Complete news archive

  • 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

  • SEF market structure examined

    GreySpark Partners has published the first of three reports on swap execution facilities (SEFs). Entitled 'SEFs - the business landscape', the report explores how the market structure for swaps trading might evolve.

    GreySpark maintains that there are only a handful of true multi-asset providing SEFs. It also identifies a general trend towards high through-put, low latency electronic central limit order .......

    News Round-up 26 July 2012

  • MPG Q2 highlights reviewed

    Maguire Properties has released its second-quarter results, shedding light on a number of CMBS properties sponsored by the company.

    Among the results' highlights is Maguire's confirmation that it has agreed with the special servicer to keep title of Two California Plaza, which secures a US$470m loan securitised in GSMS 2007-GG10, until a buyer for the property is found or a .......

    News 25 July 2012

  • Six more CDOs sold

    Credit Suisse has emerged as the successful bidder on two CDO tranches offered in the latest Maiden Lane III sale - Broderick CDO 1 (for a face amount of US$724.58m) and Mercury CDO II (US$620.86m). Citi also scooped two of the assets: Margate Funding I (US$474.62m) and Mercury CDO 2004-1 (US$213.38m). Bank of America Merrill Lynch won the auction for .......

    News Round-up 25 July 2012

  • Secondary RMBS supply spikes

    US prime hybrid and alt-A hybrid RMBS secondary supply spiked yesterday, coming in at nearly quadruple the prior session's total. Interactive Data figures suggest that overall non-agency RMBS BWIC volumes hit an eye-watering US$2.72bn on the day, driven by a large all-or-none list.

    Notably, a concentration of Countrywide senior bonds were out for bid. SCI's PriceABS BWIC data .......

    Market Reports 25 July 2012

  • Italian CMBS hit

    Moody's has downgraded the ratings of 12 notes from five CMBS exposed to assets located in Italy. The move follows the agency's decision to lower the Italian country ceiling to A2 from Aaa on13 July and the increased risk of asset performance deterioration. The affected transactions are: FIP Funding, Imser Securitisation 2, Island Refinancing, Taurus CMBS No.2 and Infinity 2006-1 .......

    News Round-up 25 July 2012

  • Board appointments at CLO manager

    Avoca Capital Holdings has made two board appointments. Darren Carter joins as non-executive director and Clayton Perry becomes executive director.

    Carter was formerly ceo of KBC Financial Products and is an existing partner and non-executive chairman of Avoca's convertible bonds business. Perry has been with Avoca for two years and has overall responsibility for business development across all of Avoca's .......

    Job Swaps 25 July 2012

  • JHF guarantee proposal 'credit positive'

    The proposed change to loan guarantee fees by Japan Housing Finance Agency (SCI 6 July) will be credit positive for JHF-guaranteed RMBS, Moody's says. The agency believes that a guarantee fee based on pool performance will encourage originators to underwrite JHF-guaranteed loans to the same high standards applied to non-guaranteed loans.

    Moody's has observed that JHF-guaranteed RMBS pools show worse .......

    News Round-up 25 July 2012

  • ICE to clear EM CDS

    ICE Clear Credit has launched real-time, trade-date clearing of the Markit CDX.EM index for buy-side and dealer-to-dealer trades. The launch of CDX.EM series 16 and 17 augments the list of over 40 cleared North American indexes available for client clearing at the CCP.

    In October 2011 ICE Clear Credit became the first central counterparty to clear sovereign CDS, with the .......

    News Round-up 25 July 2012

  • Rental market

    REO-to-rent securitisation generates interest

    The US government is keen to find a way to unload the foreclosed REO properties currently owned by Fannie Mae and other GSEs. REO-to-rent securitisation could play a leading role in tackling the overhang.

    S&P estimates that around 500,000 properties were REO at the end of 1Q12, with this figure expected to rise over the next few years. A further .......

    News Analysis 25 July 2012

  • APRA first-loss rule welcomed

    Moody's has welcomed the Australian Prudential Regulation Authority's (APRA) requirement for banks to deduct from their common equity Tier 1 holdings subordinated tranches of securitisations originated by a third party. The rating agency suggests in a recent Credit Outlook publication that such a conservative measure will support bank stability by ensuring there is adequate capital to cover first-loss positions.

    The .......

