Complete news archive

  • ML3 auctions announced

    The New York Fed has announced four more asset sales from the Maiden Lane III vehicle, with bids due by 12 July.

    The first auction comprises three CDO tranches worth US$34.5m. Barclays Capital, Citi, Credit Suisse, Goldman Sachs, Guggenheim Securities, JPMorgan, Bank of America Merrill Lynch, Morgan Stanley, Nomura and RBS Securities have been invited to bid for the collateral.

    News Round-up 10 July 2012

  • Eminent domain weighs on RMBS

    Fitch believes that the potential use of eminent domain, as proposed by San Bernardino County (SCI 9 July), would negatively affect private label RMBS performance. Of particular concern are proposals that focus on borrowers who are current on their existing mortgage obligations and who would otherwise continue performing as expected but for the ability to restructure their mortgage via the .......

    News Round-up 10 July 2012

  • GRAND refi details released

    Deutsche Annington has agreed non-binding heads of terms with the GRAND ad hoc noteholder group to refinance the deal via a scheme of arrangement (SCI passim). The agreement is pending approval from the remaining noteholders.

    Under the agreement, the loan maturity date (currently 2016) will be extended by five years, in return for an increase in the blended note margin .......

    News Round-up 10 July 2012

  • Eminent domain initiative slammed

    San Bernardino County - along with two other cities in the area - has formed a joint powers authority, which wouldn't need permission from the respective city councils to use eminent domain rights to seize ownership of underwater mortgages unless public money is needed. ABS analysts at Barclays Capital suggest that a possible next step for the authority is to .......

    News 9 July 2012

  • CMBS pay-offs inch up

    The percentage of US CMBS loans paying off on their balloon date in June was anchored near its 12-month low, according to Trepp's latest pay-off report. Only 32.3% of loans reaching their balloon date paid off last month, compared to 29.4% in May, indicating that it remains challenging for borrowers to refinance.

    The June total was well under the 12-month .......

    News Round-up 9 July 2012

  • ED private placement completed

    European DataWarehouse (ED) has successfully completed a private placement with 15 key investors, consisting largely of global banks and institutions. The placement was coordinated by Perella Weinberg Partners.

    Proceeds from the placement will be used to finalise the build-out of ED, as well as to provide the business with ongoing working capital. Completion of the platform, which will include an .......

    News Round-up 9 July 2012

  • SCI Start the Week - 9 July

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

    Pipeline
    Two transactions remained in the pipeline at the end of last week. The €226.4m Atlantes Finance No. 5 is a Portuguese consumer loan ABS and the €1.88bn FTA Pymes Santander 3 is a Spanish SME CLO.

    Pricings
    A quiet new issue market saw only three deals pricing last week. The prints consisted of an Australian non-conforming RMBS (A$300m Liberty Series 2012-1 .......

    News 9 July 2012

  • ABS CDOs on the block

    Dock Street Capital Management has been retained to act as liquidation agent for the Maxim High Grade CDO II and BFC Genesee CDO deals. The former will be auctioned off on 18 July, while two separate public sales will be held for the latter on 19 July.

    .......

    News Round-up 9 July 2012

  • Margin consultation begins

    The Basel Committee and IOSCO have published a consultative paper on margin requirements for non-centrally cleared derivatives. The report lays out a set of high-level principles on margining practices and treatment of collateral.

    These policy proposals are articulated through a set of key principles that primarily seek to ensure that appropriate margining practices will be established for all non-centrally cleared .......

    News Round-up 9 July 2012

  • Loan-level data implementation scheduled

    The ECB has released a timeframe for the implementation of loan-level data reporting for ABS. Provision of loan-by-loan information for RMBS will be mandatory as of 1 December 2012, with SME ABS and CMBS reporting to be implemented by 1 January 2013 and consumer finance, leasing and auto loan ABS reporting by 1 January 2014.

    Loan-level data is to be .......

    News Round-up 9 July 2012

  • UK CRE partnership formed

    Cornerstone Real Estate Advisers has appointed Laxfield Capital to originate and manage loans on its behalf in the UK. The agreement is part of Cornerstone's strategy to expand into the European CRE space.

    Laxfield will help Cornerstone source, structure and manage property-secured senior loans, with an initial target lot size between £25m and £75m. Cornerstone will offer a fixed rate .......

