Complete news archive

  • US CMBS attracts attention

    Secondary supply was light across the US markets yesterday, although a good amount of CMBS did get snapped up. Total bid-list supply was around US$172m, with a further US$31m in IOs also out for the bid.

    "Generic CMBS spreads are mostly wider on the day. BWIC volume is light to start the week. In terms of supply, 2006 vintage floaters .......

    Market Reports 19 March 2013

  • Ally offloads MSRs

    Ally Bank is set to sell a portfolio of agency mortgage servicing rights (MSR) to Ocwen Financial Corp. The transaction comprises MSRs related to mortgage loans with an unpaid principal balance of approximately US$85bn, as of 31 January, as well as an estimated US$5bn of agency MSR created based on commitments made through the end of February. The purchase price .......

    News Round-up 19 March 2013

  • LBIE settlement raises valuation issues

    Lehman Brothers Finance AG (LBF) has reached a settlement with Lehman Brothers International Europe (LBIE), through which significant value is expected to be returned to the LBF estate. The move also has wider implications for derivatives documentation.

    The English Court of Appeal last week issued judgment in the appeal made by LBIE against the decision of Justice Briggs in the .......

    News Round-up 19 March 2013

  • Bank boosts derivatives clearing groups

    BNY Mellon has added five new members to its global derivatives clearing team in the US and Europe. The appointments come as the bank looks to adapt to the renewed demand being driven by regulatory and market changes.

    Mark Gonzalez becomes US coo for derivatives clearing services, based in New York. He has over 14 years of experience within clearing .......

    Job Swaps 19 March 2013

  • CLO market faces FDIC re-think

    Additional regulatory changes coming into force on 1 April are set to impact the CLO market. The changes concern how US CLOs and leveraged loans are treated when computing FDIC assessments against bank deposits.

    The changes will apply to large and highly complex institutions, which are defined as having more than US$10bn and US$400bn in assets respectively. Under the new .......

    News 19 March 2013

  • NCUA's claims dismissed as time-barred

    The US District Court for the Central District of California has dismissed as time-barred claims based on seven out of eight certificates in the NCUA's US$491m lawsuit against Goldman Sachs concerning RMBS (SCI 11 August 2011). The NCUA alleges that Goldman violated federal and state securities laws and made material misrepresentations about the quality of RMBS it sold to now-failed .......

    Job Swaps 18 March 2013

  • Shortfalls hit HQ13 super seniors

    MSC 2007-HQ13 has become the first US conduit CMBS to see interest shortfalls hit the super senior classes. Prior to the March remittance report, shortfalls had reached the AJ class, but now classes A2, A3, A1A, AM and X have been affected.

    Thus far, nine classes of bonds have been extinguished by collateral losses, according to Trepp. This has made .......

    News Round-up 18 March 2013

  • Tunisian RMBS ratings lowered

    Moody's has downgraded the global and national scale ratings of the senior notes in FCC BIAT-CREDIMMO 1 and FCC BIAT-CREDIMMO 2, as well as the global scale ratings of the junior notes in FCC BIAT-CREDIMMO 2. The agency has also affirmed the global and national scale ratings of the junior notes in FCC BIAT-CREDIMMO 1 and the national scale ratings .......

    News Round-up 18 March 2013

  • SCI Start the Week - 18 March

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

    Pipeline
    Another wave of deals began marketing last week. There were three ABS, an ILS, an RMBS and three CMBS remaining in the pipeline when the week ended.

    The ABS comprise student loan deals US$144.73m Alaska Student Loan Corporation Series 2013A and US$211.5m Scholar Funding Trust 2013-A, as well as equipment lease ABS US$766m GE Equipment Transportation Series 2013-1. The ILS .......

    News 18 March 2013

  • Spanish tariff securitisations downgraded

    Fitch has downgraded five securitisations backed by Spanish electricity tariff deficits from single-A minus to triple-B plus. The downgrades reflect the structural imbalance and the negative trend observed on the overall electricity system cashflows, as well as the uncertainty of the regulatory environment affecting the electricity sector.

    Despite the government's efforts during 2012 to tackle the ongoing tariff deficit problem, .......

