Complete news archive

  • Spanish stress test results in

    Oliver Wyman has released the results of its detailed stress tests of the Spanish banking sector, revealing a capital need of €59.3bn under the stressed scenario, in line with market expectations. This capital need falls to €53.75bn after mergers and deferred tax assets are taken into account.

    According to the results, seven banks would require capital injections: Bankia/BFA, Catalunyabank, NCG .......

    News Round-up 1 October 2012

  • Margin re-think required

    ISDA has released a comment letter in response to the BCBS-IOSCO Consultative Document 'Margin Requirements For Non-Centrally Cleared Derivatives', endorsing the collection of variation margin (VM) between covered entities as a means to promote systemic resiliency. However, the association believes that the current margin proposals raise a number of key issues that effectively undermine the stated objectives of the BCBS-IOSCO .......

    News Round-up 1 October 2012

  • Loans in special servicing decline

    After reaching a high-water mark of US$92bn in June 2010, the balance of US CMBS loans in special servicing fell to US$80.5bn through June of this year, according to Fitch. Loans are also spending more time in special servicing.

    The number of months for loans in special servicing has increased to over 18, as of June 2012, the agency says. .......

    News Round-up 1 October 2012

  • Rent regulation complicating workouts

    Several large rent-regulated US multifamily CMBS loans could see long resolution processes and uncertain workout outcomes, according to CMBS strategists at Citi. Limited disclosure on specific rent regulation complicates valuing and projecting financials for such properties.

    The Citi strategists warn that the US$195m New York City Apartment Portfolio (securitised in MSC 2007-IQ14) and the US$133m Three Borough Pool (WBCMT 2007-C33) .......

    News 28 September 2012

  • Credit card paper in demand

    Secondary US ABS market activity picked up yesterday from the previous session. Of note, a handful of senior credit card bonds were covered in size at par or over.

    The largest slugs of paper to circulate were legacy Bank of America Credit Card Trust issues. SCI's PriceABS BWIC data shows that US$100m slices each of BACCT 2006-A14 A14 .......

    Market Reports 28 September 2012

  • Unusual exchange offer unveiled

    Banco Santander Totta has announced an unusual exchange offer for investors in three senior tranches of its RMBS, as part of a liability management exercise. The lender is proposing to switch holders of the HIPOT 1 A, 4 A and 5 A2 bonds into a Santander covered bond (SANTAN Float 01/12/14).

    The RMBS were previously tendered by the originator in .......

    News 28 September 2012

  • Margin comment period reopened

    The US federal banking regulatory agencies have reopened the comment period on the Dodd-Frank rule establishing margin and capital requirements for swap dealers, major swap participants, security-based swap dealers and major security-based swap participants. The comment period - which originally ended on 11 July 2011 - was reopened to 26 November 2012 to allow interested parties more time to analyse .......

    News Round-up 28 September 2012

  • MBS coverage boosted further

    Gleacher & Company Securities has hired Mark Ginsberg and Felix Partow as mds in its MBS and rates division. The pair will be based in the firm's New York office.

    Ginsberg previously served as md on the MBS trading desk at Sandler, O'Neill + Partners, where he structured and traded new-issue CMOs and mortgage derivatives for the firm. Over the .......

    Job Swaps 28 September 2012

  • EMIR standards released

    The European Securities and Markets Authority (ESMA) has published its technical standards on the Regulation on OTC derivatives, central counterparties and trade repositories (EMIR), which set out the specific details of how EMIR's requirements are to be implemented. They have been sent to the European Commission for their adoption as EU regulations.

    The standards define the details of derivatives transactions .......

    News Round-up 28 September 2012

  • Structured credit group formed

    Imperial Capital has formed a structured credit group and recruited Keith Grimaldi to oversee it. He joins as md and head of structured credit trading in the firm's New York office, reporting to Tom Corcoran, president of Imperial Capital.

    The new unit will concentrate on the trading and distribution of structured credit-related securities globally, with an initial focus on CLOs .......

    Job Swaps 28 September 2012

  • G-fee hike to slow NY prepays

    The FHFA is seeking to increase GSE guarantee fees for single-family mortgages that they acquire in five states - Illinois, Connecticut, Florida, New Jersey and New York. Such state level pricing not only marks a change from the desire to smooth out regional differences in mortgage pricing, but also indicates that certain local factors - such as foreclosure timelines - .......

