Complete news archive

  • Pelican calls anticipated

    The likelihood of the Pelican 2 and 3 transactions being called has jumped, following Caixa Economica Montepio Geral's recent tender offer. The bank offered to purchase up to €300m across 10 Portuguese RMBS bonds and one bank capital security via an unmodified Dutch auction.

    In total, it repurchased €144.4m of RMBS bonds and €41.3m of the bank capital security. Of .......

    News Round-up 28 June 2012

  • CDO management transfer proposed

    Coast Capital Asset Management is proposing to transfer the collateral management agreement (CMA) for Coast Investment Grade 2002-1 to Crescent Capital Group. Fitch has confirmed that the move is unlikely to impact the transaction's outstanding ratings.

    The agency notes that the most senior class in the deal is currently rated triple-C, indicating that default appears a real possibility for the .......

    Job Swaps 28 June 2012

  • REC 6 test case on the cards

    Pearsanta, the junior lender in the Alburn Real Estate Capital (REC 6), has begun High Court proceedings to confirm the appointment of Solutus Advisors as special servicer on the deal. In what is believed to be a first for the European CMBS market, the judge will be asked to decide between the legal enforcement of a contract and fiduciary duty .......

    News 27 June 2012

  • Counterparty criteria hits synthetic CDOs

    S&P has placed on credit watch negative its credit ratings on 30 tranches in 30 funded synthetic CDO transactions. The actions are in connection with the agency's recently published counterparty criteria.

    The affected transactions feature instruments and associated counterparty obligations (including collateral) that support all, or substantially all, of principal repayment. The structures include, for example, total return swaps, investment .......

    News Round-up 27 June 2012

  • Euro CDS spreads seen tightening

    CDS on western European sovereigns are still retreating from levels reached earlier this month, moving in by 7% last week. Portugal led the move, with its CDS spreads tightening to levels not seen in nearly a year, according to Fitch Solutions.

    "Spreads on Portugal tightened 19% to price at its tightest levels since the beginning of last summer," confirms Fitch .......

    News Round-up 27 June 2012

  • QRM concern highlighted

    Fitch believes that continued uncertainty relating to aspects of the Dodd-Frank Act has caused many traditional RMBS issuers to delay their issuance plans. Of particular concern are the details surrounding the definition and creation of an exemption from the risk retention requirements for qualified residential mortgages (QRMs). Some further clarity on the matter is hoped for in the third quarter .......

    News Round-up 27 June 2012

  • SF natural hedging examined

    The number of European structured finance deals that use swaps to hedge interest rate mismatches may decrease as hedging costs rise and the number of eligible counterparties drops, Fitch suggests. This reduces the counterparty risk but can place more emphasis on credit enhancement if the resulting interest rate risk is not adequately mitigated, for example through natural hedges.

    Various techniques .......

    News Round-up 27 June 2012

  • Competitive ResCap auction expected

    The process to approve the stalking-horse bidder for the auction of ResCap's loan origination and servicing business suggests that it will be a fairly competitive final auction, likely in October. Berkshire Hathaway and Fortress Investment Group submitted multiple bids during the process, with Fortress finally approved last week after it raised its original offer by US$125m and cut its break-up .......

    News Round-up 26 June 2012

  • Call for EU debt mutualisation

    The Bank of Spain has released the first results of the independent review of its banking system (SCI 14 May). The numbers are higher - and deemed more realistic - than those from previous stress tests, but a number of concerns remain.

    According to the reports from the external consultants (Oliver Wyman and Roland Berger), the Spanish banking system would .......

    News Round-up 26 June 2012

  • Bank downgrades hit SF, ABCP

    Moody's has downgraded a number of structured finance notes directly exposed to the declining credit quality of certain US and European firms with global capital market operations that the agency downgraded on 21 June. At the same time, the ratings on approximately US$37bn of ABCP have been impacted.

    The rating actions affect 110 tranches and 103 structured notes in the .......

    News Round-up 26 June 2012

  • ECB repo eligibility broadened

    The ECB is set to reduce the rating threshold and amend the eligibility requirements for certain ABS, thereby broadening the scope of the measures to increase collateral availability that were introduced on 8 December 2011.

    Auto loan, leasing and consumer finance ABS and CMBS that have a second-best rating of at least single-A at issuance and at all times subsequently .......

