Complete news archive

  • CDO manager replacement proposed

    A majority of the controlling class of investors in Belle Haven ABS CDO 2006-1 is proposing to replace NIBC Credit Management with Cairn Capital as collateral manager.

    Under the collateral management agreement, the manager may be removed at any time, without cause, if the class AB overcollateralisation ratio is less than 100% for a period of more than 180 consecutive .......

    Job Swaps 27 September 2011

  • WBS bonds reclassified

    Markit announced in its annual index review that it has changed the classification of a series of whole business securitisation bonds from 'Collateralised/Securitised' to 'Corporate'. The change is due to these issuers operating in highly regulated environments where their debt behaves more like corporate debt than securitised debt. The change will take effect from 31 December and affects: BAA Funding; .......

    News Round-up 27 September 2011

  • Need for global trade repositories reiterated

    ISDA has filed a comment letter with the Committee on Payment and Settlements Systems (CPSS) and IOSCO in response to their consultative report on OTC derivatives data reporting and aggregation requirements. The association reiterated the need for a global view of trade repositories (TRs), data reporting and aggregation requirements.

    ISDA has worked with its members and with regulators to establish .......

    News Round-up 27 September 2011

  • Wells Notice received over CDO ratings

    The McGraw-Hill Companies has received a Wells Notice from the US SEC stating that the Commission is considering whether to institute a civil injunctive action against S&P, alleging violations of federal securities laws with respect to its ratings for the Delphinus CDO 2007-1. In connection with the contemplated action, the SEC may seek civil money penalties, disgorgement of fees and .......

    Job Swaps 27 September 2011

  • US consumer ABS to see 'exceptional stability'

    Traditional US consumer ABS ratings have demonstrated and will maintain exceptional stability, should the economy double-dip back into recession, according to Fitch.

    Analysis by Fitch shows that roughly 99% of all investment grade US credit card ABS either stayed investment grade, were upgraded or paid in full between summer 2007 and the middle of this year. In addition, some 95% .......

    News Round-up 26 September 2011

  • MBS trading team acquired

    CRT Capital Group has acquired a team of sales and trading professionals from Citadel Securities' institutional MBS group. The team - which is led by Patrick Russell and Igor Vidrevich - will join CRT's securitised products business, focusing on RMBS, CMBS, ABS CDOs and mortgage-backed pass-through securities. Prior to joining Citadel, Russell and Vidrevich were part of Morgan Stanley's agency .......

    Job Swaps 26 September 2011

  • Optimising collateral

    Proposed rulemaking changes concerning margin and capital requirements for non-cleared swaps and non-cleared security-based swaps under the Dodd-Frank Act could result in an estimated US$2trn increase in demand for collateral. The challenges associated with collateral management are consequently expected to be pronounced, while also creating opportunities for third parties to deliver cost-effective solutions.

    Increased demand for collateral will ultimately drive .......

    News 26 September 2011

  • SCI Start the Week - 26 September

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

    Pipeline
    Three new transactions remained in the pipeline at the end of last week: a US$200.5m auto ABS, Credit Acceptance Auto Loan Trust series 2011-1; a US$50m whole business securitisation, NuCO2 Funding series 2011-1; and a ZAR1.19bn tap of South African RMBS Thekwini Fund 9.

    Pricings
    Auto ABS prints dominated new issue activity last week, with the US$350m Chesapeake Funding 2011-2, US$99.94m .......

    News 26 September 2011

  • NY CDS seminar draws near

    SCI's second annual CDS seminar in New York is taking place on 6 October. The event is being held at Bingham McCutchen's offices at 399 Park Avenue.

    The conference brings together market participants to discuss the impact of the Dodd-Frank Act and the future of CDS, exploring the implications for electronic trading and SEFs, centrally cleared versus bilateral trades, and .......

    News Round-up 26 September 2011

  • Card delinquencies at all-time low

    The credit card delinquency rate reached a new all-time low in August, with only 3.04% of balances 30-days or more past due. Credit card charge-offs also decreased by 7bp from July to 6.02%, according to Moody's Credit Card Index.

    The delinquency rate has been declining for 22 months and is now less than half the 6.23% seen in October 2009. .......

