Complete news archive

  • Euro ABS trader hired

    Paolo Binarelli has joined Banca IMI's securitised products and loan trading desk in Milan, headed by Roberto Lucchini. In his new role, he will trade ABS and MBS.

    Binarelli previously worked as a portfolio manager at P&G SGR Alternative Investments.

    .......

    Job Swaps 9 November 2011

  • Profit potential

    More pubcos may sell assets to buy back debt

    In a move that is hoped will improve returns on capital employed, Punch is disposing of pubs and using the money raised to buy back its debt. Other highly levered pubcos could well follow suit, as reducing debt through buybacks offers several advantages over alternative uses of capital.

    "If you compare a bond buyback against the alternatives they have for .......

    News Analysis 9 November 2011

  • Agency to change CMBS rating criteria

    S&P is undertaking a review of the assumptions and methodology that it uses to rate European CMBS, according to an advance notice of proposed criteria change.

    The goal of this criteria review is to increase the transparency of S&P's rating methodology, enhance the comparability of these ratings relative to other sectors, and to further address credit stability.

    S&P says this .......

    News Round-up 9 November 2011

  • Cat bond issuance increasing, diversifying

    There were four catastrophe bond issuances in 3Q11, representing US$676m of new risk capital, notes Willis Capital Markets & Advisory in its latest ILS market update.

    The last quarter also saw a French energy company sponsor a corporate cat bond for the first time since 2007. Willis says the success of this deal combined with recent loss activity and the increasing .......

    News Round-up 9 November 2011

  • CRE loan prices ease off

    The aggregate value of CRE loans priced by DebtX that collateralise CMBS decreased from 85.9% as of 31 August to 85.0% as of 30 September. Loan values were 80.5% as of the end of September. DebtX priced 53,196 CRE loans in September, with an aggregate principal balance of US$633.6bn. The loans collateralise 643 US CMBS trusts.

    "Commercial real estate loan .......

    News Round-up 9 November 2011

  • US SF losses 'surprising'

    Losses are high in the most maligned US structured finance sectors, but surprisingly low in other segments, says Fitch. By far the most losses are being seen in RMBS and CDOs, although consumer ABS has performed well.

    Fitch says RMBS and related structured finance CDOs have the most realised and expected future credit losses, while consumer ABS products such as .......

    News Round-up 9 November 2011

  • Sequential pay triggers inadvertently undermined

    Servicer workout strategies in some EMEA CMBS transactions are inadvertently undermining sequential pay triggers designed to protect senior investors, according to Fitch.

    "This is not to say that a servicer's workout decision is inappropriate," says the rating agency. "However, the documentation under which it has to act has proved contentious. There are examples of more tailored documentation catering to wider .......

    News Round-up 9 November 2011

  • Trader networking site launched

    A beta website that offers fixed income market professionals a free venue to network and generate trade ideas has been launched by former FGIC executive, Alex Masri. BondsOdds.com offers market news, blog posts and community-driven bond-pricing thoughts. Information can be shared publicly or anonymously.

    Having left broker-dealer Odeon Capital earlier this year where he focussed on European and Middle-Eastern fixed .......

    Job Swaps 8 November 2011

  • Court ruling negative for StuyTown CMBS

    Investors of CMBS bonds backed by Stuyvesant Town (ST) and Peter Cooper Village (PCV) collateral are likely to face negative consequences following a court ruling late last week. Tenants in the properties were granted permission to continue with their US$215m class-action lawsuit against MetLife and Tishman Speyer Properties by the New York Appellate Court, the original case having been dismissed .......

    News Round-up 8 November 2011

  • Foreclosure start rates rising

    Foreclosure start rates on delinquent US mortgages are rising toward historical averages one year after industry-wide deficiencies were revealed in foreclosure procedures, according to the latest RMBS Performance Metrics report from Fitch.

    According to Fitch, an increase to more normalised foreclosure initiation rates will ultimately add to the inventory of distressed properties on the market. This will in turn increase .......

    News Round-up 8 November 2011

  • CMBS trading trio appointed

    KGS-Alpha Capital Markets has expanded its CMBS trading team with the addition of Jeff Lewis, Kyle Wichser and Andrew Noonan. The firm has also introduced chief strategist Kamal Abdullah.

