Complete news archive

  • Sharp drop for CMBS delinquencies

    The Trepp CMBS delinquency rate dropped by 14bp to 9.57% in January, reaching its lowest level in 11 months. This drop follows a relatively stable fourth quarter, during which the rate hovered at around 9.7%.

    US$2.8bn US CMBS loans became newly delinquent in January, which put about 50bp of upward pressure on the delinquency rate. This was the second straight .......

    News Round-up 1 February 2013

  • REIT acquisition agreed

    Annaly Capital Management has reached a definitive agreement with CreXus Investment Corp to acquire for US$13 per share in cash, plus a payment in lieu of a pro-rated dividend, all the shares of CreXus that Annaly does not currently own. The acquisition was initially proposed in November for US$12.50 per share (SCI 12 November 2012).

    CreXus has approximately 76,630,528 shares .......

    Job Swaps 31 January 2013

  • Subprime focus for RMBS bid-lists

    Overall US non-agency RMBS BWIC volume picked up to a moderate level yesterday, as market participants began returning from the ASF conference. The focus was on the subprime sector, with a large list of senior paper trading early in the session.

    Among the subprime bonds circulating in the secondary market yesterday was SASC 2006-WF3 M1. Illustrating the elevated prices currently .......

    News Round-up 31 January 2013

  • Waiting for a spark

    Structured finance recruitment prospects limited without macro change

    The new year has dawned with the structured finance recruitment outlook as uncertain as it was for much of 2012. The environment could begin to change now that January is almost over, but one headhunter warns that it may take a long time for hiring levels to increase dramatically.

    "A lot of people are not looking at recruitment until the .......

    News Analysis 31 January 2013

  • Mixed outlook for global ABCP

    The credit quality of US and Canadian ABCP will respectively be stable and strong in 2013, according to Moody's. At the same time, bank and sovereign risk will remain a critical issue for European ABCP programmes. Regulatory uncertainty is an issue in both the US and Europe.

    In Moody's view, the credit outlook for ABCP in the US is stable, .......

    News Round-up 31 January 2013

  • Optimism emerges on UK arrears

    Moody's expects mortgage arrears across UK RMBS to marginally reduce in 2013 from their current level of 1.8%. Lenders surveyed have not observed the emergence of any new payment problem trends and are confident that arrears levels would not increase in the absence of large shocks to unemployment and interest rates. Although post-crisis originations continue to perform better, older vintages .......

    News Round-up 31 January 2013

  • Rallying call

    Price correction warning for non-agency RMBS

    The US non-agency RMBS market rallied significantly in 2012, providing double-digit returns for many. However, as investors continue to enter the sector as a play on the housing recovery, profit-taking is expected to prompt a price correction in the near future.

    The one-year return for 2012 across the AAA sub-indices of the Markit ABX 2006-1, 2006-2, 2007-1 and 2007-2 series .......

    News Analysis 30 January 2013

  • Agency RMBS under pressure?

    ABS analysts at Bank of America Merrill Lynch suggest that a rotation out of bonds into equities will likely be the dominant story for 2013, as markets in the US transition from deflation and deleveraging to a normalisation of growth, rates and risk appetite. Moreover, the macro theme is expected to become less dominant, meaning that security selection should trump .......

    News 30 January 2013

  • Stable performance predicted for South Africa

    Fitch expects South African structured finance asset performance to be stable in 2013. The low interest environment is supporting borrowers and helping to balance downside pressure from the economic slowdown, the agency notes.

    "This support is bolstered by the availability of credit to consumers and businesses, stemming from a generally sound financial system. These factors translate into a stable outlook .......

    News Round-up 30 January 2013

  • Second ABS CDO auction set

    A second auction for Duke Funding High Grade I is to be held on 20 February. An auction was previously held for the CDO last August, but the auction call redemption amount was not met (SCI 23 August 2012).

    .......

    News Round-up 30 January 2013

  • Mortgage vet moves on

    Stonegate Mortgage Corporation has recruited Eric Scholtz as evp of structured finance. He will report to Dan Bettenburg, president of the firm.

