Complete news archive

  • Updated OTC solution rolled out

    Misys has released Summit FT Version 5.6, which is designed to accommodate the growing volumes of OTC trades being centrally cleared and to meet the latest requirements of both Dodd-Frank and EMIR. The update includes improved automation and regulatory reporting, and has been built with the flexibility to handle new regulations as they are defined, the firm says. New features .......

    News Round-up 15 October 2012

  • Colombian receivables programme debuts

    Alianza Valores has structured the first trade receivables securitisation in the Colombian market. Originated by Coltejer, the COP22bn public placement exceeded the pre-agreed minimum amount of COP20bn for the first tranche of an issue for an aggregate amount of COP35bn.

    The triple-A rated five-year revolving programme will be managed by Alianza Fiduciaria. It features daily reporting of Coltejer's commercial invoice .......

    News Round-up 15 October 2012

  • SCI Start the Week - 15 October

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

    Pipeline
    Two ABS entered the pipeline last week, with one RMBS, one CMBS and one CLO joining them. The ABS were student loan deals: US$344.6m EdLinc Student Loan Funding Trust 2012-1 and US$686.6m NorthStar Student Loan Trust I 2012-1.

    The RMBS was a UK buy-to-let deal (Paragon Mortgages No.17), the CMBS was a US$1.05bn multiborrower transaction (WFRBS Commercial Mortgage Trust 2012-C9) .......

    News 15 October 2012

  • Lebanese auto ABS launched

    Bemo Securitization (BSEC) has arranged an auto ABS for T. Gargour & Fils (TGF), the exclusive distributor for the Levant of Mercedes-Benz passenger and commercial vehicles, as well as other car brands. Dubbed TGF Star, the main purpose of the transaction is to enable the company to enhance the structure of its clients' portfolio, as well as create an off-balance .......

    News Round-up 15 October 2012

  • ABS gets CPO exemption

    The CFTC Division of Swap Dealer and Intermediary Oversight last week issued interpretative guidance letters to equity real estate investment trusts and asset-backed securities funds. The guidance states that such funds that meet certain criteria are not included within the definition of 'commodity pool' and their operators are not 'commodity pool operators' under the Commodity Exchange Act and the CFTC's .......

    News Round-up 15 October 2012

  • CMBS late-pays declining

    US CMBS delinquencies declined for the fourth straight month, according to Fitch's latest index results for the sector. CMBS late-pays fell by 2bp in September to 8.37% from 8.39% in August.

    Several notable loans were also paid in full this past month. While encouraging on the surface, a closer look reveals that they were paid off only after refinancing delays, .......

    News Round-up 15 October 2012

  • Reduced controlling class powers likely

    Individual classes of CMBS investors seem likely to lose the ability to appoint or replace special servicers, which should help the European primary market to re-emerge, according to Fitch. The agency notes that although the lack of a controlling class in the recent Florentia deal is unlikely to become a precedent, the industry is backing efforts to dilute the power .......

    News Round-up 15 October 2012

  • New approach considered for EM CDOs

    Moody's plans to revise its approach to rating emerging market (EM) CDOs. For cashflow transactions that are primarily backed by loans and bonds issued in emerging market countries, the agency is considering using the binomial expansion technology (BET) approach similar to that used to rate cashflow CLOs since June 2011.

    As is the case for cashflow CLOs, Moody's says it .......

    News Round-up 15 October 2012

  • Paragon to tap mezz demand

    Paragon is set to publicly place double-A and single-A rated notes in addition to the senior tranche in its latest buy-to-let RMBS - the first UK issuer to do so post-financial crisis. The move is being attributed to spread tightening, which is allowing issuers to place tranches lower in the capital stack.

    Rated by Fitch, Paragon Mortgages (No. 17) comprises .......

    News Round-up 15 October 2012

  • South African ratings hit

    Moody's has downgraded to A1 the ratings of 56 securities across 17 South African RMBS and ABS, prompted by the weakening of the South African government's credit profile. The agency recently downgraded South Africa's government bond rating to Baa1 from A3 and lowering its local currency ceiling to A1.

    Concurrently, Moody's has placed on review for downgrade the ratings of .......

    News Round-up 12 October 2012

  • Busy session seen in US CMBS

    It was a jam-packed session for US CMBS yesterday. Fixed rate and 2.0 bonds were circulating alongside very large chunks of recent-issue paper, with agency tranches even making an appearance, according to SCI's PriceABS BWIC data.

