Complete news archive

  • 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

  • Happy holidays?

    The European ABS market is very quiet and it is not just because of the Thanksgiving holiday in the US. Trading activity continues to lessen as the end of the year grows nearer, with one trader describing current levels as "extremely muted".

    "Everybody has got to the point now where they feel they are close enough to year-end to sit .......

    Market Reports 24 November 2011

  • October outlook

    Wave of maturities gives clues to future CMBS performance

    October was a busy month for European CMBS loan maturities, with 27 loans - totalling €2.71bn by balance - scheduled to repay. Only four repaid in full and on time, creating a number of considerations ahead of the glut of maturities expected next year.

    Although by balance only 23% of the loans maturing last month were repaid, defaults were also .......

    News Analysis 24 November 2011

  • Keops properties complete

    The special servicer for the Keops loan, securitised in Juno (Eclipse 2007-2), has confirmed that 129 of the 130 properties that were sold via auction have completed. The remaining property - valued at Skr78m - will be re-auctioned, while Catella tries to achieve a higher price by selling it to a private investor.

    In total, 146 properties have been sold .......

    News Round-up 24 November 2011

  • New treasurer at Fifth Third

    Fifth Third Bancorp has appointed svp Tayfun Tuzun as treasurer, effective from 2 December. Tuzun replaces Mahesh Sankaran, who is joining M&T Bank as director of finance.

    Tuzun is currently Fifth Third's assistant treasurer and balance sheet manager, overseeing investment portfolio activities and balance sheet strategy. Before that he was structured finance manager at the bank. Prior to joining Fifth .......

    Job Swaps 23 November 2011

  • Consolidation call

    Credit hedge fund M&A set to increase

    Consolidation activity among credit hedge funds is expected to increase going into next year. Regulatory change, as well as demand for diversified exposure is driving this trend.

    Of all of the different hedge fund strategies, credit is likely to see the most M&A activity in coming months, according to Madison Street Capital senior md Karl D'Cunha. "There has been a .......

    News Analysis 23 November 2011

  • Bank names new SF head

    Crédit Agricole has promoted Jacques Prost to head of structured finance, replacing Jean-Francois Marchal. Prost is based in Paris and reports to Pierre Cambefort, deputy ceo.

    Prost's previous role was head of real estate and lodging within Crédit Agricole's SF division. He has also served as head of SF for Crédit Agricole Indosuez in Italy, head of project finance in .......

    Job Swaps 23 November 2011

  • Panrico auction results in

    The final price for the Panrico LCDS auction was determined to be 8.125. Five dealers submitted inside markets, physical settlement requests and limit orders to the Panrico auction held this morning.

    Due to a zero net open interest, there was no subsequent bidding period and so the inside market midpoint value is the final price. Panrico deliverable obligations are denominated .......

    News Round-up 23 November 2011

  • ABS CDO liquidation scheduled

    Cowen has been retained to act as liquidation agent for Diogenes CDO II. The collateral will be sold at six public sales on 6 December in New York.

    .......

    News Round-up 23 November 2011

  • Servicer consent order compliance reviewed

    The OCC has published a report on the actions by 12 US bank and federal savings association mortgage servicers to comply with consent orders issued in April to correct deficient and unsound foreclosure practices (SCI 14 April). While much of the work to correct identified weaknesses in policies, operating procedures, control functions and audit processes will be substantially complete in .......

    News Round-up 23 November 2011

  • Auto ABS RFC released

    Kroll Bond Rating Agency (KBRA) is seeking public comment on its US auto loan ABS rating methodology.

    KBRA's rating of an auto loan ABS transaction addresses: the quality and expected performance of the underlying collateral; the originator and servicer's business model and operational strength; and the transaction terms, including the capital structure, credit enhancement and legal structure. The agency says .......

    News Round-up 23 November 2011

  • IO RFC issued

    Moody's is seeking comment on its proposed global rating framework for interest-only securities (IOs) applicable to US RMBS, US and European CMBS and US ABS.