    Job Swaps 9 July 2012

  • Equity tranche trades recommended

    Short-dated equity tranches have emerged as a popular way of locking in strong credit fundamentals while limiting uncertain macro risks. However, due to persistent curve steepening, trades with similar in-the-money risk profiles but longer maturities also appear attractive.

    Credit derivative strategists at Morgan Stanley note that the Markit iTraxx S9 June 2013 0%-3% tranche - which yields over 60% for .......

    News 6 July 2012

  • High-touch provider

    Greg Winchester, md at TriMont Real Estate Advisors, answers SCI's questions

    Q: How and when did TriMont Real Estate Advisors become involved in the CMBS market?
    A: The company began in 1988 as Hatfield Philips, focusing on special servicing predominantly related to the thrift crisis in the US. We'd become the largest Resolution Trust Corporation contractor in the Southeast by the early 1990s. We then developed a large primary servicer and asset .......

    Provider Profile 6 July 2012

  • JHF future outlined

    A government committee on the future of the Japan Housing Finance Agency has released its final conclusions. The JHF is to be an administrative agency.

    "Other aspects of the conclusions are not particularly surprising and are unlikely to affect JHF MBS," note ABS analysts at Bank of America Merrill Lynch. "However, the report mentions the need to discuss the possibility .......

    News Round-up 6 July 2012

  • 'Naked short' ban progresses

    The European Commission has adopted a delegated act, setting out the technical rules needed to ensure the uniform application and enforcement of the Short Selling Regulation. In particular, the delegated act specifies the cases in which sovereign credit default swaps are considered covered and therefore not banned in accordance with the regulation. Investors can demonstrate that the sovereign CDS contracts .......

    News Round-up 6 July 2012

  • Turkish transactions hit

    Moody's has downgraded the ratings of 31 tranches in four Turkish future receivables transactions, while upgrading eight tranches in one transaction and confirming the ratings of 18 tranches in another three. At the same time, the agency has taken action on the underlying ratings of 30 tranches wrapped by financial guarantors in seven transactions. The ratings of nine tranches remain .......

    News Round-up 6 July 2012

  • CDO tender surprises to the upside

    Deutsche Bank has offered to buy back the Nexus4 Topaz Notes for 85.10. A recent Structured Credit Research & Advisory client alert suggests that this price is somewhat surprising, given the note traded in the high-70s to 80 immediately before the announcement last month and was not far from fair value relative to other Deutsche Bank bonds.

    Deutsche Bank's Nexus .......

    News Round-up 6 July 2012

  • UKAR tender results in

    Bradford & Bingley and Northern Rock Asset Management have disclosed the results for their tender offers on Aire Valley, Granite and Whinstone subordinate bonds (SCI 20 June). UK Asset Resolution accepted bonds equivalent to an outstanding nominal value of £534m, out of the approximately £1.19bn tenders received, for a total cost of around £400m.

    The triple-B rated Aire Valley class .......

    News Round-up 6 July 2012

  • Sainsbury CMBS sees property withdrawals

    J Sainsbury, the borrower behind the Longstone Finance CMBS, has withdrawn without prepayment three properties from the portfolio. The properties - located in Ashford, Norwich and Northfleet - represent 6.5% of the deal's total investment value and 8.5% of the total gross store area.

    Moody's notes that the withdrawal of the properties without prepayment is credit negative because it raises .......

    News Round-up 5 July 2012

  • Volatility 'top concern' for CLO investors

    Spread volatility has emerged as the top concern for respondents to JPMorgan's latest CLO client survey, which CDO strategists at the bank say is to be expected, given the pick-up in macro volatility. Regulatory reform dropped from this spot in prior surveys to third place, perhaps due to 'regulatory fatigue'.

    The second most-cited concern was collateral defaults/distress - although if .......

    News 5 July 2012

  • Spanish SME CLO ratings resilient

    Spanish SME CLO ratings are resilient in scenarios where the collateral performance significantly deteriorates but sovereign or counterparty risk does not increase, according to Fitch. This is despite the transactions' exposure to the real estate sector.

    Under a severe stress, no losses are expected for double-A minus tranches, the highest rating achievable for Spanish structured finance transactions. "Spanish SME CLOs .......

    News Round-up 5 July 2012
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