Complete news archive

  • MBIA 'transformation' trial scheduled

    At the 20 April hearing in the New York State Supreme Court (SCI 10 April), Justice Barbara Kapnick ruled that a trial should take place starting on 14 May in the Article 78 action against MBIA and the New York State Insurance Department (NYID) over the US$5bn restructuring of MBIA Insurance in February 2009. Four weeks have been set aside .......

    News Round-up 23 April 2012

  • SCI Start the Week - 23 April

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

    Pipeline
    Four new deals joined the pipeline and remained there last week. A US$400m CLO from Sankaty Advisors is marketing (Race Point VI), while there is also a US$103.68m ABS in the market (Conn's Receivables Funding I series 2012-A). In Europe, a €400m auto lease ABS from Athlon Car Lease Nederland (Highway 2012-I) and a UK RMBS deal (Leofric No.1) are .......

    News 23 April 2012

  • EMEA CMBS loan transfers continue apace

    The total number of loans in special servicing across EMEA CMBS large multi-borrower and single-borrower transactions monitored by Moody's decreased by one loan to 132 as of end-March, according to the agency's monthly update on the sector. Two loans were newly transferred during the month, while three loans have been removed from special servicing as their workouts were completed.

    Among .......

    News Round-up 23 April 2012

  • Non-conforming boost for ABS fund

    Volta Finance, the permanent capital vehicle managed by Axa Investment Managers Paris, has reported a March mark-to-market valuation of +139.1% for its ABS positions, thanks in part to six UK non-conforming ABS deals in its portfolio resuming payment of significant cashflows. The value of these six deals increased by €4.7m or €0.15 per share in March.

    "Thanks to the Bank .......

    News Round-up 20 April 2012

  • Special servicer switched

    Torchlight Debt Opportunity Fund II, the directing certificate holder on GE Commercial Mortgage Corporation Commercial Mortgage Pass-Through Certificates Series 2007-C1 (GECMC 2007-C1), intends to exercise its rights pursuant to Section 7.01(c) of the Pooling and Servicing Agreement (PSA) to replace LNR Partners as the special servicer and to appoint Torchlight Loan Services as the successor special servicer.

    Moody's has reviewed .......

    News Round-up 20 April 2012

  • Investors debate SME CLO supply

    Investors that are willing to invest in SME CLOs alongside other structured finance asset classes have cited concerns about a lack of liquidity on the secondary market that could prevent or delay investment.

    In a recent seminar hosted by Fitch, investors also indicated a general lack of triple-A SME CLO supply as most European SME CLO transactions are retained by .......

    News Round-up 20 April 2012

  • Fannie Mae sees robust multifamily issuance

    Fannie Mae issued US$7.1bn of multifamily MBS in 1Q12 backed by new multifamily loans. The agency also resecuritised US$2.6bn of DUS MBS through its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS) programme in the first quarter.

    "The strength of the Agency CMBS market is evidenced by robust volumes coincident with improving credit quality," says Kimberly Johnson, Fannie Mae vp of multifamily .......

    News Round-up 20 April 2012

  • Trups CDO defaults, deferrals rise slightly

    Defaults on US bank Trups CDOs in 1Q12 finished slightly higher than the previous quarter, while deferrals saw a more pronounced increase, according to the latest index results from Fitch. Defaults increased to 16.82% from 16.78%, while deferrals increased to 15.89% from 15.07%. The combined default and deferral rate for bank Trups CDOs rose to 32.71% from 31.85%.

    Two new .......

    News Round-up 20 April 2012

  • IOSCO queries SF surveillance

    The International Organization of Securities Commissions (IOSCO) has asked for comments on a series of questions about structured finance surveillance, one of which is whether variations in disclosure increase uncertainty and lack of comparability for investors. Fitch believes differences in the quality and quantity of information reported, as well as the definitions used, makes it harder to directly compare performance.

    News Round-up 20 April 2012

  • Short sales positive for US RMBS

    The trend towards more short sales of distressed residential real estate loans in the US is gaining momentum, according to Fitch. The Federal Housing Finance Agency's (FHFA) recent announcement that government-sponsored enterprises (GSEs) will implement rules to expedite short sales should further drive activity.

    "Expanded use of short sales could be positive for RMBS trusts, as this strategy could improve .......

    News Round-up 20 April 2012

  • Seeking yield

    John Wells, chairman of Leadenhall Capital Partners, forecas...

