Complete news archive

  • Aladdin settles SEC MAST charge

    The US SEC has charged Aladdin Capital Management with falsely telling clients it was co-investing alongside them in two CDOs. Aladdin actually made no such investments and its affiliated broker-dealer, Aladdin Capital, collected placement fees from the CDO underwriters.

    The co-investment representation was a key selling point for its multiple asset securitised tranche (MAST) advisory programme. Aladdin Capital Management and .......

    Job Swaps 18 December 2012

  • FpML recommendation released

    ISDA has published a recommendation for FpML version 5.4, which focuses on further enhancing a robust framework for global regulatory reporting. In addition, the coverage for several asset classes has been expanded to fully represent Dodd-Frank reporting requirements. Besides the support for swap data recordkeeping and reporting requirements, the recommendation for FpML version 5.4 includes support for Part 22, legal .......

    News Round-up 18 December 2012

  • NCUA files largest suit yet

    The NCUA has filed suit in Federal District Court in Kansas against JPMorgan and Bear Stearns. It claims there were violations of federal and state laws in the sale of US$3.6bn of RMBS to four credit unions.

    It is the agency's largest suit to date and alleges that Bear Stearns made misrepresentations with the underwriting and sale of RMBS to .......

    Job Swaps 18 December 2012

  • Evaluated pricing service enhanced

    Interactive Data has released a new set of enhancements to Vantage, which are designed to more effectively meet the requirements of both the buy-side and sell-side in their efforts to assess the key inputs used by Interactive Data in its evaluated pricing processes. Recent features added to the service include: intuitive visualisation of key transparency data; user-friendly evaluations reports; automated .......

    News Round-up 17 December 2012

  • ABS CDO dominance to decline?

    CDO analysts at JPMorgan have surveyed notional 2012 CDO trading volumes based on BWIC data observed from 3 January to 11 December. They calculate that year-to-date global CDO BWIC volume stands at US$71bn, comprising 90% US and 10% European assets.

    For US assets, triple-As made up half of the volume, while most of the European volume has been in mezzanine. .......

    News Round-up 17 December 2012

  • ABX hits post-crisis high

    The ABX 2006-2 AAA sub-index passed a milestone last week, reaching the highest price since October 2008 (66.78). The most recent high for the index occurred in February 2011, just before a confluence of global macro events and changes in servicer advance strategies led to a 30% price drop in the latter part of 2011.

    The index has recovered the .......

    News Round-up 17 December 2012

  • Stable outlook for ABCP

    The global ABCP market continues to prove resilient in the face of adversity, according to Fitch, having weathered an onslaught of market disruptions and regulatory challenges over the past few years. In the agency's view, at more than US$300bn, global ABCP outstandings remain a sizable force in the short-term capital markets and a valuable offering from both issuer and investor .......

    News Round-up 17 December 2012

  • FMI disclosure, assessment framework issued

    The CPSS and IOSCO have published a disclosure framework and assessment methodology for their 'Principles for financial market infrastructures' (PFMIs), the new international standards for financial market infrastructures (FMIs). The disclosure framework is intended to promote consistent and comprehensive public disclosure by FMIs in line with the requirements of the PFMIs, while the assessment methodology provides guidance for monitoring and .......

    News Round-up 14 December 2012

  • Strengthening performance forecast for US SF

    Strengthening performance and issuance tailwinds in most US structured finance sectors are likely to push growth further in 2013, according to Fitch. However, one key area to watch in the coming year will be the potential drag created by fiscal cliff-related issues.

    "Securitisation re-established its importance to the global capital markets in 2012 and we expect this positive trajectory to .......

    News Round-up 14 December 2012

  • Stable outlook for US CLOs

    The credit quality of new CLOs in the US in 2013 will be similar to that of CLOs originated in 2012 and remain stable in Asia (ex-Japan), according to Moody's. The agency expects credit quality to deteriorate in Europe, however.

    Moody's outlook for CLO collateral performance is stable for US CLOs and Asia (ex-Japan) balance sheet CLOs, but negative for .......

    News Round-up 14 December 2012

  • Increasing stability for Japanese SF

    Fitch expects slightly more Japanese structured finance transactions to maintain a stable outlook in 2013 than in 2012. Issuance is expected to increase modestly but not by enough to satisfy demand.

