Complete news archive

  • Euro loan recoveries examined

    Recovery rates in the European senior loan market have been strong and in line with the experience of the more mature US loan market, according to S&P's first-ever study of recoveries in the sector. The upsurge and subsequent slump in financial markets over the past decade has seen an expanded European leveraged loan market run its first economic cycle, providing .......

    News Round-up 2 May 2012

  • Maguire sheds CMBS properties

    Further details have emerged on the resolution of a number of CMBS properties sponsored by Maguire Properties (SCI 21 March). Maguire's 1Q12 financial results reveal that several assets have been sold or put into receivership so far this year.

    The US$470m Two California Plaza loan, which is securitised in GSMS 2007-GG10 and had been widely expected to enter receivership, was .......

    News 2 May 2012

  • Surveys underscore risk management progress

    ISDA has released its 2012 margin survey and 2012 operations benchmarking survey at its 27th AGM in Chicago.

    The 2012 margin survey reveals that market participants continue to expand their use of collateral to mitigate OTC derivatives credit exposures. Among large dealers, 84% of all transactions are now executed with the support of a collateral agreement, up from 80% in .......

    News Round-up 2 May 2012

  • Mortgage tool strengthened

    Moody's Analytics has strengthened its Mortgage Portfolio Analyzer (MPA) tool, a risk management, stress testing and capital allocation service. As part of the update, the framework for modeling stressed macroeconomic scenarios, defaults, prepayments and severities has been enhanced.

    "As banks respond to increased regulatory and economic uncertainty, they are faced with pressure to accurately measure and manage their exposure to .......

    News Round-up 2 May 2012

  • DC workings reviewed

    ISDA has published a paper that reviews the formation, structure and workings of its Credit Derivatives Determinations Committees. Since their formation in March 2009 as part of the big bang protocol, the DCs have considered more than 900 questions, of which approximately 96% have been decided unanimously.

    On 83 occasions, ISDA says the DCs have been asked to consider whether .......

    News Round-up 2 May 2012

  • Debut MBS settlement cycle completed

    The first settlement cycle run by the DTCC's new MBS central counterparty (SCI 13 March) achieved a 70% reduction in the mortgage securities pools and payments involved in settling the trades. The service netted the nearly 43,000 pool allocations underlying the trades down to less than 13,000.

    As the month of April progressed, the processing of class B and C .......

    News Round-up 2 May 2012

  • CMBS delinquencies near record high

    The Trepp CMBS Delinquency Rate jumped by another 12bp in April to 9.8%, after increasing by 31bp the previous month. The highest rate on record is 9.88%, set in July 2011.

    Following two months of relatively modest loan loss resolutions at US$1bn or less, special servicer activity picked up in April, with over US$1.4bn in loss resolutions seen during the .......

    News Round-up 1 May 2012

  • CMBS auctions continue apace

    LNR has announced a US$254m sale of distressed assets through Eastdil Secured, comprising five loans securitised in CMBS trusts. Meanwhile, CWCapital has become the third special servicer to liquidate problem loans via large auctions.

    The five loans being disposed of via Eastdil comprise 801 North Brand and 700 North Central (securitised in GSMS 2005-GG4), Metropolis Shopping Center (BACM 2007-3), Hookston .......

    News Round-up 1 May 2012

  • ILS pricing discipline emerges

    Faced with record new issue volumes, some ILS portfolio rebalancing was seen in the first quarter as investors digested the supply. Some lightened up on US wind risk, according to Willis Capital Markets & Advisory's latest ILS market update, with US wind bonds increasingly reflecting the spread widening seen in the primary market as the quarter progressed.

    Indeed, although investors .......

    News 1 May 2012

  • Everglades Re closes up 375%

    Citizens Property Insurance's Everglades Re catastrophe bond has closed at US$750m, upsized from an initial target of US$200m (SCI 5 April 2012). The two-year single tranche hurricane deal priced at 1775bp over Treasury money market funds and has been rated single-B plus by S&P.

    Everglades Re covers ultimate net losses of Citizens from hurricanes in the state of Florida on .......

    News Round-up 1 May 2012

  • ICE Clear adds member, hits milestone

    HSBC Securities has joined as a member of ICE Clear Credit. The FCM will now be eligible to clear buy-side transactions through ICE's North American CDS clearing house.

