Complete news archive

  • Managers maintain CLO diversity

    US CLO 2.0 managers have maintained good loan diversification, despite the market's rapid rise and the majority of loans being sourced from the 2012 and 2013 vintages. There have been concerns that managers may forgo diversity and focus on purchasing primary loans that are priced while a CLO is ramping its portfolio, but average collateral overlap for 2.0 deals is .......

    News 14 May 2013

  • Moroccan covered bond rules prepped

    Legislation for Africa's first covered bond market - in Morocco - is only at a preliminary stage and requires further clarification before it's ready for investors, according to S&P. Under the proposed covered bond legislation, universal banks will be allowed to issue on-balance sheet mortgage covered bonds (called Obligations Sécurisées Hypothécaires (OSHs)) and public sector covered bonds (referred to as .......

    News Round-up 13 May 2013

  • SCI Start the Week - 13 May

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

    Pipeline
    Two ABS, one ILS, one RMBS, one CMBS and four CLOs entered the pipeline last week. Of those deals, only the RMBS - a RUB2.504bn Russian deal - was non-US domiciled.

    The ABS marketing last week comprised US$512m Hyundai Floorplan Master Owner Trust Series 2013-1 and US$200m New Jersey Student Loan Revenue Bonds 2013-1. The ILS was US$250m Residential Re .......

    News 13 May 2013

  • CVA tool brought to South African institutions

    Markit has announced a commercial partnership with IQ Business. It will leverage IQ's South African presence to provide Markit Analytics services in the country.

    Markit Analytics provides financial institutions with integrated and scalable pricing and risk management solutions to help them calculate credit valuation adjustment (CVA), funding valuation adjustment (FVA), internal model capital for CVA, counterparty credit risk (CCR) and .......

    Job Swaps 13 May 2013

  • Coronado buy-back completed

    Barclays Capital has waived the minimum tender condition of its tender offer to purchase for cash all of the outstanding class A1, class B1 and class B2 notes of Coronado CDO (SCI 15 April). Consequently, it has accepted for purchase all notes tendered pursuant to the offer and expects to pay the applicable purchase price promptly to holders that tendered .......

    News Round-up 13 May 2013

  • DOJ fraud case to proceed

    The US Department of Justice is set to proceed with its action against Bank of America in connection with the packaging and sale of MBS to Fannie Mae and Freddie Mac. Federal prosecutors in New York filed a civil fraud lawsuit against the bank last October, alleging that Countrywide implemented - and Bank of America inherited and continued to operate .......

    Job Swaps 13 May 2013

  • MTS branches out stateside

    European electronic fixed income marketplace MTS plans to launch a platform for US institutional investors. The platform will enable US buy-side participants to directly access real-time pricing and execute European, as well as US government, agency, mortgage and corporate bonds with major dealers.

    MTS Markets International has received approval for membership as a FINRA-regulated broker-dealer and will be led by .......

    News Round-up 13 May 2013

  • National, MBIA Inc ratings raised

    S&P has raised its financial strength rating on National Public Finance Guarantee Corp to single-A from triple-B and removed it from credit watch, where it was placed with positive implications last week (SCI 9 May). At the same time, the counterparty credit rating on MBIA Inc has been raised to triple-B from single-B minus and removed from credit watch. The .......

    News Round-up 13 May 2013

  • Affordable housing to hit Sofoles RMBS?

    Fitch warns that Mexican President Pena Nieto's affordable housing policies may have negative consequences for existing private-sector RMBS sponsored by Sofoles. This segment is already experiencing an increase in REOs as foreclosures have risen and servicers have been slow to dispose of existing inventories.

    Fitch believes the policy changes could put further pressure on future sales of these REOs as .......

    News Round-up 10 May 2013

  • Further Orchid deal transferred

    Dock Street Capital Management has been appointed successor collateral manager on Orchid Structured Finance CDO. The ABS CDO was originally managed by ST Asset Management.

    Under the terms of the appointment, Dock Street agrees to assume all the responsibilities, duties and obligations of the collateral manager. The agreement does not alter the responsibilities, duties and obligations of the collateral manager .......