    Stable outlooks will be supported by steady asset performance and structural protection. Non-distressed CMBS tranches should show stable rating performance, benefiting from increasing credit enhancement caused by sequential payment .......

    News Round-up 14 December 2012

  • ABS CDO transferred

    Clinton Group has transferred the collateral management agreement for Adirondack 2005-2 to Cairn Capital. Moody's has determined that the move will not impact any current rating on the class A to E notes. In reaching this conclusion, the agency says it considered the experience and capacity of Cairn to perform the duties of collateral manager to the issuer.

    .......

    Job Swaps 14 December 2012

  • Riskier collateral expected in US RMBS

    Next year's vintage of US RMBS is expected to have riskier collateral, as well as weaker representation and warranties from smaller financially less-established originators than those issued in 2012. Meanwhile, a stronger housing market will help stabilise the performance of outstanding RMBS, according to Moody's.

    The agency expects that in 2013 issuers will introduce a new asset class backed by .......

    News Round-up 14 December 2012

  • Tri-party collateral services offered

    CME Clearing Europe has appointed BNY Mellon to provide tri-party collateral management services, supporting the CCP and its buy- and sell-side clients. Services will be provided through MarginEdge, BNY Mellon's comprehensive derivatives margin management service for listed, OTC and bilateral OTC derivatives.

    Andrew Lamb, CME Clearing Europe ceo, comments: "The requirements to clear OTC derivatives centrally is a key focus .......

    News Round-up 13 December 2012

  • Slowing improvements drive credit card outlook

    Moody's has changed its outlook for US credit card ABS to stable from positive as collateral improvements slow.

    "Our outlook for the sector was positive in 2012 based on the expectation that collateral performance would see a significant decline in charge-offs, which occurred," says Moody's avp - analyst Gregory Gemson. "For 2013, we expect only slight improvements in charge-offs, which .......

    News Round-up 13 December 2012

  • Knight grows structured credit sales team

    Jerrard Zive has joined Knight Capital Europe as structured credit sales md, reporting to head of structured credit Alan Packman. Zive joins from Nomura where he was credit, ABS and illiquid sales md and has previously held similar roles at Bank of America, Société Générale, ICAP and Scotia Capital.

    .......

    Job Swaps 13 December 2012

  • 'Stapled financing' success seen in Spain

    Repossessed Spanish residential properties have sold this year for 65% less than their initial valuations, a significant deterioration from previous years, Fitch reports. The acceleration in price declines reflects the desire of lenders to offload real estate exposure, the rising number of repossessed properties, newly completed developments coming on line and the introduction of Spain's bad bank.

    Lenders have become .......

    News Round-up 13 December 2012

  • Stable outlook for Aussie, NZ SF

    Fitch does not expect any widespread deterioration in the performance of assets underlying Australian and New Zealand structured finance transactions and covered bonds in 2013. The key to this outlook, which is unchanged from this year's, is the continuation of the stable economic conditions that Australia has experienced over the past two decades. The New Zealand economy is also expected .......

    News Round-up 13 December 2012

  • Fed MBS purchases to continue

    The Federal Open Market Committee has directed the New York Fed's Open Market Trading Desk to continue purchasing additional agency MBS at a pace of about US$40bn per month. The FOMC also directed the desk to maintain its existing policy of reinvesting principal payments from the Federal Reserve's holdings of agency debt and agency MBS in agency MBS. The amount .......

    News Round-up 13 December 2012

  • Euro CMBS deterioration highlighted

    The credit quality of European CMBS pools is expected to deteriorate in 2013. Moody's says that further losses on secondary properties will be unavoidable and exacerbated by the €16bn refinancing wall, which peaks next year when 135 loans will require refinancing.

    At the same time, overall new issuance will remain muted. Moreover, the rating agency anticipates that most collateral pools .......

    News Round-up 13 December 2012

  • Credit chief takes over ABS fund

    Simon Finch, credit cio at CQS, has replaced Alistair Lumsden as fund manager for the CQS ABS Fund. He will lead a team of 11 professionals in New York and London, where he is based. Finch has spent almost five years at CQS and was previously head of ABS at Abbey National.

    .......

    Job Swaps 12 December 2012
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