Complete news archive

  • Bottleneck breakers

    As banks come under severe pressure and pull out of many areas of the securitisation market, the opportunity set for non-bank finance companies is growing. At the same time, sophisticated investors are seeking liability-driven investments with stable and attractive long-term cashflows, prompting some players to try to connect these sources of supply and demand.

    NewOak Capital Management, for one, is .......

    News 22 March 2012

  • Loan restructuring completed

    The £175.66m Reference Loan no. 3 in the synthetic CMBS Estate UK-3 has been restructured. European asset-backed analysts at RBS note that successful CMBS loan restructurings have been less common in Europe than may be expected, so the result could prove to be a good template for other stressed loans.

    Under the restructuring, a £200m portion of senior debt was .......

    News Round-up 21 March 2012

  • ABS CDO acceleration rescinded

    In an unusual move, a majority of the controlling class in Belle Haven ABS CDO 2006-1 has waived the deal's existing EODs, as well as rescinded and annulled its acceleration. As a result, the EODs are deemed to be cured, with the trustee and the noteholders restored to their former positions and rights under the indenture.

    An EOD occurred on .......

    News Round-up 21 March 2012

  • CRE CDOs hit

    S&P has placed 697 ratings from 97 publicly rated CRE CDOs and re-REMIC transactions - representing an aggregate issuance amount of US$45.4bn - on credit watch with negative implications. The actions follow the update to the agency's criteria and assumptions used to rate CDO transactions backed by structured finance (SF) collateral (SCI 22 February).

    The credit watch placements affect 71% .......

    News Round-up 21 March 2012

  • CMBX rally losing steam?

    The CMBX indices may be in a period of consolidation, according to CMBS strategists at Citi. They note that the CMBX rally has lost some steam in recent weeks, with the indices largely underperforming the cash and equity markets.

    After peaking in January, synthetic AJ tranches - which had served as 'risk-on' trade candidates - have failed to keep up .......

    News Round-up 21 March 2012

  • MAS proposals positive for covered bond investors

    A consultation paper on covered bonds issued by the Monetary Authority of Singapore (SCI 12 March) includes proposals that would provide protection to investors in terms of quality covered assets, as well as through specifying minimum overcollateralisation levels and a requirement for ongoing monitoring of risk, according to Moody's.

    "But they do not cover areas, such as legal protection of .......

    News Round-up 21 March 2012

  • Assured hits back

    Assured Guaranty has responded to the placement of its debt ratings and insurance financial strength ratings under review for possible downgrade by Moody's. The agency cites constrained business opportunities for financial guaranty insurance and continued economic stress for US municipal, mortgage and European exposures.

    Assured says it has been working with Moody's for some time, emphasising the improvements in its .......

    News Round-up 21 March 2012

  • Maguire property fates become clearer

    Maguire Properties has filed its 10-K statement with the US SEC, shedding light on a number of CMBS properties sponsored by the company. Several loans are either in, or heading for, receivership - although not all properties are set for disposal.

    The US$470m Two California Plaza loan securitised in GSMS 2007-GG10 is likely to be placed in receivership shortly. It .......

    News 21 March 2012

  • ERC Ireland credit event called

    ISDA's EMEA Credit Derivatives Determinations Committee has resolved that a failure to pay credit event occurred in relation to Eircom parent ERC Ireland Finance. The firm missed its FRN coupon payment scheduled for 15 February. An auction will be held in respect of outstanding CDS transactions referencing the entity in due course.

    .......

    News Round-up 20 March 2012

  • Banking sector indices launched

    S&P Indices and ISDA have launched two new indices - the S&P/ISDA CDS US Financials Select 10 Index and the S&P/ISDA CDS European Banks Select 15 Index. The indices aim to provide a day-to-day measure of the credit quality of the US and European banking sectors.

    The constituents of the two new indices are the most liquid and relevant names .......

    News Round-up 20 March 2012

  • BWICs keep on coming

    The BWIC onslaught continues in the European secondary ABS sector. While bid-lists are keeping participants busy for now, one trader reports that the market is crying out for some more variety.

    "It has been quite quiet on the flow front. The primary market is slow, but there have been quite a lot of BWICs in the secondary market - last .......

