Complete news archive

  • SEF certainty

    CFTC clears up CDS concerns

    A perceived regulatory preference for CDS futures over swaps has caused serious consternation in the market. However, the publication of final SEF rules yesterday (16 May) has assuaged most concerns and paved the way for participants to advance.

    Bloomberg last month filed a lawsuit to prevent the US CFTC from implementing what it saw as flawed regulation (SCI 18 April). .......

    News Analysis 17 May 2013

  • Senior credit pair leave asset manager

    Andy Clapham and Richard Downer are both understood to have left Investec this week. The pair worked together closely and are expected to reunite at another company or to start their own.

    Clapham was head of capital markets at Investec and left on Tuesday, having previously worked at Bear Stearns, Nikko Securities and Greenwich NatWest. Downer was head of financial .......

    Job Swaps 17 May 2013

  • Differences of opinion

    RMBS rep and warranties scrutinised

    Year-to-date US non-agency RMBS issuance stands at US$7.7bn, with volumes forecast to reach US$20bn by year-end, well in excess of 2012's US$6.9bn total. However, the debate over required credit enhancement and representation and warranties continues.

    A dozen prime and subprime non-agency RMBS priced in the first four months of 2013. Recent Interactive Data commentary highlights that the timing of these .......

    News Analysis 17 May 2013

  • Uncertainty remains for tobacco ABS

    S&P has published a report detailing a number of significant developments related to tobacco MSA settlements over the last six months. The agency says that these developments have provided additional clarity around certain aspects of the tobacco securitisation segment, while leaving ambiguity in others.

    For example, the release of the term sheet - an agreement between a number of participating .......

    News Round-up 16 May 2013

  • CLO pricing tool offered

    Thetica Systems has rolled out an enhanced CLO analytics module as part of its ABS Trader Tools structured finance infrastructure. The service integrates pricing data for CLO NAV from Lewtan/ABS.Net, Markit and Reuters.

    "Whether for new deals or older vintage bonds, clients can easily run the universe of CLOs through a price/yield matrix, define their scenarios and produce customised reports .......

    News Round-up 16 May 2013

  • Secondary German CRE demand on the rise

    Signs of renewed investor interest in secondary German commercial real estate (CRE) markets suggest some respite from the refinancing challenges facing the sector, Fitch notes. However, significant concerns remain because of the limited time left in which to resolve problem loans.

    Property in secondary locations, particularly in office and retail markets, accounts for much of the collateral underpinning German loans .......

    News Round-up 16 May 2013

  • RPI ABCP rating intact

    Moody's says that the Prime-1 rating of the ABCP issued by Royal Park Investments (RPI) is unaffected by the sale of the entire asset portfolio backing the conduit (SCI 29 April). The decision to take no action reflects the Belgian government's continued full support for the ABCP principal and interest through an irrevocable guarantee, according to the agency.

    Following the .......

    News Round-up 16 May 2013

  • Compelling case for CLO calls

    Equity investors in callable 2010 and 2011 CLOs should call them now and take advantage of the low current funding costs in the new issue market, suggest CLO strategists at Morgan Stanley. Many holders of legacy deals would also benefit from exercising call options, although continuing to hold 2006 and 2007 vintage CLOs could offer greater value.

    Twenty transactions have .......

    News 16 May 2013

  • Canadian loss framework finalised

    Fitch has finalised its new model framework for estimating losses on prime Canadian residential mortgage pools. This follows the conclusion of the consultation period for the exposure draft that the agency published in March (SCI 5 March).

    Fitch will apply the new model to analyse both new and existing ratings for covered bond programmes, as well as those supporting ABCP .......

    News Round-up 16 May 2013

  • Apartment, office prices at record highs

    US major market apartment and central business district (CBD) office prices continued to set record highs in March, according to the Moody's/RCA Commercial Property Price Indices (CPPI). Apartment prices nationally increased by 1.5% during the month, while core commercial prices were unchanged. The national all-property composite index increased by 0.4%.

    The recovery rate for loans resolved with a loss greater .......

    News Round-up 16 May 2013

  • Cantor eyes primary CDO desk

    Cantor Fitzgerald has made four key hires across the CLO, CDO and structured credit segment. Florian Bita joins the team in New York, while Jason Eppleston, Martin Deville and Damian Horton join Cantor Fitzgerald Europe in London.