    News Round-up 26 September 2011

  • Class action launched over RMBS sales

    A class action has been commenced on behalf of purchasers of Bank of America common stock during the period between 25 February and 5 August 2011. The complaint charges BofA and certain individuals with violations of the Securities Exchange Act of 1934.

    Robbins Geller Rudman & Dowd is representing the plaintiffs in seeking to recover the damages on behalf of .......

    Job Swaps 26 September 2011

  • Silo breaking

    Demand rising for diversified alternative investments

    The broad-based correlated market sell-off of recent months is playing into the hands of 'silo breakers' - firms that can invest both long and short, across the capital structure, across sectors, across geographies and without regard to ratings. This, in turn, is being met by rising demand for diversified alternative investments.

    David Rubenstein, ceo of BlueMountain Europe, describes the current .......

    News Analysis 23 September 2011

  • Conflicts of interest examined

    Fitch considers the alignment of interest between transaction parties and structured finance investors to be critical to a transaction's performance. In fact, the agency says it views this alignment as a significant part of the qualitative element of its rating criteria.

    The US SEC's proposed rule (SCI 20 September) is intended to prohibit certain material conflicts of interest between those .......

    News Round-up 23 September 2011

  • Mortgage insurer downsizes

    Radian Group has realigned its operational structure to compete more effectively as a leading private mortgage insurer. The primary objective is to focus the firm's resources on sales and other core functions to grow profitable new business while aligning its support services to the reduced mortgage market volume expected in the near term. The realignment includes a workforce reduction of .......

    Job Swaps 23 September 2011

  • Commingled swap service launched

    Bloomberg Fixed Income Trading has launched what is believed to be the first commingled trading platform for OTC swap trading, ALLQ Derivatives, which allows investors to review indicative prices and execute directly with dealers on the Bloomberg Professional Service. The new service is the foundation for Bloomberg's development of a SEF offering and will be adapted upon finalisation of the .......

    News Round-up 23 September 2011

  • GSC CLO plan prepped

    A hearing on the trustee's motion for entry of an order in respect of GSC European CDO I-R and II is to be held on 5 October at the Bankruptcy Court. Among other things, the hearing will consider: approval of the form of ballot and the establishment of procedures for voting on the proposed Chapter 11 plan; and the establishment .......

    News Round-up 23 September 2011

  • Zoo tender completed

    P&G SGR has announced the results of its tender offer for the Zoo ABS 4 CDO. It accepted a notional amount of €15.86m at a price of 70 for the A1B bonds.

    .......

    News Round-up 23 September 2011

  • Ambac files amended reorg plan

    Ambac Financial Group says it has reached an agreement with Ambac Assurance Corporation, the Segregated Account of Ambac Assurance Corporation, the Commissioner of Insurance of the State of Wisconsin, the Rehabilitator of the Segregated Account of Ambac Assurance Corporation and the Official Committee of Unsecured Creditors of Ambac Financial Group, with respect to all outstanding tax and expense-related issues between .......

    News Round-up 23 September 2011

  • Boutique bolsters FI sales

    CastleOak Securities has added Gregory Hughes and Dana Brett-Levy to its fixed income division. The pair report to Patrick de Catalogne, senior md and head of fixed income sales & trading.

    Hughes joins the firm as director, covering a diverse account base for credit, structured credit and all fixed income products. He previously developed credit trading and sales platforms at .......

    Job Swaps 22 September 2011

  • When Cayman directors fail to act

    Richard Ruffer, svp at Walkers Management Services in the Ca...

    The recent US Bankruptcy Court decision in In re Zais Investment Grade Limited VII, No. 11-20243 (Bank. D. N.J. August 26, 2011) raises troubling concerns for investors in CDOs. The decision rejected a motion to dismiss an involuntary bankruptcy order entered against a Cayman Islands CDO.

    As a result, the case opens the door for struggling Cayman CDOs to be .......

    Talking Point 22 September 2011

  • Tractor loan ABS analysed

    Fitch has analysed the key aspects that differentiate tractor loans from other asset classes and their resulting impact on Indian tractor loan ABS. The agency studied close to 80,000 loans amounting to R21.9bn, originated between 2004 to 2010 by Mahindra & Mahindra Financial Services.

    Performance of tractor loans improved significantly for the 2008-2009 vintage compared with the 2005-2007 vintage, with .......

    News Round-up 22 September 2011
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