    Market Reports 20 March 2012

  • EMEA SF CDOs hit

    S&P has placed or kept on credit watch negative its credit ratings on 238 tranches from 57 CDOs, backed by pooled structured finance (SF) assets. The actions follow the agency's update of its criteria and assumptions used to rate CDO transactions backed by SF securities (SCI 22 February).

    The credit watch negative placements affect nearly all of S&P's ratings on .......

    News Round-up 20 March 2012

  • Muni CDO criteria revised

    S&P has published its revised methodology and assumptions for rating CDOs and pooled tender option bonds (TOBs) backed by US municipal debt, effective from 19 March. The agency says the move represents a significant recalibration of its criteria and is aimed at enhancing the comparability of CDO and TOB ratings with ratings in other sectors.

    The updated criteria differ from .......

    News Round-up 20 March 2012

  • School CDO suit settled

    Stifel Financial has settled with five Wisconsin school districts in a lawsuit regarding mis-sold CDO investments (SCI 10 February 2010). The case concerns investments created by RBC and purchased by the districts, with Stifel acting as the districts' public finance investment banker.

    Under the terms of the settlement Stifel has paid US$13m to Kenosha Unified School District, Kimberly School District, .......

    Job Swaps 20 March 2012

  • Residual value

    Case for subordinated CLO investment remains

    The investment case for mezzanine and subordinated CLO positions remains strong. One European CLO manager has just announced the second close of a fund investing in such assets, while another Europe-based structured credit fund has reported a 15.6% month-on-month rise in mark-to-market valuations of its subordinated CLO positions.

    Pearl Diver Capital has completed a second close of its second fund, .......

    News Analysis 20 March 2012

  • Rating triggers waived

    Noteholders in the RMAC 03-NS1, 03-NS2, 03-NS3, 03-NS4, 04-NS1 and 04-NS2 RMBS have voted to ignore certain rating-related triggers in the deals, following the downgrade of Barclays - acting as liquidity facility provider - to A-1 from A-1+. Securitisation analysts at S&P view the move as a short-term positive for transaction cashflow but a negative for counterparty risk.

    A waiver .......

    News Round-up 20 March 2012

  • BOS tender announced

    The Bank of Scotland has announced tender offers at par for the class 5A notes from its MFPLC 4 and PENDE 2007-1 RMBS, which close on 2 April. The MFPLC 4 5A tranche is the last outstanding publicly placed note from the Mound Master Trust, due to be redeemed in November 2012, while the PENDE 2007-1 5A tranche is the .......

    News Round-up 20 March 2012

  • Greek CDS settled as expected

    The final price of the Hellenic Republic bonds for the purpose of settling CDS transactions has been determined at 21.5%. A realised recovery rate of between 20%-25% had been expected, with the final figure more likely to be at the lower end of the range.

    Credit analysts at Citi note that Greek domestic law bonds were trading in the mid-20s before .......

    News Round-up 19 March 2012

  • Mexican RMBS criteria updated

    Fitch has updated its rating methodology for assessing credit risk in Mexican residential mortgage loan pools originated by banks and Sofoles/Sofomes that are used as collateral for structured finance transactions. The changes focus on loss given default (LGD) assumptions and primarily reflect the agency's view for a prolonged recovery process and discounted sales levels predicted for the coming years.

    The .......

    News Round-up 19 March 2012

  • Call for improved servicing disclosure

    US CMBS investor concerns that servicers are increasingly basing workout strategies on the highest collectable fee can be quelled through improved disclosure, according to Fitch. The agency says it has been alerted to several instances where modification fees charged to the borrower have been significantly higher than expected and were not readily disclosed to investors.

    Once a loan workout is .......

    News Round-up 19 March 2012

  • Freddie eyes five-year mortgages

    Freddie Mac is in the market with the US$1.1bn FREMF 2012-K501, its first CMBS backed exclusively by multifamily mortgages with a five-year term. The transaction is expected to price this week and settle on 11 April.

    "In the first quarter of this year, we have brought four K Deals to a vibrant agency CMBS market," comments Mitch Resnick, co-head of .......

    News Round-up 19 March 2012
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