Complete news archive

  • Auto prepay model introduced

    JPMorgan has introduced an auto loan ABS loss/prepayment model, to enable credit analysis and relative performance comparison between deals, shelves and economic scenarios. The model is constructed using pool level data from 630 prime and subprime deals, and consists of six sub-models that are customised for the prime and subprime sectors.

    Using static pool variables and macroeconomic forecasts of the .......

    News Round-up 1 March 2013

  • Korean RMBS credit negatives examined

    Declining apartment prices and transaction volumes in the Seoul Metropolitan area are credit negative for Korean RMBS, Moody's notes in its latest 'Structured Thinking: Asia Pacific' publication, because they indicate lower recovery prospects and a higher probability of default through increased refinancing risk. More than 90% of RMBS loans outstanding relate to properties in the Seoul Metropolitan area, in which .......

    News Round-up 1 March 2013

  • Intu CMBS unveiled

    Further details have emerged on the Intu Properties CMBS/corporate securitisation hybrid that will refinance the Opera Finance CSC 3 deal (SCI 28 February). The structure is being likened to a UK master trust in that it can issue up to £5bn long-dated fixed sterling notes in various series and has the flexibility to add more properties to the pool. The .......

    News Round-up 1 March 2013

  • Euro uncertainty buoys secondary ABS

    The double blow of Moody's UK downgrade and inconclusive Italian election has had a mixed impact on the European secondary ABS markets. While some sectors have softened, one trader reports that activity over the last week has actually noticeably increased.

    The tone of the UK prime RMBS sector, for one, softened over the week. Granite bonds now price about 0.4% .......

    Market Reports 1 March 2013

  • Private appetite for mortgages to remain muted

    Fannie Mae and Freddie Mac continue to play a key role in the US housing market recovery, thus limiting the motivation for wide-reaching GSE reforms in the near future, according to Fitch. Both companies showed operating performance improvements during the first nine months of 2012 (SCI 30 November 2012), primarily driven by the high-quality business written since 2008, a recovery .......

    News Round-up 1 March 2013

  • Special servicing entrants, exits aligned

    After peaking at US$91.7bn in 2010, the volume of specially serviced US CMBS loans fell to US$70.6bn, as of 31 December. This represents the smallest population since the run up in 2009, when the balance of specially serviced CMBS loans was US$74bn by year-end, Fitch reports.

    "Perhaps the most encouraging sign is how closely the volume of CMBS loans going .......

    News Round-up 1 March 2013

  • Triton ratings unaffected by Pioneer claim

    A statement of claim has been lodged by Pioneer Mortgage Services to the Supreme Court of New South Wales in relation to monies allegedly owed to it as mortgage manager. The legal action is being taken against ANZ and Columbus Capital, respectively originator and seller of the underlying residential mortgages securitised in Triton Trust No.2 Bond Series 2013-1, which is .......

    News Round-up 1 March 2013

  • North/south divide for UK repossessions

    UK mortgage lenders have sold possessed properties at an average discount of 23% since 2008, compared with 13% prior to that period, according to Fitch. The time lenders take to sell possessed properties over the same period has decreased, implying that lenders are willing to sacrifice on price in order to achieve a timely sale.

    Given a combination of relatively .......

    News Round-up 1 March 2013

  • New leader for US clearing expansion

    David Weisbrod has been appointed ceo of LCH.Clearnet's US subsidiary and will oversee the expansion of its central counterparty clearing business. It follows LCH's purchase of International Derivatives Clearing Group last year, which gave it access to US-based infrastructure (SCI 17 August 2012).

    Weisbrod spent 40 years at JPMorgan, most recently as risk management vice chairman. He will work closely .......

    Job Swaps 1 March 2013

  • Commodity SF head recruited

    Michael Jakubik has joined Standard Chartered in Singapore. He becomes global head of commodity structured finance, reporting to global head of commodities Arun Murthy.

    Jakubik's new role will see him take responsibility for driving the bank's commodities business. He was head of commodity structured solutions in his former role at Standard Bank in London.

    .......

    Job Swaps 1 March 2013

  • Intermediation advantage

    Andrea Podesta, head of fixed income, and Armando La Morgia,...

