Complete news archive

  • Managed NPL deal prepped

    Further details have emerged about Oaktree Capital Management's non-performing loan CMBS (SCI 19 August). Dubbed ORES NPL series 2012-LV1, the transaction will be managed by Sabal Financial Group.

    The deal - which is arranged by JPMorgan - comprises a US$195m single tranche of notes rated triple-B minus by Fitch. The pool consists of 615 performing and non-performing real estate secured .......

    News Round-up 10 September 2012

  • Call for Volcker Rule overhaul

    SIFMA has sent a letter to Representative Spencer Bachus, chairman of the House Financial Services Committee, in response to his request for comment on legislative alternatives to the Volcker Rule. The letter was co-signed by the Financial Services Roundtable.

    "The far-reaching consequences of the Volcker Rule demand a thorough analysis of the costs and benefits of the current statutory text, .......

    News Round-up 10 September 2012

  • Solid fundamentals

    Umang Vithlani* highlights a sterling bond versus 10-year CDS basis trade idea

    Iberdrola is a Spanish-based vertically integrated utility, with activities in generation (including significant renewable), transmission, distribution and supply throughout Spain, the UK, the US and Latin America. Since 2007, the firm has expanded its global footprint through a series of acquisitions, including UK-based Scottish Power for €17.1bn in 2007, US-based Energy East for €6.2bn in 2008 and Brazilian distribution company .......

    Research Notes 10 September 2012

  • Refi progress boost for GRAND

    Most of the revised transaction documents have been settled between Deutsche Annington (DAIG) and the advisors to the ad-hoc group of noteholders in connection with the proposed GRAND restructuring. The news boosted secondary market prices for the CMBS, with SCI's PriceABS BWIC data showing that a €43m slice of the GRND 1 C tranche was covered at 93.78 .......

    News Round-up 10 September 2012

  • SEF technology issues examined

    In the second of a three-part series on the swap execution facility (SEF) landscape (see also SCI 26 July), GreySpark Partners examines the technology considerations and challenges for businesses in terms of connecting to these venues. 'SEFs: the Technology Landscape' predicts how the network connectivity for both the buy-side and sell-side is set to look and provides key recommendations for .......

    News Round-up 10 September 2012

  • SCI Start the Week - 10 September

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

    Pipeline
    The pipeline grew considerably last week, with several new deals announced. Despite the shorter week in the US, eight ABS, an RMBS, a CMBS and two CLOs were added before the week was out.

    Alaska Student Loan Corp Series 2012A, 2012B-1 and 2012B-2 (sized at US$54.42m, US$78.4m and US$15m respectively) kick off the ABS that hit the market last week. .......

    News 10 September 2012

  • Fixed income head hired

    Margaret Kerins has joined BMO Capital Markets as md and head of fixed income strategy. The firm's global fixed income platform includes ABS, RMBS, municipals, derivatives and covered bonds.

    Kerins will also oversee BMO's strategic analytics group. She was most recently at RBS and has previsouly worked at Bank One, ABN Amro and the Illinois Department of Financial and Professional .......

    Job Swaps 10 September 2012

  • ICP settlement finalised

    ICP Asset Management and its founder and president Thomas Priore have agreed to settle the US SEC's charges that they defrauded several CDOs they managed. A settlement in principle had been agreed last month (SCI 17 August).

    ICP, Priore and related entities have agreed to pay more than US$23m. It settles charges that they engaged in fraudulent practices and misrepresentations .......

    Job Swaps 10 September 2012

  • Leveraged vet joins credit manager

    Tom Newberry has joined CVC Credit Partners as senior md and head of the group's private funds business. He will be based in New York.

    Newberry joins from Credit Suisse, where he was head of global leveraged finance capital markets and syndicated loans. Before that he was at Donaldson, Lufkin & Jenrette as head of US loan capital markets and .......

    Job Swaps 10 September 2012

  • Up and coming

    Housing recovery boosts non-agency RMBS

    Economic indicators increasingly suggest that the US housing market has bottomed and begun to recover. While both agency and non-agency RMBS will benefit, it is non-agency where the opportunities for yield are strongest.

    The latest CoreLogic home price index update shows month-over-month home price appreciation of 16.3% for July, with year-over-year price growth at 3.8%, which is the biggest increase .......

