Complete news archive

  • Unusual IO resecuritisation marketing

    Wells Fargo is in the market with WFRR 2012-IO, a US$336.25m resecuritisation of 104 CMBS interest-only securities. The collateral has a current aggregate notional balance of US$16.3bn and is sourced from 97 different fixed rate CMBS that were issued between 1997 and 2012.

    Kroll Bond Rating Agency has assigned preliminary triple-A and triple-B ratings to the US$304.5m class A and .......

    News Round-up 2 August 2012

  • US debt partnership announced

    3i Group has announced a strategic transaction with WCAS Fraser Sullivan Investment Management to establish 3i's US debt management platform. The transaction builds on 3i's existing European business and provides access to the US credit markets, although the CLO funds currently managed by Fraser Sullivan and FS COA Management will be unaffected.

    Following completion of the transaction, all new US .......

    Job Swaps 2 August 2012

  • Ex-Freddie CRE lawyer joins

    Soha Mody has joined the real estate practice of Shapiro, Lifschitz & Schram. She joins as senior counsel and will be based in Washington DC.

    Mody will focus on CRE transactions, real estate finance and lending matters and related litigation. She was most recently associate general counsel at Freddie Mac and has previously worked at the real estate practices of .......

    Job Swaps 2 August 2012

  • Cat bond crazy

    Resurgent ILS market in rude health

    It has been a year of impressive issuance so far in the insurance-linked securities market, with the first five months of 2012 the most active start of any year on record. New issuers and investors are entering the sector and innovative sidecar structures are being considered.

    Total ILS net risk capital outstanding has increased for the first time since the .......

    News Analysis 2 August 2012

  • FHFA initiatives welcomed

    FHFA acting director Ed DeMarco has updated Senators Johnson and Shelby on various initiatives currently being pursued by the agency, two of which likely have near-term implications for MBS markets.

    First, gradual adjustments in the guarantee fee structure will be introduced, with further details to be released towards the end of this month. Given that mortgage rates are at all-time .......

    News 1 August 2012

  • Rise in Euro CMBS repayments

    Last month saw increased European CMBS repayment activity, according to Fitch's latest bulletin for the sector. Total debt of €900m was repaid across 13 loans, which were either due to mature during the month or were previously extended or in workout.

    Most of the loans that repaid were expected to do so by Fitch. They were all either secured on .......

    News Round-up 1 August 2012

  • Portuguese house price forecast updated

    Fitch expects house prices in Portugal to fall by another 15%, implying a peak-to-trough decline of 28%, up from its previous assumption of 10%. The agency has revised its expectation as part of its updated RMBS rating criteria for the country.

    The impact on RMBS transactions from a change to the house price forecast will be compensated by a reduction .......

    News Round-up 1 August 2012

  • Nine more ML3 assets sold

    The results of the final Maiden Lane III CDO auction for July have been announced. The New York Fed unloaded assets from across nine transactions yesterday, bringing the total for the month to 20.

    Citi has emerged as the successful bidder for the Bernoulli High Grade CDO I (US$856.38mm in current face), Cascade Funding CDO I (US$107.29mm), Reservoir Funding (US$168.61mm) .......

    News Round-up 1 August 2012

  • Syncora-wrapped RMBS on positive watch

    Moody's has placed on review for upgrade the ratings of 34 US RMBS tranches guaranteed by Syncora Guarantee, impacting approximately US$1.4bn of securities. The action is due to the review for possible upgrade of the monoline's Ca insurer financial strength rating, following its recent settlement with Countrywide.

    In return for releases of all of Syncora's claims against Countrywide and Bank .......

    News Round-up 1 August 2012

  • CMBS loss severity dips

    US CMBS liquidation levels remained mostly unchanged last month, following a 19% drop in resolutions in June, according to Trepp. July saw an average loss severity of 37.96% on US$1.38bn in resolutions.

    The July loss severity fell below the 12-month moving average of 42.8%, while resolution volume landed slightly above the 12-month average of US$1.29bn. Since January 2010, servicers have .......

