Complete news archive

  • Card charge-offs continue to decline

    US securitised credit card charge-offs decreased to 4.11% in September from 4.19% in August, according to Moody's Credit Card Indices. The agency expects the charge-off rate index to continue declining modestly.

    "This month's improvement continues the steady declines since charge-offs peaked in the first quarter of 2010," comments Jeffrey Hibbs, a Moody's avp and analyst. "In September, the strong credit .......

    News Round-up 22 October 2012

  • RBA preps loan-level requirements

    The Reserve Bank of Australia is introducing new eligibility criteria for RMBS in its operations. Issuers of RMBS will be required to provide more detailed information than is currently the case. The new information covers both transaction-related data as well as information on the underlying assets.

    Currently, the information required by the Reserve Bank for RMBS to be repo-eligible is .......

    News Round-up 22 October 2012

  • SCI Start the Week - 22 October

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

    Pipeline
    Six new deals were announced last week that still remain in the pipeline. Half of those were ABS transactions, but there was also an RMBS and two CLOs.

    The ABS comprised €578m Cars Alliance Auto Loans France V 2012-1, US$471m Edsouth Indenture No.3 Series 2012-2 and Glacier Credit Card Trust series 2012-2, a Canadian credit card deal. The RMBS was .......

    News 22 October 2012

  • FDIC structured sale closed

    The FDIC has closed the fourth sale in its Small Investor Program, involving a competitive bidding process for an equity interest in a limited liability company. The LLC was formed by the FDIC in its receivership capacity to hold certain assets of the failed Tennessee Commerce Bank, which was closed on 27 January.

    The FDIC placed a pool of 93 .......

    News Round-up 22 October 2012

  • CLO secondary supply surges

    CLO secondary supply spiked yesterday, with 12 bid-lists reported to be circulating. That increased volume is reflected in SCI's PriceABS BWIC data, which displays 180 CLO line items for the session.

    A comprehensive range of names were being shown yesterday, running the gamut from 2002-vintage paper to deals issued only this year. Bonds came from both the US .......

    Market Reports 19 October 2012

  • RMBS restructuring proposed

    NIBC is convening a noteholder meeting on 7 November to vote on restructuring proposals for Sound 1. An extension of the first optional redemption date by 12 months to November 2013 is being proposed, as well as an increase on the class A margin to 110bp from the original sep-up date and the other notes to increase to the original .......

    News Round-up 19 October 2012

  • ECB collateral eligibility extended

    The ECB has published details of the latest extension to its collateral eligibility requirements. The central bank will allow US dollar-, sterling- and Japanese Yen-denominated collateral to be used in its monetary operations from 9 November. The relevant haircuts are 16% for US dollar and sterling securities, and 26% for those denominated in Japanese Yen.

    .......

    News Round-up 19 October 2012

  • A cultural priority

    Counterparty risk management practices discussed

    Representatives from Fitch Solutions last month discussed credit and counterparty risk management practises in a live webinar, hosted by SCI (view the webinar here). Topics included data requirements and integration, as well as how CVA is being incorporated into risk management frameworks. This Q&A article highlights some of the main talking points from the session.

    Q: What are .......

    News Analysis 19 October 2012

  • Muni coverage added

    Numerix has released version 2.1 of Numerix LiquidAsset, its OTC derivatives pricing service. The offering introduces new support for municipal derivatives and securities.

    "Clients now have the broad muni coverage and sophisticated functionality needed to price their muni portfolios in totality. Advisors are better equipped to document and explain the various risks tied to muni derivatives and muni issuers can .......

    News Round-up 19 October 2012

  • MSR data service unveiled

    Kamakura Corporation has begun publishing a simple and transparent yield curve data series for the valuation of mortgages and mortgage servicing rights (MSRs). The offering is designed to overcome a number of serious flaws in the conventional wisdom for mortgage and MSR valuation, the firm says. These are: reliance on the manipulated Libor swap curve; use of inconsistent models for .......

