Complete news archive

  • Aussie, Japanese RMBS compared

    In response to increasing numbers of enquiries from Japanese investors with respect to Australian RMBS and how they compare with Japanese RMBS, S&P has published a report consolidating some key observations of these two markets. Despite significant differences, the performance of underlying mortgage loans and RMBS ratings in both countries has remained generally robust in the face of the slow .......

    News Round-up 3 September 2012

  • Synthetic infrastructure trade completed

    NordLB has placed the mezzanine tranche of a risk transfer trade, dubbed Blue Rock, with a single institutional investor. The transaction provides credit protection on a £307m portfolio of 20 high grade UK infrastructure loans.

    "With Blue Rock, we are responding to the growing demand among institutional investors for asset-backed capital market products," comments Hinrich Holm, NordLB managing board member .......

    News Round-up 3 September 2012

  • SCI Start the Week - 3 September

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

    Pipeline
    The pipeline saw limited activity last week, with three new deals announced. These deals were a A$750m Australian RMBS (Apollo Series 2012-1 Trust), a French consumer loan ABS (FCT COPERNIC Compartment COPERNIC 2012-1) and a UK auto loan deal (Motor 2012).

    Pricings
    A fair mix of new issuances priced during the week, comprising two ABS, one RMBS, two CMBS and three .......

    News 3 September 2012

  • CLO managers replaced

    Two European CLOs - Axius European CLO and Neptuno CLO III - have had changes made to their collateral management agreements. 3i Debt Management Investments has replaced Invesco Senior Secured Management as manager on the former deal, while Bankia has resigned as lead investment manager on the latter. Cohen & Company Financial (formerly known as EuroDekania Management), in its capacity .......

    Job Swaps 31 August 2012

  • Technical rating action panned

    In a move that has been described as nonsense given the deal's low LTV and material outperformance, Fitch has placed the triple-A ratings of the Annington Finance No. 4 class A notes on rating watch negative. The agency says it is concerned about the transaction's structure, in particular the timing of bond maturities in relation to the loan due date.

    News 31 August 2012

  • Auto paper fuels secondary activity

    European auto ABS proved the flavour of the day yesterday as a succession of bonds achieved covers over 100 in the secondary market, encouraging US traders to also start showing auto paper. SCI's PriceABS BWIC data captured a mix of new and familiar names for the session, with some interesting patterns emerging.

    Market sources indicate that the activity .......

    Market Reports 31 August 2012

  • New CDO manager sought

    Blackrock has been removed as collateral manager of Toro ABS CDO II. Under the transaction's collateral management agreement, the manager may be removed without cause upon 90 days' prior written notice at the direction of holders of a majority-in-interest of preference shareholders. However, the removal of Blackrock shall not be effective until a successor collateral manager that satisfies the replacement .......

    Job Swaps 31 August 2012

  • GRAND ratings impact explored

    Fitch says that the proposed amendments to the GRAND CMBS (SCI 10 July) are likely to have a neutral to positive impact on the ratings. Following preliminary analysis of the publicly available information, the agency has confirmed that it doesn't view the proposed amendments as constituting a distressed debt exchange. It believes the changes are not being implemented to avoid .......

    News Round-up 31 August 2012

  • FATCA implications examined

    The forthcoming US Foreign Account Tax Compliance Act (FATCA) could have wide-ranging implications for global structured finance transactions, Fitch says. In particular, the FATCA status of SPVs and counterparties handling payments will be a key issue. Under current plans, withholding tax would apply on relevant interest payments from January 2014 and relevant principal payments from January 2015.

    The Act is .......

    News Round-up 31 August 2012

  • 'Foreclose and file' tactics exposed

    A bankruptcy auction of the remaining MSR Resorts properties, currently scheduled for 25 October, is expected to pay off the entire outstanding CMBS debt. The case highlights what happens when a mezzanine lender succeeds to foreclose and file, and is provided with an extensive exclusivity period.

    The proposed auction includes a stalking horse bid from Government of Singapore Investment Corp .......

    News 30 August 2012

  • ABS CDO auction due

    An auction has been scheduled for Capital Guardian ABS CDO I on 19 September. The collateral will only be sold if the proceeds equal an auction call redemption amount.

