Complete news archive

  • Margin requirements near finalisation

    The Basel Committee and IOSCO have published a second consultative paper that represents a near-final proposal on margin requirements for non-centrally cleared derivatives. Several features of the proposal are intended to manage the liquidity impact of the margin requirements on financial market participants.

    The proposed requirements would allow for the introduction of a universal initial margin threshold of €50m. The .......

    News Round-up 18 February 2013

  • CRE CDO late-pays fall

    Following a sharp spike late last year, US CRE CDO late-pays fell for a second straight month to 12.7% last month (from 13.4% in December), according to the latest index results from Fitch. New delinquent assets in January consisted of only two term defaults, one matured balloon loan and one credit-impaired security.

    The largest new delinquency is a term default .......

    News Round-up 18 February 2013

  • TRUPS CDO cures anticipated

    Fitch believes that steps taken by the US Treasury to wind down the Capital Purchase Program (CPP) could lead to incremental cures in some TRUPS CDOs. Fitch estimates there are currently 109 issuers across Fitch-rated TRUPS CDOs that remain participants in the programme, with the exposure reaching 208 issuers at its peak.

    The Treasury intends to wind down the remaining .......

    News Round-up 18 February 2013

  • CMBS 3.0 asset enters special servicing

    The US$35m Doubletree by Hilton JFK Airport loan has been transferred to special servicing. Securitised in JPMCC 2012-CBX, the loan represents the first CMBS 2.0/3.0 asset to enter special servicing due to property performance.

    The property has generally performed reasonably well, according to MBS analysts at Barclays Capital, with DSCR NCF at 1.17x as of September 2012. However, the hotel's .......

    News Round-up 18 February 2013

  • New role for legal vet

    Joel Katz has joined Cantor Fitzgerald as md. In his new role he covers banks in Cantor's DCM mortgage securities department.

    Katz previously worked at Keefe, Bruyette & Woods and has previous industry experience from time spent at Sandler O'Neill, William R Hough, Raymond James, Freddie Mac and Fannie Mae. He has been in the industry for three decades.

    .......

    Job Swaps 18 February 2013

  • RMBS trader moves on

    David Lehman has joined Hudson Advisors in New York. He is vp, with responsibility for re-performing/sub-performing residential mortgage whole loans and mortgage servicing rights.

    Lehman previously worked at Navigant Consulting. He has also held RMBS trading positions at WaMu Capital Corp and Morgan Stanley as well as analyst roles at Credit Suisse and Deloitte.

    .......

    Job Swaps 18 February 2013

  • SCI Start the Week - 18 February

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

    Pipeline
    Last week was a quiet one for the pipeline, with ABS dominating proceedings. Among the five newly announced deals, three were auto ABS.

    Those auto deals were E-Carat Compartment No.5, €718.5m VCL 17 and US$350m World Omni Master Owner Trust Series 2013-1. In addition, a US$271.75m container ABS (TAL Advantage V Series 2013-1) and a £750m whole business securitisation (Arqiva .......

    News 18 February 2013

  • Supply anticipated from CRE CDO unwinds

    NorthStar Realty Finance Corp indicated in its 4Q12 earnings call yesterday that it may unwind some of its CRE CDOs over the next several years. According to RBS figures, NorthStar currently manages six CRE CDO, with a total collateral balance of approximately US$2.3bn - the majority (81%) of which is secured by CMBS.

    Five of these transactions - NSTAR I, .......

    News Round-up 15 February 2013

  • REIT demand returns

    Higher MBS yields and rising stock prices have changed the investment landscape for US mortgage REITs from announcing share buybacks just a few months ago to raising new equity for MBS purchases. Indeed, mortgage REITs have announced US$1.7bn in new capital offerings so far this year, according to Bank of America Merrill Lynch figures.

    Although REITs' book equity declined in .......

    News 15 February 2013

  • Naked CDS ban scrutinised

    New Imperial College research presented at the latest 'Peregrine Perspectives' discussion series suggests that credit default swap spreads are a poor proxy for sovereign default risk. Discussion around this research found that there is little evidence to suggest that the EU-wide ban on naked CDS positions will achieve its aims.

    Lara Cathcart, senior lecturer at Imperial College, presented evidence that .......