    Q: How and when did KNG Securities become involved in the structured finance markets?
    AP:     The KNG Securities model is based on generating cross-regional liquidity in the context of dislocated markets. We're currently moving onto phase two of our development, which is to enhance the range of products we offer. This involves bringing in specific expertise to further strengthen certain areas .......

    The Structured Credit Interview 28 February 2013

  • Secondary boost for Opera CSC3

    Intu Properties, formerly Capital Shopping Centres Group, has established a new debt funding platform dubbed the Secured Group Structure (SGS). The SPV will issue £1.15bn investment grade secured debt under the Itu Finance moniker.

    Intu intends to use the SGS to refinance four of its shopping centres, including the centres intu Braehead and intu Watford, which collateralise the Opera Finance .......

    News Round-up 28 February 2013

  • Euro SCDO ratings stability highlighted

    S&P reports that its ratings on European synthetic CDOs were generally stable in 2012. Affirmations and upgrades were mainly due to the reducing time-to-maturity and minimal rating movement experienced in the reference entities. Downgrades were mainly concentrated in the speculative-grade category.

    "We expect about 75% of the European CDOs that we rate to mature within five years, supporting our view .......

    News Round-up 28 February 2013

  • Cat bond emerges from arbitration

    Moody's has upgraded the US$67.5m Nelson Re class G catastrophe bonds to A3 from Ca, upon the sponsor's withdrawal from arbitration. Glacier Reinsurance has decided not to pursue its case in arbitration and the arbitration tribunal has approved the petition to withdraw.

    As a result, the principal is scheduled to be repaid in full to noteholders on 6 March without .......

    News Round-up 28 February 2013

  • Further CMBS note sales due

    Two CMBS note sales are scheduled for March on auction.com. CMBS analysts at Barclays Capital have identified 24 loans securitised within CMBS trusts with US$158m of outstanding balance out for bid.

    The largest of these is the US$32.8m Belmont at Cowan Place, securitised in LBUBS 2006-C4, which has been in REO since Dec 2009. The latest appraisal, as of June .......

    News Round-up 28 February 2013

  • OTC messaging solutions offered

    Volante Technologies has launched its v-Derivatives and OTC-Connect products. Volante's 'v' programme invests in the development of business process logic to augment its core competency of message management and standards, while OTC-Connect is designed to help customers insulate themselves from the ongoing evolution in market structure and adapt to new changes in business processes driven by regulation such as Dodd .......

    News Round-up 28 February 2013

  • Credit card maturities to level off

    Closing out a two-year surge, US credit card ABS maturities are expected to level off after this year, with Fitch projecting US$50bn in 2013 compared to US$70bn last year. At the same time, the agency expects credit card ABS issuance volume to range from US$40bn-US$50bn this year.

    "The spike in new issue activity since the latter half of last year .......

    News Round-up 28 February 2013

  • ABS CDO on the block

    An auction is to be held for Duke Funding VIII on 21 March. The collateral will only be sold if the proceeds meet the auction call redemption amount.

    .......

    News Round-up 28 February 2013

  • CAI CLOs spun off

    Citigroup Alternative Investments (CAI) has transferred the collateral management agreements for the Regatta Funding and Duane Street CLO 1, II, III and IV transactions to Napier Park Global Capital. Napier has been spun out of CAI and now owns CAI's CLO business (SCI 5 December 2012).

    It is expected that Napier Park will continue without disruption or interruption to manage .......

    Job Swaps 28 February 2013

  • Bipartisan housing recommendations unveiled

    The US Bipartisan Policy Center's Housing Commission has unveiled a new vision for housing policy. The recommendations propose scaling back the government role in the country's housing finance system and reforming housing assistance programmes.

    The commission is co-chaired by former Senate Majority Leader George Mitchell, former Senator Christopher Bond, former Senator and HUD Secretary Mel Martinez and former HUD Secretary .......

    News Round-up 28 February 2013

  • Junior paper joins CMBS jamboree

    The US CMBS secondary market saw around US$350m of BWIC volume yesterday. A greater variety of paper across the breadth of the capital structure was circulating than in the previous session.

    For example, a US$12.218m slice of BAYC 2005-2A A1 tranche was talked in the high-70s. In contrast, a US$2.8m piece of the LBUBS 2006-C7 G tranche was covered at .......

    Market Reports 28 February 2013
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