Complete news archive

  • RBS settles Libor charges

    RBS and its subsidiary RBS Securities Japan will pay around US$612m in penalties and disgorgement as a result of its Libor breaches. The figure includes £87.5m to the UK FSA, US$150m to the US Department of Justice and US$325m to the CFTC.

    The FSA charged RBS £125m, with a 30% discount for settling early. The charge relates to misconduct between .......

    Job Swaps 7 February 2013

  • EMIR intelligence solution debuts

    OpenLink Financial has launched an intelligence solution designed to address the European Market Infrastructure Regulation (EMIR). The new online analytical processing-based cube offering provides financial institutions and other organisations participating in bilateral OTC derivatives trading a speedy and cost-effective way to comply with the new clearing and reporting requirements, the firm says. The OpenLink EMIR Cube enables organisations to: generate .......

    News Round-up 7 February 2013

  • Countrywide settlement 'too low'

    New documents have been filed in New York State Supreme Court claiming that the proposed US$8.5bn figure for the 2011 Bank of America settlement is too low. The submission was made by Triaxx, as well as the Federal Home Loan Banks of Boston, Chicago and Indianapolis.

    The filing reportedly argues that Bank of America continued to put its own interests .......

    Job Swaps 7 February 2013

  • Resi idiosyncratic risks eyed

    Fitch says that prime residential mortgage portfolios with low expected loss levels need an additional level of scrutiny to ensure that idiosyncratic risks are adequately mitigated. This applies to portfolios securing either RMBS or mortgage covered bonds (MCB).

    The agency will conduct an additional level of review for portfolios where expected losses, when applying a triple-A level stress, are below .......

    News Round-up 7 February 2013

  • European evaluated pricing team established

    SIX Financial Information has expanded its evaluated pricing business by building a new valuation team in Frankfurt. The local team enhances SIX's ability to react quickly and effectively to the needs of its European clients.

    The Frankfurt team is responsible for assessing OTC products, carrying out market conformity checks and valuing financial instruments in the fixed income and derivatives segment. .......

    Job Swaps 7 February 2013

  • Four more ABS CDOs transferred

    Cairn Capital North America is replacing Aladdin Capital Management as collateral manager on Altius III Funding, Altius IV Funding, Fortius I Funding and Fortius II Funding. Cairn took on three other Aladdin CDOs - Altius I Funding, Altius II Funding and Citius I Funding - last year (SCI 21 December 2012).

    Moody's has determined that the assignment of the collateral .......

    Job Swaps 7 February 2013

  • Fixed income, EM sales head added

    Peter Albano is joining Oppenheimer & Co as md and head of taxable fixed income sales. He takes responsibility for the sales departments for institutional emerging markets, high grade corporate credits and RMBS, reporting to senior md Robert Lowenthal.

    Albano joins from BNP Paribas, where he was head of the US institutional client relationship management team. He had similar responsibilities .......

    Job Swaps 7 February 2013

  • GRAND template

    Fourth outcome to CMBS loan resolutions emerging

    The restructuring of the €4.33bn German Residential Asset Note Distributor (GRAND) transaction, the largest CMBS ever issued in Europe, is noteworthy for being implemented via a solvent scheme of arrangement (SCI 24 December 2012). But it is also being hailed as the forerunner for restructurings that take the cash price of senior bonds to par in the secondary market, with .......

    News Analysis 6 February 2013

  • RMBS supply up strongly, levels steady

    Activity in the US RMBS market picked up yesterday after a slow start to the week. Non-agency BWIC volume jumped from less than US$600m on Monday to more than US$1.4bn on Tuesday, with a good mix of vintages and strong supply seen across all sub-sectors.

    "The sector continues to have a stable tone, with securities trading in line with recent .......

    Market Reports 6 February 2013

  • SNS call 'interruptions' predicted

    Embedded call features in SNS Bank RMBS are ultimately expected to be honoured, following the nationalisation of SNS Reaal last week. However, two transactions face elevated risks of at least initial redemption interruption.

    Nationalisation of the SNS group will cost the Dutch state some €3.7bn, with €2.2bn of new capital injections, a write-down of €0.8bn of previous support and €0.7bn .......

    News 6 February 2013

  • LMI-linked tranches hit

    Moody's has downgraded 85 tranches from 76 Australian RMBS and confirmed 10 tranches from 10 other transactions. The 85 downgraded tranches comprise one senior, 13 mezzanine and 71 junior tranches.

