Complete news archive

  • Large list leads RMBS surge

    A CDO liquidation and large legacy bid-list helped boost US RMBS secondary supply yesterday, with around US$1.2bn of non-agency BWIC volume observed. Senior tranches dominated, while investors were mainly focused on subprime paper.

    The legacy list is understood to have been met with good participation, with 16 of its 20 bonds trading. Many of the session's larger blocks came from .......

    Market Reports 14 August 2013

  • Down payment assistance to impact turnover?

    SIFMA is considering whether to allow mortgage loans with a new subordinate financing product, FirstREX, to be delivered into the TBA market. US federal home loan banks have already agreed to accept pools with this type of down payment as collateral, while the FHFA has recommended that the GSEs also accept the product.

    FirstREX is an equity-sharing product that buys .......

    News Round-up 13 August 2013

  • Gleacher seeks advice on options

    Gleacher & Company has retained Blackstone Advisory Partners to provide advisory services in connection with potential transactions and to work with the company to consider potential mergers, acquisitions or other business combinations. Gleacher earlier appointed a restructuring officer (SCI 5 June) and has shut down its RMBS and investment banking units.

    .......

    Job Swaps 13 August 2013

  • Clarity emerging on BofA MSR transfer

    Moody's has released a list of 26 non-agency RMBS trusts - backed by US$4.1bn of collateral - that will be affected by the transfer of the first chunk of MSRs from Bank of America to Nationstar, scheduled for early September (SCI 8 January). The sale will be concentrated in prime/Alt-A deals belonging to the BOAA, BOAMS and HVMLT shelves, with .......

    News Round-up 13 August 2013

  • Eminent domain challenges outlined

    Further details have emerged about the legal challenges brought by investors against Richmond, California's eminent domain plan (SCI 8 August). Three trustees - Wells Fargo, Deutsche Bank and Bank of New York Mellon - have filed two separate lawsuits in the US District Court of Northern California to block the city from seizing mortgages under the plan.

    According to Barclays .......

    News Round-up 13 August 2013

  • Final TR report issued

    CPSS and IOSCO have published a report entitled 'Authorities' access to trade repository data'. The report aims to provide guidance to trade repositories (TRs) and authorities on the principles that should guide authorities' access to data held in TRs for typical and non-typical data requests.

    For a broad range of authorities and international financial institutions, it is essential to be .......

    News Round-up 13 August 2013

  • PPIP programme draws to an end

    The current quarter marks the effective end of the PPIP programme, as all the funds have been wound down and all US Treasury debt and equity repaid. The last fund to sell its assets was Oaktree, which invested primarily in CMBS securities.

    The Treasury had invested US$6.2bn in equity capital in the PPIP programme, along with US$12.4bn of debt. The .......

    News Round-up 13 August 2013

  • Chinese slow-down weighs on Aussie RMBS

    S&P has released a number of reports detailing the potential effects of China's slow-down on Australia. China's GDP growth rate dipped to 7.8% in 2012 from 9.2% the previous year.

    For this year, S&P expects China's GDP growth will likely slow to 7.3% and remain at that pace in 2014. As a result, the agency has updated its three economic .......

    News Round-up 13 August 2013

  • New student loan law to have mixed impact

    President Obama last Friday signed into law the Bipartisan Student Loan Certainty Act of 2013, which pegs the interest rate on new federal student loans to a market rate fixed at loan origination. Moody's expects the new loan rates to have mixed effects on private student loan securitisations because the new rates will be credit positive for undergraduates, but credit .......

    News Round-up 13 August 2013

  • Private cat bond listed

    Kane has launched an independent private catastrophe bond platform called Kane SAC Limited. The inaugural issuance under the programme - the US$9.52m series 1-2013 notes - has been listed on the Bermuda Stock Exchange (BSX), marking the first-ever listing on the stock exchange of a series of notes issued by a segregated accounts company.

    Kane SAC is a Bermuda exempted .......

    News Round-up 13 August 2013

  • Vintage impacts CLO equity returns

    Equity returns for US CLOs have been strong over the past year, but vintage significantly affects performance. Given current trends, 2007-vintage CLOs are expected to see the highest average cumulative equity distributions.

    The most significant drivers of CLO equity performance during a period of low leveraged loan default rates are the timing of the CLO's origination and the extent to .......

