Complete news archive

  • 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

  • CMBS BWIC composition switch

    The strong supply seen in the US CMBS secondary market last week appears to be continuing this week. However, bid-list composition has changed.

    A recent Babson Capital client memo notes that while AM/AJ classes represented almost 60% of volume during the previous week, last week their share was down to 35%, with most of the lists comprising legacy super-seniors and .......

    Market Reports 29 August 2012

  • CCRE names new chairman

    Steven Kantor has been appointed as chairman of Cantor Commercial Real Estate (CCRE). He was previously Cantor Fitzgerald's global head of investment banking and co-founded CCRE. Jeffrey Lumby and Charles Edelman replace him as co-heads of the investment banking business.

    Before joining Cantor Fitzgerald three years ago, Kantor was md at Credit Suisse, where he was head of global securities. .......

    Job Swaps 29 August 2012

  • Credit vet recruited as PM

    Michael Hünseler has joined Assenagon Group as md. He takes responsibility for setting up the new credit business area, including a focus on tapping innovative investment segments such as corporate lending.

    Hünseler was previously head of corporate credit portfolio management at HypoVereinsbank and credit risk strategy for UniCredit. Before that he was responsible for the structured credit funds at Deka .......

    Job Swaps 29 August 2012

  • Katten adds RMBS specialist

    Stephen Esko has joined Katten Muchin Rosenman's structured finance and securitisation practice in New York. He becomes partner and will focus on RMBS.

    Esko's experience includes issuer and underwriter representation in public and private securitisations, asset sales and financings, structured note issuances and credit derivatives work. He joins from Sidley Austin.

    .......

    Job Swaps 29 August 2012

  • NPL portfolio acquired

    Sabal Financial Group has acquired a non-performing CMBS loan portfolio from CWCapital. The underlying real estate assets are located across the US.

    Sabal will provide loan servicing and asset management for the portfolio. The firm says it is rapidly expanding its operating platform in response to the growing market of performing and non-performing loan portfolios for sale and an increase .......

    News Round-up 28 August 2012

  • Bank resolution regime established

    The Spanish government last week published the new Royal Decree-Law on bank resolution. The law establishes standards for restructuring viable banks and the resolution of non-viable ones.

    For banks undergoing restructuring, the FROB will be able to provide them with funding guarantees and a capital injection. They will have to return this within five years, potentially extendable by another two.

    News Round-up 28 August 2012

  • Chrome portfolio sold

    Berwin Leighton Paisner (BLP) has disclosed that it acted for a joint venture between Development Securities and The Pears Group on its acquisition of the £103m Chrome portfolio from NAMA. The transaction involved innovative structuring and will allow the JV to realise the repayment of the loans through the sales and repositioning of the assets in the market through change .......

    News Round-up 28 August 2012

  • Cheyne fraud claim to proceed

    US District Judge Shira Scheindlin has denied motions for summary judgment that Moody's and S&P filed in a lawsuit related to the failed Cheyne SIV. The decision finds that the ratings constituted actionable misstatements under New York law, meaning that the plaintiffs' claim for common law fraud can proceed.

    A recent Lowenstein Sandler client memo notes that in rejecting the .......

    News Round-up 28 August 2012

  • SLABS issuance defies market changes

    US student loan ABS issuance has increased this year and ratings performance has remained stable, despite significant changes in the sector, according to S&P.

    The changes have centred on shifts in how government-guaranteed student loans are funded, which has put a sizable dent in government-backed student loan ABS issuance. Despite this setback, Sallie Mae, a handful of municipal issuers and .......

    News Round-up 28 August 2012

  • ABS bucks quiet secondary trend

    After a run of elevated supply, secondary trading in the US tailed off at the end of last week and remained comparatively quiet on Monday. RMBS volumes, in particular, are muted as investors digest remittance reports. Activity in the ABS sector has ticked up, however.

    SCI's PriceABS BWIC data shows fewer RMBS line items than usual for yesterday's .......