    Interactive Data figures put total CMBS BWIC volume for the session at US$557m, not including another US$2.9bn of new-issue IOs out for .......

    Market Reports 12 October 2012

  • ISDA makes board appointment

    Athanassios Diplas has been named a senior advisor to ISDA's board of directors. He was until recently global head of systemic risk management at Deutsche Bank.

    Diplas will work with the ISDA board and with ceo Robert Pickel, as well as other senior executives, on policy issues affecting the OTC derivatives markets. He will also continue to be involved with .......

    Job Swaps 12 October 2012

  • Spanish sovereign ceiling lowered

    S&P has taken various credit rating actions on 116 tranches in 87 Spanish securitisations. The move follows the lowering of its long-term sovereign rating on the Kingdom of Spain to triple-B minus from triple-B plus in light of the country's deteriorating economic conditions.

    Specifically, the agency has: lowered its ratings on 63 tranches in 51 RMBS; lowered its ratings on .......

    News Round-up 12 October 2012

  • State CRE price trends analysed

    Commercial real estate prices in the US political red states have recovered more robustly than those in blue states in the aftermath of the financial crisis, according to the latest Moody's/RCA CPPI report. Overall since 2000, however, prices have gained more in the blue states than they have in the red states.

    Moody's looked at the real estate price trends .......

    News Round-up 12 October 2012

  • Servicer risk mitigation matters

    Litigation activity involving borrowers in US CMBS is maintaining a steady level, despite the number of loans in special servicing fluctuating recently. The allegations being made are also broadly the same as they were in the past, according to Maria Blue Minsker, counsel at Alston & Bird. Borrowers continue to allege lender liability, as well as breach of fiduciary duty .......

    News 12 October 2012

  • FINRA's CDO charge settled

    FINRA has fined Guggenheim Securities US$800,000 for failing to supervise two CDO traders who engaged in activities to hide a trading loss. Guggenheim and the traders have neither admitted nor denied the charges but have consented to the entry of FINRA's findings.

    Alexander Rekeda, who was head of Guggenheim's CDO desk, was suspended for one year and fined US$50,000. Rekeda .......

    Job Swaps 12 October 2012

  • Full circle

    Agency CMBS could provide template for issuance

    The recently-priced Florentia agency CMBS has several striking features. It is being seen as a positive return to the early days of the European market and could provide a blueprint for future issuance.

    "Some of the first CMBS deals in Europe - such as Canary Wharf or Trafford Centre - were agency transactions, with the bank taking a fee for .......

    News Analysis 11 October 2012

  • Auto ABS performance indices launched

    Wells Fargo Securities has introduced auto ABS credit performance indices for prime and subprime auto ABS transactions. The indices calculate average default rates, net loss rates and loss severities at the sector level over time.

    The latest readings of the indices indicate that default rates are bottoming out, while net loss rates remain relatively low in both the prime and .......

    News Round-up 11 October 2012

  • Timeshare ABS criteria published

    Kroll Bond Rating Agency (KBRA) has released its methodology for rating US timeshare ABS transactions. The methodology incorporates an analysis of the quality and expected performance of the underlying collateral, the originator and servicer's business model and operational strength, and the transaction terms.

    KBRA's approach emphasises a focus on prevailing industry and credit trends, the integration of originator and servicer .......

    News Round-up 11 October 2012

  • APAC ratings remain stable

    Fitch reports that ratings of structured finance (SF) tranches in Asia Pacific were generally stable in 3Q12, with negative rating actions confined to Japan. A total of eight tranches were upgraded in the region during the quarter.

    "The predominance of affirmations in 3Q12 again attests to strong asset performance, particularly in Australia and South Korea, across multiple asset classes," comments .......

    News Round-up 11 October 2012

  • Credit opportunities fund minted

    BlueMountain Capital Management has closed the BlueMountain Credit Opportunities Master Fund I, its most recent and largest longer-dated credit fund, with over US$1.4bn in capital commitments. Credit Opportunities I will invest opportunistically to capture the large premium available in more complex and less liquid credit instruments.

    The fund will focus on corporate structured credit, such as CLOs and synthetic CDOs, .......

    News Round-up 11 October 2012
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