Complete news archive

  • Solvency II concerns underlined

    Relatively high capital charges for securitisations under the new Solvency II European insurance rules could lead European insurers to dramatically reduce exposure to the asset class and invest in covered bonds instead, S&P argues (see also SCI 21 September). The agency notes that capital charges for senior securitisations under the draft Solvency II rules' standard formula are up to 10 .......

    News Round-up 10 December 2012

  • Asian SF outlook 'stable'

    Fitch has a stable outlook for structured finance in Asia, supported by the economic performance of Korea and Singapore, which dominate the market. The continuous build-up of credit enhancement through note amortisation and debt servicing ability are also supporting factors.

    Fitch-rated Korean transactions should be able to withstand the effects of a slowing economy and high household debt. The agency .......

    News Round-up 10 December 2012

  • FCM business model shifting

    A structural shift in the futures commission merchant (FCM) business model is underway, according to TABB Group. The competitive landscape for FCMs means that investment and interest rate income are no longer the keys to profitability, at a time when they are facing rising operating costs in a significantly weaker revenue environment.

    The new landscape will favour larger FCMs that .......

    News Round-up 10 December 2012

  • Two-year low for CMBS late-pays

    CMBS late-pays fell by 12bp last month to 8.17% from 8.29% in October, according to Fitch's latest index results for the sector. This marks the rate's lowest level since November 2010, when it stood at 7.96% of the then outstanding Fitch-rated universe of US$430bn.

    In November, resolutions of US$1.5bn outpaced additions to the index of US$1.3bn. In addition, US$6.6bn in .......

    News Round-up 10 December 2012

  • 2013 Euro ABS credit quality up, issuance down

    The credit quality of new European ABS and RMBS issuance in 2013 will be better than that of existing transactions, expects Moody's. However, deals will be smaller and that will affect issuance volume for the year ahead.

    The agency adds that the performance of existing transactions will be correlated to sovereign strength, with asset performance being stable in highly-rated countries .......

    News Round-up 10 December 2012

  • Quincy Tower on watchlist

    Morningstar has added the US$40.8m Quincy Tower loan, securitised in GSMS 2004-GG2, to its watchlist after the largest tenant gave notice that it will not be renewing its lease upon the scheduled expiration in March 2013. Barring immediate re-leasing, this tenant's exodus would reduce the property's occupancy to 43%.

    The property is currently 99.5% occupied. Analytic Services, a public service .......

    News Round-up 10 December 2012

  • SCI Start the Week - 10 December

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

    Pipeline
    In what ended up being a busier week than the previous one, three ABS, one ILS, two RMBS, three CMBS and two CLOs entered the pipeline. The ABS comprised: €266.5m Auto ABS French Loans Master, US$600m Chase Issuance Trust 2012-8 Reopen and A$726.5m Crusade Series 2012-1 Trust. The ILS was US$225m Lakeside Re III, while the RMBS were A$300m FirstMac .......

    News 10 December 2012

  • Timeshare delinquencies normalising

    US timeshare ABS delinquencies for 3Q12 were largely in line with those seen in the quarter before, says Fitch. Delinquency trends have largely normalised at their historical levels following dramatic increases in 2008 and 2009.

    The agency's latest timeshare index results show delinquencies for the quarter were 3.28%, down very slightly from 3.29% the quarter before. Delinquencies for the same .......

    News Round-up 10 December 2012

  • ILS pro brought in

    XL Group has hired Craig Wenzel as capital markets svp. It is a new role created as part of a push by XL's reinsurance operations group into ILS.

    Wenzel joins from Deutsche Bank, where he was capital markets and treasury solutions md in New York. He was responsible for co-ordinating catastrophe product origination globally and has also previously worked in .......

    Job Swaps 10 December 2012

  • South African RMBS reassessed

    Moody's has taken rating actions on eight South African RMBS, following its reassessment of the sector. The review takes into consideration the risks to RMBS ratings following the deterioration of the credit quality of the South African sovereign.

    Specifically, Moody's has downgraded the global scale ratings of one senior note and 19 junior notes, as well as confirmed the global .......