    News Analysis 7 September 2012

  • EOD for mezz SME CLO

    HEAT Mezzanine I-2005 class B1, B2 and junior notes remain unpaid on their scheduled maturities, with principal amounts outstanding of €3.41m, €1.13m and €28.50m respectively. As such, an event of default has been declared on the transaction.

    Class B1 and B2 noteholders now constitute the controlling class. The trustee currently doesn't intend to accelerate the notes or enforce security over .......

    News Round-up 7 September 2012

  • New issues rule ABS bid-lists

    US ABS secondary market volumes have fallen off from the start of the week, with only a few lists being circulated yesterday. Auto continues to be the most active sector (SCI 31 August), accounting for more than one-third of supply during the session. Interactive Data notes that new issue paper was mostly out for the bid.

    SCI's PriceABS BWIC data .......

    Market Reports 7 September 2012

  • CLO manager fees recovering

    Moody's Analytics has published the first of a two-part series on US CLO fees. The study finds that fee levels have recovered post-crisis, following the resumption of active issuance in 2010.

    The study begins by analysing senior collateral management fees (SCMFs), which are typically received before the senior-most tranche but after administrative expenses and hedge payments. Moody's database of payments .......

    News 7 September 2012

  • Adverse selection hits pre-2005 RMBS

    One of the strongest US residential mortgage vintages is now increasingly susceptible to rating downgrades, according to Fitch. The agency points to adverse selection as the main factor behind this.

    Prime RMBS deals that were originated prior to 2005 have historically performed well. Principal losses are well below 1% among the roughly US$650bn in pre-2005 Fitch-rated prime RMBS. Additionally, over .......

    News Round-up 7 September 2012

  • Drilling rig risks outlined

    Fitch has published a report outlining the risks and mitigants associated with drilling rig financing transactions. The move comes as new vessels arrive in Brazilian waters.

    "With the discoveries of presalt layer reserves in offshore Brazilian waters and Petrobras's US$236.5bn four-year investment plan, there has been increased demand for drilling rig assets," says Bernardo Costa, a senior director in Fitch's .......

    News Round-up 7 September 2012

  • Benchmark consultation launched

    Following the recent manipulation of Libor, the European Commission has launched a consultation - which will run until 15 November - on possible new rules for the production and use of indices serving as benchmarks in financial and other contracts. It says it is essential that steps are taken to ensure the integrity of benchmarks and the benchmark-setting process.

    Commissioner .......

    News Round-up 7 September 2012

  • NCUA files fresh RMBS suit

    The NCUA has filed suit against UBS Securities in Federal District Court in Kansas, alleging misrepresentations in the sale of RMBS to US Central Federal Credit Union (US Central) and Western Corporate Federal Credit Union (WesCorp). US Central and WesCorp paid more than US$1.1bn for the securities and each subsequently failed.

    NCUA's complaint alleges UBS made misrepresentations and omissions in .......

    Job Swaps 7 September 2012

  • New CMBS criteria unleashed

    S&P has issued two criteria articles it will use to rate US and Canadian CMBS: a methodology for deriving credit enhancement levels; and global property evaluation criteria. The move follows the agency's request for comment on the proposals in June (SCI 6 June) and has resulted in 744 classes from 188 CMBS being placed on credit watch.

    The criteria are .......

    News Round-up 6 September 2012

  • CMBS spreads, activity increasing

    After finding their feet on Tuesday, the US secondary market took off yesterday. SCI's PriceABS BWIC data reached 500 line items for the session, with some interesting developments in CMBS.

    Trepp notes that CMBS spreads were flat to marginally tighter yesterday, with bid-list volume rising to about US$270m. It adds that the bellwether GSMS 2007-GG10 A4 tranche finished .......

    Market Reports 6 September 2012

  • CMBS loan pay-offs rebound

    The percentage of US CMBS loans paying off on their balloon date rebounded sharply in August from the previous month's dismal reading of 26%, according to Trepp's latest pay-off report. Last month 49.6% of loans reaching their balloon date paid off.

    In many ways, the improving pay-off rate was to be expected, Trepp says. For the first half of the .......

    News Round-up 6 September 2012

  • GGP refis announced

    GGP has closed US$1.5bn of new financing on seven properties across the US. Two of the properties have outstanding CMBS debt and are expected to see pay-offs in the near term.

    One of these properties - Glendale Galleria - backs a US$111.4m loan securitised in MLMT 2005-LC1 and another US$125.7m loan in MLMT 2005-CKI1. The other property - Rogue Valley .......

    News Round-up 6 September 2012
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