    The action on the senior and mezzanine tranches follows the recent rating action taken on Australian mortgage insurers (SCI 4 February). Specifically, the senior and mezzanine tranches have been downgraded .......

    News Round-up 6 February 2013

  • RBA cuts supporting Aussie mortgages

    In its latest update of Australian mortgage performance, Fitch notes that the Reserve Bank of Australia's decision to reduce the cash rate by 50bp in May 2012 and 25bp in June 2012 has improved mortgage performance across all Australian states and regions. Delinquencies decreased to 1.2% nationwide at end-September 2012, down from 1.6% at end-March 2012 and significantly below the .......

    News Round-up 6 February 2013

  • Latest Tesco CMBS marketing

    Tesco's latest credit-tenant-linked CMBS, Tesco Property Finance 6, has hit the market via Goldman Sachs and Barclays Bank. The transaction is secured by a portfolio of seven commercial properties located in the UK.

    The deal comprises a single £506.8m tranche of fixed-rate notes, provisionally rated Baa1 by Moody's and single-A minus by Fitch and S&P. The key strengths of the .......

    News Round-up 6 February 2013

  • Delinquencies higher for Aussie investment mortgages

    Fitch reports that severe delinquencies are higher for investment mortgages than owner-occupier mortgages in Australia. The 90+ day delinquency rates of Australian investment loans have on average been 1.16x higher than owner-occupied mortgages in the decade to September 2012; the ratio was higher at 1.51x, as of September 2012.

    Fitch's analysis shows that regions characterised by high 90+ day delinquencies .......

    News Round-up 6 February 2013

  • DOJ seeks US$5bn in penalties

    The US Department of Justice has filed its civil lawsuit against S&P in the District Court for the Central District of California (SCI 5 February). The complaint alleges that the rating agency engaged in a scheme to defraud investors in RMBS and CDOs by issuing inflated ratings that misrepresented the securities' true credit risks. The case also alleges that S&P .......

    Job Swaps 6 February 2013

  • Links downgraded

    Moody's has downgraded from Aa2 to Aa3 the Euro and US MTN programmes of Links Finance. The ratings remain under review for possible downgrade.

    The move is the result of the downgrade to Aa3 of Bank of Montreal, which sponsors the SIV. There is a direct linkage between the ratings of Links Finance and BMO due to the sponsor's commitment .......

    News Round-up 5 February 2013

  • Counterparty risk study released

    Quantifi has published a joint whitepaper with Risk Dynamics, entitled 'Managing Counterparty Credit Risk - Capital Requirements for Retail, Commercial and Proprietary Portfolio Strategies'. The paper explores how to deal with counterparty credit risk in the current financial environment by detailing some of the associated aspects and challenges. It also studies the conditions for effective management of counterparty credit risk.

    News Round-up 5 February 2013

  • Real money waits as Euro CMBS weakens

    The European CMBS secondary market has weakened slightly over the last week or so. There is still selling from hedge funds and a good deal of BWIC activity, but real money remains on the sidelines.

    "The hedge funds started selling quite early in the year and they have continued to do so. Demand was strong a few weeks ago so .......

    Market Reports 5 February 2013

  • CMBS link-up to tackle maturity wave

    A global built asset consultancy and a receivership specialist have formed a strategic alliance to help lenders and investors deal with the large volume of European CMBS loans set to mature over the next two years. There is €20bn of CMBS loans scheduled to mature in 2013, with a further €15bn scheduled for 2014.

    EC Harris and Jorden Salata have formed .......

    Job Swaps 5 February 2013

  • DOJ preps CRA civil lawsuit

    The civil division of the US Department of Justice is set to file a civil lawsuit against S&P, focusing on its ratings in 2007 of certain US CDOs. The agency has dismissed the DOJ lawsuit as being "entirely without factual or legal merit".

    In a statement, S&P says such a case would disregard the fact that it reviewed the same .......

    Job Swaps 5 February 2013

  • Capital markets sales team boosted

    Sylvia Holt Williams and Grady Mosay have joined FTN Financial's sales team. They each join from Stifel Nicolaus.

    Williams was md for RMBS trading at Stifel and becomes sales svp, based in Kansas City. Mosay was vp for institutional CMO trading at Stifel and also becomes sales svp, based in Philadelphia.

    .......

    Job Swaps 5 February 2013
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