Complete news archive

  • Basel 3 final rule approved

    The US Fed has approved a final rule to implement the Basel 3 regulatory capital reforms and certain changes required by the Dodd-Frank Act. The final rule establishes an integrated regulatory capital framework that addresses shortcomings in capital requirements - particularly for larger, internationally active banking organisations - that became apparent during the recent financial crisis, while minimising the burden .......

    News Round-up 3 July 2013

  • CMBS delinquency rate plummets

    At 8.65%, the Trepp CMBS delinquency rate last month posted its lowest reading in almost three years. The 42bp drop in the delinquency rate was the second biggest one-month improvement since Trepp began publishing the monthly rate in autumn 2009. Four of the five major property types saw their delinquency rates fall in June.

    Loan resolutions totalled US$1.25bn during the .......

    News Round-up 3 July 2013

  • Improving economy bolsters SLABS performance

    Outstanding student loans approached nearly US$1trn at the end of last year, becoming the second largest source of US consumer debt after mortgage loans. Nevertheless, student loan ABS performance is primed for a brighter outlook due to the improving economy.

    "Student loan ABS performance is highly correlated with the economy when it comes time for students to begin paying their .......

    News Round-up 3 July 2013

  • Record windstorm cat bond prints

    Swiss Re Capital Markets has priced Green Fields II Capital Series 2013-1, which at €280m is the largest European windstorm catastrophe bond ever issued and the largest euro-denominated deal to date. The deal's single tranche priced at three-month Euribor plus 252bp and has been rated at double-B by S&P.

    The transaction is the first issuance from Groupama's newly-established Green Fields .......

    News Round-up 3 July 2013

  • Chinese securitisation 'underdeveloped'

    Fitch believes that the Chinese securitisation market is underdeveloped, reflected in the small programme size of the third round of the credit asset securitisation (CAS) pilot programme launched in May 2012 at RMB50bn (US$8.2bn). The programme limit - accounting for less than 0.1% of the commercial banking system's assets in the country - is insufficient to fulfil the needs of .......

    News Round-up 3 July 2013

  • Nationstar forbearance revisions expected

    Nationstar intends to revise the reporting of principal forbearance modifications, resulting in approximately US$1bn in losses for RMBS collateralised with loans it services, with the revision likely to occur in the July distribution. Fitch expects the impact to be concentrated in classes currently rated double-C or below and currently does not anticipate significant rating changes as a result of the .......

    News Round-up 3 July 2013

  • Manager targets UK CRE lending

    Standard Life Investments has appointed Neil Odom-Haslett as head of commercial real estate lending. He will join in August and report to David Paine, head of real estate investments.

    Odom-Haslett will be based in London and lead Standard Life's entry into the CRE lending market in the UK. He will be responsible for all aspects of the lending platform, with .......

    Job Swaps 3 July 2013

  • Ares looks to expand in structured credit

    Jeffrey Kramer has joined Ares Management's capital markets group as portfolio manager. He will lead a tactical expansion of Ares' structured credit business and take responsibility for the origination and management of investments under its asset-backed investing and lending strategy.

    Kramer joins from Goldman Sachs' special situations group. He previously founded ReMark Capital Group in partnership with Goldman Sachs and .......

    Job Swaps 3 July 2013

  • Law firm makes Middle East expansion

    Morgan Lewis is opening an office in Dubai and hiring structured finance lawyer Ayman Khaleq to provide local knowledge and Islamic finance expertise. He joins from Vinson & Elkins and will spend a short time in Morgan Lewis' London office until the Dubai office opens.

    Khaleq has been appointed by the IMF as an expert in debt capital markets and .......

    Job Swaps 3 July 2013

  • CLO BWIC participation broadening

    Recent BWIC activity suggests that real money investors upped their share of secondary US CLO buying for the third consecutive year, from 52% in 2012 to 63% year-to-date in 2013, according to JPMorgan figures. Next come hedge funds, accounting for 27% of volume, followed by banks with 10%.

    At the same time, decreased disparity is evident between real money (accounting .......

    News 3 July 2013

  • CDS touted as early-warning signal

    CDS spreads and other short-term market-based indicators have become more valuable market gauges for corporate treasuries, which have seen a notable change in their own responsibilities post-crisis, according to Fitch Solutions. While credit ratings and fundamental financial data are integral in gauging the long-term outlook of a company's health, the real-time movement of CDS spreads can serve as a valuable .......

