Complete news archive

  • Structured credit may provide 'safe-haven'

    Assets that were once deemed responsible for the spread of the global financial crisis in 2007-2009 may find themselves offering refuge for investors in the wake of the recent market slide.

    According to structured credit strategists at Citi, top-rated structured credit assets are behaving more like a safe-haven than a risky asset in the current economic climate. The triple-A structured credit .......

    News 5 August 2011

  • 'Harsh' action for Euro CMBS property

    The Quartier 206 shopping centre - securing the defaulted loan of the same name - has been placed into public administration as of Tuesday (2 August), according to a Titan Europe 2006-5 transaction notice. CMBS analysts at Barclays Capital believe this is a harsh, if unsurprising, course of action, which could interrupt cash flow.

    The Quartier 206 Shopping Centre loan .......

    News 5 August 2011

  • Barclays job cuts to hit seven CMBS

    Job cuts at financial institutions will affect demand for office space and have a minor negative effect on CMBS credit, according to S&P credit analysts James Manzi and Howard Esaki. They note that the credit of financial tenants is much higher than the average for CMBS, so the increased risk is largely in terms of lease rollover rather than default.

    News Round-up 5 August 2011

  • ILS muted after turbulent start to year

    Despite significant catastrophic events and a change to RMS' US hurricane model, the insurance-linked securities market coped well in early 2011, says S&P in its latest ILS report. The rating agency says cat bonds have performed largely as expected, while new issuance has continued, albeit at a slower pace than in the past.

     

    S&P downgraded four bonds on the .......

    News Round-up 5 August 2011

  • US broker bolsters sales and trading

    US broker-dealer Mizuho Securities has expanded its sales and trading department with a number of senior appointments across its fixed-income business, including high-yield, interest rate derivatives, mortgages and corporate credit.

    Among the recent hires are Roger Yao in RMBS trading, Franklin Amoo, strategic credit trading and Tyler Patla in agency MBS trading. Fixed-income sales have been bolstered with the appointments .......

    Job Swaps 5 August 2011

  • Counterparty credit risk study published

    ISDA has published a new analysis of counterparty credit risk management in the US over-the-counter (OTC) derivatives markets. The paper examines the extent of counterparty credit losses and notes the efficacy of credit mitigation techniques in the US banking system.

    The paper states that according to reports published by the Office of the Comptroller of the Currency (OCC), US bank .......

    News Round-up 5 August 2011

  • Reps and warranties comparisons added to presales

    As of September 26, all reports accompanying new ratings from Moody's on ABS will include comparisons to standard benchmarks for each transaction's representations and warranties and enforcement mechanisms. The new feature responds to Rule 17g-7, adopted by the US Securities and Exchange Commission last January.

    The securities affected are both US and non-US securities, including RMBS, CMBS, ABS, commercial paper .......

    News Round-up 5 August 2011

  • Warning over unintended risk retention consequences

    Evolving US risk retention regulations require careful navigation by securitisation market participants, according to Fitch. The rating agency has issued a new report in which it assesses the potential effect that pending risk retention rules could have on securitisation market dynamics and how US requirements compare to rules already implemented by European Union regulators.

    Fitch remains supportive of aligning issuer .......

    News Round-up 5 August 2011

  • Alternative approaches?

    Regulatory uncertainty hampering ABCP market

    Changes in FASB accounting rules, combined with regulatory uncertainty continue to hamper the growth of the ABCP market. However, the need to secure long-term funding has seen some banks adopt alternative approaches to the sector.

    Jerry Marlatt, senior of counsel at Morrison & Foerster, confirms that overall US ABCP financing activity is down and securities arbitrage activity has disappeared. The .......

    News Analysis 4 August 2011

  • Euro CLO market silenced

    The European CLO market has had a very quiet couple of weeks as macro headlines continue to cause concern. Demand remains high for top-quality paper, but is quite thin below that.

    "There is very little happening," explains one trader. "I have not seen any BWICs this week, although others might have seen some. From what we were seeing last week, .......

    Market Reports 4 August 2011

  • Global SF criteria updated

    Fitch has updated its global criteria for rating structured finance (SF) transactions. The update incorporates additional information with respect to the treatment of credit events withint the surveillance process, rating sensitivity analysis and reasonable investigation. No rating changes are expected to result from the criteria update.

