Complete news archive

  • Cross-asset movement

    Rising rates rearrange relative value

    Rising interest rates in the wake of the Fed's tapering proposal have profoundly affected cross-asset relative value. While investors may consequently choose to move down the capital structure within CLOs, interest in CMBS is also expected to increase.

    US CLO triple-A spreads have not moved much recently as three-month Libor has been largely steady. Movement has been much more dramatic .......

    News Analysis 26 July 2013

  • CDS trading chief appointed

    Alexis Serero is joining Citi as head of CDS index trading for Europe. He will be based in London and report to Tim Gately, EMEA head of credit trading.

    Serero has been at Deutsche Bank since 2009. He will make the move to join Citi in September.

    .......

    Job Swaps 25 July 2013

  • Italian SME default drivers analysed

    Italian SMEs most at risk of defaulting on their securitised secured and unsecured loans are those active in the construction and building sector, says Moody's in a new special comment. The report covers data on Italian SMEs between 2012-2013 and the default drivers that the agency identifies as rating neutral for Italian SME ABS transactions.

    Moody's analysis of default data .......

    News Round-up 25 July 2013

  • Multi-asset credit fund launched

    ING Investment Management International (ING IM) has launched a new fund dubbed ING (L) Renta Fund First Class Yield Opportunities, which seeks to deliver attractive returns by investing in a diversified multi-strategy credit portfolio. The strategy combines the skills of three investment teams: the multi-asset, credit and emerging market debt boutiques.

    Ewout van Schaick (head of multi-asset strategies) and Roel .......

    News Round-up 25 July 2013

  • Further GSE selling suspected

    A hotly anticipated US$2bn US RMBS bid-list hit the market yesterday, accounting for almost all of the non-agency secondary supply for the day. In addition, around US$138m of agency paper was out for the bid.

    The large BWIC is believed to be from either Fannie Mae or Freddie Mac, with another US$1.1bn bid-list due out today also thought to be .......

    Market Reports 25 July 2013

  • Call to action

    Securitisation best practice gaining traction in Brazil

    Brazilian ABS issuance volume plummeted to its lowest level since 2004 last year and is yet to return. New rules passed by regulator Comissão de Valores Mobilários (CVM) are being blamed for the sector's decline, but a series of bank scandals have also deterred investors from entering the market.

    Banco Central do Brasil (BCB) has rescued or liquidated seven Brazilian .......

    News Analysis 25 July 2013

  • Reporting tool released

    Torstone Technology has released a new Inferno module that consolidates OTC derivative trades from multiple front office systems and feeds them into global trade repositories automatically. The aim is to help financial institutions comply more easily and accurately with the transparency and reduced risk goals of new global regulatory reporting requirements under EMIR and Dodd-Frank.

    The technology is based on .......

    News Round-up 24 July 2013

  • CMBS supply up, spreads stagnant

    US CMBS secondary supply picked up from less than US$100m on Monday to almost US$500m yesterday. However, spreads flat-lined as economic data weighed on investors' minds.

    "The day started out promisingly, with morning deal sheets pointing to tighter spreads among legacy super seniors, AMs and AJs. Disappointing US manufacturing data took the wind out of the sails of the CMBS .......

    Market Reports 24 July 2013

  • Spanish interest floor ruling 'credit neutral'

    BBVA, Cajamar and NCG Banco have eliminated the interest floor clauses in more than 500,000 Spanish mortgages, after they were declared as unfair in a recent Tribunal Supremo ruling. This change - which will lead to a decrease in interest collections, but will not affect cashflows - is credit neutral for the interest-hedged deals originated by the banks, according to .......

    News Round-up 24 July 2013

  • FATCA delay 'credit positive' for CLOs

    The US Internal Revenue Service's decision to delay FATCA implementation -scheduled to begin on 1 January 2014 - by six months is credit positive for CLOs with offshore issuers, according to Moody's in its latest Credit Outlook publication. The move is expected to save the administrative burden and expense of FATCA compliance during that time, extend applicability of FATCA's grandfathering .......

    News Round-up 24 July 2013

  • FBT proposal weighs on Aussie auto ABS

    The Australian government last week proposed changes to the Fringe Benefits Tax (FBT) rules, which would make it more onerous for individuals to claim tax breaks on vehicles purchased under novated leases and salary sacrifice arrangements. The changes will lead to a deterioration of the credit quality of future auto ABS transactions, according to Moody's, due to the reduction in .......