    Scholtz has over 20 years' experience in the structuring, pricing and trading of mortgage- and asset-backed securities. Prior to joining Stonegate Mortgage, he served in a number of senior executive positions at GMAC RFC for more than 15 .......

    Job Swaps 30 January 2013

  • CLO 2.0 call risk eyed

    With US$8.3bn issuance from 15 US CLOs, January month-to-date has already surpassed last November to be the busiest month for CLO 2.0 volume. Primary triple-A spreads are now 7bp tighter year-to-date at 130bp over Libor and are forecast to reach 100bp over by year-end.

    A number of CLO 2.0 tranches with high coupons have traded close to par in the .......

    News Round-up 29 January 2013

  • Eminent domain rejected

    The San Bernardino County Homeownership Protection Program Joint Powers Authority Board last week rejected the use of eminent domain to acquire underwater mortgages to help struggling homeowners. The proposal was highly controversial and received stiff opposition from many in the mortgage and finance industries (SCI passim).

    Very few local homeowners and other stakeholders had expressed support for the use of .......

    News Round-up 29 January 2013

  • Trups CDO defaults, deferrals decrease further

    Combined defaults and deferrals for US bank Trups CDOs further decreased to 30.2% by end-4Q12, according to Fitch's latest index results for the sector. Two deferring bank issuers totalling US$28.5m of collateral across three CDOs defaulted on their Trups CDOs in the fourth quarter, fewer than the five banks that defaulted in the previous quarter.

    Five banks representing US$69.7m of .......

    News Round-up 29 January 2013

  • Euro ABS investors take stock

    After a strong start to the year, the European ABS market has quietened down over the last week or so. The secondary market remains limited to BWIC activity, while the primary market has seen a couple of deals announced.

    "A couple of auto deals have been announced in the primary market, with the Red & Black TME Germany 1 transaction .......

    Market Reports 29 January 2013

  • True-ups bolster utility ABS

    The true-up mechanism structured in each utility tariff (UT) ABS transaction within Fitch's rated portfolio provides adequate credit support to maintain triple-A ratings following Hurricane Sandy, the agency reports. While the electricity supply was renewed quickly for the majority of buildings in lower Manhattan and the New Jersey shore area, some are still without power as utility systems are upgraded .......

    News Round-up 29 January 2013

  • Agreement enhances analytics offering

    Interactive Data has integrated Intex Solutions' structured finance cashflows and related data into its BondEdge Solutions platform. BondEdge clients can now access the Intex deal library API as an optional service to drive analytical calculations, reporting, simulations and cashflow projections. The move follows Interactive Data's agreement with Intex to provide independent evaluated prices on a universe of global RMBS, ABS .......

    News Round-up 29 January 2013

  • LBUBS 06-C7 loans slated for auction

    Two lists of loans are scheduled to be sold via Auction.com next month, including approximately US$400m of allocated loan balance from CMBS deals, according to CMBS analysts at Barclays Capital. The largest balance is from LBUBS 2006-C7, with five properties from the 14-property US$86m Arizona Retail Portfolio listed.

    So far, six properties from the portfolio have been sold but generated .......

    News Round-up 29 January 2013

  • ResCap settles with Fannie Mae

    Residential Capital has agreed to pay Fannie Mae US$298m to end its objection to the sale of ResCap's mortgage servicing rights to Ocwen. Of the payment, US$33m is debt owed by ResCap to Fannie Mae, while the remaining US$265m is compensation for any losses that the GSE may incur due to the bankruptcy of ResCap.

    The US$265m resolves all pending .......

    Job Swaps 29 January 2013

  • FATCA reprieve for CLOs

    The final rules pertaining to the implementation of the Foreign Account Tax Compliance Act (FATCA) provide a carve-out for legacy CLOs. In view of their restricted documentation that makes it difficult to comply, legacy CLOs in existence prior to 31 December 2011 will be exempt from FATCA and deemed compliant until 31 December 2016.

    Proper documentation will be required beyond .......

    News Round-up 29 January 2013

  • Trups CDO on the block

    An auction has been scheduled for Libertas Preferred Funding I on 19 February. The collateral will only be sold if the proceeds meet the total senior redemption amount.

    .......

    News Round-up 29 January 2013
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