Complete news archive

  • Indian ABS stable, despite slower growth

    Fitch attributes the stable performance of Indian ABS transactions despite moderating economic growth in the country to the robust performance of the underlying transactions.

    The agency reports that there has been a substantial build-up of credit enhancement across all asset classes driven by the robust performance of the fully amortising underlying loans. This led to the upgrade of 18 tranches .......

    News Round-up 30 November 2011

  • Dynegy CDS settled

    The final price in yesterday's Dynegy Holdings CDS auction was determined to be 71.25. 13 dealers submitted inside markets, physical settlement requests and limit orders to the auction.

    Of these dealers, RBS was assessed a US$1.9m adjustment amount after submitting an offer that was more than 39 percentage points below the average of the 12 other dealers. The bank offered .......

    News Round-up 30 November 2011

  • Euro default rate remains low

    Despite weak macroeconomic conditions, inherent collateral stress and more recent concerns over sovereign creditworthiness, the default rate of European structured finance securities has remained low, according to S&P.

    Only 0.9% of European structured finance securities outstanding in mid-2007 (by original balance) have defaulted so far. By contrast, S&P estimates that more than half have now redeemed in full. However, at .......

    News Round-up 30 November 2011

  • Internal transfer for CRE CDOs

    C-III Asset Management intends to transfer the CDO collateral asset management responsibilities for the ARCAP RESECURITIZATION 2003-1, ARCAP RESECURITIZATION 2004-1, ARCAP 2004-RR3, ARCAP 2005-RR5 and ARCAP 2006-RR7 CRE CDOs to C-III Investment Management. The key employees and technology infrastructure are expected to remain in place.

    Both managers are subsidiaries of C-III Capital Partners, whose controlling parent company is Island Capital .......

    Job Swaps 30 November 2011

  • Negative outlook for US-linked deals

    Fitch says it expects to revise the rating outlook to negative for certain US structured finance ratings as a result of the change in the US sovereign's rating outlook to negative from stable. For deals that benefit from guarantees or insurance from the US government, the agency expects to revise its rating outlook on triple-A rated classes to negative from .......

    News Round-up 30 November 2011

  • NCUA targeting Wachovia next

    The NCUA has filed suit in Federal District Court in Kansas against Wachovia and its subsidiaries. The suit alleges violations of federal and state securities laws and misrepresentations in the sale of RMBS securities to now-failed US Central Federal Credit Union and Western Corporate Federal Credit Union. This lawsuit follows several similar legal proceedings previously filed by NCUA against JPMorgan .......

    Job Swaps 30 November 2011

  • OCC proposes ratings rule

    The OCC has proposed a rule to remove references to credit ratings from its non-capital regulations and related guidance to assist national banks and federal savings associations in meeting Dodd-Frank due diligence requirements in assessing credit risk for portfolio investments.

    In particular, the OCC proposes to amend the definition of "investment grade" in 12 CFR Part 1 to no longer .......

    News Round-up 30 November 2011

  • Auction results reviewed

    September's 'geo-series' CRE sale on auction.com covering Florida and Southeast US was the largest auction in CRE history and its impact on the CMBS market is still being felt. Consequently, US CMBS research analysts from Barclays Capital are continuing to monitor the results.

    Of the more than US$2bn in notes and REO auctioned during the sale, about US$1.4bn was securitised .......

    News 30 November 2011

  • Margin management service launched

    BNY Mellon has launched MarginEdge, a global derivatives margin management service that allows financial institutions, clearing members and central counterparties (CCPs) to manage margin collateral efficiently while balancing trading costs and capital requirements associated with listed, cleared OTC and bilateral OTC derivatives. The service is designed to help segregate assets, support transformation services, optimise the use and allocation of collateral, .......

    News Round-up 30 November 2011

  • Law firm names partners

    Sullivan & Cromwell has elected new partners to the firm, including William Monahan and Amanda Davidoff. They will assume their new roles on 1 January 2012.

    Monahan is currently an associate at the firm, based in New York. His practice focuses on representing clients and individuals at trial and on appeal, including complex securities class and derivative actions.

    Davidoff is .......

    Job Swaps 30 November 2011

  • Dollar demand

    Favourable currency arbitrage boosts UK RMBS

    The UK primary RMBS market has defied expectations and remained open for business throughout the European sovereign debt crisis. While issuance in the sector has been fuelled by its strong track record, demand from US investors is also working in its favour. Issuers are particularly keen to take advantage of this investor base, given the favourable currency arbitrage that has .......

