Complete news archive

  • Subprime RMBS review completed

    Fitch has completed its review of the US subprime RMBS sector, covering 10,380 classes across 1,143 transactions. The agency has affirmed 86% of the classes, downgraded 12% and upgraded less than 1% as a result.

    Of the downgrades, 93% were by 1-2 notches. Of classes with an outlook, 94% of downgraded classes were on rating watch or outlook negative prior .......

    News Round-up 13 March 2012

  • MBS CCP to launch next month

    The US SEC has approved the DTCC's application to operate a new central counterparty designed to reduce risk and costs in the US agency MBS market (SCI 13 December 2011). Starting on 2 April, the MBS division of DTCC's Fixed Income Clearing Corporation (FICC) subsidiary will begin guaranteeing settlement of all of its members' matched MBS trades and introduce pool .......

    News Round-up 13 March 2012

  • Multi variety

    Diverse German multifamily CMBS outcomes expected

    The German multifamily sector accounts for about 20% of all securitised assets in European CMBS. Deal performance in the sector has been mixed, with noteholders frequently facing extensions and sometimes losses.

    Geography is a highly significant factor in German multifamily CMBS, as property location is often a major driver in loan performance. Aside from a few notable exceptions, East German .......

    News Analysis 13 March 2012

  • Stale CMBS loans to improve

    The balance of stale US CMBS loans - loans in special servicing for longer than 24 months - has tripled over the past year. However, a new report from US CMBS & CRE analysts at Wells Fargo Securities suggests that the trend is likely reverse and that the balance of stale loans should improve over the next 12 months.

    At .......

    News 12 March 2012

  • CMBS loan payoffs bounce

    The percentage of US CMBS loans paying off on their balloon date posted their second highest reading since December 2008, according to Trepp's February payoff report. During the month, 61.6% of loans reaching their balloon date paid off.

    Only September 2011 had a better reading since the credit crisis began: that month the payoff level was 64.4%. February marks only .......

    News Round-up 12 March 2012

  • 'Few major surprises' expected in iTraxx roll

    The iTraxx family of credit indices is set to roll on 20 March. While new rules introduced by Markit are unlikely to create any major surprises, constituent changes are expected to drive the Main and HiVol tighter and the Crossover index slightly wider.

    For the past three rolls, Markit has used a new process that moves the roll away from .......

    News 12 March 2012

  • Draft counterparty criteria released

    Fitch has published its exposure draft of criteria for analysing counterparty risk in structured finance transactions (SCI 14 February), with a number of proposed amendments. The agency does not expect any direct rating impact for existing ratings in the event of the proposals being adopted in revised criteria; nor will it expect documentation changes to be made to existing transactions .......

    News Round-up 12 March 2012

  • Enhanced CVA offering rolled out

    SunGard has extended its Adaptiv suite of solutions to help customers not only calculate CVA, but also actively manage it, the firm says. Adaptiv CVA Studio includes a Monte Carlo calculation engine for measuring risk, as well as a trading-style interface to display counterparty and hedge positions in a single view of P&L and key risk metrics. The solution can .......

    News Round-up 12 March 2012

  • Willis appoints Europe md

    Andrea Bellone has joined the European team of Willis Capital Markets & Advisory as md. He is based in London and reports to Michiel Bakker, head of WCMA Europe.

    Bellone is now responsible for WCMA clients in continental Europe, with a particular emphasis on Italy. He joins from Leadenhall Capital Partners and has 18 years of experience in insurance and .......

    Job Swaps 12 March 2012

  • QUOKK 06-1 management structure revised

    A number of changes have been made to the management structure of the €560m Quokka Finance, a German multifamily CMBS. These include a change of property manager and borrower general partner.

    The original property manager, Krüger Immobilien, has been dissolved due to insolvency and its functions transferred to replacement property managers - Colonia, Pentaproperty, TAG and Hermes - to avoid .......

    News Round-up 12 March 2012

  • EM CDO criteria reviewed

    S&P has published an advance notice of proposed criteria change in relation to a comprehensive review of the assumptions and methodologies it uses to rate securitisations backed predominantly by loans or bonds issued by emerging market corporate entities. The revisions are intended to enhance the comparability of EM CDO ratings with ratings in other sectors, such as corporate CDOs, and .......