    News Round-up 1 August 2012

  • Alignment for HARP 2.0 reps

    Freddie Mac has announced plans to amend its Relief Refinance Mortgage Program, which includes HARP 2.0, by aligning requirements for mortgages LTV ratios that are equal to or less than 80% with those for mortgages with LTV ratios greater than 80%. The alignment change is designed to eliminate many representation and warranty responsibilities on the original loans being refinanced, regardless .......

    News Round-up 1 August 2012

  • Hedge fund adds credit head

    Derrick Herndon has joined PVE Capital as portfolio manager and head of long corporate credit in London. He joins from UBS, where he was md and European head of credit trading.

    Herndon has previously served as European head of credit trading at Credit Suisse, global head of portfolio management at TD Securities and senior high yield bond trader at Bankers .......

    Job Swaps 1 August 2012

  • Uncertainty weighs on European structured finance

    The marked divergence seen either side of the Atlantic in structured finance issuance volume trends in 1Q12 continued throughout Q2, according to the latest SCI league tables for bank arrangers in the structured credit and ABS markets.

    The 2Q12 SCI league tables show that sovereign and economic uncertainty are continuing to hold back supply and demand for European paper. Half-year .......

    News Round-up 1 August 2012

  • Middle market group formed

    Babson Capital Management has set up a new middle market lending group in Chicago. Ian Fowler, Brian Baldwin and Mark Flessner each join the group as mds having previously worked together at Freeport Financial and GE Capital.

    The new group will focus on companies owned by private equity firms or outstanding management teams. It will complement Babson's existing mezzanine and .......

    Job Swaps 1 August 2012

  • New Navigator manager named

    CIFC Corp is entering into a five-year strategic relationship with GE Capital. As part of the agreement, CIFC Asset Management will take over from GE Capital Debt Advisors as collateral manager for four Navigator CLOs, representing approximately US$700m.

    Under the agreement a commercial council comprised of senior members of both GE Capital and CIFC will be formed to discuss business .......

    Job Swaps 1 August 2012

  • Knight hires CMBS pair

    Knight Capital Group has hired Robert Cestari and David Simek as CMBS mds. Cestari will serve as head of CMBS and CRE debt trading while Simek becomes head of CMBS sales. They each join from PrinceRidge Group.

    Cestari was head of CRE debt trading at PrinceRidge and previously held posts on the buy side at Apollo Real Estate Advisors and .......

    Job Swaps 1 August 2012

  • CMBS delinquency rate moves higher

    The US CMBS delinquency rate set an all-time high once again this month, increasing by another 18bp to 10.34%, according to Trepp. This latest move puts the delinquency level up by 97bp since February and makes July the fifth straight month in which the rate has increased.

    The only major property type to improve was the retail loan segment. Lodging, .......

    News Round-up 31 July 2012

  • Spanish SME CLOs well protected

    Most double-A rated tranches of Spanish SME CLOs would retain an investment grade rating even in the event of 75% of SMEs in the real estate sector defaulting and commercial and residential property depreciating by over 80%, according to Fitch. The ability to withstand such severe stress mitigates their exposure to the real estate sector.

    Fitch notes that two-thirds of .......

    News Round-up 31 July 2012

  • Cantor hires CMBS vet

    Kenneth Margala has joined Cantor Commercial Real Estate (CCRE) from UBS. He joins CCRE as director and will be focused on loan origination.

    Margala specialised in CMBS, bridge and mezzanine transactions at UBS and has experience as a real estate consultant for a variety of financial institutions, as well as having previously served as a regional manager for Merrill Lynch .......

    Job Swaps 31 July 2012

  • CVA platform launched

    Markit has launched a Basel 3-compliant solution integrating the management of CVA and internal model capital. Markit Analytics CVA & Capital is a unified simulation engine allowing banks to calculate CVA, funding valuation adjustment and internal model capital for CVA, counterparty credit risk and market risk.

    The product covers all asset classes from vanilla products to highly complex path-dependent derivatives. .......

    News Round-up 31 July 2012

  • FMI RFC issued

    The CPSS and IOSCO have published for public comment a consultative report on the recovery and resolution of financial market infrastructures (FMIs). It follows a report on principles for FMIs published in April, which called for FMIs to have effective strategies, rules and procedures to enable them to recover from financial stresses (SCI 16 April).

    This most recent report seeks .......

    News Round-up 31 July 2012
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