Complete news archive

  • 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

  • Risks ahead for container ABS?

    US shipping container ABS issuance continues to increase, against a backdrop of improving collateral trends. However, Fitch suggests that lingering risks remain.

    New container deals are on pace to equal and possibly even pass the high-water mark seen last year, with six transactions totalling US$1.7bn so far this year. This compares with nine transactions totalling US$2.5bn for all of 2012.

    News Round-up 9 August 2013

  • Securitised credit boosts hedge fund returns

    Aggregate hedge fund returns rose by an average of 1.2% in July and have returned an average of 4.5% through the first seven months of 2013, according to the latest eVestment figures. Credit strategies resumed their path upwards during the month, with securitised credit funds leading the way once again.

    Credit hedge funds focused on mortgage markets have fared relatively .......

    News Round-up 9 August 2013

  • Diversity seen in secondary ABS

    US ABS secondary trading remained active yesterday, with elevated supply observed in auto paper in particular. A rare bond from a tobacco-related litigation fee securitisation was also out for the bid.

    A list of short WAL senior 2011-2012 vintage bonds provided the bulk of supply in the auto space during the session. Among the tranches appearing for the first time .......

    Market Reports 9 August 2013

  • Rising opposition

    Eminent domain success in doubt

    Successful implementation of Richmond, California's eminent domain plan (SCI 31 July) and widespread adoption of similar exercises by other cities is said to be unlikely. Nevertheless, it has introduced more uncertainty to the non-agency RMBS market.

    Less than a third of the 624 underwater mortgages targeted in Richmond's proposal are believed to be delinquent. The city has offered to buy .......

    News Analysis 8 August 2013

  • Partner rejoins Aussie firm

    Clayton Utz has appointed Sonia Goumenis as a partner in its Sydney securitisation practice. She has over 12 years' experience in securitisation transactions, acting for a range of participants and covering a broad swath of asset classes.

    Goumenis began her career at Clayton Utz as a graduate, becoming a partner in January 2008. She returns to the firm from Allen .......

    Job Swaps 8 August 2013

  • Greater flexibility for new CLO managers

    The CLO market has become more receptive to new managers, evident in the ability of some to issue multiple CLO 2.0 transactions, as well as the relaxation of reinvestment restrictions in their deals. However, Moody's notes in its latest CLO Interest report that some of the more recent entrants do not have investment professionals with substantial CLO or leveraged loan .......

    News Round-up 8 August 2013

  • Expected losses upped for FLTST 3

    All loans securitised in the Fleet Street Finance 3 CMBS are now in default, following last week's transfer into special servicing of the €49.4m Saxony loan. Barclays Capital securitisation strategists expect the deal to suffer additional principal losses of €108m-€118m, with an increased proportion likely allocated to class B noteholders.

    The final recovery for the Orange loan was last month .......

    News 8 August 2013

  • Strategy director named

    Clayton Euro Risk has appointed Konstantine 'Gus' Pastras to the newly-created position of client development and strategy director, responsible for sales, client development and marketing activity. He will report to ceo Michael Bolton.

    Pastras has spent the majority of his career in RMBS, most recently as vp of ABS & RMBS at DBRS. Before that, he worked at Fannie Mae, .......

    Job Swaps 8 August 2013

  • Divergent price talk observed

    US non-agency RMBS secondary supply was boosted by a large CDO liquidation yesterday. The bid-list was concentrated in 2005-vintage mezzanine bonds, which in turn showed a wide range of price talk.

    For example, the Alt-A hybrid GPMF 2005-HY1 M1 bond was talked at low-30s and low/mid-40s during the session. The prime hybrid BAFC 2005-D B1 tranche was talked at mid-60s, .......

    Market Reports 8 August 2013

  • Reset boosts cat bond's rating

    S&P has raised its rating on Munich Re's Queen Street V Re to double-B minus from single-B plus. The move follows the release of a reset report detailing the new attachment and exhaustion points for the catastrophe bond.

    For US hurricanes, the updated attachment point is 110,944 (up from 104,000) and the updated exhaustion point is 143,863 (from 136,000), as .......

