Complete news archive

  • Differing drivers for Eurozone performance

    The deterioration in the creditworthiness of some peripheral Eurozone sovereigns has created uncertainty about the performance of securitisations from those countries, says Fitch. Drivers are different across the jurisdictions and performance deterioration is not always driven by sovereign downgrades.

    "Sovereign risk has become of far more importance in the analysis of structured finance transactions in this latest phase of the .......

    News Round-up 17 October 2011

  • First floorplan summary shows strong performance

    Moody's has launched a new quarterly auto floorplan ABS sector summary, consolidating key floorplan trust information and performance data used to monitor ratings on outstanding publicly rated securitisations. The first summary reports that performance has remained strong since the economic downturn.

    The summary includes data on monthly payment rates, excess spread and charge-offs. It references approximately US$19bn of outstanding securities, .......

    News Round-up 17 October 2011

  • Servicer performance analysed

    Moody's has published new detailed comparative performance metrics on the largest servicers of private RMBS. The agency's inaugural Servicer Dashboard covers the 12 months ending June 2011 and shows variations among mortgage servicers in their ability to prevent loans from becoming delinquent and their rate of curing delinquencies through modifications, foreclosures and other means.

    The inaugural Dashboard finds that Chase .......

    News Round-up 14 October 2011

  • CRE CDO delinquencies up slightly

    After four consecutive months of decline, US CRE CDO delinquencies rose slightly last month, according to Fitch's latest index results for the sector.

    CRE CDO late-pays rose to 12% from 11.6% in August. "Given the instability in the broader economy, CREL CDO delinquencies are expected to continue to see-saw going forward," says Fitch director Stacey McGovern.

    In September, asset managers .......

    News Round-up 14 October 2011

  • Refinancing risk re-examined

    The readjustment of CMBS issuance expectations on the back of both economic and deal structure issues has led to concerns over refinancing risk. However, US CMBS strategists at RBS suggest that these concerns may be overplayed.

    "The recent decline in CMBS 3.0 lending volume has led some market participants to question if the US$42.6bn in conduit loans maturing in 2012 .......

    News 14 October 2011

  • Restructuring team recruited

    Mark Fennessy has joined Dewey & LeBoeuf's London office as a business solutions & governance partner, heading the European restructuring group. He was previously head of Orrick's European restructuring practice and has extensive experience in all areas of turnaround and insolvency matters, including the Cheyne SIV restructuring (SCI 9 July 2008). His team at Orrick has also been hired by .......

    Job Swaps 14 October 2011

  • Mortgage platform bolstered

    Janney has expanded its fixed income capital markets team with the addition of seven high-profile professionals in the area of institutional taxable fixed income sales and trading. The new hires bring with them extensive experience in structured mortgage products.

    Erik Graham and Matthew Byrne have been recruited as directors, institutional taxable fixed income sales in Fredrick, MD. Kevin Walsh has .......

    Job Swaps 14 October 2011

  • SF partner recruited

    SJ Berwin has appointed Andrew Bliss as a partner in its finance team in London. He joins from Sidley Austin, where he has been a partner since 2002.

    Bliss' experience includes working on the securitisation of loans and rental deposits, repackagings, credit-linked notes and the establishment of secured and unsecured MTN programmes. He also has extensive expertise in real estate .......

    Job Swaps 14 October 2011

  • Tax efficiency matters

    Petrina Smyth, partner in the tax group, and Noeleen Ruddy,...

    Ireland has become a leading jurisdiction for the establishment of vehicles to participate in US-originated life settlement transactions. As life settlements have become an increasingly attractive alternative asset class, sponsors have utilised two types of vehicles in Ireland to achieve their objectives - Irish SPVs or regulated qualifying investor funds (QIFs).

    The US/Ireland Tax Treaty is of particular benefit for .......

    Research Notes 13 October 2011

  • Improving tone

    The European primary ABS sector has seen far more activity than in secondary, but positive developments in the broader markets are encouraging. Although confidence remains fragile, one trader reports that the news this week has given the ABS market a definite boost.

    "There is still not a heck of a lot going on outside of the primary space. That said, .......