    Market Reports 28 August 2012

  • Hungarian OTC partnership formed

    Pricing Partners and Mockingbird Kft have formed a partnership to deliver Pricing Partners' Price-it solution in Hungary. Mockingbird is a consulting firm based in Hungary, while Pricing Partners offers solutions for OTC derivatives products valuation, pricing tools and risk analytics.

    .......

    Job Swaps 28 August 2012

  • CMBX rally overdone?

    With CMBX total returns increasing by an average of 3.4% over the last three months, CMBS analysts at RBS question whether the market has rallied too far too fast. Many CMBX.AAA, AM and AJ prices are trading at or near their highest prices in nearly a year, after increasing an average of 2.4, 3.3 and 4.1points respectively during this period.

    News 24 August 2012

  • SLABS paper trades in secondary

    Secondary market supply remained strongly elevated yesterday, with 480 line items represented in SCI's PriceABS BWIC data. Student loan ABS paper, in particular, was circulating and attracting interest at tight levels.

    The SLMA 2011-A A2 tranche was covered in the N+150/160 range, coming tight from its talk earlier in the day of N+170/180. Fellow Sallie Mae private student .......

    Market Reports 24 August 2012

  • CLO progress

    CLO 2.0 market booming as documentation evolves

    US CLO issuance this year is on course to reach double 2011's volume, having already matched it by the end of June. With the advent of 'CLO 2.0', evolution in CLO documentation is keeping pace.

    Although there have been many changes made for the new breed of so-called CLO 2.0 deals, they generally fall into the category of adjustments rather .......

    News Analysis 24 August 2012

  • PREPS 05-1 junior notes cut off

    The €4m profit participation agreement with Portfolio Company No. 1, securitised in the PREPS 2005-1 SME CDO, has been sold for a net purchase price of €2.48m. As a result, no future payments will be made to the junior noteholders.

    The maximum realisable return for the junior notes for the entire term of the transaction will remain -39.5%. However, the .......

    News Round-up 24 August 2012

  • ML3 wound down

    The final Maiden Lane III auction was held yesterday, 23 August, comprising 21 mezzanine ABS CDO tranches. The New York Fed's management of the portfolio is expected to result in a net gain of approximately US$6.6bn, including US$737m in accrued interest on its loan to the vehicle.

    Of the collateral sold in yesterday's auction, Bank of America Merrill Lynch was .......

    News Round-up 24 August 2012

  • Euro rating transitions examined

    By mid-2012, only 1.11% of European structured finance notes outstanding in mid-2007 had defaulted, according to S&P. Meanwhile, the 12-month rolling default rate edged only slightly higher to 0.5%.

    Even amid the deteriorating European economy, worsening collateral performance and the application of some updates to S&P's ratings criteria, the rise in the 12-month rolling downgrade rate slowed to only 30.8%. .......

    News Round-up 24 August 2012

  • DRA/Colonial JV falls through

    The US$741.9m DRA/Colonial Office Portfolio loan has been transferred to the special servicer - C-III Asset Management - because the borrower indicated it would no longer be able to make debt service payments. One of the loan's sponsors, Colonial Properties Trust, is understood to have withdrawn from its joint-venture agreement with the other sponsor - DRA G&I Fund VI Real .......

    News Round-up 24 August 2012

  • REO-to-rent risks outlined

    Moody's has commented on the main types of risks that REO-to-rent securitisations would present, including the performance of an operator/manager of the properties and the variability of cashflows from the rental and ultimate sale of the properties. The lack of historical data on the single-family rental market is another concern, it says.

    Market interest in REO-to-rent securitisations has increased over .......

    News Round-up 24 August 2012

  • Dramatic tightening for European RMBS

    European RMBS spreads have continued to grind tighter and will carry on doing so, according to one trader. Both new deals and the secondary market are reaching remarkable levels.

    "Spreads have been moving for a few months now and they are still getting tighter. There are a lot of people in the market looking for the same type of bonds .......

    Market Reports 23 August 2012
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