Complete news archive

  • Italian BUS appointments scrutinised

    The appointment of a back-up servicer (BUS) in several Italian structured finance transactions has sometimes taken longer than Fitch envisaged, which could raise concerns if there were a rapid deterioration of a servicer's creditworthiness. However, the rating agency says that the Bank of Italy's willingness to ensure that servicer defaults are managed in an orderly fashion eases its concerns regarding .......

    News Round-up 1 May 2013

  • CDS, LTG used to identify alpha

    Using a combination of long-term growth (LTG) consensus estimates paired with CDS spread signals has been shown to improve investors' ability to identify alpha among European equities, according to S&P Capital IQ. The firm says that there are statistically significant correlations between LTG consensus estimates combined with CDS spreads data and European equity returns over three, five and nine years .......

    News Round-up 1 May 2013

  • Scrutiny required for rehab loans

    US FFELP student loan ABS deals with larger concentrations of rehabilitation loans warrant additional scrutiny, according to Fitch. With a trend towards larger concentrations of rehab loans in FFELP ABS over the past couple of years, the agency has compared performance of rehab loan trusts to non-rehab trusts to confirm whether specific cashflow assumptions are consistent with actual performance.

    "Compared .......

    News Round-up 1 May 2013

  • Spike seen in CMBS servicer activity

    After two months of relatively low liquidation volumes, April saw a spike in CMBS servicer activity, according to Trepp. The number of loans disposed with a loss in April ended up at 128. April's average loss severity came in at 45.8%, 6.2 percentage points higher than March's 39.65%.

    April liquidations totalled US$1.62bn, relative to the 12-month moving average of US$1.37bn. .......

    News Round-up 1 May 2013

  • Solid floorplan performance predicted

    Solid asset performance and higher auto sales will likely increase demand for wholesale dealer lending and drive issuance of new US dealer floorplan ABS, Fitch suggests. But the agency points out that the sector is not without potential potholes.

    US auto dealerships are in solid shape through 1Q13, with soaring profit levels, while expenses are being held in check. However, .......

    News Round-up 1 May 2013

  • Bankia credit event called

    ISDA's EMEA Determinations Committee has agreed that a restructuring credit event occurred in connection with Bankia, following the approval by Spain's FROB of a restructuring plan for the reference entity and its parent. The DC also agreed to potentially hold one or more auctions to settle relevant transactions, but will reconvene at a future date (to be determined) to discuss .......

    News Round-up 1 May 2013

  • CMBS loss severities highlighted

    Average US CMBS loss severities rose slightly to 50.5% last year, from 49.3% in 2011, according to Fitch's latest annual CMBS loss study. Unsurprisingly, most loan workouts were from the problematic 2007 vintage, with 239 of the 742 loans disposed of with losses coming from that vintage.

    CMBS special servicers resolved 1,219 loans totalling US$16.6bn in 2012, a nearly 25% .......

    News Round-up 1 May 2013

  • FHFA progress report published

    The FHFA has released a progress report on the establishment a common securitisation infrastructure for RMBS. The update reflects feedback from industry participants on the agency's white paper, entitled 'Building a New Infrastructure for the Secondary Mortgage Market' (SCI 5 October 2012).

    According to the report, a prototype platform has been developed to perform securitisation functions relating to data validation, .......

    News Round-up 1 May 2013

  • RALI note sales cancelled

    Nationstar has cancelled the sale of bulk notes in RALI RMBS trusts conducted via Auction.com and does not plan to go ahead with a third auction, which was originally scheduled for 11 March, while the court decides on the validity of such auctions. The move is based on an agreement filed in the Supreme Court of New York, where KIRP .......

    News Round-up 30 April 2013

  • CMBS note sales due

    Around 20 CMBS loans, totalling US$161m in outstanding balance, are due to be put up for bid on Auction.com next month. The largest of these loans is Corridors I & II, which contributes US$29m of allocated balance to the TAG portfolio securitised in LBUBS 2005-C5, according to CMBS analysts at Barclays Capital. The properties had been listed last month as .......

    News Round-up 30 April 2013

  • Strong seasonal results for auto ABS

    US auto ABS posted stellar seasonal results last month, according to Fitch. Both losses and delinquencies declined across prime and subprime auto ABS, even as used vehicle values softened, and are expected to moderate further this year.

