Complete news archive

  • Third-party capital boosts convergence market

    The emergence of third-party capital vehicles designed to provide investors with direct access to insurance risk could not only pressure rates in traditional property catastrophe reinsurance market, but could also create opportunities for reinsurers able to create vehicles of their own, according to S&P. Capital from this so-called convergence market now provides an estimated 15% of the more than US$200bn .......

    News Round-up 23 April 2013

  • Pace of improvement slowing for card ABS

    US credit card ABS charge-offs and delinquencies fell once again last quarter. However, the pace of improvement is noticeably slowing, according to Fitch's latest index results for the sector.

    Charge-offs came in at 3.91% during the March distribution period and are still tracking near record lows. Elsewhere, delinquencies managed to shave off a few more basis points, averaging 1.63% and breaking .......

    News Round-up 23 April 2013

  • RFC issued on tail risk adjustments

    Moody's is requesting comment from market participants on proposed adjustments to its monitoring approach for evaluating tail risk in pro-rata pay US RMBS that do not have compensating mechanisms of support. The change in approach would primarily affect ratings of the prime jumbo, Alt-A, FHA/VA and scratch-and-dent sectors, which typically have shifting interest structures without credit enhancement floors or non-declining .......

    News Round-up 23 April 2013

  • Investors encouraged to make split decisions

    The preference for US CMBS bonds being rated investment grade by at least two rating agencies has created a significant pricing gap for split-rated tranches, even when the underlying collateral characteristics do not warrant it. Loss coverage ratios could provide one indicator for investors looking to take advantage of rating changes.

    Comparing two sets of AM tranches across traded spread .......

    News 23 April 2013

  • Large loan CMBS collateral warning

    US large loan CMBS issuance has been robust, with over US$11bn expected to come to market in the first four months of this year, compared to US$11.2bn for all of 2012. But the growth is coming at the expense of the collateral and underwriting, suggests Fitch CMBS group head Huxley Somerville.

    "Large loan CMBS deals of late are coming to .......

    News Round-up 23 April 2013

  • Asian OTC market poised for growth

    The OTC derivatives markets are poised for further growth in Asia, according to a report published by ISDA at the outset of its 28th Annual General Meeting, which is being held in Singapore. The report, entitled 'The Asian OTC Derivatives Markets', was prepared for ISDA by Celent.

    In 2012, the overall size of the Asian OTC derivatives market stood at .......

    News Round-up 23 April 2013

  • UK-linked deals downgraded

    Fitch has downgraded 32 tranches and affirmed three tranches of 11 structured finance transactions that are credit-linked or have significant credit exposure to the UK sovereign. The agency has also maintained three tranches of Finance for Residential Social Housing (Fresh) on rating watch negative (RWN). The rating actions follow the downgrade of the UK's long-term issuer default rating (IDR) to .......

    News Round-up 23 April 2013

  • Valuations service strengthened

    Markit has added a range of risk and scenario analysis tools to its portfolio valuations service. The aim is to provide customers with independent value-at-risk and stress-testing results that are consistent with their mark-to-market valuations, allowing for compliance with international regulations.

    The new tools include a scenario analysis service, which enables customers to stress test the market data inputs used .......

    News Round-up 23 April 2013

  • Asset sourcing, risk retention key for Euro CLOs

    The ability to source loans and retain risk will be key for CLO managers launching new European CLOs, Fitch says. The cost of funding for European CLOs has reduced to a point where CLO economics are once again starting to look viable for new issuance. At the same time, CLOs are becoming more appealing to credit investors searching for higher .......

    News Round-up 23 April 2013

  • Walnut Hill loan watchlisted

    Morningstar has added the US$23.1m Walnut Hill Plaza loan, securitised in MLCFC 2006-3, to its watchlist as it was reported 30+ days delinquent with last month's remittance data. The loan is the twentieth largest remaining in the transaction, representing roughly 1.1% of the pool by unpaid principal balance (UPB).

    The loan is secured by a 295,722 square-foot retail property in .......

    News Round-up 23 April 2013

  • Reforms to hit pubco bonds

    The UK government has unveiled its proposals to regulate the tied tenanted pubco sector with a new statutory Code of Practice, backed by an independent adjudicator. The reforms could transfer an estimated £4,250 per pub in profits from the owners of tied pubs to the tenant in the median case, according to ABS analysts at Barclays Capital.

