Complete news archive

  • 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

  • REIT liquidity highlighted

    Changes in the availability, pricing and underwriting stringency of CMBS financing could affect REITs directly and indirectly, according to Fitch.

    "In the near term, the CMBS financing market's acceptance of pro forma assumptions may be indicative of increased risk appetites, improving the already strong liquidity of REITs and driving additional cap rate compression in secondary asset classes/markets that are more .......

    News Round-up 24 May 2013

  • Mall performance examined

    With interest rates averaging 3%-4% on regional mall securitisations, retail REITs have been very active in the CMBS space. But as attractive as these rates are, financing in the unsecured REIT market has also been strong, according to S&P.

    The agency notes that in deciding which debt market to access, the upcoming mortgage maturity, amount of origination proceeds and investor .......

    News Round-up 24 May 2013

  • Statute of limitations analysis recommended

    Two recent New York State Supreme Court decisions regarding claims arising from US RMBS representations and warranties (R&Ws) breaches significantly differed in their analyses of the applicable statute of limitations (SOL), S&P reports. The agency consequently believes that investors should consider both cases when reviewing such transactions.

    The first decision was when the defendant's motion was granted on 10 May .......

    News Round-up 24 May 2013

  • Bail-in credit event takes shape

    Unconfirmed details have emerged regarding ISDA's proposals to update the CDS definitions (SCI 21 May). Among the proposals is a new bail-in credit event for financial CDS contracts, which would be triggered by a governmental authority reducing the interest payable or the principal payable on, by deferring the maturity of or subordinating a debt obligation.

    BNP Paribas credit strategists indicate .......

    News 24 May 2013

  • Caution emerging in secondary RMBS?

    Further details have emerged regarding the US$8.7bn non-agency RMBS BWIC scheduled to trade on 28 May (SCI 23 May). The list is composed of mostly adjustable-rate collateral, with over half being Alt-A paper. Bidding will be conducted on an all-or-none basis.

    Interactive Data notes that although the list comprises similar collateral to the list put out by Freddie Mac on .......

    News Round-up 24 May 2013

  • Freddie unveils modified PCs

    Freddie Mac has begun securitising certain performing modified mortgage loans held in its mortgage-related investments portfolio. To be eligible for securitisation, loans need to be current for at least six consecutive months.

    The modified mortgage loans are being pooled into new Freddie Mac fixed-rate modified participation certificates (Modified PCs) with new 'MA-MD' prefixes. They are not TBA deliverable and do .......

    News Round-up 24 May 2013

  • ResCap plan 'net negative' for RMBS

    Ally Financial, along with Residential Capital and ResCap's major creditors, has completed the next step in implementing the comprehensive settlement agreement and Chapter 11 plan (SCI 20 May). ResCap filed a motion seeking court approval of the plan support agreement in the bankruptcy proceedings, which includes announcement of the terms of the Chapter 11 plan.

    The plan includes releases of .......

    News 24 May 2013

  • RMBS alpha

    Hedge fund appetite hinges on security selection

    Relative value opportunities in legacy US non-agency RMBS remain for credit hedge funds, despite significant price appreciation in the sector. Complexity of individual bonds means that security selection still offers a significant source of alpha.

    "Much of the beta in mortgage securities has disappeared since 2010, as the distressed sector has seen significant price appreciation. But the market is complex, .......

    News Analysis 24 May 2013

  • Ups and downs for US RMBS

    The primary focus in the US RMBS market yesterday was on the possible tapering of QE, given Fed chairman Ben Bernanke's scheduled testimony to Congress. The implication that QE will remain in place until year-end has given further impetus to the rally in risk assets, but sparked heavy selling in fixed-rate agency RMBS.

    Interactive Data reports that agency mortgage pass-throughs .......

    Market Reports 23 May 2013

  • Chinese expansion planned

    Calypso Technology has opened an office in Beijing, to service both domestic and international institutions across the region. The move follows recent client successes and continued growth in Greater China, according to the firm.

    The new office will house sales, professional services and engineering teams to support existing and new clients across Greater China. Calypso plans to develop its Beijing .......

