Complete news archive

  • GRAND redemption due

    Each of the GRAND REF note issuers are expected to prepay in full tomorrow, followed by the redemption of the CMBS notes on the 22 July IPD. The move follows DAIG's successful IPO last week: the company is partially funding the repayment with an unsecured loan, which was contingent on generating IPO proceeds of at least €400m (see SCI's CMBS .......

    News Round-up 17 July 2013

  • Call for a 'robust' FASB framework

    S&P has responded to FASB's 'Proposed Accounting Standards Update, Financial Instruments - Credit Losses (Subtopic 825-15)'. The rating agency strongly endorses FASB and IASB's joint efforts to improve accounting recognition of financial instrument credit losses by substituting a model capable of accounting for expected risks for the current, incurred-loss model. However, it is concern that the update's present language remains .......

    News Round-up 17 July 2013

  • Risk analytics platform enhanced

    OpenGamma Platform 2.0 is being rolled out, offering advanced stress-testing capabilities, performance improvements and extended asset class functionality. The service provides real-time availability of critical trading and risk analytics required by front-office traders, quants, portfolio managers and risk professionals. Key enhancements include support for credit derivative products, such as single-name and index CDS and CDS options.

    .......

    News Round-up 17 July 2013

  • Pre-trade service gains traction

    Traiana reports that its pre-trade clearing certainty initiative is gaining momentum, with the support of a number of FCMs and trading venues. The service has been built in consultation with major clearinghouses and is designed to manage trading and clearing limits in real-time for interest rate, credit and FX swaps.

    Barclays, Bank of America Merrill Lynch, Citi, Goldman Sachs and .......

    News Round-up 17 July 2013

  • US CDS 'best performer' in Q2

    S&P Capital IQ global sovereign debt data for Q2 reveals that Argentina still tops the table of the most risky sovereign credits, despite some tightening over the quarter (23%). Central & South America (ex-Argentina) credit default swaps widened by 45% on average in the quarter, with spreads in Brazil approaching 200bp - a level not seen since October 2011.

    "The .......

    News Round-up 17 July 2013

  • Homex credit event called

    ISDA's Americas Credit Derivatives Determinations Committee has resolved that a failure to pay credit event occurred in respect of Desarrolladora Homex. The Committee did not resolve to hold an auction in respect of outstanding CDS transactions on the name.

    The move follows the expiration of the grace period on the payment of interest in relation to the firm's 11 December .......

    News Round-up 17 July 2013

  • Sovereign downgrade hits French deals

    Fitch has downgraded three tranches related to three French structured finance transactions. The action follows the downgrade of France's long-term foreign currency issuer default rating (IDR) to double-A plus from triple-A.

    The deals affected by the downgrades are Eole Finance, House of Europe 1 and House of Europe 3. Given their significant exposure to the French sovereign, the affected notes .......

    News Round-up 17 July 2013

  • Sovereign downgrade hits Italian deals

    S&P has lowered its credit ratings on 118 tranches in 91 Italian securitisations. The rating actions follow the agency's 9 July lowering of its unsolicited long-term sovereign credit rating on Italy to triple-B from triple-B plus, due to the effects of further weakening growth on the country's economic structure and resilience, and its impaired monetary transmission mechanism.

    Specifically, S&P has .......

    News Round-up 17 July 2013

  • Bank forms CRE unit, names SF head

    Opus Bank has created a new commercial real estate banking (CREB) division, comprised of its income property banking (IPB) and structured finance divisions. Dan Borland, IPB president since Opus' inception, has been named as CREB president and head of structured finance.

    Prior to joining Opus Borland held senior positions at JPMorgan, Washington Mutual and Wells Fargo. Ed Padilla replaces him .......

    Job Swaps 17 July 2013

  • Auto, aircraft ABS attract attention

    Supply picked up yesterday and the US ABS secondary market saw a good variety of paper out for the bid. ABS BWIC volume increased to US$106m during the session, from only US$18m on Monday, with auto, aircraft and container bonds all circulating.

    The up-tick in volume came even as much of the market's attention was focused on primary issuance. Over .......

    Market Reports 17 July 2013

  • Risk-sharing deal debuts

    The first in a series of hotly-anticipated Freddie Mac risk-sharing transactions (SCI 8 July) has been announced. Dubbed Structured Agency Credit Risk (STACR) series 2013-DN1, the securities are linked to the credit risk of a pool of recently-originated residential mortgage loans.

