Complete news archive

  • Euro CLO 2.0 protections highlighted

    New European CLOs afford greater protection to senior noteholders than those issued prior to the financial crisis, according to S&P. The agency cites greater subordination for senior notes, higher overcollateralisation ratios and lower leverage as some of the reasons. European CLO 2.0 deals also impose stricter conditions on maturity extensions.

    S&P says that in the main they contain features that .......

    News Round-up 18 June 2013

  • Call for covered bond scrutiny

    S&P says that new issuances of covered bonds warrant just as much scrutiny as securitisations, given that the instrument is becoming increasingly more complex. The agency expects the trend of introducing features into covered bonds that are more typical of securitisation to continue, resulting in fewer differences between covered bonds and ABS in the future.

    However, the increasing sophistication of .......

    News Round-up 18 June 2013

  • Collateral optimisation system strengthened

    4sight Financial Software has added new features to its collateral optimisation system. The collateral management system bases all collateral substitutions on automated cheapest-to-deliver collateral algorithms. The firm says clients are now able to automate collateral recalls and substitutions based on: corporate actions; changes in collateral credit rating leading to it becoming ineligible; changes in counterparty and CCP eligibility criteria; and .......

    News Round-up 18 June 2013

  • AA plans WBS

    The UK Automobile Association (AA) is prepping a whole business securitisation dubbed AA Bond Co. Proceeds will refinance part of the liabilities of the Acromas Group.

    The AA Group operates a roadside assistance service in the UK and Ireland, as well as providing complementary services, such as insurance, driving services and home emergency response. The AA provides breakdown services either .......

    News Round-up 18 June 2013

  • Co-op recapitalisation plan unveiled

    The Co-operative Bank has completed a review of its financial position and agreed capital and management actions to generate Common Equity Tier 1 capital. Under the plan, the bank intends to delever its non-core assets via a separate division.

    Going forward, the Co-operative Bank says it intends to be a focused core relationship bank, serving retail and SME customers. A .......

    Job Swaps 18 June 2013

  • Shortfalls spreading to CMBS 2.0

    Nearly 90% of Fitch-rated pre-2009 US CMBS by balance currently have outstanding interest shortfalls to one or more rated classes. But interest shortfalls are now beginning to surface in CMBS 2.0 transactions, although nearly all of these loans continue to perform, the agency reports.

    Interest shortfalls are commonly caused by appraisal reductions, special servicing fees, loan modifications or when a .......

    News Round-up 18 June 2013

  • AJs hit in Tri-County liquidation

    The liquidation of a loan in CSFB 2005-C2 has resulted in the first instance of principal losses being realised on an originally triple-A rated AJ tranche in the US conduit CMBS segment. The US$136m Tri-County Mall was liquidated this month with a loss of US$124m.

    CMBS analysts at Barclays Capital had previously suggested that the property would likely need to .......

    News Round-up 18 June 2013

  • Funding, relations chief appointed

    Sallie Mae has named Steven McGarry as corporate finance svp. He will assume responsibility for all of the company's funding activities, as well as manage the corporation's rating agency, equity investor and fixed income investor relationships.

    McGarry joined the company's corporate finance team in 1997 and was most recently head of fixed income investor relations. Sallie Mae last month announced .......

    Job Swaps 18 June 2013

  • Analytics provider adds ratings data

    FactSet has integrated Fitch's credit ratings data across its suite of solutions. The move will give investment professionals further insight into credit risk and enable them to conduct ratings exposure analysis on their portfolios, the two firms say. FactSet subscribers will now be able to access Fitch's complete global coverage, including structured finance.

    .......

    Job Swaps 18 June 2013

  • Corporate actions validation service acquired

    Markit has acquired the assets of Global Corporate Actions Validation Service from the DTCC. The acquisition expands Markit's reference data offering with more than 50 types of corporate action announcements in equities, bonds and structured products.

    The current GCA Validation Service team will continue in their roles researching, validating and confirming corporate actions. The service will also continue to receive .......

    Job Swaps 18 June 2013

  • Moving on?

    The re-emergence of the European CLO market has many positiv...

    The evolving European securitisation market has seen several changes since the crisis, with many positive developments, particularly recently. However, certain issues still need to be resolved and - with the market improving - concern is growing that they may be forgotten about.