    News Analysis 30 November 2011

  • Dutch RMBS unable to honour puts

    GMAC RFC Nederland-originated RMBS E-MAC Program III and E-MAC Program II Compartment NL 2008-IV are unlikely to have sufficient funds to redeem the notes that are subject to redemption on put dates in January 2012, according to investor notices.

    The issuer has been informed by the MPT Provider that it will not - and also does not have - the financial means .......

    News Round-up 29 November 2011

  • Eurozone crisis knocks restructured permacap

    Real Estate Credit Investments (RECI) - the permanent capital vehicle formerly known as Queens Walk Investments Limited - recorded a net loss of €10.8m in 2Q11 following mark-to-market losses on its investment portfolio. The loss has been attributed to lower bond prices and volatility surrounding the Eurozone debt crisis. However, the company believes market reactions to the Eurozone debt crisis have .......

    News Round-up 29 November 2011

  • SEAT credit event referred

    ISDA's EMEA Credit Derivatives Determinations Committee (DC) has voted on the question of whether a failure to pay credit event had occurred in respect of SEAT Pagine Gialle. The relevant supermajority of DC members required for the question to be decided was not reached, however.

    The DC rules provide that where the DC does not reach a supermajority on a question .......

    News Round-up 28 November 2011

  • Fitch adds to Greek credit event debate

    Gross notional exposure to sovereign entities has climbed by nearly US$1.5trn since the end of 2008, with Europe accounting for approximately two-thirds of the total increase, according to Fitch.

    While gross notional has grown significantly over the past few years for many names - including some of the most cited, like Greece, Portugal and Italy - actual net exposure appears .......

    News Round-up 28 November 2011

  • Capturing market trends

    Adam Prather, principal at Solve Advisors, answers SCI's questions

    Q: How and when did Solve Advisors become involved in the structured finance market?
    A:     Solve Advisors was formed in July by myself and three colleagues - Eugene Grinberg, Matt McCann and Gerard Nealon. We were all formerly at Red Pine Advisors, which was acquired by Houlihan Lokey last year. At our previous employer, we developed many tools, including a pricing .......

    Provider Profile 28 November 2011

  • SCI Start the Week - 28 November

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

    Pipeline
    A handful of transactions entered the pipeline last week. Of these deals, two were SME securitisations (€3.1bn Foncaixa Consumo 1 and €5.64bn Santander Empresas 10), one was a CLO (US$419m Liberty Island Funding 2011-1) and the remainder were RMBS (A$750m Apollo series 2011-1 Trust and Lanark Master Issuer series 2011). Meanwhile, Investec is believed to have postponed Gemgarto 2011-1.

    Pricings
    The .......

    News 28 November 2011

  • Portuguese ratings cap revised

    Fitch has downgraded 51 tranches (comprising 46 RMBS, four structured credit and one ABS) and affirmed 24 tranches (23 RMBS and one structured credit) of 36 Portuguese structured finance transactions. Of these deals, 31 are RMBS, four are structured credit and one is ABS. Additionally, the rating watch negative on 51 tranches has been removed, while six tranches of two .......

    News Round-up 25 November 2011

  • Global securitisation volumes strong in October

    At the end of October 2011, with just under US$225bn and €80bn of qualifying securitisation deals completed, the leaders maintained their places in the SCI league tables for bank arrangers in the structured credit and ABS markets. Most added to their accounts as the US and European markets saw above average issuance of US$24.6bn and €11.4bn respectively for the month.

    News Round-up 25 November 2011

  • CDO tender offers proposed

    RBS is seeking to modify the terms and conditions of Skye CLO 1, Solar Funding I and Lunar Funding I to allow it to purchase all of the notes outstanding before 31 January. The bank has announced a tender offer for the notes, with the amount to be paid for the notes determined via a modified Dutch auction procedure. A .......

    News Round-up 25 November 2011

  • CVA CDO marketing

    RBS is currently marketing a synthetic CDO-like structure referencing the bank's counterparty credit risk from a portfolio of OTC derivatives trades. The deal - dubbed Score 2011-1 - is RBS' first public counterparty risk securitisation since 2008, when it issued Waverley 1 and 2.

    The £2bn Score 2011-1 comprises four tranches: a £1.86bn senior tranche, a £60m mezzanine note, a .......

    News 25 November 2011
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