    News Round-up 2 July 2013

  • Minimal impact expected from FDSL hike

    As of 1 July, interest rates on federal direct subsidised loans (FDSL) for US college students will double to 6.8%. Although the increase is being portrayed as harmful to students who would be driven further into debt, Moody's expects the overall effect on student loan securitisations to be minimal.

    The agency notes in its latest Credit Outlook publication that the .......

    News Round-up 2 July 2013

  • Asia managing partner poached

    Michelle Taylor and her team have joined Jones Day's banking & finance group in Hong Kong. She was formerly Asia managing partner and China office leader with Orrick. Her practice focuses on structured finance, real estate finance, debt capital markets, general banking and securitisation, where she has almost 20 years of experience.

    .......

    Job Swaps 2 July 2013

  • Data centre enhanced

    Morningstar has been selected to provide financial data, technology and design for the re-launch of FINRA's Market Data Center. With an emphasis on bond market information, including price information from TRACE, the data centre aims to provide retail investors with unprecedented transparency to the corporate bond market.

    The revamped platform now offers expansive market data, including intra-day pricing and fundamental .......

    News Round-up 2 July 2013

  • Counterparty risk approaches examined

    Quantifi and InteDelta have published a whitepaper entitled 'Measurement and Management of Counterparty Risk'. The report highlights that the accurate measurement and effective management of potential future exposure (PFE) and credit value adjustment (CVA) are critical for managing counterparty credit risk.

    A range of new regulatory requirements is changing the way in which institutions view risk. This affects not only .......

    News Round-up 2 July 2013

  • IRP update due

    The Commercial Real Estate Finance Council is releasing CREFC IRP version 7.0, with an effective date of 1 October 2013. The latest version of the CMBS reporting template comprises a number of changes. These include: an updated CREFC overview narrative; an updated change matrix for CREFC IRP v.7.0; and updated data dictionary for CREFC IRP v.7.0 term changes; IRP new .......

    News Round-up 2 July 2013

  • Subprime survives trading drop-off

    It was a quiet start to the holiday week in the US as the market moves into the third quarter. Non-agency RMBS BWIC volumes remain muted at US$90m, with dealer offering levels largely unchanged.

    Subprime RMBS supply held up better than other sectors yesterday. SCI's PriceABS data shows a number of subprime tranches for the session, although a .......

    Market Reports 2 July 2013

  • Strong performance for post-crisis GSE loans

    US mortgage loans recently acquired by Fannie Mae and Freddie Mac will outperform historical levels, according to Fitch. The agency has completed an analysis of historical data to help investors evaluate upcoming credit-sensitive securitisation proposals from the GSEs.

    With plans of engaging in credit risk transfer transactions in the works, the GSEs have publicly released for the first time historical .......

    News Round-up 2 July 2013

  • ResCap reorganisation approved

    The plan support agreement (PSA) entered into by Ally Financial, Residential Capital and ResCap's major creditors was approved last week by Judge Martin Glenn in the US Bankruptcy Court. The Chapter 11 plan provides broad releases for Ally from mortgage-related issues.

    Consistent with the terms of the PSA, ResCap paid Ally approximately US$1.13bn on 13 June to satisfy Ally's substantial .......

    Job Swaps 2 July 2013

  • REIT reliance on repo highlighted

    Fitch has published a report focusing on mortgage REITs that invest primarily in fixed rate agency MBS. Entitled 'Shadow Banking Mortgages: Agency mREITs and Repos', the study highlights the sector's reliance on repo borrowing and the potential ripple effects on mortgage markets if repo lenders were to tighten financing terms and availability.

    The report notes that fixed-rate agency mREIT sector .......

    News Round-up 2 July 2013

  • CMBS loan re-defaults eyed

    So far this year, 43 loans over US$20m have transferred to a special servicer, representing a steep drop through the same period in 2012 (94) and 2011 (103). Of that amount, six loans over US$100m transferred to special servicing during first-half 2013 compared to 16 in 1H12, according to Fitch.

    One trend that the agency says it is watching closely .......

    News Round-up 2 July 2013
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