Complete news archive

  • CLO indenture comparisons prepped

    Fitch has launched CLO Indenture Abstracts, which will be published for every Fitch-rated US CLO 2.0 transaction. The new reports are designed to provide what the agency believes is unprecedented insight into the key features of the CLO indenture and how those features compare to other Fitch-rated CLOs.

    The nuances of CLO indentures can significantly influence investment theses and may .......

    News Round-up 29 May 2013

  • Bondholder communication network unveiled

    DealVector has launched a secure electronic communication network that allows fixed income and illiquid asset market players to know 'who's in their deal', thereby improving the efficiency of these markets by facilitating communication. The platform fills a gap in the current DTC/Street name system by offering the ability to directly message the beneficial owners of financial assets on a mutual .......

    News Round-up 29 May 2013

  • Better RMBS data provides Irish guidance

    The European DataWarehouse (ED) is benefitting sectors that had previously suffered from a paucity of information, such as peripheral RMBS. One such jurisdiction is Ireland, where greater access to data is set to facilitate more rigorous fundamental analysis and aid in the trading of bonds.

    With late-stage 90-day plus arrears averaging 17.5% for prime Irish RMBS, the sector remains particularly .......

    News 29 May 2013

  • MILAN methodology updated

    Moody's has updated its methodology for rating RMBS using the MILAN framework, including the introduction of a new approach for the analysis of mixed-pool mortgage loan portfolios. At the same time, the agency has updated its related approach to originator assessments.

    In EMEA Moody's uses a unified approach when analysing a mixed-pool portfolio (a portfolio comprising two sub-pools of mortgage .......

    News Round-up 29 May 2013

  • Home price warning issued

    Fitch believes the recent US home price gains recorded in several residential markets are outpacing improvements in fundamentals and could stall or possibly reverse. Many of these areas are in California, which has seen price increases of 13% over the last year.

    In many markets, fundamentals are improving as unemployment rates continue declining, while low prices and low interest rates .......

    News Round-up 29 May 2013

  • Self-employed IO loan concentration examined

    Moody's expects self-employed borrowers' exposure to current UK economic weakness not to have a significant impact on the creditworthiness of UK RMBS, since over three-quarters of RMBS loans are made to employed borrowers. But, in addition to their exposure to current UK economic weakness, self-employed borrowers remain particularly at risk from a potential rise in interest rates because of the .......

    News Round-up 29 May 2013

  • Dutch RMBS fundamentals eyed

    Statistics Netherlands (CBS) has reported a house price decline in April of 1.4% month-on-month and 7.6% year-on-year for the country. Dutch house prices now stand at a 10-year low and 19% below their 2008 peak, with the rate of price declines continuing to accelerate. Combined with the current 17-year high in the unemployment rate, S&P says this suggests that the .......

    News Round-up 29 May 2013

  • Weakening enforcement highlighted

    The news that a delinquent borrower in a repossessed property belonging to a Spanish RMBS (Mixto III) will be allowed to remain in their home under recent Andalucian legislation highlights the risk of weakening mortgage enforcement in Spain, Fitch says. The Autonomous Community of Andalucia last month approved the legislation (Decreto ley 6/2013), which gives it power to control the .......

    News Round-up 29 May 2013

  • Euro mezz ABS takes a breather

    The European ABS sector showed a muted response to the volatility seen in equity markets last week. Granite triple-B prices were down slightly on Thursday and Friday.

    "After what seems like a very long period characterised by strong unflinching demand for bonds, very little supply and consequently steadily increasing prices, a slight pause in this dynamic has been notable," ECM .......

    News Round-up 28 May 2013

  • CAA consultation 'credit neutral'

    UK airport regulator the Civil Aviation Authority (CAA) last month launched a consultation on initial proposals for regulation of Heathrow and Gatwick airports during the five-year period beginning April 2014 (the so-called sixth quinquennium, or Q6). The Civil Aviation Act 2012 - which became effective in December -introduces a new license-based regulatory regime for Q6, allowing the CAA the flexibility .......

    News Round-up 28 May 2013

  • APAC ratings remain stable

    Fitch reports that Asia Pacific (APAC) structured finance (SF) tranches remained largely stable in 2012, with over 95% of tranches maintaining their ratings or being paid in full (PIF), compared with 89% in 2011. As in previous years, most downgrades (92.8%) were made to Japanese transactions, three-quarters of which were CMBS.

