Complete news archive

  • CLO maturity wall reducing

    Codean has updated its study of the maturity profile of leveraged loans held by US and European CLOs for 3Q12. The report finds that the 2014 maturity wall has been significantly reduced, with considerable effort over the last six months to reduce the size of these maturities (SCI 26 October).

    The share of US loans maturing in 2014 has dropped .......

    News Round-up 19 November 2012

  • Euro CLOs stress tested

    Fitch-rated European triple-A CLO tranches can withstand significant stress driven by the knock-on effects of lowly rated cyclical corporates struggling to refinance debt as it comes due, the agency notes.

    Cyclical credits have lower free cashflow than their counterparts in other sectors and, as such, are more likely to default or go to their lenders seeking maturity extensions in return .......

    News Round-up 19 November 2012

  • Belnord blots delinquency improvements

    US CMBS late-pays fell by 8bp last month to 8.29% from 8.37% in September, according to Fitch. Delinquency rates for all major property types, except multifamily, improved in October.

    The multifamily rate would have improved if not for the US$375m Belnord loan re-entering the index. The borrower was permitted to use reserve funds to bring the loan current, after which .......

    News Round-up 19 November 2012

  • SCI Start the Week - 19 November

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

    Pipeline
    It was another reasonably active week for the pipeline. Four new ABS deals, one ILS, one RMBS, two CMBS and two CDOs were added last week.

    The ABS were all European auto deals. The largest was €952.5m Private Driver 2012-3, which was joined by the €765m-equivalent Bilkreditt 3, €425m FTA Santander Consumer Spain Auto 2012-1 and €531m Globaldrive Auto Receivables .......

    News 19 November 2012

  • ERC launches structured group

    European Risk Capital (ERC) has launched a structured trade and commodities finance group. The new initiative is expected to focus on capital raising relative to trade flows across a wide range of commodities, particularly in emerging markets.

    In addition to primary origination via ERC's London-based group, the new platform's structuring and distribution capacity shall be enhanced by Jean-Francois Khan in .......

    Job Swaps 19 November 2012

  • European investor relations head joins

    3i Debt Management has appointed Melissa Tessier as director. She will focus on investor relations in Europe, having held similar roles at Bank of America Merrill Lynch and AXA Investment Managers.

    Tessier will report to Andrew Bellis, who joined the firm as partner in the summer (SCI 14 June). She was most recently senior director at Cantor Fitzgerald, where she .......

    Job Swaps 19 November 2012

  • IOSCO releases securitisation recommendations

    IOSCO has published a final report, entitled 'Global Developments in Securitisation Regulation', which proposes a series of recommendations aimed at ensuring securitisation markets develop on a sound and sustainable basis. The recommendations provide a roadmap towards convergence and implementation of approaches to incentive alignment, in particular regarding risk retention requirements.

    The final report: makes observations about the role sound securitisation .......

    News Round-up 19 November 2012

  • RMBS disclosure charges settled

    In coordination with the RMBS Working Group, the US SEC has charged JPMorgan and Credit Suisse with misleading investors in offerings of RMBS. The firms agreed to pay more than US$400m combined, with the money to be distributed to harmed investors.

    The SEC alleges that JPMorgan misstated information about the delinquency status of mortgage loans that provided collateral for an .......

    Job Swaps 19 November 2012

  • Electricity tariff ratings at risk

    Moody's is to maintain on review for downgrade the A3 ratings of the ABS transactions backed by Spanish securitised electricity tariff deficits that the rating agency currently positions above the sovereign's rating. This reflects uncertainty surrounding the details of the country's proposed energy reform bill, which is expected to pass by year-end.

    Moody's is seeking to clarify whether the nature .......

    News Round-up 16 November 2012

  • ALS equity transferred

    AerCap Ireland, the servicer on Aircraft Lease Securitisation (ALS), has sold its equity interest in the transaction to a subsidiary of Guggenheim Partners as part of a portfolio management strategy. Under the agreement, AerCap will continue to service and manage the aircraft portfolio.

    The portfolio comprises 50 aircraft valued at approximately US$1bn, leased to 26 different airlines. "We believe that .......

    News Round-up 16 November 2012

  • UK repossession rates to rise?

    Repossession rates in the UK could rise slightly in the coming quarters, leading to about 35,000 and 39,000 repossessions in 2012 and 2013 respectively, according to a scenario analysis report published by S&P.