    The deal comprises two floating-rate tranches: US$200m 2.19-year M1 notes and US$200m 8.21-year M2 notes. Credit Suisse is structuring .......

    News Round-up 17 July 2013

  • SLABS hit by counterparty downgrades

    S&P has placed on credit watch with negative implications 23 tranches from across a number of student loan ABS transactions. The rating actions follow the recent lowering of its issuer credit ratings on Credit Suisse and Barclays Bank - the swap counterparties for the affected transactions - to single-A from single-A plus.

    Twenty tranches from SLM Student Loan Trust 2002-7, .......

    News Round-up 17 July 2013

  • Large CRE transfer agreed

    Commerzbank has agreed to sell its UK commercial real estate portfolio to a consortium comprising Wells Fargo and Lone Star Funds. The transaction includes €5bn in CRE loans as well as the relevant interest rate and currency hedging derivatives.

    Also included in the transaction is the entire operational business of Hypothekenbank Frankfurt - formerly Eurohypo - in the UK. The .......

    Job Swaps 16 July 2013

  • REIT sales exacerbating MBS volatility?

    US agency mortgage REITs have had to deleverage by US$29bn in MBS since 31 March, according to Deutsche Bank estimates. Under stress scenarios where the yield curve steepens further and MBS spreads widen, MBS analysts at the bank suggest that an additional US$12bn-US$23bn of deleveraging might be necessary, putting significant further pressure on pricing.

    REITs have become an important part .......

    News 16 July 2013

  • Hurdles remain for direct lending

    Moody's notes in its latest Credit Insight publication that increasing numbers of non-traditional lenders - such as private equity firms, hedge funds and insurance firms -entering the direct lending space is credit positive for SMEs. The move is expected to increase loan supply and stimulate competition between lenders.

    Blackstone, KKR, Avenue Capital and CVC Credit Partners have all raised money .......

    News Round-up 16 July 2013

  • Further CDS definitions details emerge

    ISDA has released new information on the implementation of its revised credit derivatives definitions (SCI passim). The association expects the documentation to be in place in order for contracts using the new definitions to begin trading on 20 March 2014.

    Before the definitions are finalised, a draft will be circulated to both ISDA's credit derivatives market practice committee and its .......

    News 16 July 2013

  • Tullett data deal expanded

    S&P Capital IQ has come to a strategic agreement with Tullett Prebon Information (TPI). The deal covers broad use rights across all business units and divisions of its parent company McGraw Hill Financial and provides for expansive use and redistribution of TPI data.

    TPI has historically provided S&P Capital IQ with OTC inter-dealer broker data but now all McGraw Hill .......

    Job Swaps 16 July 2013

  • SLM cashflows suggest downside protection

    In a run-off scenario, expected cashflows from the spun-off businesses of SLM Corp would be sufficient to repay the existing US$17.9bn of senior unsecured debt obligations to be spun off along with the new company, according to Fitch. The agency has undertaken a cashflow analysis of SLM's proposed spin-off, which included three single-factor stress scenarios - higher credit losses on .......

    News Round-up 16 July 2013

  • Loan prepays drive CLO upgrades

    Moody's has upgraded the ratings on 192 tranches in 95 US CLOs, totalling approximately US$4.5bn of outstanding rated balance. The magnitude of the upgrades range between one to three notches, with the ratings of all the affected tranches (except for those already upgraded to Aaa) remaining on review for upgrade. At the same time, the agency placed on review for .......

    News Round-up 16 July 2013

  • Strong APAC performance observed

    Fitch says that nearly 90% of its Asia-Pacific structured finance rating actions in 2Q13 were affirmations; 8% were upgrades, while just five tranches were downgraded.

    Japan saw mixed rating actions during the quarter, with four downgrades, two upgrades and 12 affirmations. All downgrades were attributed to one multi-borrower CMBS transaction.

    Australia saw 142 affirmations, reflecting the health of the domestic .......

    News Round-up 16 July 2013

  • REO assets tipped for auction

    Only two properties securitised in US CMBS are set for a note sale via Auction.com in August.

    The first is the US$42.9m Tallahassee Mall securitised in CSFB1999-C1, which has been in REO since January 2011. The latest reported appraisal (from September 2010), pegged the value of the property at only US$4.5m.

    The loan was deemed non-recoverable in mid-2011 and the .......

    News Round-up 16 July 2013
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