Complete news archive

  • 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

  • Suits expected

    Libor-related litigation analyses prepped

    The impact of Libor rigging on the securitisation market is difficult to quantify, with the scandal representing yet another pause for the industry as it re-emerges post-financial crisis. Certainly, a wave of litigation activity is expected to be triggered in its wake.

    Indeed, preparatory litigation analyses are already being undertaken across all securitised asset classes as a result of the .......

    News Analysis 21 August 2012

  • Large loans enter special servicing

    Moody's reports in its latest EMEA CMBS Monthly Update that 12 new loans entered special servicing in July. The weighted average Moody's expected principal loss for loans in special servicing increased to 40% during the month.

    All loans except for one were transferred to special servicing due to maturity defaults. For nine of the loans, the final recovery determinations were .......

    News Round-up 20 August 2012

  • Eurosail hedging agreement challenged

    The trustee for ESAIL 2007-5X looks set to seek determination by the Court in respect of a replacement hedging agreement, following a challenge by residual certificateholders.

    The class A1a and A1c noteholders passed an extraordinary resolution at a meeting on 7 August, which would see: Deutsche Bank appointed as the auction agent to manage the sale of the US$170m stipulated .......

    News Round-up 20 August 2012

  • Manager switch for troubled CDO

    An accession deed has been signed in connection with Copernicus Euro CDO I, whereby CELF Advisors has assumed management rights for the deal from Highland Capital Management Europe.

    The triple-C rating on the most senior outstanding notes indicates that default appears a real possibility for the transaction, however. In addition, as the reinvestment period is over, the role of the .......

    Job Swaps 20 August 2012

  • Treasury moves to expedite GSE wind-down

    The US Treasury has modified its Preferred Stock Purchase Agreements (PSPAs) with the FHFA, with the aim of facilitating the wind-down of Fannie Mae and Freddie Mac, as well as support the continued flow of mortgage credit. The amendments are being seen as more of an expediting initiative versus a meaningful divergence from the original aspirations surrounding the GSEs' conservatorship.

    News Round-up 20 August 2012

  • Conflict of interest warning

    Fitch has warned that the current situation of the Palm Beach Mall loan, securitised in the JPM 2003-PM1 CMBS, lends itself to a potential conflict of interest. The underlying property was recently sold out of REO, but the special servicer (ORIX) elected not to make a final recovery determination or write down the principal balance of the loan until its .......

    News Round-up 20 August 2012

  • SCI Start the Week - 20 August

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

    Pipeline
    Two new deals joined the pipeline last week and remained there. The first is FirstMac Mortgage Funding Trust No.3 Series 2-2012 (an A$80m RMBS), while the second is Magnetite VI (a US$415.75m CLO).

    Pricings
    Fewer transactions went on to price than in recent weeks. There were still eight prints in total, with half of those accounted for by CLOs.

    The non-CLO .......

    News 20 August 2012

  • RMBS vet joins as president

    Lisa Taylor has joined WCS Lending as president. It is a newly-created position within the company.

    Taylor has almost 30 years of experience in banking and mortgage lending. She was previously regional head in Western Europe of Deutsche Bank's RMBS origination and trading platform. She has also served as coo for MortgageIT, ceo at Sawgrass Partners and evp for Mortgage.com.

    .......

    Job Swaps 20 August 2012

  • CRE CDO delinquencies decline

    US CRE CDO delinquencies declined slightly for a third straight month, according to Fitch's latest index results for the sector. Delinquencies fell in July to 12.1% from 12.3% in June. Six new delinquent loans were offset by 13 assets being removed from the index.

    The majority of CRE CDO portfolios are now static, the agency notes. As of the July .......

    News Round-up 20 August 2012

  • Inter-affiliate swap rule proposed

    The CFTC has issued a proposed rule to exempt swaps between certain affiliated entities within a corporate group from the clearing requirement of the Dodd-Frank Act. The Commission is considering whether alternative methods of counterparty risk mitigation may be appropriate for swaps between majority-owned affiliates of the same corporate group.

    Specifically, the proposed rule would use Section 4(c)(1) of the .......