    News Round-up 24 July 2012

  • Euro CMBS 2.0 principles released

    CRE Finance Council Europe has published a consultative document outlining principles for new CMBS issuance. Entitled 'Market Principles for Issuing European CMBS 2.0', the document aims to help bring confidence back to the European real estate capital markets and stimulate the further development of European CMBS.

    The principles draw on the specific lessons learnt from previous European CMBS transactions. One .......

    News Round-up 24 July 2012

  • ABS expectations

    Quarterly review and outlook for European consumer/credit card ABS

    We asked Lloyds Bank, the winners of SCI's 2011 arranger award for European consumer/credit card ABS, its views on activity in Q2 and expectations for Q3 in the sector. Below are SCI's questions and the responses from Robert Plehn, md, head of asset backed solutions, Lloyds Bank Wholesale Banking & Markets.

    Over the past quarter, what have been the key .......

    News Analysis 24 July 2012

  • Countrywide settlement remains on track

    The Walnut Place investor group has withdrawn as intervenor in the Article 77 proceedings to ratify the Countrywide RMBS settlement. The group had previously sought to extend the scope of the discovery by reviewing thousands of loan files, while BNY Mellon - as trustee - had argued that this was not required (SCI passim).

    Consequently, the settlement is expected to .......

    News Round-up 24 July 2012

  • Market risk dichotomies highlighted

    Interactive Data has released an analysis of current credit ratings and evaluated price levels for non-agency CMO securities, which highlights a number of what it describes as dichotomies with respect to market risk. The study comes as the industry digests US bank regulators' recently released proposals for implementing the Basel 3 framework for market risk capital rules.

    The non-agency CMO .......

    News Round-up 24 July 2012

  • PPIF winding down

    Western Asset Management Company has begun winding down its legacy securities PPIF, pursuant to an agreement with the US Treasury. The firm opted to end the fund's investment period on 15 July, rather than extend it to 5 November. Western Asset Mortgage Defined Opportunity Fund invests indirectly in the PPIF, which accounts for approximately 31.6% of its total investments, as .......

    News Round-up 24 July 2012

  • ML3 results in

    Credit Suisse has emerged as the successful bidder on four of the Maiden Lane III tranches auctioned on 19 July (SCI 13 July) - the US$689.19m Adirondack 2005-1, US$949.3m Adirondack 2005-2, US$679.57m Laguna ABS CDO and US$699.71m Toro ABS CDO I. RBS bid successfully for the US$893.29m Sierra Madre Funding assets. Barclays Capital, Citi, Deutsche Bank, Goldman Sachs, Bank of .......

    News Round-up 23 July 2012

  • Mezz ABS fund minted

    Prytania Investment Advisors has launched the Galene Fund, an actively managed fund focusing on investment grade structured finance assets. It aims to build a diversified portfolio generating a stable yet attractive return in excess of 450bp over one-month Euribor per annum.

    The fund seeks to exploit the attractive risk-adjusted return of ABS through relative value opportunities, mispriced risks and identification .......

    News Round-up 23 July 2012

  • ABS CDO liquidations mooted

    Fortress Investment Group is seeking to liquidate the remaining assets in the Eurocastle CDO II and III transactions, prior to redeeming the notes on 20 September. For it to proceed, written resolutions must be executed by the holders of at least 75% in principal amount of each class of notes.

    The move follows the passing of extraordinary resolutions by Barclays .......

    News Round-up 23 July 2012

  • Italian sovereign-linked ratings hit

    Moody's has downgraded the ratings of 11 tranches in seven Italian ABS, due to their direct linkage to the ratings of the Italian sovereign and sub-sovereigns. The move follows the downgrade of Italy to Baa2 from A3 on 13 July and subsequent downgrades of 23 sub-sovereign entities on 16 July.

    The Italian government and several of the downgraded Italian regions .......

    News Round-up 23 July 2012

  • EMEA CMBS work-outs reviewed

    Moody's has released its latest update on EMEA CMBS specially serviced loans. The weighted average Moody's expected principal loss for loans in special servicing remains stable at 36%.

    The most recent addition to the EMEA specially serviced loans that the agency tracks is the £6m Chesterton Commercial loan, representing 1% of the pool balance in Deco 12 - UK 4. .......

    News Round-up 23 July 2012
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