Complete news archive
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SCI Start the Week - 25 February
A look at the major activity in structured finance over the past seven days
Pipeline
Many deals joined the pipeline last week, with a good number remaining even after several priced before Friday's end. The largest addition was US$1.28bn JPMCC 2013-C10, which was joined by two other CMBS in the shape of US$1.49bn COMM 2013-CCRE6 and US$569m GSMS 2013-G1.The only new RMBS to enter the pipeline was US$600.2m Sequoia Mortgage Trust 2013-3, while US$387.75m .......
News 25 February 2013
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Mixed outlook for gaming CMBS
CMBS first appeared in the major US gaming markets in 1998, with the securitisation of the Showboat Hotel and Casino in Atlantic City. Since then, transactions have been done on the casino/hotels along both the Las Vegas Strip and the Atlantic City Boardwalk. But based on different growth patterns, securitisations in these two markets have had - and will likely .......
News Round-up 25 February 2013
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CMBS credit recovery intact?
The US CMBS delinquent amount ended 2012 at US$42.57bn, about 5% lower than where it began the year, according to S&P. However, as the year progressed, CMBS credit metric performance improved.
"Although it is our view that the CMBS credit recovery is intact, we believe that holding it back in 2012 were an elevated unemployment rate, the slow improvement in .......
News Round-up 25 February 2013
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German MF CMBS under 'less pressure'
The announcement of a second large loan refinancing in the German multifamily CMBS sector this year and growing investor interest in large property portfolios reinforces Fitch's view that the sector is under far less pressure than other parts of the European CMBS market. The agency believes that well-managed German multifamily housing (MFH) will remain one of the more sought-after asset .......
News Round-up 25 February 2013
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Absolute return fund prepped
ECM Asset Management has launched its Absolute Return Credit Fund (ARC), with the aim of gaining exposure to the deleveraging credit cycle in the present low growth and low interest rate environment. ARC will target an absolute return of one-month Euribor plus 4% per annum net of fees in all market conditions, with an emphasis on capital preservation and management .......
News Round-up 25 February 2013
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Servicers adapt to market deterioration
The slow-down of the European structured finance market has not coincided with a corresponding contraction in servicing activity, S&P says. A new report published by the rating agency highlights a number of changes seen in the European servicing sector since 2008.
In particular, European servicers have adjusted their business models to compensate for the deteriorating market conditions. For example, the .......
News Round-up 22 February 2013
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Mid-week blip barely dents CMBS
Thursday was an interesting session for secondary US CMBS. Several recent-vintage tranches attracted covers, while talk around AJ tranches out for the bid shows the extent of tightening seen over the last couple of months.
The CMBS sector was only mildly affected by the broader market's reaction to the latest Fed minutes, with Trepp describing the fall-out as "mild collateral .......
Market Reports 22 February 2013
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Improving CRE fundamentals highlighted
All of the commercial real estate sectors continued to grow in 4Q12, despite a softened economy and slow job growth, according to Moody's latest US CMBS and CRE CDO surveillance review. A significant rise in losses on CMBS loans is therefore unlikely, at least in the near term, as commercial real estate fundamentals continue to improve.
Moody's Commercial Mortgage Metrics .......
News Round-up 22 February 2013
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TR fees consultation underway
ESMA has launched a shortened consultation in connection with formulating regulation on fees for trade repositories (TRs) by a delegated act. The move follows a formal request from the EC to provide technical advice to assist it in this area.
In order to deliver its advice to the Commission, ESMA says it has considered several possible fee structures for TRs applying .......
News Round-up 22 February 2013
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Electronic trading platform enhanced
Tradeweb Markets has enhanced its electronic iTraxx credit default swap index platform in Europe, enabling both sell- and buy-side clients to access the same bids and offers from liquidity-providing dealers. The addition of inter-dealer trading alongside dealer-to-institutional client trading is designed to improve transparency and promote more liquid markets for all participants, the firm says.
The new functionality leverages the .......
News Round-up 22 February 2013
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Uploading answers
Originators get to grips with ED requirements, liabilities
The ECB deadline for submitting loan-level deal data to the European DataWarehouse is the end of March. However, concerns about the legal implications of uploading such data have held some originators back.
The ED has to maintain a level playing-field and so cannot give special dispensation to individual banks, but at the same time it says it has listened to .......
News Analysis 22 February 2013
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CLO pricing disparity emerges
The number of CDO bid-lists circulating in secondary reached double figures yesterday and even more are expected to hit the market today. However, about half of the names showing in SCI's PriceABS data for the session did not trade, implying that some sellers' expectations are overly optimistic at current levels.
PriceABS shows 167 line items yesterday for CLOs .......
Market Reports 21 February 2013
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Top arrangers decided
The rankings in the SCI league tables for bank arrangers in the structured credit and ABS markets have been finalised for 2012, with RBS and Barclays Capital taking top spot in Europe and the US respectively. The moribund European new issuance market saw a drop in volumes over the previous year, while the US kicked on again from 2011's increased .......
News Round-up 21 February 2013
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EMEA special servicing activity examined
Twelve EMEA CMBS loans were added and four were removed from special servicing following work-outs in January, according to Moody's. A total of 157 loans, representing approximately 22% of the total outstanding deal volume, were in special servicing at the end of the month.
The loans in special servicing are securitised across 53 large multiborrower and single-borrower transactions, three of .......
News Round-up 21 February 2013
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Liquidation list lifts US RMBS
Wednesday saw secondary supply shoot up, with SCI's PriceABS data displaying three times as many RMBS line items as for the previous session. Non-agency US RMBS was particularly active, with increased volume across the fixed, hybrid and subprime sectors.
The fixed space was boosted by a liquidation list and prime fixed tranches accounted for over half the fixed .......
Market Reports 21 February 2013
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RMBS rep and warranty warning
Recent rep and warranty proposals in new US RMBS deals may expose investors to added risks from weak underwriting and defective mortgage loans, according to Fitch. As such, the agency believes that these weaker proposals need to be accounted for in the credit enhancement where possible.
The rep and warranty framework established post-crisis as part of ASF Project Restart reflects .......
News Round-up 21 February 2013
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New home for Bermuda-based ILS pro
Jerome Faure, who recently announced his departure from ILS Capital Management (SCI 20 February 2013), is set to join Endurance Specialty Holdings. He will become global reinsurance ceo next month, responsible for Endurance's North America, Bermuda and international reinsurance operations.
Faure has held various underwriting and reinsurance management roles over the last 25 years. Prior to ILS Capital Management he .......
Job Swaps 21 February 2013
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Cairn CLOs stir European market
The European CLO market is picking up after a quiet start to the week. Participants have been kept occupied by both primary and secondary activity, with Cairn CLOs in particular capturing the market's attention.
"The US holiday made for a quiet start, but the market is up and running now. One of the interesting trends we are seeing at the .......
Market Reports 20 February 2013
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Re-mods lengthening RMBS cashflows
Overall modification rates for US non-agency RMBS were significantly lower in 2012 than they were two years before, but borrowers that have been previously modified account for an increasing share of those mods. The higher share of re-modifications is expected to lengthen cashflows, especially for deals that form part of the servicing transfers announced in the past few months.
About .......
News 20 February 2013
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Securitisation vet to lead advisory unit
Simone Schmidt has been recruited to establish and lead the German financing advisory services unit of Catella, as the firm broadens its service offering to deliver debt and equity as well as valuation services for all markets. She most recently worked at Ersten Abwicklungsanstal, the property liquidation unit of WestLB, and before that at Morgan Stanley, RBS and Deutsche Bank. .......
Job Swaps 20 February 2013