Complete news archive

  • Special servicing trends underlined

    LNR Partners remains the largest US CMBS special servicer by outstanding balance, but its impact in terms of year-to-date loan liquidations has been even greater than is suggested by its market share. LNR also accounts for the largest average liquidated loan size so far in 2012.

    According to FTN Financial figures, LNR Partners accounts for 37% of CMBS loan liquidations .......

    News 30 October 2012

  • Korean Covered Bond Act welcomed

    The Korean Financial Services Commission (FSC) last week published a draft Covered Bonds Act. The bill is expected to provide strong legal protections for the sector, as well as cover pool registration and an independent party to monitor the management of cover pools.

    Similar to the covered bonds laws in other jurisdictions, the bill clearly specifies the dual recourse nature .......

    News Round-up 30 October 2012

  • UBS launches balance sheet overhaul

    UBS has announced plans to become "less capital and balance-sheet intensive", by cutting an estimated 10,000 jobs and winding down certain fixed income business lines. Among the aims outlined in the plan is a reduction of Basel 3 risk-weighted assets (RWAs) in the bank's legacy portfolio to approximately Sfr25bn by end-2017.

    "By concentrating on its traditional strengths in advisory, research, .......

    Job Swaps 30 October 2012

  • GRAND refi seen as distressed exchange

    Moody's has determined that the proposed restructuring of the German Residential Asset Note Distributor (GRAND) CMBS would constitute a distressed exchange for the class D, E and F notes. The move follows the release last week of final heads of terms for the refinancing and the launch of a lock-up solicitation (see SCI's loan events database for more).

    News Round-up 30 October 2012

  • Schron note sale scheduled

    An estimated US$500m of CMBS loans will be up for bid on Auction.com in November, spread across four auctions, according to MBS analysts at Barclays Capital. The note sales include five properties from the US$340m Schron Industrial Portfolio, securitised in GCCFC 2005-GG5, which carry an allocated loan balance of about US$45m.

    Six of the thirteen properties from the US$127m Trinity .......

    News Round-up 30 October 2012

  • NorthStar CMBS slammed

    Fitch has released an unsolicited comment on NorthStar 2012-1 Mortgage Trust, the first US CMBS backed by transitional collateral. The agency says that the US$351m transaction, which priced last week at a weighted average coupon of 163 over Libor, lacks sufficient credit enhancement to achieve triple-A ratings.

    While approached to provide feedback on NorthStar 2012-1, Fitch was ultimately not asked .......

    News Round-up 30 October 2012

  • TFG makes affiliate acquisition

    Tetragon Financial Group has acquired Polygon Management's asset management business and its interests in LCM Asset Management and GreenOak Real Estate. The acquisition is part of Tetragon's ongoing strategy to expand its asset management platform.

    The Polygon acquisition includes the London and New York asset management businesses and infrastructure platform as well as Polygon's 25% stake in LCM and 13% .......

    Job Swaps 30 October 2012

  • Argentine sub-sovereign deals downgraded

    Moody's has downgraded the ratings of five Argentine securitisations linked to sub-sovereign entities. The move follows its downgrade of the ratings of Argentine provinces and municipalities on 17 October.

    The rating action affects: Fideicomiso Financiero de Infraestructura Electrica - Serie I and III; Fideicomiso Financiero Programa Federal Plurianual de Construcción de Viviendas - Provincia del Chaco - Serie I and .......

    News Round-up 29 October 2012

  • Re-REMIC ratings hit

    S&P has initiated 2,847 credit watch placements on 205 US RMBS re-REMIC transactions, with a par amount of US$46.65bn. The move follows the implementation of the agency's revised criteria for the surveillance of pre-2009 RMBS and subsequent credit watch actions on pre-2009 US RMBS classes (SCI passim).

    In total, S&P has placed its ratings on: 2,775 classes from 203 re-REMICs, .......

    News Round-up 29 October 2012

  • Liquidity management service offered

    Calypso Technology has launched a new liquidity management solution that aims to enable financial institutions to comply with Basel 3 liquidity standards. The treasury system provides intraday, short-term and long-term liquidity management capabilities, in addition to extensive cash management functionality, the firm says.

    The Calypso solution is designed to address two key challenges facing treasuries when managing and forecasting liquidity. .......

    News Round-up 29 October 2012

  • EU urged to uphold investor choice

    ISDA has welcomed last Friday's European Parliament vote on proposed amendments to MiFID and its accompanying regulation MiFIR. The vote paves the way for negotiations between the Parliament, Council and Commission, which will ultimately lead to the adoption of final MiFID/MiFIR rules.