    News Round-up 26 June 2012

  • CREFC president named

    Paul Vanderslice has been elected president of CRE Finance Council (CREFC) for the 2012-2013 term. Vanderslice is md and co-head of the US CMBS group at Citi. He succeeds Jack Cohen, ceo of Cohen Financial.

    .......

    Job Swaps 26 June 2012

  • EMIR consultation launched

    ESMA has launched a consultation on its technical standards under EMIR. The measures are designed to reduce risks in the OTC derivatives market, improve transparency and ensure that sound and resilient central counterparties will be applied in practice.

    The consultation paper contains draft regulatory technical standards (RTS) and draft implementing technical standards (ITS), which set out the specific details of .......

    News Round-up 26 June 2012

  • ML 3 auction results in

    The winning bidders for yesterday's Maiden Lane III CDO sale have been announced (SCI 19 June). Credit Suisse successfully bid for the US$1.37bn Davis Square Funding VI, US$615.69m Sheridan ABS CDO, US$1.07bn Monroe Harbor CDO 2005-1 and US$392.33m Streeterville ABS CDO assets. RBS successfully bid for the US$396.62m Davis Square Funding I CDO, while Morgan Stanley scooped the US$387.94m Lakeside .......

    News Round-up 26 June 2012

  • CMBS partner scooped

    Schulte Roth & Zabel has expanded its real estate practice with the addition of a CMBS lawyer from Dewey & LeBoeuf. Marshall Brozost is a partner in the New York office, where his practice deals with all aspects of commercial real estate, including purchases and sales, formation of joint ventures, real estate fund formation, mortgage and mezzanine financing, REIT structuring, .......

    Job Swaps 26 June 2012

  • Card charge-off spike reverses

    US securitised credit card charge-offs declined by 31bp in May to 4.9% from 5.21% in April, according to Moody's Credit Card Indices. The drop more than reversed an anomalous one-month increase in April (SCI 22 May), says Moody's.

    The May decline in the charge-off rate index is consistent with Moody's forecast that the index will continue to fall lower in .......

    News Round-up 25 June 2012

  • Stable outlook for IG CMBS

    Fitch's loss expectations for 2006-2008 vintage US CMBS transactions vary greatly by deal, the agency notes. Nevertheless, weighted average loss expectations for these three vintages total 12.3% of the original loan balance.

    Fitch expects investment grade ratings to be stable. Of over 2,500 investment grade US CMBS ratings outstanding, it has a stable outlook on 93%.

    The agency's surveillance methodology .......

    News Round-up 25 June 2012

  • CMBS servicer reports expanded

    Fitch has published the first of its expanded servicer reports for US CMBS servicers. The reports not only highlight industry best practices and servicer-specific deficiencies, but also now include a discussion of corporate governance and conflicts of interest, investor disclosure and affiliated companies.

    The expanded servicer reports are in response to investor concerns regarding potential conflicts of interest among special .......

    News Round-up 25 June 2012

  • Bank credit exposure declines

    US commercial banks and savings associations reported trading revenues of US$7bn in 1Q12, according to the OCC's 'Quarterly Report on Bank Trading and Derivatives Activities'. Net current credit exposure (NCCE) decreased by US$53bn, or 12%, to US$377bn during the quarter.

    The OCC notes that the more favourable risk and economic environment outlook in Q1 pushed interest rates higher and credit .......

    News Round-up 25 June 2012

  • SCI Start the Week - 25 June

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

    Pipeline
    Three RMBS deals remained in the pipeline at the end of last week - the $235m Tamweel Residential RMBS (Cayman) IV, $272m Sequoia Mortgage Trust 2012-3 and €848.3m Dutch Mortgage Portfolio Loans X. They were joined by two auto ABS - €800m Bavarian Sky Compartment 3 and €500m Red & Black Auto France 2012 - and one consumer loan ABS, .......

    News 25 June 2012

  • CMBS loan events updated

    12 new loan events have been added to the SCI CMBS loan events database today.

    These include:

    18/06/2012
    Deal: ECLIP 2007-1
    Property: Greater London Portfolio
    Event: sale completed for gross price of £8.6m for Central House asset (a 6.2% premium to recent valuation)

    June
    Deal: WBCMT 07-C32 & 07-C33
    Property: ING Hospitality Pool
    Balance: $284m & $284m
    Event: sponsor reportedly injected $68m of equity to .......

    News Round-up 22 June 2012
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