    The addition of HSBC Securities brings ICE Clear Credit's clearing membership up to 27. The total amount cleared through ICE's CDS clearing houses has also reached a significant milestone, as over US$30trn .......

    Job Swaps 1 May 2012

  • Surge seen in sovereign CDS liquidity

    As of last Friday's market close, average global CDS liquidity is at its highest level since March 2006, Fitch Solutions reports. This has been driven by a surge in liquidity for both developed and emerging market sovereigns over the past month.

    "CDS liquidity on Belgium moved up seven regional percentile rankings in the past month, making it now the second .......

    News Round-up 1 May 2012

  • RMBS extension risk warning

    Absent sponsor support, extension risk for scheduled and bullet notes remains significant for UK RMBS master trusts, Moody's warns.

    Extension beyond a scheduled or bullet maturity can lead to the repricing of risk, low redemption rates and actual and potential trigger breaches in some trusts. These breaches affect principal payment allocation and can significantly affect yields.

    "Looking at only the .......

    News Round-up 1 May 2012

  • Euro CDO overlap updated

    The top-five referenced obligors in synthetic CDO portfolios that S&P rates in Europe are General Electric Capital Corporation, Goldman Sachs, Morgan Stanley, Volkswagen and Telecom Italia. Each name was referenced in more than 60% of transactions at the end of April. US obligors account for 38 of the 100 most-widely referenced obligors in European deals, followed by those in the .......

    News Round-up 1 May 2012

  • Solvency II calibrations questioned

    Covered bonds would attract significantly lower capital charges than securitisations under Solvency II because of an excessively conservative calibration of the rules, Fitch notes. The difference in capital charges is expected to lead to increased covered bond issuance at the expense of securitisation.

    The capital charges for triple-A rated covered bonds range between 0.7% and 6%, compared with prohibitively high .......

    News Round-up 1 May 2012

  • Loss severities set to plateau

    Loss severities on US CMBS reached a high water mark of 45% last year, according to Fitch's annual loss study for the sector. The agency suggests that loss rates may plateau at this level, as they continue to stabilise over the course of 2012.

    A closer look at the numbers reveals that loss severities actually declined for most major property .......

    News Round-up 1 May 2012

  • Long-dated asset concentration examined

    S&P has examined the concentration of long-dated assets - assets within a pool that mature after the deal matures - within the US CLOs it rates. While CLO investors typically have limited exposure to market value risk, significant concentrations of long-dated assets may increase such exposure, the agency says.

    "We believe that a CLO with a significant concentration of long-dated .......

    News Round-up 1 May 2012

  • Warner Building on watchlist

    Morningstar has added the US$292.7m Warner Building loan to its watchlist for occupancy concerns. The loan represents over 15% by unpaid principal balance of the JP Morgan Chase 2006-CIBC15 CMBS.

    For the six-month period ended 30 June 2011, the net cashflow DSCR was 1.27x, with net cashflow of US$11.8m. Occupancy was reported at only 47%, triggering the inclusion of the .......

    News Round-up 1 May 2012

  • Extensions dominate April maturity outcomes

    Fitch reports in its latest European CMBS bulletin that half of the loans that were originally scheduled to mature in April have had their maturity dates extended, increasing the overall proportion of extended loans to 40%. In total, around €9.5bn due since the onset of the global crisis remains outstanding in light of loan extensions, the agency says.

    The majority .......

    News Round-up 1 May 2012

  • Canadian CRE firm opens NY office

    Avison Young has opened an office in New York and recruited Arthur Mirante. Mirante joins the firm as principal and tri-state president and will be based in the new office.

    Mirante will work alongside Avison Young principal Greg Kraut and also join the firm's executive operating committee. He joins from Cushman & Wakefield, where he spent 20 years and was ceo and .......

    Job Swaps 30 April 2012

  • Second 'disappointing' BPI tender

    Banco BPI repurchased €77m of bonds under its second Douro Mortgages RMBS tender offer (SCI 24 April), representing slightly less than 4% of the current amount outstanding. With the fixed price tender levels set at 5-7 points above current secondary market levels at time of launch and between 7-10 points higher than the previous tender offer, the low take-up will .......

    News Round-up 30 April 2012
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