Complete news archive

  • 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

  • MSBAM 2013-C8 prepay assumptions eyed

    Several noteworthy price points were observed on the XA and five-year A2 tranches of the recently-priced MSBAM 2013-C8 CMBS. The unusual call protection provisions on two large loans securitised in the deal - the Boston Park Plaza and the Hyatt Regency Hill Country Resort - are said to have driven the move.

    MSBAM 2013-C8 printed roughly in line with the .......

    News 13 February 2013

  • Subprime auto ABS warning

    Fitch believes that recent strength in the US subprime auto ABS market is leading to increased competition among lenders, which could result in looser underwriting practices. The agency also believes that the recent improvement in the stability of asset performance may indicate that future loss performance is more closely tied to new jobless claims than overall unemployment.

    The US subprime .......

    News Round-up 13 February 2013

  • New agency derivative indices debut

    Markit has launched IOS, PO and MBX indices referencing 3% and 3.5% Fannie Mae pools issued in 2012. MBS analysts at Barclays Capital suggest that the closest comparable index for the 3.5 2012 cohort is the 3.5 2010 index, albeit the 2012 cohort is expected to pay slower and thus trade better than the 2010 cohort.

    They note that this .......

    News Round-up 13 February 2013

  • Poor performance expected for Euro CMBS

    Moody's expects loans backing European CMBS to perform poorly over the next two years because of the prolonged financial stress in the region and the continued euro area crisis, which is affecting all areas of the commercial real estate markets. The rating agency bases its view on several assumptions that are broadly similar to those in its 2012 European CMBS .......

    News Round-up 13 February 2013

  • Treveria work-out agreed

    CR Investment Management has been awarded the asset management mandate for the Treveria D-Silo facility backing the Treveria II/Sunrise II loan respectively securitised in the DECO 2006 E4X and EMC VI CMBS. The firm will advise and work with Treveria on the implementation of the business plan, which will create value by selling-down the portfolio over time.

    The portfolio comprises .......

    News Round-up 13 February 2013

  • Real estate vet hired in Euro expansion

    Carlton has recruited Fernando Salazar to open and run its new office in Frankfurt, Germany. He was formerly head of real estate and commercial banking at Eurohypo, and has 30 years of experience in German and Spanish real estate.

    Salazar has been involved in over US$10bn of loan originations and restructurings, and is an acknowledged expert in European real estate .......

    Job Swaps 13 February 2013

  • ABS trading exec recruited

    KNG Securities has appointed Armando La Morgia to its fixed income team, as the firm builds its presence in the ABS market. He will play a key role in developing the firm's capabilities within the ABS trading and client solutions business.

    La Morgia was previously senior portfolio manager at Hemera Capital Management, where he focused on UK, European RMBS and .......

    Job Swaps 13 February 2013

  • UBS fined for AIG fund failures

    The UK FSA has fined UBS for failures in the sale of the AIG Enhanced Variable Rate Fund, which led to UBS customers being exposed to an unacceptable risk of an unsuitable sale of the fund. UBS also failed to deal properly with complaints from customers about sales of the fund, the FSA says.

    Between 1 December 2003 and 15 .......

    Job Swaps 13 February 2013

  • Healthy mix in quieter RMBS session

    US RMBS is not the only market to have gone quiet in the wake of the heavy snow in the north-eastern US and Canada, but the sector still saw adequate supply during Monday's session. Agency activity remained moderate, while non-agency activity was more noticeably decreased, with Interactive Data figures putting BWIC volume for the two sectors at around US$600m.

    Agency .......

    Market Reports 12 February 2013

  • Project finance CDO transferred

    TCW Asset Management Company (TAMCO) has assigned its rights and obligations under the investment advisory agreement for TCW Global Project Fund III to EIG Management Company, effective from 31 January. The transaction is a project finance CDO.

    For other recent collateral manager replacements, see SCI's CDO manager transfer database.

    .......

    Job Swaps 12 February 2013

  • Expropriation example

    SNS could set 'dramatic' CDS precedent

    The expropriation of subordinated bondholders at SNS Reaal has implications for the entire CDS market. The move has engendered questions about the value of sub protection and concern that CDS liquidity could be hit unless these issues are addressed.

    "If any bank bondholders had not previously noticed that the rules were being rewritten on them, then the 80-point drop in .......

    News Analysis 12 February 2013

  • Equity tranche trade touted

    The credit market is currently characterised by two prominent themes - demand for yield and fear of rising rates - which have turned year-to-date performance negative in the face of strong equity market returns. Against this backdrop, subordinated index tranches are being put forward as a natural way to avoid rate risk, generate additional yield through increased credit exposure and .......

    News Round-up 12 February 2013

  • RMBS interest shortfalls increasing

    Morningstar Credit Ratings has reviewed monthly occurrences of interest shortfalls in US RMBS across the second half of 2012. The data shows a steadily increasing trend in shortfalls across different collateral types, tranche types and vintages.

    As of the December 2012 remittance cycle, approximately 21.8% of the deals in the Morningstar sample experienced a shortfall in at least one tranche. .......

    News Round-up 12 February 2013

  • Flagstar first for warranty cases

    The US District Court for the Southern District of New York last week ruled that Flagstar Bancorp was liable for representation and warranty breaches on two HELOC RMBS that had been guaranteed by FSA. The decision is the first final court judgement in a rep and warranty case and is expected to influence other court decisions, including MBIA's case against .......

    Job Swaps 12 February 2013

  • ResCap liability questioned

    The official committee of unsecured creditors in the Residential Capital Chapter 11 proceedings last week filed an objection to the proposed US$8.7bn settlement with 392 RMBS trusts. The committee believes that ResCap's potential liability is less than half of the proposed amount and is alleging that Ally Financial drove up the price of the settlement as a way to absolve .......

    Job Swaps 12 February 2013

  • SEF accesses connectivity platform

    Javelin Capital Markets has joined IPC System's Connexus Financial Extranet service, with the aim of enabling its customers to not only comply with the Dodd-Frank regulations but to also capture liquidity and achieve best execution. The service will provide reliable and secure connectivity for a diverse pool of market participants seeking direct access to the Javelin SEF, the firm says.

    News Round-up 12 February 2013

  • Structured expansion for pricing service

    SIX Financial Information has entered into an agreement with Derivative Partners Research to produce and distribute independent valuations for structured products. The move further expands SIX's evaluated pricing service, which recently established a European team based in Frankfurt (SCI 7 February 2013).

    The global agreement with Derivative Partners Research means SIX's evaluated pricing service will cover a wider range of .......

    Job Swaps 12 February 2013

  • Arch makes US mortgage insurance foray

    Arch US MI, the US-based subsidiaries of Arch Capital Group, have entered into a definitive agreement to acquire CMG Mortgage Insurance Company from PMI Mortgage Insurance and CMFG Life Insurance Company (CUNA Mututal) for US$300m. Arch US MI also agreed to acquire PMI's mortgage insurance operating platform and related assets.

    PMI has been in rehabilitation under the receivership of the .......

    Job Swaps 12 February 2013

  • Promising start for CMBX.6

    CMBX.6 index activity appears to have had a promising start, based on DTCC figures. Total CMBX volumes in the index's first week of trading surged by 30% to over US$4bn, with trading on series 6 accounting for almost half of the activity.

    CMBS analysts at Deutsche Bank note that the AAA.6 sub-index made up half of all triple-A trading, as .......

    News Round-up 11 February 2013

  • ABS CDO on the block

    An auction will be conducted for RFC CDO II on 1 March. The collateral will only be sold if the proceeds are enough to cover the redemption amount.

    .......

    News Round-up 11 February 2013
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