    News Round-up 12 March 2012

  • Servicer conflicts of interest scrutinised

    S&P says it is monitoring potential conflicts of interest that may arise between special servicers, their affiliates and/or parents - especially when a servicer has changed ownership. The agency notes that several market participants, including CMBS investors, have expressed concern over special servicers' exercising 'fair market value' purchase options and the practice of charging additional fees in connection with loan .......

    News Round-up 12 March 2012

  • East Lane Re V upsizes

    The fifth catastrophe bond from Chubb's East Lane programme has closed with its junior tranche upsized. East Lane Re V's series 2012 class A and class B notes initially targeted US$75m and US$50m (SCI 22 February 2012), but the class Bs ended up at US$75m

    The four-year deal priced at 900bp over Treasury money market funds for the class A .......

    News Round-up 12 March 2012

  • SCI Start the Week - 12 March

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

    Pipeline
    Last week saw four new deals enter the pipeline and remain there on Friday. Banco Santander is in the market with Santander Empresas 11, a €3.392bn SME CDO. The transaction was joined by a US$195m drug royalties CDO from DRI (Drug Royalty 1 series 2012-1), as well as a Sfr300m auto lease ABS from GE Money (Swiss Auto Lease 2012-1) .......

    News 12 March 2012

  • Singapore issues covered bond guidelines

    The ability of Singaporean banks to issue covered bonds is one step closer, following the release of a Monetary Authority of Singapore (MAS) consultation paper on the asset class.

    MAS is proposing that banks incorporated in Singapore may issue covered bonds subject to the aggregate value of assets in the cover pool being capped at 2% of the value of .......

    News Round-up 12 March 2012

  • Greek CDS auction scheduled

    As expected (SCI 9 March), ISDA's EMEA Credit Derivatives Determinations Committee on Friday resolved unanimously that a restructuring credit event occurred with respect to The Hellenic Republic, following the exercise of collective action clauses to amend the terms of Greek law governed bonds. An auction will be held in respect of outstanding CDS transactions on 19 March. The association has .......

    News Round-up 12 March 2012

  • Lease rollover risk scrutinised

    Near-term lease expiries appear to be a manageable risk for many of the five-year US CMBS loans maturing this year, according to CMBS strategists at Citi. However, lease expirations ramp up dramatically from 2015, with office expirations for example jumping to 19.7% that year from 11% in 2014.

    Citi research suggests that, in aggregate, leases on about 10% of occupied .......

    News 9 March 2012

  • Atlanta offices drive CMBS delinquencies

    Increasing difficulties for office properties, most notably in Atlanta, overshadowed what was otherwise a flat February for US CMBS delinquencies overall, according to Fitch's latest US CMBS Loan Delinquency Index results.

    CMBS late-pays fell by 2bp last month to 8.3% from 8.32% a month earlier. The decline was led by a large hotel loan that was brought current. However, office .......

    News Round-up 9 March 2012

  • Internal transfer for CRE CDO

    Prudential Mortgage Capital Company has transferred to Prudential Investment Management its duties and responsibilities under the collateral management and servicing agreements for ROCK 1 - CRE CDO 2006. Moody's has determined that the assignment won't cause the ratings of the notes to be reduced or withdrawn.

    For other recent assigments, see SCI's CDO manager transfer database.

    .......

    Job Swaps 9 March 2012

  • Further action plans released

    The Federal Reserve Board has released action plans for three supervised financial institutions - HSBC North America Holdings, Ally Financial and IMB HoldCo - to correct deficiencies in residential mortgage loan servicing and foreclosure processing (SCI passim). It also released the engagement letter between HSBC and the independent consultant the bank retained to review foreclosures that were in process in .......

    News Round-up 9 March 2012

  • TARP wind-down continues

    The US Treasury has agreed to sell 206,896,552 shares of its AIG common stock at US$29 per share, with the aggregate proceeds expected to be approximately US$6bn. AIG will purchase 103,448,276 of the shares, representing half of the expected proceeds from the sale.

    "We're continuing to move forward to wind down TARP and exit our stakes in private companies as .......

    News Round-up 9 March 2012
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