    News Round-up 20 August 2012

  • IRS probe hits tax-exempt SLABS

    The investigation by the US Internal Revenue Service of sponsors of tax-exempt student loan securitisations and the establishment of a tax amnesty programme are credit negative for tax-exempt student loan ABS, according to Moody's.

    The Voluntary Closing Agreement Program (VCAP) provides amnesty to a sponsor from potential tax disputes if the sponsor pays a settlement to the IRS based on .......

    News Round-up 17 August 2012

  • ICP settlement expected

    The US SEC and ICP Asset Management have reached a settlement in principle resolving all claims in the SEC's lawsuit against ICP and its founder Thomas Priore. The SEC alleged that, at the direction of Priore, ICP defrauded four Triaxx CDOs by engaging in fraudulent practices and misrepresentations (SCI 23 June 2010). Specifically, the SEC alleged that ICP and Priore .......

    Job Swaps 17 August 2012

  • ML3 boost for CDOs

    A 'Maiden Lane III effect' is observable in SCI's PriceABS BWIC data for yesterday's session. A number of ABS CDOs that appeared in the New York Fed's latest auction were talked higher as a result.

    For example, DUKEF 2004-7A 1A1 and DUKEF 2004-7A 1A2 paper has moved from being talked in the mid-20s on 14 August to being .......

    News Round-up 17 August 2012

  • Mammoth MBS supply seen

    MBS volume has spiked sharply over the last couple of days. Both CMBS and RMBS supply has been very strong, with the latter boosted by a rush of Countrywide bonds.

    From 122 CMBS line items displayed on SCI's PriceABS BWIC data on Monday, Tuesday saw 207 line items and supply was still elevated yesterday, with 174 items. RMBS .......

    Market Reports 17 August 2012

  • Brazilian trading platform launched

    IntercontinentalExchange and Cetip have launched a Brazilian fixed income trading platform. Cetip | Trader combines electronic trading, voice confirmation and real-time and historical data in a single tool.

    ICE is providing the technology for the platform. As well as advanced screen trading execution, it will enable straight through processing, allocations processing and depository registration via a version of ICE Link .......

    Job Swaps 17 August 2012

  • LCH.Clearnet preps US CCP

    LCH.Clearnet Group has acquired sole ownership of International Derivatives Clearing Group (IDCG) from the NASDAQ OMX Group and other investors. The acquisition will enable LCH.Clearnet to operate a US-domiciled CCP.

    Under the terms of the transaction, IDCG has become a US subsidiary of LCH.Clearnet and renamed LCH.Clearnet (US). Ordinary shares have also been issued to NASDAQ OMX to give it .......

    Job Swaps 17 August 2012

  • Third-party claim reinstated

    The recent US Second Circuit Court of Appeals decision to reinstate Bayerische Landesbank's claim against Aladdin Capital Management highlights the potential liability of advisers to related investors in securitisations, according to a Mayer Brown client alert. The case hinges on whether the manager of a synthetic CDO owed any direct obligations or duties under the related portfolio management agreement (PMA) .......

    News Round-up 16 August 2012

  • Liquidity triggers revisited

    In its latest derivatiViews publication, ISDA calls for outstanding questions about liquidity under MiFID 2 to be addressed, ahead of the ECON Committee vote in late September. The association highlights two aspects to this issue: the use of liquidity as a benchmark or trigger for determining whether a rule applies to a particular obligation; and the impact of the rules .......

    News Round-up 16 August 2012

  • RMBS analytics vp appointed

    Gordon Crawford has joined DataQuick in San Diego as analytics vp. He will develop all models and analytics, including home price indices, automated property valuation models and loan performance models.

    Crawford has spent 20 years at Fannie Mae in various research functions, including most recently as mortgage research vp. He also served as credit research and HCD research and analytics .......

    Job Swaps 16 August 2012

  • Aussie RMBS stress tested

    Fitch's stress tests of Australian RMBS show the resilience of the ratings even through a severe sustained recession and house price deterioration. The agency conducted three scenarios stressing interest rates, unemployment and property price declines as the key drivers of defaults and losses.

    "Concurrent increases in all three were run over a three-year period, as well as removing the benefit .......

    News Round-up 16 August 2012
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