    The proposals reflect the results of extensive analysis into the meaning of the IO rating and how to better align IO ratings with the agency's traditional expected loss ratings framework. These changes have the aggregate .......

    News Round-up 23 November 2011

  • Shadow inventory liquidation timeline declining

    Regional default and liquidation rates varied widely in 3Q11, prompting a marginal improvement in the number of months that S&P estimates it will take to clear the supply of distressed homes on the US market to 45. While this number declined for the second straight quarter, it only marks a two-month improvement since 2Q11 and is still three months longer .......

    News Round-up 23 November 2011

  • Private SLABS defaults to remain elevated

    According to Moody's Private Student Loan Indices, 4.8% of securitised private student loans defaulted in 3Q11, unchanged from the rate in the second quarter. Although stable, the default rate index will remain more than twice its average run rate before the recession through 2012, the agency says.

    "High unemployment, rising debt and declining income means obligors will continue having difficulty .......

    News Round-up 23 November 2011

  • Unique strategy mooted

    In an investor call yesterday, Enterprise discussed the methods it is considering to mitigate a financial covenant breach in the Unique securitisation once the fixed rate debt starts to amortise in 2014.

    The firm stated it could change the beer supply and management service agreements, thereby injecting around £42m further EBITDA into the transaction. This would ensure that the DSCR .......

    News Round-up 23 November 2011

  • DQT down 7bp

    The delinquency rate for loans in US CMBS declined 7bp in October, to 9.29%, according to Moody's latest Delinquency Tracker (DQT). Delinquencies have been above 9% for ten months now, the agency notes.

    Moody's Specially Serviced Loan Tracker (SSLT) fell by 3bp to 12.10% and the gap between the SSLT and the DQT widened by 4bp to 281 from 277, .......

    News Round-up 23 November 2011

  • Euro RMBS default rates to remain suppressed

    While downgraded European countries have seen unemployment rates jump sharply over the last three years, a similar leap in RMBS pool default rates has failed to emerge, according to Moody's. The agency expects that existing public and private sector measures, the recourse nature of mortgages, the low interest rate environment and tighter underwriting practices will continue to suppress European RMBS .......

    News Round-up 22 November 2011

  • SIV ratings downgraded

    Moody's has downgraded the ratings of the US CP, Euro CP and MTNs issued by the Carrera Capital and Harrier Finance SIVs and from P-1 to P-2.

    The SIVs are managed and sponsored by HSH Nordbank and Brightwater Capital Management, a wholly owned subsidiary of WestLB. There is a direct linkage between the SIV ratings and those of their sponsors, .......

    News Round-up 22 November 2011

  • Euro CLO review completed

    Moody's has completed its review of all European CLOs, which the rating agency initiated on 22 June in relation to its global CLO methodology update. The agency analysed 1067 tranches from 171 European CLO transactions originally totalling €46bn and upgraded 969 tranches originally totalling €40bn.

    Of the 969 tranches that were upgraded, the average magnitude of upgrades was a little .......

    News Round-up 22 November 2011

  • Consumer focus

    CastleOak Securities head of fixed income sales & tr...

    Q: How, why and when did CastleOak Securities become involved in the structured credit and securitisation market?
    PdC:     CastleOak Securities has been in existence for six years now and the founding partners all came from another investment bank. CastleOak's background is in consumer-related ABS, such as credit cards and autos, as well as MBS and CMBS.

    The idea has been to .......

    Provider Profile 22 November 2011

  • UK borrower scenario analysis completed

    The credit performance of UK mortgage borrowers could deteriorate in a wide range of economic scenarios, according to a recent S&P scenario analysis report. Such scenarios include not only a renewed recession, but also a stronger recovery accompanied by rising interest rates.

    UK mortgage arrears and repossession rates have declined modestly since mid-2009, but some market participants have questioned whether .......

    News Round-up 22 November 2011
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