    News Round-up 7 December 2012

  • Criteria update hits Euro CMBS

    S&P has placed on credit watch negative its credit ratings on 240 tranches in 77 European CMBS, following an update to its criteria for the sector that is now in effect (SCI 8 November). The move affects tranches where the agency believes there is at least a one-in-two chance that ratings will be lowered, following the application of the updated .......

    News Round-up 7 December 2012

  • The changing value of credit

    Even among all the changes in the mortgage investment market...

    For years credit scores provided by the three major credit bureaus set the standard for evaluating creditworthiness. Lenders and investors were able to use credit scores to accurately determine the risk of default and provide risk-based pricing accordingly.

    And these credit scores are still used. But why did the number of defaults among borrowers once deemed prime increase dramatically in .......

    Research Notes 7 December 2012

  • Alpstar Capital to resign

    Alpstar Capital has notified Alpstar CLO 1 and 2 investors that it intends to resign as collateral manager on the transactions without cause. Further, it has proposed Chenavari Investment Managers as successor collateral adviser.

    The move follows a request for controlling noteholders to consent to the replacement of Alpstar by Chenavari (SCI 5 November), which was subsequently withdrawn on 22 .......

    Job Swaps 6 December 2012

  • RFC issued on Libor

    The UK FSA has proposed new rules and regulations for financial benchmarks, following the recommendations of the Wheatley Review of Libor. One of its key recommendations was that while the setting of Libor should remain an industry-led activity, the submission to and administration of the rate should be regulated by the FCA.

    The proposals also call for: benchmark administrators being .......

    News Round-up 6 December 2012

  • Preps borrower disincentives mitigated

    Fitch says that potential disincentives on behalf of the borrowers in the Preps 2005-2, 2006-1 and 2007-1 mezz SME CLOs are mitigated, following noteholders consent to the issuers' proposal to revise the payment waterfall and pay expense reserves senior in the priority of payments. The expenses reserves will be capped at €2m each.

    Given their senior position in the waterfalls, .......

    News Round-up 6 December 2012

  • CRA 3 concerns highlighted

    A recent Reed Smith memo highlights three areas of concern for the securitisation industry with CRA 3 - rating agency rotation, public disclosure and civil liability (see also SCI 16 August). The European Council has published what may be the final form of the second amendment to the rating agency regulation, confirming that it will assent to it becoming effective .......

    News Round-up 6 December 2012

  • Large AM blocks covered in active session

    A number of US CMBS bonds were being shown in secondary yesterday, as traders remain busy ahead of year-end. SCI's PriceABS data shows a variety of names circulating, with large AM tranches proving particularly popular and even a 1998-vintage tranche out for the bid.

    Trepp figures put BWIC volume at almost US$500m for the session, the highest for .......

    Market Reports 6 December 2012

  • Rating watches resolved

    Fitch has resolved the rating watch status of various classes in the US prime, Alt-A, subprime and re-REMIC RMBS sectors. The classes previously on rating watch negative generally reflected increasing tail risk, as well as rating sensitivity to the agency's updated loan loss model and surveillance criteria (SCI 13 August).

    For classes on watch negative, 89% of them have been .......

    News Round-up 6 December 2012

  • Asset managers named for Gemini

    Receivers of the properties securing the Gemini (Eclipse 2006-3) CMBS have made a number of appointments in relation to the asset management of the portfolio.

    Valad Investment Management Services has been appointed as asset manager for the office, industrial and leisure portfolio and certain retail properties. Vale Asset Management has been named as asset manager to the English shopping centre .......

    News Round-up 6 December 2012

  • Further FHFA claim to proceed

    The FHFA is to proceed with most of its fraud claims against Societe Generale in connection with losses suffered by Fannie Mae and Freddie Mac related to the purchase of US$1.3bn of RMBS. A trial is scheduled for January 2015.

    The transactions were issued by Societe Generale and underwritten by Deutsche Bank and Bear Stearns. In denying most of the .......

    Job Swaps 6 December 2012

  • Increased clarity on LLD requirements

    The latest amendments to the ECB's collateral eligibility framework include information on loan level data (LLD) requirements for posted securitisations and the European DataWarehouse (ED). Data will have to be reported to the ED at least on a quarterly basis, no later than one month after the IPD. If data is not provided within one month of the IPD, repo .......

    News Round-up 6 December 2012
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