    Corporate trust service providers have experienced the market's lows as well as its highs and, while many recent .......

    News Analysis 18 June 2013

  • Spanish ruling may impact excess spread

    A recent Spanish Supreme Court ruling could cause lenders to stop applying floor clauses that set minimum interest rates in mortgage contracts, says Fitch. This would reduce excess spread in Spanish RMBS transactions.

    Interest rate floors have held up excess spread recently while interest rates have remained exceptionally low. If lenders cannot apply these clauses anymore then deals without a .......

    News Round-up 17 June 2013

  • CMBS loan re-enters special servicing

    The Harbour Centre office building backing a US$51m loan securitised in MSC 2006-IQ12 has been transferred to special servicing. It was previously transferred to special servicing in 2009 and received a modification which extended its IO payment period until January 2013.

    Occupancy has since declined to 85% and the loan was just covering with a DSCR NCF of 1.14x. Barclays .......

    News Round-up 17 June 2013

  • Russian RMBS ratings reviewed

    Fitch has taken rating actions on three Russian RMBS deals: Red & Black Prime Russia MBS No.1, Russian Mortgage Backed Securities 2006-1 and Moscow Stars. Most tranches have been affirmed, but the class A notes of Moscow stars have been downgraded from triple-B minus to double-B.

    No defaults have been reported for Red & Black since January 2012. Cumulative defaults .......

    News Round-up 17 June 2013

  • Risk analytics tool launched

    S&P Capital IQ has launched a portfolio risk solution to help traders, portfolio and risk managers to make decisions about the pricing, hedging and capital management of multi-asset class portfolios in real-time. It offers a fully integrated data and analytics platform so users do not need to invest in separate data to run risk systems.

    The risk and scenario analytics .......

    News Round-up 17 June 2013

  • ESMA clarifies CRA regulation

    ESMA has published guidelines and recommendations on the scope of credit rating agency regulation. The guidelines clarify certain aspects of the regulation of registered rating agencies, market participants operating on the perimeter of this sector and national securities markets regulators.

    The guidelines clarify areas such as enforcement, rating activities, exemptions, branches of registered rating agencies outside the EU and disclosure .......

    News Round-up 17 June 2013

  • CRE CDO late-pays fall

    US CRE CDO delinquencies fell from 13.2% to 12.7% last month, according to the latest index results from Fitch. There were three new delinquencies in the month and seven assets removed from the index.

    The new delinquencies included a matured balloon loan, a newly credit impaired security and a credit risk mezzanine loan that was repurchased at par by the .......

    News Round-up 17 June 2013

  • SCI Start the Week - 17 June

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

    Pipeline
    Many of the deals which joined the pipeline last week priced soon afterwards but a handful still remained when the weekend rolled around. This included two ABS, one ILS, one RMBS and three CMBS.

    The ABS were US$304.72m Massachusetts Educational Financing Authority Series 2013 and €76m TruckLease Compartment No.3, while the ILS was US$75m Queen Street VIII Re. The RMBS .......

    News 17 June 2013

  • Non-agency supply continues to rise

    US RMBS non-agency secondary supply was up to US$909m yesterday, with prime and Alt-A fixed rate paper leading the charge. Hybrid supply was moderate with subprime supply also up.

    SCI's PriceABS data shows supply continuing to build after a slow start to the week. Most of yesterday's supply was concentrated around 2004 to 2007-vintages.

    The WFMBS .......

    Market Reports 14 June 2013

  • 'Something for everyone' in large liquidation list

    The liquidation of almost €300m of bonds following an investor pulling out of a large ABS fund resulted in a 152 line BWIC being offered to the market earlier this week. The large, varied list traded well, although levels were a little weaker than the top of the market two weeks earlier.

    "It was an investor pulling out of the .......

    Market Reports 14 June 2013

  • RMBS settlement for former board members

    The US SEC has settled an enforcement proceeding against eight former directors of five Regions Morgan Keegan funds that were heavily invested in subprime RMBS. The proceeding began last year and alleged that the directors failed to satisfy their pricing responsibilities (SCI 11 December 2012).

    The directors are Kenneth Alderman, Jack Blair, Albert Johnson, James Stillman, Allen Morgan, Randall Pittman, .......

    Job Swaps 14 June 2013
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