    Ratings from two credit-linked notes referencing a Japanese government .......

    News Round-up 28 May 2013

  • Risk-adjusted pricing remains 'challenging'

    The development of a genuine market for long-term investments - whether for infrastructure, SMEs or any other sector - requires a well-structured, transparent and stable long-term policy framework, according to S&P. The agency's comments are a response to the OECD's public consultation paper entitled 'Draft High-Level Principles Of Long-Term Investment Financing By Institutional Investors'.

    An estimated US$85trn of liquidity is .......

    News Round-up 28 May 2013

  • Permacap proposes structural changes

    Carador Income Fund is convening an extraordinary general meeting on 26 June. The company says it intends to invest in primary CLO income notes, which - although permitted under the current investment policy - needs to be considered alongside some other structural features.

    The company believes that the opportunity to deploy significant capital in the secondary CLO market at attractive .......

    Job Swaps 28 May 2013

  • AIMA warns against regulatory overlap

    The Alternative Investment Management Association has produced a paper that highlights the key areas where deeper coordination of OTC derivatives regulation is required to achieve the G20 objective of maintaining global markets. The paper provides examples of potential regulatory conflicts or unnecessary overlap between EMIR and the CFTC's derivatives rules in a number of key areas, including clearing obligations, reporting .......

    News Round-up 28 May 2013

  • Origination acquisition eyed

    Ellington Management Group has appointed Steven Abreu to a new role as head of mortgage originations. He will lead the firm's efforts to acquire one or more mortgage originators and oversee both agency and non-agency mortgage originations, including refinancings, purchase loans and retention of servicing rights.

    Abreu was previously president of GMAC Mortgage from 2009. Prior to that, he was .......

    Job Swaps 28 May 2013

  • Property price indexing introduced

    Fitch is set to introduce property price indexing into its analysis of Australian RMBS in the near future. The aim is to create a more accurate picture for investors of the value of security backing the underlying loans, as well as allow Fitch a more systematic assessment of regional variations in house price changes when it assesses recoveries.

    Fitch notes .......

    News Round-up 28 May 2013

  • Ambassador CDO sale due

    Cowen and Company has been retained as liquidation agent for Ambassador Structured Finance CDO. The collateral will be auctioned via two public sales on 4 June.

    The first sale will comprise RMBS assets, while the second consists of credit card ABS, ABS CDO, RMBS, CLO, CRE CDO and Trups CDO assets. The sales are to be held on an 'as .......

    News Round-up 28 May 2013

  • CreXus merger completes

    Annaly Capital Management has completed its acquisition of CreXus Investment Corp (SCI 18 April). Annaly's commercial real estate business will now operate under the name Annaly Commercial Real Estate Group.

    Under an agreement and plan of merger dated 30 January, CreXus was merged with a newly formed CreXus subsidiary in a transaction in which Annaly became the sole stockholder of .......

    Job Swaps 28 May 2013

  • Combine Re first-loss impacted

    Losses resulting from the severe tornado that struck Moore, Oklahoma on 20 May are credit negative for the US$200m Combine Re Series 2012 indemnity catastrophe bond, Moody's notes in its latest Credit Outlook publication. Because of strong subordination, relatively low preliminary loss estimates and the reinsured company's small market share in Oklahoma, the agency does not expect losses to rise .......

    News Round-up 28 May 2013

  • Collateral concerns 'unjustified'

    A recent Committee on the Global Financial System report says that concerns about an absolute shortage of high-quality collateral assets appear unjustified, given that the supply of collateral assets has risen significantly since end-2007. The report adds that endogenous private sector responses - such as collateral transformation activities - will help to address supply-demand imbalances, if and when they emerge.

    News Round-up 28 May 2013

  • Pfandbriefe amendments welcomed

    Amendments to the German covered bond law passed by the German Parliament earlier this month will likely strengthen the country's existing covered bond framework, improve clarity for investors and enhance the quality of Pfandbriefe, in S&P's view. The changes - which will come into force on 1 January 2014 - for the first time state explicitly that accounts with Deutsche .......

    News Round-up 28 May 2013
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