    Bita joins Cantor as md and is responsible for US CLO secondary trading. In addition, he will help build out the firm's primary .......

    Job Swaps 16 May 2013

  • NY firm adds SF lawyer

    Hunton & Williams has added Brent Lewis to its structured finance and securitisation practice as counsel in New York. Lewis' practice focuses on corporate finance and securitisation. He represents issuers, underwriters, servicers, originators and others in public and private securitisations involving residential and commercial mortgage loans.

    .......

    Job Swaps 15 May 2013

  • Ares announces senior changes

    Ares Capital Corporation (ACC) has promoted president Michael Arougheti to ceo and four Ares Capital Management (ACM) executives to officer roles within ACC. Arougheti has served as president since ACC's IPO in 2004.

    Kipp deVeer has been promoted to president. He will also continue to serve as a senior partner in the private debt group of Ares Management and as .......

    Job Swaps 15 May 2013

  • Euroclear, DTCC to collaborate

    Euroclear and the DTCC are to create a joint collateral processing service to increase efficiency, reduce risk and support the growing collateral needs of industry participants. Initially, they will offer automatic transfer and segregation of collateral based on agreed margin calls relating to OTC derivatives and other collateralised contracts.

    The joint service will reduce settlement risk, increase transparency around collateral .......

    Job Swaps 15 May 2013

  • Shift seen in Euro loan maturities

    S&P's updated study of collateral pools backing European cashflow CLOs finds that the peak in leveraged loan maturities has shifted out to 2016 and 2017, from 2014 and 2015 in its previous study two years ago. One likely reason for this outward shift in loan maturities is that much existing CLO documentation allows collateral managers to continue reinvesting in certain .......

    News Round-up 15 May 2013

  • Reinsurance duo to lead capital markets push

    AQR Re has expanded its presence in Bermuda with the hires of John Lummis as ceo and Paul Karon as vice chairman. AQR is committed to develop products and strategies that combine capital markets expertise with reinsurance.

    Lummis was formerly coo and cfo at RenaissanceRe, where he was responsible for strategy, finance and operations. He has also served as an .......

    Job Swaps 15 May 2013

  • Cashflow modelling error disclosed

    Moody's has placed the ratings of 228 tranches from 94 US RMBS issued by several issuers on review with the direction uncertain. An additional six tranches from three related transactions remain on review for downgrade. The amount of securities affected by the move is US$11.5bn.

    The review actions reflect errors in the Structured Finance Workstation (SFW) cashflow models previously used .......

    News Round-up 15 May 2013

  • CRE specialist joins boutique bank

    Marvin Cash has joined Asgaard Capital as head of real estate and structured products in Charlotte, North Carolina. He joins from The Rowan Group, which he established two years ago to provide services to CRE credit strategy funds.

    Cash has previously worked at Cadwalader, Wickersham and Taft working on CMBS and held a similar role at Parker Poe Adams & .......

    Job Swaps 15 May 2013

  • Varied PDL performance highlighted

    While payroll deductible loans (PDLs) exhibit lower default rates than traditional consumer loans, asset performance varies by country, Fitch reports.

    "Regulatory frameworks, originator profiles, loan characteristics and origination processes are key country differentiators that influence diverging performance across the region," confirms Bernardo Costa, senior director in Fitch's Latin America structured finance group.

    PDLs are granted to formal employees and social .......

    News Round-up 15 May 2013

  • American influence

    European CLO market moving towards US model

    Recent developments in the European CLO market suggest that it is moving closer to a US-style model. After Cairn CLO III ended the market's lengthy hiatus (SCI passim), further issuance is expected throughout the year, with larger deal sizes and the increased use of covenant-lite loans both very possible.

    "In the US there is price elasticity and investors are buying .......

    News Analysis 15 May 2013

  • Fixed income vet enlisted

    Michael Blum has joined the fixed income team at Brean Capital in New York, where he will report to CMBS trading md Kurt Kaline. He joins from Davidson Kempner Capital Management.

    Blum has experience across fixed income, particularly in mortgage-backed securities. Before Davidson Kempner he was an associate on the CMBS desk at Nomura and fixed income research vp at .......

    Job Swaps 15 May 2013
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