    Job Swaps 23 May 2013

  • Auto ABS performance remains strong

    Annualised net losses (ANL) for both US prime and subprime auto ABS dropped in April for the third consecutive month this year, according to Fitch's latest index results for the sector.

    Prime ANL dipped by 27% in April over March to 0.24% - the fourth lowest loss rate ever. In the subprime sector, ANL stood at 4.10%, a 12% improvement .......

    News Round-up 23 May 2013

  • Pro forma swipe rebutted

    In assessing the value of a CMBS property, using sustainable income is a better approach than relying on only current (in-place) leases or pro forma income, Moody's suggests. The agency's comment comes after Fitch published an unsolicited comment on the CGCMT 2013-375P deal (SCI 14 May).

    "Of the methods for determining the income used to value properties from a credit .......

    News Round-up 23 May 2013

  • Risk retention consultation begins

    The European Banking Authority has launched a consultation paper on draft regulatory technical standards (RTS) to specify the securitisation retention rules and related requirements. It has also released draft implementing technical standards (ITS) to clarify the measures to be taken in the case of non-compliance with such obligations. The consultation runs until 22 August.

    The EBA says the key objectives .......

    News Round-up 23 May 2013

  • CMBS softening likely post-GSE sale

    Fannie Mae is due to sell a US$2.2bn list of legacy CMBS today. Deutsche Bank CRE debt analysts note that the move represents not only the largest transfer of risk since last year's MAX and WAVE CDO liquidations (SCI 2 May 2012), but also the first widely distributed bid-list to include multifamily collateral.

    The bid-list comprises 17 senior bonds - .......

    News 23 May 2013

  • CLO shake-out

    Mezz trending tighter post-FDIC rule-change

    Last month's change in FDIC assessments (SCI 19 March) appears to be encouraging more asset managers to enter the US CLO market, with mezzanine spreads in particular tightening as a result. The growth of the sector remains limited by the paucity of leveraged loan supply, however.

    The US$55m B1 tranche of Columbia Management Investment Advisors' recent CENT CLO 18 printed .......

    News Analysis 23 May 2013

  • Urbi credit event called

    ISDA's Americas Credit Derivatives Determinations Committee has resolved that a failure to pay credit event occurred in respect of Urbi Desarrollos Urbanos. An auction will be held in due course for outstanding CDS transactions referencing the entity.

    The move follows the expiration of the 30-day grace period on the US$6.4m payment of interest on the company's 2016 bonds. Urbi announced .......

    News Round-up 22 May 2013

  • New challenges for Euro special servicers

    New challenges are emerging for special servicers working out European CMBS loans with borrowers undergoing insolvency proceedings. Recent court rulings in France and Germany have raised questions over not only the level of control the CMBS lenders have, but also the seniority of their claims within the insolvency estate of their borrowers.

    In France, safeguard (or pre-insolvency) proceedings provide insolvency-law .......

    News Round-up 22 May 2013

  • Unusual utility ABS prepped

    Three Ohio subsidiaries of FirstEnergy Corp - The Cleveland Electric Illuminating Company, Ohio Edison Company and The Toledo Edison Company - are prepping a US$505m utility securitisation dubbed FirstEnergy Ohio PIRB Special Purpose Trust 2013. The trust comprises debt instruments issued by three separate SPVs formed to facilitate the transaction (CEI Funding, OE Funding and TE Funding).

    One indication of .......

    News Round-up 22 May 2013

  • Second agency upgrades MBIA

    Moody's has upgraded the insurance financial strength (IFS) ratings of MBIA Insurance Corporation (to B3 from Caa2), National Public Finance Guarantee Corporation (to Baa1 from Baa2), MBIA UK Insurance (to B1 from B3), MBIA Mexico (to B3 from Caa2) and MBIA Inc (to Ba3 from Caa1). The rating action also has implications for the various transactions wrapped by the MBIA .......

    News Round-up 22 May 2013

  • Electronic trading challenges examined

    New research from GreySpark Partners examines the state of electronic trading in fixed income markets for bonds, CDS and IRS. The report - 'Fixed Income Electronic Trading 2013' - analyses how the traditional roles of investment banks and trading venues for these products are changing, driven by a combination of macroeconomic forces and incoming capital markets regulations.

    The financial crisis .......

    News Round-up 22 May 2013
×