Complete news archive

  • 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

  • Italian RMBS assumptions tweaked

    Fitch has updated its criteria assumptions for assessing credit risk in Italian residential mortgage loan pools. The main changes are to certain criteria assumptions that focus on lower rating categories, which reflect where Italy is in the economic cycle. Assumptions at higher categories generally remain unchanged.

    "The macroeconomic variables affecting default probability have deteriorated. Fitch forecasts for lower GDP growth .......

    News Round-up 31 July 2012

  • Gleacher build-out continues

    Gleacher & Company Securities has recruited seven professionals to its MBS & Rates division in New York. Glen Riis and Samir Shah have joined the firm as mds, along with directors Eric Baeri, Samuel Herrnson, David Kaplan, Anthony Mun and Jeffrey David Weaver.

    Riis previously served as the CMBS portfolio manager at Treesdale Partners, where he managed the firm's investment .......

    Job Swaps 31 July 2012

  • Coast CDOs transferred

    Coast Asset Management has assigned the collateral management agreements for the Coast Investment Grade 2000-1, 2001-1 and 2002-1 CDOs to Crescent Capital Group. The assignment and novation assigns to Crescent all of Coast's rights, title, duties, liabilities, obligations and interests in the deals. Under the assignment and novation, Crescent assumes and agrees to perform the assigned rights and obligations.

    Moody's .......

    Job Swaps 31 July 2012

  • SCI Start the Week - 30 July

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

    Pipeline
    One new deal remained in the pipeline at the end of last week. It is an auto ABS: the ZAR891m Torque Securitisation.

    Pricings
    Three auto ABS also priced last week, as well as a handful of student loan ABS and others. The auto deals were €723.6m FCT Auto ABS Compartiment 2012-1, US$689.7m AESOP Funding II 2012-3 and US$612.6m GE Dealer Floorplan .......

    News 30 July 2012

  • IO loan warning

    Low incentives for borrowers to refinance and rising risk aversion among mortgage lenders have contributed to a sharp decline in interest-only lending in the past five years. According to S&P, prepayment rates could remain low as the current interest rate environment means that a significant number of borrowers have little economic incentive to remortgage.

    "Our analysis shows that - under .......

    News Round-up 30 July 2012

  • Distressed EM head joins

    Julio Herrera has joined Oaktree Capital Group to manage a new emerging market opportunities investment strategy. He will focus on distressed and dislocated corporate and sovereign debt.

    Herrera was most recently president of Fintech Advisory and has more than 20 years of experience in undervalued and distressed assets in emerging markets. Before Fintech he headed emerging market corporate fixed income .......

    Job Swaps 30 July 2012

  • Majority of NCUA claims to proceed

    The Federal District Court in Kansas has denied the majority of the defendants' motions to dismiss in connection with the NCUA's lawsuits over losses from MBS purchased by US Central Federal Credit Union. As liquidating agent for the failed US Central, the agency filed two lawsuits against RBS, Wachovia and nine other defendants that were involved in issuing 29 RMBS .......

    Job Swaps 30 July 2012

  • CMBS default rate 'better than expected'

    Fitch's cumulative default rate for fixed rate US CMBS increased to 13.2%, as of 2Q12 - a 25bp rise from the previous quarter but slightly better than the agency's expectations. Earlier this year, it predicted that cumulative defaults would reach 14.5% by year-end.

    New defaults for 2Q12 total US$2.1bn across 143 loans. Following the trend from the first quarter, office .......

    News Round-up 30 July 2012

  • Auto losses hit new low

    Prime auto annualised net losses (ANL) dropped by 22% in June over May to a new record low of 0.14%, according to Fitch. This was mainly driven by the strong 2010-2012 driving performance as the weaker 2008-2009 transactions have mostly paid off.

    Prime delinquencies were stable in June, with 60+ delinquencies up by just 2bp to 0.40% from 0.38% in .......

    News Round-up 30 July 2012

  • Secondary RMBS still strong

    The strong supply seen in secondary US RMBS continues, with prime hybrid, Alt-A hybrid and option ARM bonds well represented in yesterday's bid-lists. It has been a week of elevated BWIC activity for ARM paper in particular, with Interactive Data figures indicating that the market is on pace to reach record volumes.