    News Round-up 24 July 2013

  • Negative outlook for Ocwen ratings

    Fitch has assigned RSS3 and RPS3 (negative outlook) residential servicer ratings to Ocwen Loan Servicing across the subprime, prime, alt-A, HELOC and closed-end second lien categories. The agency says that the rating actions are based on Ocwen's highly integrated technology environment and robust investor and borrower websites.

    Ocwen is currently operating two separate servicing platforms: its legacy servicing operation utilising .......

    News Round-up 24 July 2013

  • Risk modeller names coo

    AIR Worldwide has appointed Bill Churney as coo. He will take responsibility for all product management, software product development, global business development, marketing, consulting and client service activities.

    It is a newly-created position for the catastrophe modelling firm. Churney has spent 11 years at AIR and previously worked in product management and operations management at McMaster-Carr and Charles River Associates.

    .......

    Job Swaps 24 July 2013

  • CTL criteria updated

    S&P has updated its methodology and assumptions for rating credit-tenant lease (CTL) transactions. The criteria apply globally to CMBS comprised of either one (single tenant) or a pool of CTL loans and similar exposures, where the transaction is rated based primarily on the credit risk of the underlying property's credit tenant. They can also apply to other types of transactions .......

    News Round-up 24 July 2013

  • Confidence boost

    Will bespoke single tranches make a comeback, asks Anu Munsh...

    Last month, JPMorgan and Morgan Stanley scrapped plans to launch a synthetic CDO. Apparently there wasn't enough interest from investors in the senior most tranche.

    But if investors were interested in the mezzanine and junior tranches, JPMorgan or Morgan Stanley could create bespoke single tranches for them. Activity in such tranches ran into hundreds of billions of dollars pre-credit crisis. .......

    Talking Point 24 July 2013

  • No Monday blues for US RMBS

    US RMBS secondary supply started the week strongly, with BWIC volume on Monday of US$387 for agency RMBS and US$410m for non-agency. SCI's PriceABS data captured many non-agency names that were out for the bid in the week's first session, including a good number of subprime bonds which traded.

    A spike in subprime supply was a significant .......

    Market Reports 23 July 2013

  • RFC issued on Russian MBS

    Moody's has published a request for comment on the impact of legislative amendments on Russian onshore MBS. In particular, the amendments - which came into effect in January 2013 - have reduced the risk of issuer liquidation upon recording a negative asset ratio by prohibiting voluntary issuer self-liquidation.

    Prior to these amendments, Moody's assumed that an issuer with a negative .......

    News Round-up 23 July 2013

  • SIV hit by sponsor downgrade

    Moody's has downgraded by a notch the ratings of Carrera Capital Finance's US and Euro CP and MTNs. The SIV is managed and sponsored by HSH Nordbank.

    The move reflects the rating action on HSH Nordbank, whose long-term rating was downgraded to Baa3 from Baa2 and its short-term rating was downgraded to Prime-3 from Prime-2 on 11 July. Noteholders are .......

    News Round-up 23 July 2013

  • UBS settles FHFA claim

    UBS has reached an agreement in principle with the FHFA to settle claims relating to US RMBS offerings between 2004 and 2007 (SCI 28 July 2011). The case is one of a group of cases related to RMBS offerings filed by the FHFA against 18 financial institutions.

    The settlement, which is subject to documentation and final approvals by the parties, .......

    Job Swaps 23 July 2013

  • AVA QIS underway

    The EBA has launched a quantitative impact study (QIS) to assess the capital impact of its proposals for the calculation of additional value adjustments (AVAs). The move follows the publication of its consultation paper on draft RTS on prudent valuation (SCI 11 July).

    The QIS - which will be carried out in coordination with national supervisory authorities - will also .......

    News Round-up 23 July 2013

  • Post-trade processing solution provided

    Accenture and Broadridge Financial Solutions have launched a post-trade processing solution to help banks in Europe and Asia-Pacific reduce post-trade processing costs and adapt to new regulations and technology. Accenture Post-Trade Processing combines Accenture's global capital markets industry expertise with Broadridge's post-trade processing technology.

    The solution has also been designed to accommodate other technology, such as reconciliations and corporate actions .......

    Job Swaps 23 July 2013
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