    News 27 September 2012

  • Canadian card ABS gains traction

    Year-to-date new issue activity from Canadian-domiciled credit card ABS sponsors has reached C$7.1bn, a level not observed since 2008, according to S&P. Cross-border transactions have accounted for approximately 60% of total new issuance in 2012 - a trend that it is expected to continue.

    "In our opinion, strong US investor interest in Canadian receivables, coupled with a relative funding cost .......

    News Round-up 27 September 2012

  • Unicredit tender results in

    Unicredit has published the results for all bonds subject to its recent tender (SCI 12 September), apart from four Cordusio tranches - CORDR 1 C, 2 C, 4 C and 4 D - whose offer deadline has been extended to today. The bank accepted €571.96m nominal value of notes out of the €985.75m offered via an unmodified Dutch auction. Average .......

    News Round-up 27 September 2012

  • Risk transfer study published

    TABB Group has released a benchmark study commissioned by the World Federation of Exchanges (WFE), entitled 'The New Global Risk Transfer Market: Transformation and the Status Quo'. One of its findings is that margin shortfall in OTC derivatives trading reached an estimated US$2.6trn at end-2011, a cost that could be reduced to several hundred billion dollars based on product selection .......

    News Round-up 27 September 2012

  • Trio join due diligence firm

    Rockstead has recruited three new staff to help drive its expansion plans. Country managers have been appointed in Ireland and Spain, and the firm's sales capability has been strengthened.

    Paula ter Brake will represent the business from the recently opened office in Dublin and Alberto Goldar will do the same from the Madrid office. Ter Brake has 16 year's experience .......

    Job Swaps 27 September 2012

  • Pearsanta claim struck out

    The proceedings in the High Court of England initiated by Pearsanta, the junior lender in the Alburn Real Estate Capital (REC 6) CMBS (SCI 27 June), have been struck out without further order of the Court. The move follows Pearsanta's failure to pay the joint defendants a second instalment of security for costs on 31 August.

    An initial procedural hearing .......

    News Round-up 27 September 2012

  • Euro RMBS switch touted

    European ABS analysts at JPMorgan have moved to neutral from being overweight senior UK prime RMBS, following the significant rally in spreads since the start of 2012 (SCI 24 September). However, they maintain overweight recommendations for UK prime double-As, single-As and triple-Bs generically at 140, 185 and 235 respectively.

    "Despite our less positive recommendation on UK prime seniors, we do .......

    News Round-up 26 September 2012

  • SEF aggregation analysed

    GreySpark Partners has published 'SEF Aggregation: Approaches, Pitfalls and Solutions', the final report of a three-part series on the swap execution facility (SEF) landscape. This study outlines the impact on business and trading models as a result of the nascent SEF marketplace, presenting the pitfalls and solutions to consider for participants faced with increasingly fragmented liquidity.

    The report argues that .......

    News Round-up 26 September 2012

  • CMBS note sales scheduled

    US$1.15bn of CMBS loans across 130 properties are slated for sale via Auction.com for the rest of this month and into October. Such activity could lead to quicker-than-expected pay-downs in the next few months, particularly for front cashflows.

    The largest loan up for auction is the US$67.9m One & Two Securities Centre securitised in CGCMT2006-C5. The starting bid is US$20m .......

    News Round-up 26 September 2012

  • EMEA special servicing activity examined

    A single EMEA CMBS loan - the €16m Monheim loan securitised in Juno (Eclipse 2007-2) - was transferred to special servicing in August, due to non-payment at maturity. The weighted average Moody's expected principal loss for loans in special servicing now stands at 39%, according to its monthly update on the sector, with 139 loans currently in special servicing.

    Highlights .......

    News Round-up 26 September 2012

  • Reg cap pro hired

    Matthew Cahill is joining Sidley Austin in early November as a partner in its global finance practice. He focuses his practice in liability and capital management transactions, structured finance, restructurings and securitisation.

    Cahill is returning to London after practising as a structured finance and capital markets partner at Clifford Chance in its Abu Dhabi office, and previously in its London, .......

    Job Swaps 26 September 2012
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