    2011 will go down in history as one of the costliest years on record for insured losses from natural catastrophes, with Swiss Re estimating it to be the second worst to date, given losses of around US$116bn. With global news media focusing on an astonishing array of earthquakes, tsunamis, floods and tornadoes that have severely dented the balance sheets of .......

    Talking Point 20 April 2012

  • Rise in NPL CMBS volume predicted

    The recent Rialto securitisation of non-performing commercial real estate (CRE) loans represents the beginning of a trend, according to Fitch, given the volume of distressed CRE lingering with servicers and lenders and the increased use of loan sales to dispose of troubled CRE loans.

    Since 1Q09, US$161bn of CMBS loans have been transferred to special servicing and, since 2010, the .......

    News Round-up 19 April 2012

  • Recovery trades sought

    ABS CDO appetite surges ahead of expected supply

    The New York Fed has initiated a competitive bid process in response to several reverse inquiries for the MAX CDO holdings in the Maiden Lane III portfolio (see also SCI 10 April). The move comes amid surging interest in the ABS CDO sector, with fast money searching for low- to mid-teen returns in first-pay bonds and potential recovery trades in .......

    News Analysis 19 April 2012

  • EMEA CMBS subordination scrutinised

    Widespread structural flaws in EMEA CMBS transactions undermine the intended subordination of junior to senior noteholders, Fitch notes.

    In particular, loans failing to repay at maturity expose senior noteholders to interest rate risk. This is not allocated solely to junior investors by standard priorities of payments, which tend to be separate for interest and principal.

    The underlying interest rate risk .......

    News Round-up 19 April 2012

  • Discounted sales weigh on Spanish RMBS

    Fitch reports that achieved sales prices on repossessed properties in Spain are 48% lower, on average, than the valuations conducted at the time of loan origination. The agency has analysed loan-by-loan repossession data on Fitch-rated Spanish structured finance transactions, the majority of which relates to residential properties.

    "The significant discount of achieved sale prices from initial valuations reflects the distressed .......

    News Round-up 19 April 2012

  • Swap terms defined

    The SEC has adopted a new rule to define a series of terms related to the OTC swaps market. The rules, written jointly with the CFTC, implement provisions of the Dodd-Frank Act that established a comprehensive framework for regulating derivatives.

    The joint rules define the terms 'security-based swap dealer' and 'major security-based swap participant' as part of the Securities Exchange .......

    News Round-up 19 April 2012

  • Call for Volcker Rule re-proposal

    In a comment letter filed with the CFTC on its proposed Volcker Rule, SIFMA and other financial trade associations reiterated the view that the proposal may unnecessarily constrain permitted activities, including market making, reducing liquidity in many markets and thus harming the US economy.

    Among the points made in the letter is that the costs of the proposal substantially outweigh .......

    News Round-up 19 April 2012

  • Alternative credit group acquired

    THL Credit Advisors is set to acquire McDonnell Investment Management's Alternative Credit Strategies (ACS) group. ACS manages approximately US$2.5bn in broadly syndicated bank loan and high yield bond assets in CLOs, separate account, long-only and opportunistic fund formats.

    Led by James Fellows, Brian Good, Robert Hickey and Michael Herzig, the ACS team will join THL Credit Advisors' capital markets investment .......

    Job Swaps 19 April 2012

  • Bank credit risk indicators launched

    Fitch Solutions has launched a new suite of bank credit risk indicators to assist credit risk managers, CVA desks and corporate treasurers in managing their regulatory, capital adequacy and risk mitigation requirements. The suite of proprietary data will allow subscribers to manage their levels of credit and counterparty risk exposure towards financial institutions.

    The offering comprises bank financial data and .......

    News Round-up 19 April 2012

  • StormHarbour strengthens Spanish coverage

    Gonzalo Chocano has joined StormHarbour as a principal and md, responsible for driving client coverage in Spain across the core businesses of sales and trading, structuring and advisory, and capital markets. He is based in StormHarbour's London office and was most recently md of debt markets and head of global futures & derivatives clearing services at Bank of America Merrill .......

    Job Swaps 19 April 2012

  • Record cat bond volumes posted

    First-quarter catastrophe bond issuance hit a record US$1.49bn as investors deployed additional capital into the sector, according to Aon Benfield Securities' latest quarterly ILS update. The firm forecasts that full-year 2012 ILS issuance will be in the range of US$5bn to US$6bn.

    A total of nine transactions closed in the first quarter, featuring both new and repeat sponsors. An additional .......

    News Round-up 18 April 2012
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