    One line item captured in SCI's PriceABS Market Reports 27 July 2012

  • Beacon payout concerns highlighted

    Beacon Capital Partners is reportedly shopping five Seattle-area office buildings for around US$800m. The move has reignited concerns about the relatively low payout that CMBS investors have received from the collateral releases to date (SCI 4 October 2011).

    Of the remaining Beacon Seattle & DC Portfolio properties, Eastdil is understood to be marketing the former Washington Mutual Tower at 201 .......

    News 27 July 2012

  • CMBX 'poised to appreciate'

    With CMBX levels remaining fairly high, spread widening is being seen as an opportunity to add exposure, as many of the indices seem poised to appreciate on a long-term basis. Citi CMBS strategists suggest that the indices could also benefit in the short-term from a general market rally fuelled by additional central bank monetary accommodation.

    Most of the CMBX indices .......

    News Round-up 27 July 2012

  • Servicer advance ratings criteria issued

    Morningstar Credit Ratings has released new issue RMBS servicer advance receivable ratings criteria. The rating agency says it methodology is designed to be easy to understand and consistently applied to all advance securitisations while incorporating issuer-specific quantitative and qualitative data.

    Advance types include principal and interest, escrow and corporate advances. P&I advances cover delinquent payments of principal and interest due .......

    News Round-up 27 July 2012

  • Euro ABS treading water

    The summer was expected to be quiet for European ABS and that is how it has proved so far. The last week has not seen a lot of activity, although that is not down to a lack of potential buyers.

    "There is a lot of buying interest in the market right now, but it is not translating into a lot .......

    Market Reports 26 July 2012

  • Not so good

    2Q12 leaves SF recruiters unsatisfied

    While the first quarter of the year exceeded the expectations of structured finance recruiters, the second definitely did not. Hiring activity has been slow and inconsistent, which is how it looks set to stay for the foreseeable future.

    "There was a brief pick-up in other markets, but structured finance stayed quiet. That said, I think it is the whole of .......

    News Analysis 26 July 2012

  • New CMBS trade

    US CMBS spreads ground tighter yesterday, ending a three-day period of widening. The benchmark GSMS 2007-GG10 A4 tranche outperformed the broader market, according to Trepp, finishing at 230bp - 10bp tighter than at Tuesday's close.

    Bid-list volumes stood at around US$400m yesterday and on Tuesday, twice as much as the total seen on Monday. Out of almost 70 CMBS line .......

    Market Reports 26 July 2012

  • CCP, valuation adjustment rules issued

    The Basel Committee has issued interim rules for the capitalisation of bank exposures to central counterparties (CCPs), effective from January. It has also revised paragraph 75 of the Basel 3 rules as regards its application to derivatives.

    The Committee's framework for capitalising exposures to CCPs builds on the new CPSS-IOSCO 'Principles for Financial Market Infrastructures', which are designed to enhance .......

    News Round-up 26 July 2012

  • New CMBS JV formed

    MC Asset Management Holdings and Five Mile Capital Partners are launching MC-FMC Commercial Real Estate Finance Management. The joint venture will underwrite and originate commercial mortgages through a subsidiary to be used in CMBS pools.

    Mitsubishi Corporation will provide MC-FMC with a US$100m financing facility. MCAMH and FMC say that, with third-party leverage, MC-FMC will have the capacity to originate .......

    Job Swaps 26 July 2012

  • Trups CDO defaults, deferrals drop

    A flat May gave way to a notable drop in June for US bank Trups CDO defaults and deferrals, according to Fitch's latest index results for the sector.

    Defaults rose to 16.95% from 16.92% last month, but were tempered by deferrals, which fell to 14.65% from 15.60%. June's results brought the combined bank default and deferral rate to 31.6% from .......

    News Round-up 26 July 2012

  • Dryrock sheltered by safe harbour

    Barclays Bank Delaware (BBD) has established a new US credit card ABS programme, Dryrock Issuance Trust, which is expected to boost volumes in the sector. Dryrock will also be the first credit card ABS trust to issue under the FDIC's safe harbour rule that was adopted on 27 September 2010.

    The rule provides issuers with more flexibility to amend trust .......

    News Round-up 26 July 2012
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