    Job Swaps 10 May 2013

  • CMBS servicer agreements boost presence

    KeyBank Real Estate Capital has entered into a series of agreements that will substantially increase its commercial mortgage servicing business. It is purchasing certain commercial mortgage servicing rights from Bank of America and a CMBS special servicing portfolio of about US$14bn.

    KeyBank will purchase substantially all of the third party CMBS and special servicing rights from Bank of America's global .......

    Job Swaps 10 May 2013

  • Collateralisation impact highlighted

    Achieving collateral efficiency and operational efficiency in a mixed clearing and collateralisation environment will cost the financial industry in excess of US$53bn in infrastructure and technology investments, according to a new Celent survey. The cost of collateralisation is expected to increase by up to 20%, driven by additional initial margin requirements and credit/opportunity costs associated with sourcing eligible collateral.

    A .......

    News Round-up 10 May 2013

  • Quiet week does not dent Euro CLO optimism

    Activity in the European CLO sector slowed during this holiday-shortened week, but optimism remains high. A new Alcentra deal has been announced in the primary market, while equity paper has been well bid in secondary.

    Alcentra is aiming to price Jubilee X by the end of this month, with senior tranche price talk at around 125bp. It joins a number .......

    Market Reports 10 May 2013

  • Rating agency announces next global SF head

    James Wiemken is set to become senior md and global head of structured finance at S&P. He will be based in New York and take on the role from 1 July, reporting to global head of analytics and operations Paul Coughlin, who he is succeeding.

    Wiemken will directly manage all aspects of the structured finance business in North America and .......

    Job Swaps 10 May 2013

  • Bank, MBIA reach settlement

    Société Générale has settled its pending litigations against MBIA which had challenged the insurer's 2009 restructuring. The settlement ends a dispute involving protection written by MBIA and its affiliates covering multiple structured credit products.

    .......

    Job Swaps 10 May 2013

  • Distressed inventory trends examined

    An analysis of Morningstar's Distressed Inventory Index suggests that over a one-year time period overall distressed inventory has decreased by 19%, while the number of liquidations has declined by 14%. The rating agency further estimates that it will take 40 months to clear the national distressed inventory - which is down by three months from the levels seen one year .......

    News Round-up 10 May 2013

  • Great Lakes loan sale proposed

    The Higher Education Loan Authority of the State of Missouri (MOHELA) is proposing to sell approximately US$11.9m of student loans currently serviced by Great Lakes Educational Loan Services. This represents all of the 3,394 loans that are currently being serviced by Great Lakes and constitutes 1.4% of the 11th General Resolution ABS trust.

    The transaction would also remove Great Lakes .......

    News Round-up 10 May 2013

  • Eurosail judgements confirmed

    The UK Supreme Court has handed down judgement on the Eurosail-UK 2007-3BL case, upholding previous judgements that the deal was not balance sheet insolvent and that a post-enforcement call option (PECO) would have no bearing on such a conclusion (SCI 9 March 2011). The outcome of the Lehman-originated RMBS case has implications for both UK securitisations and broader insolvency cases.

    News 10 May 2013

  • Limited CLO updates introduced

    Moody's is rolling out limited updates to the determination of default and recovery rate assumptions in CLOs for instruments other than first-lien loans. These instruments typically constitute no more than 10% of CLO portfolios and include senior secured, senior unsecured and subordinated bonds, senior secured floating rate notes, as well as second-lien and senior unsecured loans.

    Moody's expects the impact .......

    News Round-up 10 May 2013

  • UCO rating identifier unveiled

    In line with a commitment to open communication in its change control process, S&P is introducing a new 'under criteria observation' (UCO) rating identifier. The identifier is intended to identify which issuer and issue ratings could be affected by a criteria change, as well as address requirements under the EU's Regulation No. 1060/2009.

    The new UCO identifier will be assigned .......

    News Round-up 9 May 2013

  • CDS notionals continue to decline

    The BIS has released OTC derivatives statistics at end-December 2012. The data shows that notional amounts for credit default swaps continued to decline last year, from US$26.9trn at end-June 2012 to US$25.1trn by year-end.

    This brought the cumulative reduction since end-June 2011 to US$7.3trn, partly due to the ongoing compression of contracts among dealers, the BIS says. In the second .......

    News Round-up 9 May 2013
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