He has more than 20 years of securities and derivatives market experience as a lawyer, inside counsel and banker.

    Barrett was most recently at Goldman Sachs, where he worked in the global liquidity products group. He has also worked at HSBC, Merrill Lynch and Cleary .......

    Job Swaps 21 August 2013

  • Law firm adds London partner

    Ronan Mellon has joined DLA Piper in London as structured finance partner within the firm's finance and projects group. He was previously at White & Case, where he was a capital markets associate.

    Mellon specialises in securitisations, CDOs, CLOs, covered bonds, derivatives and emerging markets bond issues. During his 10 years at White & Case he was seconded to Morgan .......

    Job Swaps 21 August 2013

  • Ambac supplemental payments discussed

    The segregated account of Ambac Assurance is this month expected to begin making cash payments on certain policies in excess of 25% of permitted policy claims, following an order granted by the Circuit Court for Dane County, Wisconsin. The move is likely to reduce the amount of credit support within the affected RMBS transactions and result in higher write-downs for .......

    News 20 August 2013

  • FGIC emerges from rehabilitation

    The Superintendent of Financial Services of the State of New York, in his capacity as the court-appointed rehabilitator of FGIC, has determined that the conditions to the monoline's plan of rehabilitation have been satisfied (SCI 2 October 2012). Accordingly, the plan has become effective and the rehabilitation proceeding is terminated.

    Part of FGIC's rehabilitation plan is a novation agreement whereby .......

    Job Swaps 20 August 2013

  • CMBS credit degradation warning

    Historically low interest rates, improving real estate fundamentals and commercial real estate's role as a natural hedge against inflation have driven an increase in US CMBS issuance by 30% or more year-over-year since the depths of the financial crisis. But increased origination volume has meant that some slippage in credit standards has occurred, which has been observed across 2013 vintage .......

    News Round-up 20 August 2013

  • Special situations fund abuse charges settled

    Philip Falcone and his advisory firm Harbinger Capital Partners have agreed to an US$18m settlement with the US SEC. They have admitted wrongdoing and Falcone will be barred from the securities industry for at least five years.

    The SEC filed enforcement actions in June 2012 alleging that Falcone improperly used US$113m borrowed from Harbinger's special situations fund to pay his .......

    Job Swaps 20 August 2013

  • New role for risk management pro

    Glenn Votek has been named as the new cfo at Annaly Capital Management, replacing the retiring Kathryn Fagan. He was previously the company's chief administrative officer.

    Votek joined the firm earlier this year (SCI 21 May) and has particular expertise in risk management, capital raising, liability management and regulatory oversight. He has previously worked for CIT Group, Newcourt Credit Corp .......

    Job Swaps 20 August 2013

  • Mortgage insurance recommendations released

    The Joint Forum has released its final report on 'Mortgage insurance: market structure, underwriting cycle and policy implications'. The report examines the interaction of mortgage insurers with mortgage originators and underwriters.

    The report includes a set of recommendations directed at policymakers and supervisors that aim to reduce the likelihood of mortgage insurance stress and failure in tail events. One of .......

    News Round-up 20 August 2013

  • Non-agency leans on legacy list

    US non-agency RMBS secondary supply shot up yesterday to around US$1.25bn on the back of a US$1.1bn legacy bid-list. SCI's PriceABS data shows tranches from as far back as 1996 out for the bid, with a couple of post-crisis bonds also circulating.

    Several BWICs of a similar size have recently been attributed to the GSEs (SCI passim). As .......

    Market Reports 20 August 2013

  • Higher CRE prices sought in Japan

    Moody's says that higher property prices in Japan - resulting from the government's policies of emphasising GDP expansion and higher inflation - would facilitate the refinancing of CMBS loans to repay investors and improve recovery rates for defaulted loans. Although normalised interest rates that would be higher than today's rates are a negative for refinancing, the agency believes that refinancing .......

    News Round-up 20 August 2013

  • Further decrease in Trups CDO defaults

    Combined US bank Trups CDO defaults and deferrals further decreased to end July at 27.6%, from 27.8% at the end of June, according to Fitch.

    Seven banks representing approximately US$62m of collateral cured and resumed their interest payments on their Trups last month. No new defaults or deferrals were reported.

    Year-to-date there have been nine new deferrals and defaults, compared .......

    News Round-up 20 August 2013

  • Marginal decline for CRE CDO delinquencies

    The overall delinquency rate for CRE CDOs fell marginally to 11.7% from 11.8% last month, according to Fitch's latest index results for the sector. Only three new delinquent assets were reported in July, while six assets were removed from the index.

    New delinquencies included two recently matured balloon loans and one security with a new interest shortfall. The removed assets .......

    News Round-up 20 August 2013

  • Objection filed against FGIC settlement

    A number of investors - collectively holding over US$714m of wrapped Residential Capital securities - have filed an objection against how certain policyholders will be treated after FGIC's settlement with ResCap debtors. They claim that 47 RMBS trusts that issued securities with a current face amount of US$4.9bn and hold over US$1n in FGIC policy claims will receive a one-time .......

    Job Swaps 19 August 2013

  • Structured finance partner named

    Squire Sanders has recruited Mark Thomas as partner in its financial services practice group in London. He was previously head of structured finance at Addleshaw Goddard. His practice focuses on advising on developing structured loan products, loan portfolio sales and acquisitions, restructuring - particularly relating to ABS and real estate finance transactions - and the provision of finance to banks .......

    Job Swaps 19 August 2013

  • QE exit weighing on sentiment

    Results from Fitch's 3Q13 European fixed income investor survey show that expectations on the timing of central banks' exit from QE, as well as policymakers' progress on eurozone banking union are at the front of investors' minds.

    Overall, investors trust central banks to manage a smooth QE exit. While they see the risk of winding down monetary stimulus as a .......

    News Round-up 19 August 2013

  • Further IndyMac appeal filed

    IndyMac Bancorp's former chief executive Michael Perry has made another filing in ongoing litigation in the US Ninth Circuit Court of Appeals. The appeal is from a District Court Decision in a case pitting the FDIC, IndyMac's Chapter 7 trustee, Perry and other former IndyMac executives against a group of insurers that includes XL Specialty Insurance Company, Arch Insurance Company, .......

    Job Swaps 19 August 2013
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