    News Round-up 15 February 2013

  • Slow progress for NHP turnaround

    A recent presentation by the borrower behind TITAN 2007-1 NHP provided an insight into the first 12 months trading of HC-One and its business plan going forward (see SCI's CMBS loan events database). The information provided suggests that the turnaround of the ex-Southern Cross nursing home CMBS is progressing at a slower pace than was originally envisaged.

    Three .......

    News Round-up 14 February 2013

  • SNS, IBRC credit events determined

    It has been a busy few days for the ISDA EMEA Credit Derivatives Determinations Committee with respect to resolving that two credit events have occurred. The DC is meeting today (14 February) to discuss whether auctions should potentially be held to settle CDS trades on the reference entities in question.

    First, the DC determined that a restructuring credit event occurred .......

    News Round-up 14 February 2013

  • CMBS creeping tighter again

    The US CMBS secondary market continues to tighten as supply recovers from the low levels seen at the start of the week. SCI's PriceABS data shows 91 unique line items from 34 tranches for yesterday's session, with a variety of talk and covers.

    GG10 dupers have gradually tightened this week to reach swaps plus 137/136, having closed out .......

    Market Reports 14 February 2013

  • Euro CLO upgrades outnumber downgrades

    S&P's European CLO performance index report shows that upgrades outnumbered downgrades by seven to one in 2012. The agency took 460 note-level upgrades across the sector, versus 59 downgrades.

    According to the Q4 index report, this is mainly due to the deleveraging of these transactions. However, the pace of the upgrades began to decelerate in the last quarter.

    Over the .......

    News Round-up 14 February 2013

  • CRE prices on the up

    US commercial real estate prices increased by 8.1% on a composite basis during 2012, according to the latest Moody's/RCA Commercial Property Price Indices (CPPI). Central business district (CBD) office and apartment were the hottest sectors, with price increases of 19.1% and 11.2% respectively for the year. Suburban office was the only sector to see a price decline in 2012, edging .......

    News Round-up 14 February 2013

  • Innovative WBS marketing

    Arqiva Financing, a £750m UK whole business securitisation originated by the Arqiva group, has hit the market. The transaction is unique in that the bank lenders will grant term facilities to FinCo - a newly created SPV outside the securitisation group - rather than providing funding directly to the borrower.

    The deal comprises £350m class A and £400m class B .......

    News Round-up 14 February 2013

  • OTC derivatives alliance formed

    Polaris Financial Technology has entered into a partnership with Numerix to allow its customers to leverage Numerix's model library and risk analytics. The deal expands Numerix's scale and reach, strengthening access to global markets.

    Polaris clients will gain access to improved risk monitoring, increased transparency and improved decision making via use of Numerix's CrossAsset Server and CrossAsset Integration Layer. The .......

    Job Swaps 14 February 2013

  • CLO management changes made

    Prudential Fixed Income has named Brian Juliano and Bent Hoyer as co-heads of its CLO business, replacing Sara Bonesteel. Bonesteel now takes on a lead role for Prudential's US portfolio management team.

    Bonesteel's new team is responsible for developing overall investment strategies for the US general account portfolio across all asset classes. The former head of alternative investments remains as .......

    Job Swaps 14 February 2013

  • Securitised products vets shift roles

    Morgan Stanley has made a number of changes to its securitised products group. Yared Yawand-Wossen, who has over 18 years with the bank, has a new role in charge of ABS and non-agency RMBS. He continues to report to Robert Hershy, who has been at Morgan Stanley more than 28 years and becomes global head of the bank's new CLO .......

    Job Swaps 14 February 2013

  • Wake-up call

    Change in transparency, buying behaviour needed

    The recent indictment of former Jefferies trader Jesse Litvak for misrepresenting RMBS prices has served as a wake-up call for the industry (SCI 29 January). Pressure has increased on sellers of complex securities to provide a basis for prices, while buyers are being urged to demand more information.

    Two potential outcomes are possible as a result of the Litvak indictment: .......

    News Analysis 14 February 2013

  • FHA reform gaining momentum?

    FHA reform discussions gained momentum last week, with the House Financial Services Committee holding the first of two meetings scheduled for February to discuss changes to the FHA programme. Testimony at the hearing stressed that the FHA should focus on its original core mission: insuring mortgages for low- and moderate-income borrowers and first-time home buyers.

    Two methods for reducing FHA .......

    News Round-up 13 February 2013
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