Complete news archive

  • Trio of CLO prints point to tighter spreads

    Goldman Sachs priced the US$430m Ares XXIII CLO for Ares Management on Friday, the third CLO to print last week. This brings year-to-date US CLO issuance to almost US$2bn, double the level at this time in 2011, with full-year issuance forecast to hit US$20bn.

    Notably, the Ares CLO comprises a fixed rate tranche, which is expected to appeal to US .......

    News Round-up 6 February 2012

  • Kodak auction scheduled

    The auction to settle the credit derivative trades for Eastman Kodak Company CDS is to be held on 22 February. A bankruptcy credit event was determined on the name last month (SCI 20 January).

    .......

    News Round-up 6 February 2012

  • SCI Start the Week - 6 February

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

    Pipeline
    Principal Residential Investment Mortgages 1    , a €178.6m RMBS, entered the pipeline last week. It was joined by Rhode Island Student Loan Authority 2012A, a US$17.94m student loan ABS. Credit Suisse Asset Management's latest CLO, Madison Park, also began marketing.

    Pricings
    Several deals priced last week, including two large RMBS transactions. Lowland Mortgage Backed 1, a €3.8bn RMBS, was joined by the .......

    News 6 February 2012

  • Multifamily rebounding

    Fitch reports that multifamily, along with hotels, has shown the best performance rebound in the US over the past 24 months of all commercial real estate property types. As the economy has stabilised, the two sectors have been able to mark-to-market more quickly due to shorter term rentals than other property types that have stickier rental streams as a result .......

    News Round-up 3 February 2012

  • Ex-Mallesons lawyers move on

    Johnson Winter & Slattery has poached a pair of structured finance lawyers. Craig Wappett and Deborah Overstead join the firm in Brisbane as partner and special counsel respectively.

    Formerly with Mallesons, Wappett is a financial services and major projects specialist, with experience ranging across governance, structured finance, financial product regulation and commercial transactions. Overstead joins Johnson Winter & Slattery from .......

    Job Swaps 3 February 2012

  • CLO 'risk-off' trade evident in TRACE data

    The latest Wells Fargo Structured Products Monthly examines TRACE trade data for the structured credit sector from mid-August 2011 onwards. US CLO analysts at the bank find that, thus far, the data largely matches conventional wisdom espoused by CLO market participants that bid/ask spreads widen and trading slows during times of volatility.

    Indeed, increased market volatility in September coincided with .......

    News 3 February 2012

  • Eddystone non-call waterfall questioned

    Sainsbury's has disclosed that it may not redeem the Eddystone Finance CMBS on its April 2013 step-up date. How principal will be allocated to the notes post non-call remains unclear, however.

    European CMBS strategists at Barclays Capital believe that while the intended cashflow allocation rules for the deal are clear, the offering circular (OC) is ambiguous. "To make a final .......

    News 3 February 2012

  • Enterprise sale boosts Unique bonds

    Enterprise Inns has sold 15 pubs, located across the west and south east of England, for £23m to Fullers based on a multiple-to-net income of 13.5x. Given that the pubs appear to have been bought for their trading potential rather than as a real estate play, the move is expected to help improve pub valuations outside of London.

    Although Enterprise .......

    News Round-up 3 February 2012

  • SF driving tri-party repo appetite

    Risk appetite in the US tri-party repo market is returning, reflected in a rise in riskier forms of repo collateral and a decrease in haircuts, according to Fitch. The agency says that structured finance has been the primary driver of the increasing presence of riskier forms of repo collateral.

    Fitch based its findings on repo transaction data sourced from a .......

    News Round-up 3 February 2012

  • CDO auction re-attempted

    An auction is being held to liquidate the Duke Funding High Grade I CDO, almost a year after a previous auction failed to attract enough bids (SCI 23 February 2011). The latest auction is scheduled for 21 February, but its completion is subject to an auction call redemption amount. If the bids delivered are less than this amount, no collateral .......

    News Round-up 3 February 2012

  • NRAM CDS settle above par

    The Northern Rock (Asset Management) CDS auction yesterday resulted in the first-ever credit event settlement where the final price rose above par. Dealers bid up the lender's shorter dated bonds, in bucket 1, from an initial market midpoint of 99.25 to 104.25. The final price for bonds in bucket 2 was determined to be 99.13.