    The unemployment rate dropped to a three-year low of 7.6%, the lowest level since hitting a high of 10% in October 2009. The .......

    News Round-up 30 April 2013

  • Recent vintages seen in ABS session

    US ABS BWIC volumes totalled around US$93m yesterday, with secondary flows remaining light in the run-up to month-end. SCI's PriceABS data shows a number of recently issued bonds among those out for the bid.

    The most recently issued deal to see a tranche show up on yesterday's bid-lists is Hardee's Funding/Carl's Jr Funding Series 2013-1. A US$5m slice .......

    Market Reports 30 April 2013

  • Integrated risk solution announced

    Paladyne Systems has acquired the rights to the source code, development rights and unlimited distribution rights for the Numerix Portfolio Risk product. It has also hired the Toronto- and Hong Kong-based teams that built and support the product.

    Paladyne has completed the integration of the Numerix product into its front-office solutions. Order management, portfolio accounting, risk management and hosting are .......

    Job Swaps 30 April 2013

  • SIV suit settled

    Moody's, Morgan Stanley and S&P have settled out of court with Abu Dhabi Commercial Bank (ADCB) in connection with the Cheyne Finance SIV fraud trial (SCI 12 April). ADCB filed suit in 2008 in the New York district courts to recover its original investment of US$10m in Cheyne notes.

    .......

    Job Swaps 30 April 2013

  • Special servicing loan outcomes examined

    Most resolved US CMBS loans remain outstanding, while REO loans account for an increasing proportion of those still in special servicing. There is also mixed evidence as to the effect on recoveries of keeping loans in special servicing for protracted periods of time.

    US$9.9bn of US CMBS loans have been cured and transferred back to the master servicer without a .......

    News 30 April 2013

  • First 'recycled' Euro CMBS prepped

    At least six European CMBS transactions are expected to emerge over the next four to five months, all of which are likely to be backed by 'recycled' loan collateral from former European CMBS. One of these deals was announced on Friday - the €1.08bn Taurus 2013 (GMF1).

    The transaction securitises Gagfah's German multifamily Woba Dresden loan, which previously backed Windermere .......

    News Round-up 30 April 2013

  • Stepping up

    First-time CLO managers' to-do list discussed

    As the US CLO sector continues to recover, more players are expected to enter the market. Prospective first-time managers may not be aware of the extent of the additional documentation and management burden, however, compared to managing a private equity or hedge fund.

    The first step for any private equity fund or hedge fund seeking to issue their debut US .......

    News Analysis 30 April 2013

  • Countrywide provisions expose front-pays

    Moody's notes in its latest ResiLandscape publication that some Countrywide RMBS transactions have provisions that will continue to expose front-pay bonds to higher potential losses because their provisions force servicers to amortise delinquent loan balances through write-offs once the servicers stop advancing on the loans. With high levels of delinquencies and low advance rates, this practice moves some of the .......

    News Round-up 29 April 2013

  • CMBS appraisal reduction trends analysed

    Trepp has published a report examining how well appraisal reductions forecast actual CMBS loan losses. It suggests that almost US$35bn in US fixed-rate CMBS loans have been resolved with meaningful losses since 2010, for which the servicer was reporting an appraisal reduction in the month or two prior to final resolution.

    Trepp believes that many of these loans were refinancings .......

    News Round-up 29 April 2013

  • Royal Park assets offloaded

    The Belgian government has sold the Royal Park Investments (RPI) SPV to Lone Star and Credit Suisse for €6.7bn via a block sale. Fortis Bank's structured credit assets were transferred to the SPV, following the rescue of the bank in November 2008 (SCI 4 February 2009).

    The Belgian state - along with Ageas (formerly Fortis Holding) - is set to .......

    News Round-up 29 April 2013

  • RFC issued on Aussie RMBS proposal

    Moody's has issued a request for comment regarding its proposed monitoring approach to assessing tail risk in Australian RMBS. The proposal evaluates tail risk in Australian RMBS that pay principal to the securities on a pro-rata basis and assesses the sufficiency of the credit enhancement and liquidity support available to the rated securities.

    The proposed approach uses scenario analysis in .......

    News Round-up 29 April 2013
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