    News Round-up 18 March 2013

  • Settlement boosts tobacco ABS

    A 13 March settlement between 17 US states, the District of Columbia and Puerto Rico and several tobacco manufacturers should have a positive impact on cashflows for certain Fitch-rated tobacco settlement ABS transactions, the agency says. The 'stipulated partial settlement award' - initially proposed between these parties in December 2012 - relates to the non-participating manufacturer (NPM) adjustment provisions contained .......

    News Round-up 18 March 2013

  • Further CRA improvements required

    ESMA has published its second annual report on its supervision of credit rating agencies (CRAs) in the EU. The report focuses on its investigation into bank rating methodologies and the follow-up work to the March 2012 report on deficiencies in CRAs rating processes, governance and control mechanisms.

    ESMA says it has identified progress by CRAs in their activities, including: improved .......

    News Round-up 18 March 2013

  • 2013-ALTM ratings slated

    Moody's says its credit evaluation of Morgan Stanley Capital I Trust 2013-ALTM CMBS is significantly different from that provided in reports published by other rating agencies. The credit protection for the principal and interest classes of the transaction - which is backed by the Altamonte Mall in Altamonte Springs, Florida - is insufficient, in the agency's opinion, relative to the .......

    News Round-up 18 March 2013

  • MBIA-wrapped RMBS hit

    S&P has lowered its ratings on 145 classes from 72 US RMBS that are insured by MBIA Insurance Corp. The move comes after the agency lowered its financial strength rating on MBIA to triple-C from single-B (SCI 5 March). The outlook on the monoline remains negative.

    The underlying collateral for the affected transactions consists of Alt-A, prime jumbo, subprime, closed-end .......

    News Round-up 18 March 2013

  • Varied SF impairments seen in 2012

    Global structured finance (SF) rating and impairment activity varied widely by sector and rating category in 2012, according to Fitch. Downgrades overall remained in line with those seen in 2011; however, the number of active ratings declined year-over-year by close to 20% and this contributed to a higher overall SF downgrade rate of 37% versus 31% in 2011. Upgrades remained .......

    News Round-up 18 March 2013

  • Securitisation tipped to bridge funding gap

    Prime Collateralised Securities (PCS) has published a White Paper, entitled 'Europe in Transition', which outlines ways of bridging the European economic funding gap. The organisation estimates that the funding gap will reach at least €4trn over the next five years, representing the sum of what PCS expects the new regulatory capital and liquidity rules will take out of the system .......

    News Round-up 18 March 2013

  • REIT acquisition offer made

    Annaly Capital Management has made an offer to purchase all the shares of CreXus Investment Corp that it does not already own. The acquisition was agreed back in January (SCI 31 January 2013).

    The offer has been made through a newly-formed subsidiary - CXS Acquisition Corporation - and amounts to US$13 per share plus a sum approximating a prorated portion .......

    Job Swaps 18 March 2013

  • Smart sourcing

    Non-core asset dispositions eyed

    With large US funds increasingly entering the European secondary ABS market in search of yield, European funds are having to be smarter about sourcing assets. Working with a bank seller to restructure residual positions is emerging as one important option.

    The easiest way to source assets in the European secondary ABS market is to be added to BWIC distribution lists, .......

    News Analysis 18 March 2013

  • Euro CMBS market picks up

    The European secondary CMBS market still has not returned to the level of activity seen at the start of the year, but it has picked up over the last couple of weeks. Some sizable bid-lists have been circulating, with mezzanine paper continuing to attract hedge fund investors.

    "Activity is still a little muted, but it has been better lately," reports .......

    Market Reports 15 March 2013

  • Capital treatment warning issued

    The Basel Committee's revised proposals on the capital treatment of securitisation exposures (SCI 19 December 2012) could limit the appetite for structured notes among banks, Fitch reports. The agency warns that this could restrict the availability of structured finance as a funding source for the wider economy.

    Fitch also notes that, in its view, the proposals do not reflect historical .......

    News Round-up 15 March 2013

  • Distressed debt vets move on

    Courage Capital Management has recruited distressed debt industry specialists John Klinge and Scott Imbach. They each join as senior md and will open a Los Angeles office to lead the firm's investment efforts for its credit opportunities strategy.

    Klinge joins from Levine Leichtman Capital Partners (LLCP), where he was senior md and chief credit officer. He has also worked for .......

    Job Swaps 15 March 2013
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