    "The annual repossession rate has been declining since 2009 and touched a five-year low in 3Q12. Nevertheless, high unemployment, weak house prices and sluggish wage growth are .......

    News Round-up 16 November 2012

  • NRSRO findings disclosed

    The US SEC has issued its second annual staff report on the findings of examinations of credit rating agencies registered as Nationally Recognized Statistical Rating Organizations (NRSROs). The agency determined that with one exception, all NRSROs appropriately addressed the staff's recommendations in the first annual report in 2011 (SCI 3 October 2011).

    The latest findings identified at one or more .......

    News Round-up 16 November 2012

  • Limited storm damage predicted for CRE

    Early indications are that damage to CMBS collateral caused by Hurricane Sandy is limited, based on information that S&P has received from servicers. The damage to many properties is still in the early stages of assessment, however.

    One master servicer that received borrower responses for about one-half of its serviced loan portfolio identified in the path of Hurricane Sandy reported .......

    News Round-up 16 November 2012

  • US CMBS secondary supply up

    It was a busy session yesterday for US CMBS, with volume up by almost 50% over the previous day. SCI's PriceABS data shows over 150 CMBS line items, with 2012 paper particularly prevalent in the mix of securities out for the bid.

    The largest slice of a 2012 deal to attract a cover was US$10m of WFRBS 2012-C9 .......

    Market Reports 16 November 2012

  • Bankruptcy credit event called

    ISDA's Americas Credit Derivatives Determinations Committee has resolved that a bankruptcy credit event occurred in respect of Overseas Shipholding Group, after it filed voluntary Chapter 11 petitions on 14 November. The DC is holding a separate meeting today (16 November) to discuss whether an auction should be held for the name.

    Separately, the final price for Yell LCDS was determined .......

    News Round-up 16 November 2012

  • Clearing platform rolled out

    Eurex Clearing has launched EurexOTC Clear. The service initially only supports interest rate swaps, but functionality in other asset classes will be rolled out next year.

    The new OTC clearing service is based on Eurex Clearing's segregation solution - the individual clearing model - which offers strong protection and portability, with full individual segregation of positions and customer collateral. At .......

    News Round-up 16 November 2012

  • Ocwen ranking on watch

    S&P has placed its 'above average' rankings on Ocwen Loan Servicing on credit watch negative as a residential mortgage subprime, special and subordinate-lien servicer. The move is a result of Ocwen's recent purchase - pending regulatory approval - of Residential Capital's mortgage loan servicing unit (SCI 25 October).

    The acquisition follows Ocwen's purchase of Homeward Residential. As a result of .......

    News Round-up 15 November 2012

  • Further FHFA claim to proceed

    The FHFA is to proceed with most of its claims against Deutsche Bank in connection with losses suffered by Fannie Mae and Freddie Mac related to the purchase of US$14.2bn worth of RMBS. A trial has been scheduled for 2 June 2014 (see also SCI 14 November).

    In denying most of Deutsche Bank's motion to dismiss, US District Judge Denise .......

    News Round-up 15 November 2012

  • Euro RMBS hits highs

    Activity in the European RMBS secondary market has been particularly strong over the last couple of days. Granite triple-B spreads - now at 82 - are at their best levels since the crisis. They began the year in the very-low 50s (SCI 26 January).

    "Yesterday a fairly large BWIC of non-conforming RMBS was circulating. The collateral was mezzanine third-pay and .......

    Market Reports 15 November 2012

  • Dutch mortgage changes welcomed

    A new coalition agreement between the two largest political parties in the Netherlands contains measures that will reduce leverage for new borrowers while existing Dutch borrowers' affordability remains largely unaffected, Moody's reports. The agreement calls for the introduction of an annuity repayment structure for new mortgages and a widening of the middle income tax band, combined with gradual reduction of .......

    News Round-up 15 November 2012

  • Intercreditor guidelines out for comment

    CREFC Europe's ICA Committee has released a consultation document entitled 'Guidelines for intercreditor agreements in UK commercial real estate finance transactions - 2013'. The guidelines have two key aims: to promote consideration of a common set of issues in intercreditor agreements; and to engender confidence in market participants that an acceptable arrangement between the different and frequently conflicting interests of .......

    News Round-up 15 November 2012
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