    .......

    News Round-up 4 August 2011

  • Tranche investors buying on sovereign concerns

    As nervousness about sovereign debt concerns pushes CDS spreads on European peripheries steadily wider, tranche investors have been taking advantage of the deterioration.

    CDS on Spain, for example, has risen to 423bp - 122bp wider week-on-week and significantly higher than the 270bp level at the beginning of last month. Higher spreads such as this have driven increased interest in leveraged .......

    News 4 August 2011

  • EMEA SF losses lower than expected

    Realised losses for EMEA structured finance (SF) transactions are low and total credit losses will remain less than many commentators have suggested, Fitch says in a new report. Transaction performance varies significantly across asset classes, with the strongest performance visible in consumer assets.

    In the four years since the onset of the credit crisis, many comments have been made about .......

    News Round-up 4 August 2011

  • Alignment of interest

    Deer Park Road Corp founder Michael Craig-Scheckman and md Will Bashan answer SCI's questions

    Q: How and when did Deer Park Road become involved in structured finance?
    M:     I founded Deer Park Road in 2003 when I moved to Colorado, with the aim of continuing the relationships I had built in previous roles at hedge funds. Initially I was managing money for a very large New York-based hedge fund. By May 2008, we were running .......

    The Structured Credit Interview 4 August 2011

  • Need for viable TBA market underlined

    Thomas Hamilton, md at Barclays Capital, testified yesterday (3 August) on behalf of SIFMA at a US Senate Committee hearing on the to-be-announced (TBA) market.

    Hamilton underlined how the liquidity and forward-trading nature of the TBA market provides key benefits to consumers, such as the broad availability of 30-year fixed rate mortgages that may be prepaid without penalty. He also .......

    News Round-up 4 August 2011

  • UK debt advisory team expands

    CB Richard Ellis (CBRE) has appointed Adam Wilton as senior director in its UK debt advisory division, based in London. He joins from Barclays Corporate, where he was a director for real estate structured finance.

    CBRE says the hire is part of a drive to use specialist advisors in originating new loans or restructuring and refinancing old ones. Wilton has .......

    Job Swaps 3 August 2011

  • Participations increasing in CLO refis

    Refinancing older CLOs by transferring assets to new transactions appears to be gaining traction. Indeed, two recently closed deals and another in the pipeline have relied temporarily on participations rather than the more common outright assignment of the loans to transfer rights to collateral cashflows.

    Although this approach to transferring assets may pose risks to the new CLOs, Moody's notes .......

    News 3 August 2011

  • FHA finance co-heads named

    Walker & Dunlop has named Michelle Warner and Edward Williams as co-heads of its FHA finance division, responsible for all aspects of the firm's FHA finance programme. Warner joins from Deutsche Bank Berkshire Mortgage, while Williams has been promoted into his new role.

    Warner was FHA chief underwriter/programme manager for Deutsche Bank Berkshire Mortgage, responsible for loan structuring, credit risk .......

    Job Swaps 3 August 2011

  • Further clarity expected for Dutch mortgages

    Fitch has published a special report on the expected impact of the updated code of conduct in the Dutch mortgage sector, noting that the update should bring more clarity to the market and with it an alignment and tightening of lending criteria among all residential mortgage lenders. The changes include the reduction in the maximum LTV to 104% plus transfer .......

    News Round-up 3 August 2011

  • US-linked ABS confirmed

    Moody's has confirmed the triple-A ratings of financial institutions directly linked to the US government, including Fannie Mae and Freddie Mac. It has also confirmed the triple-A ratings of securities guaranteed by, backed by collateral securities issued by or otherwise directly linked to the US government.

    These actions follow the confirmation of the triple-A rating assigned to the US government. .......

    News Round-up 3 August 2011

  • Japan SF performance subject to stress

    Moody's says in a new report that the performance of structured finance assets in Japan remains subject to the stress of a macroeconomic downturn. While Japan is likely to post a V-shaped recovery later this year, subsequent economic growth may subside to a lack-luster pace, according to the agency. Furthermore, the employment situation remains severe and the business environment for .......

    News Round-up 3 August 2011
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