    .......

    News Round-up 30 August 2012

  • Sprint Data Center payoff expected

    Morningstar has added the US$52.8m Sprint Data Center loan, securitised in the MLCFC 2006-1 CMBS, to its watchlist ahead of the 1 October anticipated repayment date (ARD). The loan is collateralised by a 160,000 square-foot class A data centre built in 2001 in Silicon Valley.

    For the 12-month period ended 31 December 2011, the net cashflow debt service coverage ratio .......

    News Round-up 30 August 2012

  • CMBS structurer comes back

    Raul Orozco has rejoined Citi as vp in New York, four years after his first stint with the bank. He joins from UBS and will focus on CMBS structuring.

    Orozco's last role was more heavily focused on RMBS and he also has experience in broader ABS and warehouse lending. He previously worked at Citi in an RMBS structuring role and .......

    Job Swaps 30 August 2012

  • Japanese CMBS recoveries examined

    S&P has undertaken a survey on the recovery of defaulted loans backing rated CMBS in Japan. From 2Q08 - when the first loan defaulted - to end-June 2012, 143 loans defaulted. Of these 143 loans, servicers sold one or more collateral properties of 120 loans (or 83.9%) by the end of the period.

    Servicers completed collection activities for 97 (or .......

    News Round-up 30 August 2012

  • Cleared derivatives documentation strengthened

    ISDA and the Futures Industry Association have published the FIA-ISDA Cleared Derivatives Addendum, a template that can be used by US futures commission merchants (FCMs) and their customers to document their relationship with respect to cleared OTC swaps. The Addendum - which is designed to supplement a futures and options agreement between a US FCM and its customer - includes .......

    News Round-up 30 August 2012

  • Liquidation boosts RMBS supply

    US non-agency RMBS bid-list activity ticked higher yesterday, driven by a large subprime CDO liquidation of 2005-2006 vintage mezzanine bonds. Levels remain firm ahead of the end of the month.

    BWIC volume stood at US$696m for the session, up from US$387m on Tuesday, according to Interactive Data figures. CITM 2007-1 was one of the subprime RMBS circulating yesterday: SCI's PriceABS .......

    Market Reports 30 August 2012

  • Real estate lawyer recruited

    Jorge Page is joining Berwin Leighton Paisner's London-based real estate finance team. He was previously at Clifford Chance, where he worked in the London and Hong Kong offices, and joins as senior associate.

    .......

    Job Swaps 30 August 2012

  • Indian CV ABS stress tested

    Fitch says that Indian commercial vehicle (CV) loan ABS are resilient, even under a severe slowdown in the Indian economy. The agency has subjected its ratings on CV loan ABS to moderate and severe stress to assess their impact on asset performance.

    The stress factors against which the ratings were analysed are a slow-down in industrial production, which leads to .......

    News Round-up 29 August 2012

  • Pricing service enhanced

    SIX Financial Information has released a new Evaluated Pricing Service (EPS) after a year of infrastructure development, review and testing. The comprehensive, transparent and independently-validated EPS arms portfolio managers with consistent pricing information to fulfil regulatory and accounting obligations, the firm says.

    The launch features significant improvements and enhancements to EPS to increase the defensibility, consistency and coverage of illiquid .......

    News Round-up 29 August 2012

  • Resi loss severities diverging

    Despite recent positive home price and residential mortgage default trends, prices for foreclosed and distressed real estate continue to impede an overall US housing market recovery, according to S&P.

    Distressed and foreclosed properties are typically sold at pronounced discounts relative to current market prices, which ultimately translate into notable mortgage losses. The severity of the losses, however, varies by state .......

    News Round-up 29 August 2012

  • CMBS loss severity spikes

    While CMBS conduit loan liquidations ticked up by a modest 4% this month, loss severity jumped from 37.96% to 53.29%, according to Trepp. That reading represents an increase of 1,533bp from July and nearly 10 percentage points above the 12-month moving average of 43.3%.

    Servicers picked up the pace somewhat in August as liquidations hit US$1.44bn, relative to the 12-month .......

    News Round-up 29 August 2012
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