    News Round-up 12 August 2013

  • RMBS loss criteria updated

    Fitch has updated its criteria for estimating losses on US mortgage pools for RMBS, as part of its annual criteria review. While the basic framework remains unchanged, the model has been expanded to analyse both agency and non-agency collateral.

    In addition, Fitch has introduced three new variables that influence default expectations: number of borrowers, origination channel and liquid reserves. The .......

    News Round-up 12 August 2013

  • APRA releases CLF guidance

    The Australian Prudential Regulation Authority has provided further detail on its approach to the implementation of the Basel 3 liquidity framework and, in particular, on the operation of the committed liquidity facility (CLF). Due to the relatively short supply of Australian dollar high-quality liquid assets (HQLA), the Reserve Bank of Australia (RBA) will allow 'scenario analysis' ADIs to establish a .......

    News Round-up 12 August 2013

  • Insurance-linked Sukuk debuts

    ATLANTICLUX Lebensversicherung (ATL) has established a US$100m insurance-linked Sukuk programme dubbed Salam III. Proceeds will be used to finance upfront acquisition costs of new business.

    Salam III is a limited, non-cellular company incorporated in Guernsey that will enter into a swap agreement with Salam III A IC, an incorporated cell of Salam ATL Re ICC. The cell is 100% owned .......

    News Round-up 12 August 2013

  • Retail card ABS sustainability discussed

    Several news reports have speculated on the future financial stability of various US retailers over the past few months. This could have an impact on credit card securitisation trusts that contain receivables generated by co-branded or private-label cards associated with these retailers, S&P notes.

    Despite its expectation of a continued modest rebound in the US economy, the agency says that .......

    News Round-up 12 August 2013

  • Market data provider expands CDS coverage

    SuperDerivatives has added Fitch Solutions' CDS pricing service to its market data platform, DGX. Fitch's service covers up to 3,000 single name CDS contracts and its addition significantly boosts SuperDerivatives' platform.

    Fitch Solutions' service uses independent pricing data from contributing market participants and provides CDS pricing intelligence that can be used for valuations, regulatory, accounting and risk management purposes. DGX .......

    Job Swaps 12 August 2013

  • SCI Start the Week - 12 August

    A look at the major activity in structured finance over the past seven days

    Pipeline
    In a week in which many deals joined the pipeline and left soon after, CMBS accounted for the majority of those that remained. Three new ABS deals were also announced.

    Two of those ABS (US$779m Capital Auto Receivables Asset Trust 2013-3 and US$1bn Fifth Third Auto Trust 2013-1) were auto transactions, while the other (US$563m Kentucky Higher Education Student Loan .......

    News 12 August 2013

  • ORIX sales drive fall in CMBS late-pays

    US CMBS late-pays fell by 40bp last month to 6.78% from 7.18% in June, the largest drop since the end of the recession, according to Fitch's latest monthly index results for the sector. Leading the fall were ORIX asset sales from LBUBS 2007-C2, which alone accounted for US$759m of dispositions (SCI 18 July). The delinquency rate is now 2.23 percentage .......

    News Round-up 12 August 2013

  • CCP loss allocation discussed

    ISDA has released a new white paper entitled 'CCP Loss Allocation at the End of the Waterfall'. The move is in response to industry efforts to develop an effective recovery, continuity and resolution framework for central counterparties and reflects consensus views of the ISDA Risk and Margin Regulatory Implementation Committee.

    CCPs are required to establish robust recovery, continuity and resolution .......

    News Round-up 9 August 2013

  • Delamare drives card payment rate jump

    The three-months rolling (3MA) charge-off and delinquency indices remained at the same level reached in the previous quarter, 4.5% and 1.8% respectively, according to Fitch's latest quarterly UK Credit Card Index. The 3MA payment rate index jumped to 20.3%, whereas the 3MA gross yield index decreased to 19.5% over the same period.

    Fitch notes that these metrics are impacted by .......

    News Round-up 9 August 2013

  • On-boarding underway for trueEX

    Credit Suisse and UBS have completed full certification and testing on the trueEX exchange and are set to offer client access to trueEX pricing. The banks will provide markets and routing of client flows on the most liquid interest rate swaps, as well as the standard coupon standard maturity (SCSM) swaps that are ISDA MAC (market agreed coupon) compliant. In .......

    News Round-up 9 August 2013
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