    Lewis, who leads the CMBS team, worked for 17 years at Salomon Brothers/Citigroup and then headed the CMBS trading effort at Barclays Capital, ICP Capital and most recently Citadel Securities. Wichser and .......

    Job Swaps 8 November 2011

  • US CMBS lawyer hired

    Global law firm Thompson & Knight has hired Benjamin Herd as counsel in its real estate and banking practice group in Dallas. Herd focuses his practice on real estate and banking matters, including the representation of special servicers in relation to defaulted or troubled loan workouts, maturity default resolution, collateral foreclosure, lease negotiation, and the sale of REO property.

    In .......

    Job Swaps 8 November 2011

  • Re-denomination risk re-examined

    The once unthinkable prospect of a break-up of the eurozone has increased in likelihood over the past few weeks, forcing ABS investors to consider the implications of currency re-denomination. Should a country leave the eurozone, analysts at RBS expect significant consequences for related structured finance bonds, with large losses on mezzanine tranches and downgrades of senior bonds.

    While the break-up .......

    News 7 November 2011

  • DVA white paper published

    Quantifi has published a short whitepaper entitled 'CVA, DVA and Bank Earnings' in response to recent bank earnings.

    David Kelly, director of credit products at Quantifi, comments, "Debt Value Adjustment (DVA) has caused a lot of confusion because banks are allowed to record gains as their credit quality deteriorates. While there are pros and cons to including DVA in earnings, .......

    News Round-up 7 November 2011

  • CRE CDO successor chosen

    CWCapital Investments has been voted as the successor collateral manager for Sorin RE CDO 1, following Sorin Capital Management resignation as initial manager.

    Fitch currently rates the highest-rated class in the transaction double-C, indicating that some type of default is probable.

    .......

    Job Swaps 7 November 2011

  • E-trading platform adds RMBS, CMBS

    MarketAxess has added non-agency RMBS and CMBS to its e-trading platform. The products expand the suite of structured products available on MarketAxess, following the addition of ABS earlier this year (SCI 11 May).

    Lou Violante, MarketAxess structured products manager, comments: "We have seen good traction in ABS trading over recent months and have introduced non-agency RMBS and CMBS in direct .......

    News Round-up 7 November 2011

  • US CMBS delinquencies drop again


    October saw US CMBS delinquencies decrease for the third consecutive month, according to Fitch. The month saw limited defaults and loan resolutions and there were also encouraging peripheral signs of a positive turnaround.

    CMBS late-pays declined 4bp from 8.6% to 8.56% as the US$1.6bn of new delinquencies were offset by US$1.7bn in resolutions. The new delinquencies consisted largely of smaller .......

    News Round-up 7 November 2011

  • GAM launches new cat bond fund

    Alternative investment manager GAM has launched a UCITs-compliant fund investing in securitised insurance risks via a portfolio of 40 to 50 catastrophe bonds. The fund, named GAM Star Cat Bond, aims to deliver stable and attractive cash plus returns that are not impacted by the volatility and performance of more traditional equity and fixed income instruments.

    The fund, which is .......

    News Round-up 7 November 2011

  • Hedge fund boosts US CMBS liquidity

    It was a good week for US CMBS as market sentiment grew more positive and spreads tightened. A new issue also priced on Tuesday, although further new issuance is not expected for a while.

    One trader says that increasing clarity in Europe was a big factor in the recent spread tightening, but also credits New Jersey-based hedge fund Appaloosa Capital .......

    Market Reports 4 November 2011

  • Euro CLO manager purchase confirmed

    Black Diamond Capital Management has confirmed its acquisition of GSC Group's London team. Black Diamond's European office will be headed by Nick Petrusic, who, along with the other London based team members, will oversee its European Mezzanine and European CLO businesses.

    Established in 2000, the UK-based business acquired from GSC Group has been a significant investor in the European leverage .......

    Job Swaps 4 November 2011

  • Uncertainty after care-home rent drop

    Following the finalisation of restructuring plans in late September (SCI passim), the 249 UK care homes leased by Southern Cross were transferred to HC-One earlier this week. According to a notice from the issuer of the associated CMBS, Titan Europe 2007-1, HC-One also acquired Southern Cross' operations that provide back office support to the homes.

    However, in a move that .......

    News Round-up 4 November 2011
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