    ISDA believes that many of the changes put forward by the Parliament support the ambitions behind the review .......

    News Round-up 29 October 2012

  • Moorestown Mall watchlisted

    Morningstar has added the US$53.8m Moorestown Mall loan - securitised in LBUBS 2003-C7 - to its watchlist, due to a decline in the net cashflow debt service coverage ratio (NCF DSCR). The NCF DSCR fell below breakeven through 2Q12.

    For the six-month period ended 30 June, the NCF DSCR was 0.82, with net cashflow of US$1.7m. Occupancy was reported at .......

    News Round-up 29 October 2012

  • Multi-disciplinary approach

    Hansol Kim, md in FTI Consulting's structured finance practice, answers SCI's questions

    Q: How and when did FTI Consulting become involved in the securitisation market?
    A:     FTI is a multi-disciplinary consulting firm that is well known in the restructuring world, which falls under our corporate finance group. But we also have robust and established practices in forensic and litigation, economic, strategic communications and technology consulting. I run the .......

    Provider Profile 29 October 2012

  • CMBS default rates stabilising

    The cumulative default rate for fixed-rate US CMBS increased slightly to 13.5% during 3Q12 from 13.2% the previous quarter, according to Fitch. New defaults for 3Q12 totalled US$2.2bn across 119 loans, compared with US$2.1bn across the same number of loans in Q2.

    The agency notes that the pace of new issuance - which increased almost three-fold compared to the start .......

    News Round-up 29 October 2012

  • SCI Start the Week - 29 October

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

    Pipeline
    Last week was fairly busy for the pipeline, although ABS was in the minority, with only one new deal announced. An RMBS, two CMBS and four CLOs also hit the market.

    The ABS deal was Silverleaf Finance XV series 2012-D, a US$191.258m timeshare securitisation. The RMBS was the Russian RUB2.4bn Mortgage Agent ITB 1.

    The CMBS deals entering the pipeline .......

    News 29 October 2012

  • A-to-E success highlighted

    An estimated US$67bn of CLO amend-to-extends (A-to-Es) were completed by end-3Q12 in the US, compared to US$53bn during all of 2011. Such activity has helped push the bulk of loan maturities out into 2017 and 2018.

    Bank of America Merrill Lynch figures put the amount of loans coming due in 2013 and 2014 as US$10bn and US$56bn respectively, down significantly .......

    News Round-up 26 October 2012

  • CMBS prepay potential examined

    With continued improvements in US commercial real estate liquidity and price transparency, not only will many more problem CMBS loans begin to be resolved, but several other dynamics could also be set in motion. AM and cuspier AJ tranches are expected to outperform in such a scenario.

    One dynamic that could be set in motion is that because fewer loans .......

    News 26 October 2012

  • Further credit watches resolved

    S&P has lowered its ratings on 406 classes - 238 by more than three notches - from 65 US RMBS, while removing 381 of them from credit watch with negative implications and 16 from credit watch with developing implications. The agency also raised its ratings on 29 classes from 11 transactions, while removing three of them from credit watch with .......

    News Round-up 26 October 2012

  • Market seizes credit card paper

    Secondary US ABS supply took off yesterday. SCI's PriceABS BWIC data shows that a number of credit card ABS tranches were covered at tight levels during the session.

    The tightest level was achieved for Banc One Capital Markets' BOIT 2003-A4 A4 tranche, which was covered at 2bp over Libor. The widest level in the PriceABS archive was seen .......

    Market Reports 26 October 2012

  • Up-tick for FFELP consolidation prepays

    The effects of a short-term White House plan intended to relieve some pressure on student borrowers are starting to surface in the student loan ABS sector. Fitch believes an up-tick in consolidation prepayments in some recent FFELP transactions is largely the result of students taking advantage of the Direct Loan Consolidation Program that President Obama invoked by executive authority in .......

    News Round-up 26 October 2012

  • ABS CDO manager replaced

    Ramius Structured Credit Group has replaced NIBC Credit Management as collateral manager for Belle Haven ABS CDO 2005-1. Moody's has determined that the move will not result in the withdrawal, reduction or other adverse action with respect to the deal's ratings. In reaching its conclusion, the agency considered the experience and capacity of the replacement manager.

    .......

    Job Swaps 26 October 2012
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