Complete news archive

  • 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

  • Prime auto ABS stress tested

    The majority of outstanding triple-A rated US prime auto loan ABS notes are comfortably able to withstand a hypothetical recession and material declines in used vehicle recovery rates, according to recent stress tests conducted by Fitch.

    Under the moderate scenario, the agency would expect all triple-A rated notes to remain rated investment grade. Nearly three-quarters of these ratings are expected .......

    News Round-up 23 August 2012

  • RFC issued on surveillance challenges

    IOSCO has published a consultation report, entitled 'Technological Challenges to Effective Market Surveillance: Issues and Regulatory Tools', which seeks public comments on a series of proposed high-level recommendations aimed at helping market authorities improve market surveillance. The report is based upon the results of an IOSCO survey, as well as presentations made to the organisation by operators of trading venues, .......

    News Round-up 23 August 2012

  • Duke redemption delayed

    The auction call redemption amount was not met in yesterday's Duke Funding High Grade I sale (SCI 7 August). Consequently, the transaction won't be redeemed - as expected - on the 6 September quarterly distribution date. The trustee will conduct an auction prior to each subsequent quarterly distribution date, unless the collateral manager states that a sale is unlikely to .......

    News Round-up 23 August 2012

  • Polish auto ABS marketing

    A rare Polish auto loan ABS has hit the market. Dubbed GNB Auto Plan, the transaction is originated by Getin Noble Bank and securitises approximately 33,800 standardised loans, of which 52% is secured by new cars and the remainder by used cars up to five years old.

    The loans were mainly originated via Getin Noble Bank's external car dealer network, .......

    News Round-up 23 August 2012

  • Technical bump for charge-offs

    US securitised credit card charge-offs increased to 4.56% in July from 4.27% in June, according to Moody's Credit Card Indices. One-time technical factors explain the rise, the agency says, and the charge-off rate index is expected to resume its downward trajectory next month.

    The 29bp rise in the charge-off rate index was the result of increases Moody's had expected from .......

    News Round-up 23 August 2012

  • Tobacco review completed

    Fitch has completed the review of its tobacco portfolio accounting for the amount of Master Settlement Agreement (MSA) payment received by each securitisation trust in 2012. For 2012, the aggregate MSA payment was 1.97% higher than the amount in 2011.

    The agency last month published updated tobacco settlement ABS criteria (SCI 17 July), which included a change in the base-case .......

    News Round-up 23 August 2012

  • MountainView expands, forms alliance

    MountainView Capital Holdings has acquired Clayton IPS, the independent pricing service of Clayton Holdings. It has also appointed Andrew Platt to its executive team as head of business development.

    The newly-acquired IPS unit provides fixed income managers and investors with third-party pricing for securities such as ABS, RMBS and CMBS. The team also values residential whole loans, CDS, secured corporate .......

    Job Swaps 23 August 2012

  • Secondary CMBS softens slightly

    US CMBS spreads widened yesterday, with bid-list supply dropping to around half of Tuesday's total. SCI's PriceABS BWIC data still shows 74 CMBS line items for the session, with a mix of new and familiar names.

    Interactive Data reports that Wednesday's total CMBS BWIC volume was US$235m, with GG10 dupers quoted around 210/205 over swaps, slightly wider than .......

    Market Reports 23 August 2012

  • Lessons learned?

    Higher standards seen in new resi loan originations

    The forthcoming expiry of the six-year statute of limitation for 2007-vintage US RMBS has sparked a sense of urgency among investors seeking to file representation and warranty suits. At the same time, demand for forensic reviews of newly originated loans is increasing as the housing market improves.

    Richard Barrent, president and coo of the Barrent Group, confirms that his firm .......

    News Analysis 22 August 2012

  • Spike surprise

    Good news amid difficult CMBS maturity outcomes

    Maturity spikes have been coming like clockwork for European CMBS and last month saw the latest iteration. However, amid all the loans coming due, the more significant development may well turn out to be the restructuring proposal put forward for the GRAND transaction.

    More than €4bn of CMBS across 31 loans was scheduled to mature in July. Christian Aufsatz, securitisation .......