    13 dealers submitted initial markets, .......

    News Round-up 3 February 2012

  • Credit vet founds new firm

    Sal Naro has formed New York-based Coherence Capital Partners, an asset management company specialising in the fixed income markets. He becomes ceo of the firm, which will invest in companies that show strong performance in their balance sheets while taking short positions in companies that miss earnings expectations and suffer continued weakness in their primary business metrics.

    Naro was previously .......

    Job Swaps 3 February 2012

  • Delinquency rate stays rangebound

    Last month the Trepp delinquency rate for US CRE loans in CMBS continued to hover within a narrow band. Overall, the rate in January fell by 6bp points to 9.52%.

    For the last three months the delinquency rate has oscillated only slightly higher and lower and in the process the rate hasn't gone above 9.6% or below 9.5%, Trepp says. .......

    News Round-up 2 February 2012

  • Surprise Dutch RMBS tender announced

    Lloyds has announced an unexpected tender offer for the Candide 2005 class A, Candide 2006 A2 and Candide 2006 A3 notes. The tender offer is at par for the three triple-A rated RMBS bonds.

    The bank says the offer is a liquidity management exercise. But the first optional redemption dates for the two transactions are in April and in November .......

    News Round-up 2 February 2012

  • Sustained CDS index rally expected

    CDS indices experienced a strong rally during the first month of the year, with credit investors adding risk on both sides of the Atlantic. Indeed, the CDS-cash basis turned significantly more negative in January, as CDS outperformed the cash market.

    One driver of this outperformance was investors reducing their shorts, according to credit derivatives strategists at Bank of America Merrill .......

    News 2 February 2012

  • Stable outlook for utility tariff bonds

    Fitch is maintaining a stable rating outlook for US utility tariff bonds in 2012, despite potential declines in consumption due to continued recessionary impacts. The agency says that to date Fitch-rated tariff bonds are performing within expectations. This is largely due to structural features inherent in utility tariff ABS transactions, like the true-up mechanism and sub-account withdrawals, which have been .......

    News Round-up 2 February 2012

  • Dante CDO resolution progressing?

    Lehman Brothers Australia (LBA) has filed for Chapter 15 bankruptcy protection in the US Bankruptcy Court for the Southern District of New York, in what is said to be an attempt to resolve jurisdictional differences in respect of its liquidation. Chapter 15 of the US bankruptcy code relates to cross-border bankruptcy issues and allows a representative of a corporate bankruptcy .......

    News Round-up 2 February 2012

  • GSC Group hearing due

    The US Bankruptcy Court for the Southern District of New York has approved Black Diamond Capital Management's motion for entry of an order in respect of its fourth amended joint Chapter 11 plan for GSC Group. Consequently, Black Diamond is soliciting votes from GSC European CDO I-R, CDO II and CDO V noteholders to accept or reject the plan. A .......

    Job Swaps 2 February 2012

  • FOF seeks distressed opportunities

    Legg Mason Global Asset Management has launched Permal Hedge Strategies Fund, a fixed income-focused multi-manager, multi-strategy fund of hedge funds. The fund invests in a broad range of fixed income strategies, employing flexible asset allocation and moving capital between credit and non-credit strategies.

    Investments will include developed as well as emerging market fixed income and long/short fixed income. There are .......

    News Round-up 2 February 2012

  • Negative outlook for sovereign-linked SF

    Fitch has revised its outlook on 253 tranches of Spanish and Italian structured finance transactions to negative. In addition, 12 tranches of five Irish RMBS transactions have been affirmed, removed from rating watch negative (RWN) and assigned a negative outlook. The agency has also downgraded 15 tranches of credit-linked or state guaranteed SF transactions in Spain and Italy.

    The rating .......

    News Round-up 2 February 2012

  • Refi plan fleshed out

    President Obama has provided more detail on his plan to help spur mortgage refinancing, following last week's State of the Union address (SCI 25 January). Most elements of the initiative are likely to either require Congressional approval or the FHFA to revisit the work that went into developing HARP 2.

    The President's plan would introduce a HARP-like refinancing option for .......

    News Round-up 2 February 2012
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