    News Round-up 19 October 2012

  • ABS CDO transfer due

    ING Global Investment Strategies is set to transfer the collateral administrator agreement for the Ajax Two CDO to Dock Street Capital Management. Moody's notes that the transfer won't result in a downgrade or withdrawal of the deal's ratings. A US$6m slice of the transaction's C tranche was being shown in the secondary market yesterday, but did not trade, according to .......

    Job Swaps 19 October 2012

  • LMI approach updated

    Moody's has published its updated approach for evaluating lender's mortgage insurance (LMI) for Australian RMBS, following the receipt of market feedback on the proposed changes (SCI 31 May). At the same time, the agency has placed on review for downgrade the Aa2 rated class B notes issued by Crusade Euro Trust No. 1E.

    LMI results in the need for less .......

    News Round-up 19 October 2012

  • CRE vet to lead SF team

    Fred Harmeyer has joined Cushman & Wakefield as senior md and head of capital markets for the eastern US. He will be based in New York.

    In his new role Harmeyer will oversee the debt and structured finance, equity, sales and acquisitions, corporate finance and investment banking businesses for the region. He will also work with Steve Kohn to grow .......

    Job Swaps 19 October 2012

  • Magnetar appoints investment duo

    Magnetar Capital has hired Carlos Mendez and Josh Eaton for its fixed income group. They will help source, structure and evaluate investment opportunities for the firm, with a focus on illiquid credit and special situations investments.

    Mendez was previously head of the structured finance group at Sandler O'Neill. Eaton was md in the same group. Both Mendez and Eaton are .......

    Job Swaps 19 October 2012

  • Second PPIF liquidated

    AllianceBernstein has become the second firm to liquidate its PPIP fund, following Invesco's move in Q1 (SCI 2 May). The fund returned a profit of US$474m to the US Treasury, reflecting an 18.7% annualised return over three years.

    Among the remaining six PPIFs, AG GECC PPIF Master Fund had returned 30% of the US$4.4bn invested by end-Q2, while all others .......

    News Round-up 18 October 2012

  • Short sale restrictions to hurt CDS liquidity

    New EU regulations governing short selling of EU equities, sovereign bonds and sovereign CDS will come into force on 1 November (SCI passim). Recent changes to the application of the rules are expected to negatively impact liquidity across a number of EU financial instruments. In particular, the correlation test for sovereign CDS has been made more restrictive, the availability of .......

    News 18 October 2012

  • CLO analytics strengthened

    Codean has released Codean CLO Analytics version 3.0. The update provides amend-to-extend functionality, as well the ability to model reinvestment in a way that reflects actual asset manager behaviour, the firm says. It also allows users to run portfolio-of-deals analytics and incorporates other new features, such as multiple assumption sets.

    .......

    News Round-up 18 October 2012

  • Spanish bad bank progresses

    The Spanish 'bad bank' is to begin operations on 19 November. Dubbed Sareb, the vehicle will absorb up to €90bn in troubled assets. A decree creating the entity is set to be adopted by the Spanish government on 16 November.

    .......

    News Round-up 18 October 2012

  • Tightening seen in sovereign CDS

    CMA has released its 3Q12 global sovereign debt credit risk report, in which it names the top-ten most and least risky sovereigns, as well as the best and worst performers. Globally, sovereign CDS spreads tightened during the quarter, with only Tunisia widening significantly (by 16%).

    European sovereign CDS rallied significantly, with volumes in Italy, France, Spain and Germany leading the .......

    News Round-up 18 October 2012

  • ResCap trial scheduled

    A trial start date of 14 January 2013 has been set in connection with ResCap's proposed US$8.7bn settlement with 392 RMBS trusts. The trial is expected not to last beyond 17 January.

    US Bankruptcy Judge Martin Glenn is set to allot 12 hours of the trial to supporters of the RMBS settlement - including ResCap, Ally Financial and the institutional .......

    News Round-up 18 October 2012

  • Aussie delinquencies set to stabilise

    Moody's expects Australian mortgage delinquencies to stabilise, after a slight decline over the last 12 months. Regional disparity persists, however.

    "In Australia, 30-plus day delinquencies have not fallen as much as had been expected from a 100bp cut in the Reserve Bank of Australia's (RBA) official cash rate between November and May this year, because the banks have not passed .......

    News Round-up 18 October 2012
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