    News Analysis 22 August 2012

  • GAGFAH upbeat on loan refis

    GAGFAH's 1H12 earnings call provided an update on its property portfolio and CMBS refinancing efforts. The firm's statements indicate that a full repayment of the Woba Dresden loan and at least a partial refinancing of the GAGFAH 1 loan ahead of their respective maturities can be expected.

    GAGFAH confirmed that it is soliciting bids for the Woba Dresden asset - .......

    News 22 August 2012

  • Euro issuance constraints highlighted

    Weak economies, cheap central bank funding and regulatory uncertainty look set to constrain European securitisation issuance for the foreseeable future, according to S&P. The agency reports that investor-placed securitisation issuance in the region totalled €44bn in the first seven months of 2012 - down by about 10% from the same period in 2011.

    "We believe European securitisation issuance could end .......

    News Round-up 22 August 2012

  • Short sale guidelines streamlined

    Fannie Mae is set to implement new short sale guidelines for servicers to follow as part of the Federal Housing Finance Agency's servicing alignment initiative. The move aims to allow more homeowners qualify for short sales, remove barriers to completing short sales and make the process more efficient for both homeowners and servicers.

    The new guidelines streamline documentation requirements, waive .......

    News Round-up 22 August 2012

  • Country credit deterioration RFC issued

    Moody's is inviting market participants to comment on proposed adjustments to its modelling assumptions designed to account for the impact of rapid and significant country credit deterioration on structured finance transactions. The proposal would extend the sovereign ceiling concept to the entire capital structure and provide a mechanism to amend loss distribution when mezzanine and subordinate tranches are impacted.

    Moody's .......

    News Round-up 22 August 2012

  • Early delinquency indices introduced

    Fitch's outlook on Indian ABS ratings remains stable, despite the prevailing stress in the Indian economy, which has driven deteriorating performance across commercial vehicle (CV) and construction equipment (CE) loans. This is in line with the agency's negative outlook for these asset classes.

    CV loans backing post-2009 vintage transactions reached a weighted average 90+dpd of 2% within 12 months of .......

    News Round-up 22 August 2012

  • CLO equity sees strong demand

    CLO equity has grabbed the attention of the secondary markets, after the subordinated notes of Madison Park Funding IV traded twice over the past two sessions at record levels, as shown in SCI's PriceABS BWIC data.

    A US$5m piece of MDPK 2007-4A SUB appeared on a list for trading on 20 August and was first talked in the .......

    Market Reports 22 August 2012

  • CMBS note sale spike expected

    Liquidations of distressed US CMBS loans through note sales are set to spike again in September, with 111 properties worth more than US$1bn out for bid via Auction.com.

    The largest loan to be auctioned is the US$76m Astor Crowne Plaza securitised in GSMS 2005-GG4, according to CMBS analysts at Barclays Capital. With the minimum bid for the property set at .......

    News Round-up 21 August 2012

  • RMBS bid-lists on the block

    The New York Fed is auctioning two non-agency RMBS bid-lists today, 21 August. One comprises 62 bonds with a combined face value of US$1.51bn and the other consists of three names worth US$1.77bn. Amherst, Barclays Capital, Cantor Fitzgerald, Citi, Cowen, Credit Suisse, CRT Capital, Deutsche Bank, Goldman Sachs, Guggenheim, Jefferies, JPMorgan, Keybanc, Bank of America Merrill Lynch, Morgan Stanley, Nomura, .......

    News Round-up 21 August 2012

  • HUD auction announced

    DebtX is hosting a US$1.7bn single-family loan sale on 12 September for the US Department of Housing and Urban Development. In addition to the standard competitive whole loan sale, there will be an offering for the Distressed Asset Stabilization Program.

    This enhanced programme features new neighbourhood stabilisation requirements to encourage investment in communities hit hardest by the foreclosure crisis. The .......

    News Round-up 21 August 2012

  • Core focus for Euro supply

    Technical drivers continue unabated in the European secondary ABS market. With few offers and low turnover, bids appear to be on a tightening trend for now.

    SCI's PriceABS BWIC data indicates that activity remains focused on the core UK and Dutch RMBS sectors. Among the bonds circulated on bid-lists yesterday, the GRAN 2003-2 1B (US$5m face value) and .......

    Market Reports 21 August 2012
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