Complete news archive

  • Strong performance for new US RMBS

    The early performance of recently issued US RMBS transactions has been strong thus far, reflecting the high credit quality of the underlying mortgage pools, according to Fitch. Only a single borrower is delinquent of the approximately 1,800 newly-originated prime loans securitised in five Redwood Trust private-label transactions since the start of 2010. The agency expects the status of the single .......

    News Round-up 2 April 2012

  • Key person clauses modified

    The investment management agreements for the Stone Tower Credit Funding I, Stone Tower CDO, II, III, IV, V, VI, VII and Cornerstone CLO transactions have been amended to modify the definition of 'key person'. The amendment adds the names of two Apollo Global Management executives and one Stone Tower Fund Management (STFM) executive, and removes the names of two STFM .......

    News Round-up 2 April 2012

  • Liquidated loan volume remains muted

    The volume of liquidated CMBS conduit loans remained muted in March, according to Trepp, just one month after posting the lowest total since November 2010. At US$995m, liquidations were about 23% below the 12-month moving average of US$1.3bn per month. Since the beginning of 2010, special servicers have been liquidating at an average rate of about US$1.08bn per month.

    In .......

    News Round-up 2 April 2012

  • Eircom credit event called

    ISDA's EMEA Credit Derivatives Determinations Committee has resolved that a bankruptcy credit event occurred in relation to Eircom Limited. The move follows Eircom Group's application to the High Court in Dublin for its subsidiary to be placed in Irish examinership. The Group says it has entered the examinership process with the objective of placing the company's balance sheet on a .......

    News Round-up 2 April 2012

  • Muni bond specialists recruited

    Spring Mountain Capital has established a high yield and distressed municipal strategies group and hired a trio of high yield and distressed municipal bonds specialists. Garey Fuqua, Thomas Brophy and Sandra Matthews all join from Ofelia Capital.

    Fuqua, Brophy and Matthews have more than 45 years of industry experience between them. Fuqua will lead the team and serve as md .......

    Job Swaps 2 April 2012

  • Elevated CRE liquidation activity to continue

    Auction.com has released property-level details for two more commercial note/REO auctions, scheduled for the beginning of April. This comes after nearly US$1.5bn in auctions in February and March (see SCI CMBS Loan Events database).

    Of the loans up for bid, MBS analysts at Barclays Capital have identified about US$312m that are securitised in CMBS. Among the large loans .......

    News Round-up 2 April 2012

  • ISDA DC constituents confirmed

    ISDA has finalised which institutions will form the association's five regional Determinations Committees from 30 April. Each committee includes 12 dealer firms, of which two are consultative, and six non-dealer members, of which one is consultative.

    The voting dealers for all regions are: Bank of America, Barclays, Citibank, Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan Chase, Morgan Stanley and UBS. .......

    Job Swaps 2 April 2012

  • Best Buy CMBS exposure analysed

    Electronics retailer Best Buy has announced that it will close 50 big box stores in the US and shift to a business model emphasising smaller stores selling mobile phones, tablets and e-readers. Morningstar has released a report detailing CMBS exposure to the retailer.

    News of the restructuring came as Best Buy reported its quarterly earnings: the retailer reported a fiscal .......

    News Round-up 2 April 2012

  • April set for large maturity volume

    Fitch reports in its latest European CMBS bulletin that with another large volume of maturities coming due in April (23 loans accounting for €2.2bn), servicers will yet again be put to the test. Almost 60% of loans maturing this month are serviced by Capita Asset Services.

    To date, 430 Fitch-rated EMEA CMBS loans have matured since the onset of the .......

    News Round-up 2 April 2012

  • DLJ RMBS credit enhancement 'insufficient'

    Credit Suisse is in the market with a US$730.44m prime RMBS - CSMC Trust 2012-CIM1 - backed by mostly seasoned first-lien, fixed-rate mortgage loans secured by single-family residences. Fitch believes, however, that the credit enhancement amounts indicated for the transaction are insufficient to reach the proposed ratings - particularly at the triple-A level.

    The agency was asked to provide feedback .......