    "These proposals - .......

    News Round-up 22 April 2013

  • Ginnie Mae consolidation considered

    Ginnie Mae is seeking feedback from MBS market participants in connection with potentially consolidating the Ginnie Mae I and II programmes into a single Ginnie Mae MBS programme. The primary focus is to obtain industry views on the market viability for maximising liquidity while seeking to eliminate some of the pricing inefficiencies in the Ginnie Mae MBS market, according to .......

    News Round-up 22 April 2013

  • Positive outlook for cat bonds

    The opening quarter of 2013 showed growth of over 2% on the ILS index, according to a new Clear Path Analysis report. Catastrophe bonds saw near record issuance in 2012, with traditional reinsurers struggling to raise rates, as the market remained well-capitalised. With many insurance agreements up for renewal, ILS' share of the non-life catastrophe reinsurance market is forecast to .......

    News Round-up 22 April 2013

  • CRE CDO late-pays inch up

    US CRE CDO late-pays increased minimally last month to 13.2% from 13.1% in February, according to Fitch's latest index results for the sector. Only five new delinquencies were reported in March, totaling US$79m. Among them were one term default, one matured balloon, an REO interest and two newly credit-impaired securities.

    The largest new delinquency was a whole loan secured by .......

    News Round-up 22 April 2013

  • Manager brings in CLO investment adviser

    Greenwich Loan Income Fund (GLIF) has appointed GMB Partners as an investment adviser. GMB will advise GLIF on the investments it makes into the CLO market, on the structuring of new CLO investments and on a number of its existing CLO investments.

    GMB was founded last year by Miguel Ramos Fuentenebro, who has more than 20 years of experience in .......

    Job Swaps 22 April 2013

  • Stress index enhanced

    The Cleveland Financial Stress Index (CFSI) - a tool that allows policymakers and financial analysts to monitor the condition of financial markets - now offers daily updates and tracks stress in the real estate and securitisation markets. In addition, the index and its components are now updated on daily basis (instead of on a monthly basis), enhancing the ability to .......

    News Round-up 22 April 2013

  • Erroneous WARF computations corrected

    Moody's has finalised its review of all outstanding European CLO transactions for potential ratings impact relating to weighted average rating factor (WARF) differences resulting from the incorrect use of an alternative approach for computing WARF. The agency has identified 21 transactions that could have been impacted by the erroneous use of the alternative WARF computation.

    Under Moody's published global CLO .......

    News Round-up 22 April 2013

  • Credit solutions suite offered

    S&P Capital IQ has launched a new suite of credit solutions designed to help assess both rated and unrated public and private companies globally with both 'point-in-time' and 'through-the-cycle' assessments. The solutions aim to offer a range of capabilities to support comprehensive peer analytics, portfolio reviews and counterparty credit assessments, as well as assist a variety of research, evaluation and .......

    News Round-up 22 April 2013

  • LCDS auctions scheduled

    Auctions to settle the credit derivative trades for SuperMedia Inc and Dex Media West Inc LCDS are due to be held on 24 April. ISDA's Americas Credit Derivatives Determinations Committee earlier this month determined that a bankruptcy credit event occurred in respect of Dex One Corporation and SuperMedia Inc and other entities listed in their bankruptcy filings (SCI 3 April).

    .......

    News Round-up 22 April 2013

  • SCI Start the Week - 22 April

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

    Pipeline
    Five new deals remain in the pipeline from last week. These include one ABS, one CLO and three CMBS.

    The ABS is Auto ABS FCT Compartiment 2013-1, while the CLO is €404m Grand Harbour I. The CMBS comprise US$1.46bn FREMF 2013-K26, US$245m Global Tower Series 2013-1 and US$505m JPMCC 2013-FL3.

    Pricings
    Many of the deals that joined the pipeline last week .......

    News 22 April 2013

  • NPL investment trends examined

    Europe is emerging as a non-performing loan market in its own right, with an estimated €1trn of NPLs now on the balance sheets of the region's banks, according to a new Ernst & Young report. While the US NPL market also remained active in 2012, the opportunity appears to have a shorter timeframe than originally anticipated.

    Christopher Seyfarth, a partner .......

    News Round-up 19 April 2013
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