    News Round-up 7 August 2013

  • CLO risk-retention features highlighted

    Moody's discusses in its latest CLO Interest publication a number of novel features contained in KKR Financial CLO 2013-1 that are intended to comply with both current and forthcoming European risk-retention rules. The US deal is structured so that the originator of the assets retains the equity, which provides incentives for European investors to purchase the deal's notes.

    In their .......

    News Round-up 7 August 2013

  • GSO/Blackstone retains top spot in CLOs

    Moody's has updated its CLO manager league tables, as of 30 June. The data are for only CLOs that the agency has publicly-rated and which consist of both broadly syndicated loan (BSL) CLOs and SME CLOs.

    In the US CIFC continues to lead the CLO market by deal count, with 30 CLOs and US$11.2bn assets under management, followed by GSO/Blackstone, .......

    News Round-up 7 August 2013

  • Multifamily bridge programme launched

    Walker & Dunlop has launched a large loan bridge programme, through which it will originate adjustable-rate loans on multifamily properties that do not currently qualify for permanent financing but will be candidates for funding through Fannie Mae, Freddie Mac, HUD, CMBS or life company channels once stabilised or repositioned. The programme is funded with capital from a large Canadian institutional .......

    News Round-up 7 August 2013

  • Telecom Italia spreads surge

    Credit default swap spreads on Telecom Italia (TI) are widening as Italy's largest phone company battles a weak economy and price pressure from competitors, Fitch Solutions reports. Fitch Ratings downgraded TI's long-term issuer default rating (IDR) to triple-B minus, outlook negative, from triple-B on 5 August 5.

    The price of credit protection on TI's debt over a five-year horizon is .......

    News Round-up 7 August 2013

  • ABS CDO auctions announced

    Public sales have been scheduled for next week for two ABS CDOs - Jupiter High-Grade CDO IV and West Trade Funding CDO I.

    Cross Point Capital has been retained to act as liquidation agent for the former deal, for which three auctions are due on 13 August. The first sale comprises subprime securities; the second comprises ABS CDO, CMBS, prime .......

    News Round-up 7 August 2013

  • Foreclosure timelines to continue lengthening

    RMBS investors face increased carrying costs because most servicers' completed foreclosure timelines will continue to lengthen in the foreseeable future, according to Moody's latest Servicer Dashboard report. Loans in judicial states remain far more elevated than those in non-judicial states, but timelines for non-judicial states will increase at a faster rate than those for judicial states because of changes in .......

    News Round-up 7 August 2013

  • Swaps trade workflow questioned

    Even as the CFTC's swap execution facility (SEF) rules go into effect on 2 October, execution models are emerging that will help the buy-side preserve their existing workflow for swaps trading, according to TABB. The firm suggests that the CFTC's decision to reduce the RFQ requirement to two/three from five, in tandem with the voice trading provision, favours buy-side firms .......

    News Round-up 7 August 2013

  • Margin calculator integrated

    Bloomberg has become the first financial information platform to integrate LCH.Clearnet's margin calculator - SwapClear Margin Approximation Risk Tool (SMART). LCH.Clearnet's Bloomberg Professional service subscribers can now access the tool to simulate their portfolios' exposure to risk factors and perform instantaneous, consistent margin approximations, prior to clearing.

    .......

    News Round-up 7 August 2013

  • Auto ABS underwriting eyed

    US prime auto ABS continue to be originated at a strong clip. But unique elements are being introduced into the market that may give some investors pause, according to Fitch.

    The agency notes that underwriting is slowly declining for prime auto ABS deals. While weighted average pool FICO scores remain strong, an incremental increase in the composition of the lowest .......

    News Round-up 7 August 2013

  • Cengage results in

    The final price of Cengage Learning Acquisitions Inc LCDS was determined to be 74 during yesterday's auction. Nine dealers submitted initial markets, physical settlement requests and limit orders to the auction. Due to a zero net open interest, there was no subsequent bidding period, so the inside market midpoint value is the final price.

    .......

    News Round-up 7 August 2013
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