    News Round-up 2 April 2012

  • SCI Start the Week - 2 April

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

    Pipeline
    A variety of deals entered the pipeline last week, including the first NPL CMBS in over 10 years - the US$132m Rialto Capital Series 2012-LT1. The transaction was joined by the A$465m IDOL Trust Series 2012-1 RMBS and the US$367.5m Doral CLO II. Silvermine Capital Management is also marketing a US$400m CLO.

    Pricings
    The largest transaction to price last week was .......

    News 2 April 2012

  • NPL CMBS hits the market

    The first US non-performing CMBS in over a decade - Rialto Capital series 2012-LT1 - has hit the market. The US$132m transaction is collateralised by 271 mortgage loans securing 266 properties, 11 unsecured loans and 38 REO properties.

    The total unpaid principle balance (UPB) of the loans and properties represented in the pool is US$526.1m. The sponsor - Rialto Capital .......

    News 30 March 2012

  • EMIR approved

    The European Parliament has approved the European Market Infrastructure Regulation (EMIR), which will regulate trade in OTC derivatives. The rules require OTC derivatives to be cleared through CCPs, with all derivative contracts to be reported to trade repositories.

    Under the legislation, trade repositories will have to publish aggregate OTC positions according to asset class. They will be monitored by the .......

    News Round-up 30 March 2012

  • Naked CDS ban given short shrift

    The final European Council ban on naked shorting of sovereign CDS may be stricter than first anticipated, according to structured credit strategists at Citi. They note that regulators appear to be trying to capture trades in the US and Asia under the legislation, even though those regions would seem to be outside their jurisdiction.

    The risk of such additional regulator .......

    News 30 March 2012

  • Retail asset values impact Canary Wharf deal

    Songbird's latest results provide updated valuations and LTV ratios for the Canary Wharf CMBS. The LTV ratio in the securitisation improved to 72.5% from 73.7% and, after adjusting for amortisation over the year, this implies a valuation decline of -0.7%.

    It is difficult to reconcile this decline with a reported valuation increase of 1% across the seven main investment properties .......

    News Round-up 30 March 2012

  • Zero recovery for ERC Ireland CDS

    The final price for ERC Ireland Finance CDS was determined to be zero at yesterday's auction. Thirteen dealers submitted initial markets, physical settlement requests and limit orders to settle trades across the market referencing the entity.

    .......

    News Round-up 30 March 2012

  • Aussie, NZ SF macroeconomic drivers identified

    S&P has identified five key macroeconomic factors that are most relevant to the credit quality of Australian and New Zealand structured finance securities. These factors are GDP growth, the unemployment rate, house prices, share market returns and the corporate credit risk premium.

    The analysis explores the links between macroeconomic factors and structured finance rating movements. S&P began by studying historical .......

    News Round-up 30 March 2012

  • Hawker Beechcraft cut hits OC ratios

    The downgrade of Hawker Beechcraft to double-C by S&P will cause some CLO overcollateralisation ratios to decline, securitisation analysts at the agency note. The credit is held by about 75 CLOs, with aggregate exposure of US$200m. It represents 3.6% of the pool in one deal and 1% in nine other CLOs.

    If the company defaults, it would be the largest .......

    News Round-up 30 March 2012

  • SME CLO asset defaults

    The €6m subordinated bond issued by Gruezi, which forms part of the collateral backing PULS CDO 2007-1, has been classified as defaulted. An investor in residential real estate, the company is facing an increasing number of lawsuits from customers intending to reverse their transactions, claiming formal mistakes during the purchasing process. Given the increasing volume of claims, the company is .......

    News Round-up 30 March 2012

  • Counterparty monitoring tool offered

    State Street Corporation has launched its entity exposure monitor service, which calculates exposure to particular legal entities that asset managers and asset owners either do business with or have within their portfolios. The offering includes dashboards that investors can use to drill down into information about issuer and counterparty risk across all asset classes. It also features limit-setting and alerting .......

    News Round-up 29 March 2012

  • Aire Valley nears NAT

    The latest investor report for Aire Valley, Bradford & Bingley's UK RMBS master trust, indicates that it could start to wind down in 2Q12. The transaction will breach its non-asset trigger (NAT) and begin sequential amortisation when the outstanding collateral balance falls below £10.7bn. The balance stood at £10.8bn this month.

    .......

    News Round-up 29 March 2012
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