    Market Reports 13 October 2011

  • Swap registration rules prepped

    The SEC is set to propose rules that lay out the process by which security-based swap dealers and security-based swap participants must register with the Commission. The rules stem from Title VII of the Dodd-Frank Act.

    "Registering the major market participants in the largely unregulated security-based swap markets is a critical step toward better protecting investors," comments SEC chairman Mary .......

    News Round-up 13 October 2011

  • OTC clearing pro hired

    CME Group has appointed William Knottenbelt to lead its EMEA regions, effective in mid-November. He most recently served as global head of central counterparty clearing at RBS, where he worked on developing the bank's OTC clearing solutions.

    Robert Ray, who previously led the company's international offices, will transition to a new role managing key strategic initiatives for CME Group in .......

    Job Swaps 13 October 2011

  • Crescent Capital beefs up in Europe

    Crescent Capital Group has launched a new European credit strategy, which will focus on credit opportunities across Europe from the firm's newly formed office in London. Christine Vanden Beukel joins as md to lead Crescent Credit Europe and its investment strategy across the continent.

    Prior to joining Crescent Capital, Vanden Beukel served as a senior md in the London office .......

    Job Swaps 13 October 2011

  • ABS CDO RFC issued

    S&P is requesting comments on its proposed update to the criteria for rating cashflow and synthetic ABS CDO transactions. The proposed criteria would apply the same basic criteria currently used in rating CDOs of corporate debt, but with some differences driven by the characteristics of structured finance assets.

    If adopted, the updated criteria would apply to all new and existing .......

    News Round-up 13 October 2011

  • OTC reform progress reviewed

    The Financial Stability Board (FSB) has published its second six-monthly progress report on the implementation of OTC derivatives market reforms. For each of the G20 commitments, the report provides an assessment of progress in the three key steps that need to be taken: the development of international standards and policy; the adoption of legislative and regulatory frameworks; and actual implementation .......

    News Round-up 13 October 2011

  • Fulham CDO unwound

    KBC has confirmed that it unwound the Fulham CDO at the end of last month and investors were paid back the full amount of capital invested and would receive a final coupon. This follows the redemption of the Lancaster CDO earlier in the year.

    KBC announced in July (SCI 28 July) its intention to sell or unwind selected ABS and .......

    News Round-up 13 October 2011

  • Uncertainty for special servicers

    While special servicers have made tangible progress in stemming US CMBS losses, current economic uncertainty makes the outlook for next year more uncertain, according to Fitch in its latest annual US CMBS loss study.

    At 1,427, nearly four times as many loans were resolved by special servicers in 2010 compared to 2009, Fitch says. Additionally, the average loss severity declined .......

    News Round-up 12 October 2011

  • CMBS pay-offs jump sharply

    The percentage of CRE loans paying off on their balloon date posted their highest reading since December 2008, according to the latest Trepp pay-off report.

    In September, 64.4% of loans reaching their balloon date paid off. This is only the third time since late 2008 that the percentage passed 50%: the previous high in the last 33 months was 55.5% .......

    News Round-up 12 October 2011

  • Bids wanted

    The European CLO market continues to see pockets of activity without quite building any momentum. BWICs are still struggling to trade as investors remain cautious, although senior paper is seeing increased activity.

    Many bonds on BWICs are still failing to trade, says one trader. He believes that bids are low at the minute largely because investors are feeling very cautious. .......

    Market Reports 12 October 2011

  • Capital structure plays

    Charles Kobayashi, portfolio manager at BlueMountain Capital Management, answers SCI's questions

    Q: How and when did BlueMountain Capital Management become involved in CLO management?
    A:     BlueMountain Capital Management was founded in 2003 with a focus on the credit derivatives and correlation markets. By 2005, the firm had expanded into cash loan assets, given their secured nature and low volatility. We also looked at launching a CLO to .......

    The Structured Credit Interview 12 October 2011

  • RFC issued on Volcker Rule

    The FDIC has requested public comment on the proposed Volcker Rule regulation (SCI 7 October), pertaining to section 619 of the Dodd-Frank Act.

    The regulation generally prohibits two banking entity activities: engaging in short-term proprietary trading of any security for a banking entity's own account; and owning, sponsoring or having certain relationships with a hedge fund or private equity fund. .......

    News Round-up 12 October 2011
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