Complete news archive

  • 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

  • GGP spins off mall portfolio

    General Growth Properties (GGP) plans to spin off 30 of its malls to shareholders through a special dividend. The 30 malls, 14 of which still serve as collateral for CMBS transactions, are to be transferred to a new REIT called Rouse Properties.

    CMBS analysts at Barclays Capital note that most of the assets were classified as 'other' in prior GGP .......

    News 3 August 2011

  • US CMBS delinquencies spike in July

    The delinquency rate for US CRE loans in CMBS shot up by 51bp to 9.88% in July, according to Trepp's latest delinquency report. This is the highest delinquency rate in the history of the CMBS market and comes after two consecutive drops in the rate for May and June.

    However, Trepp says that much of the jump can be attributed .......

    News Round-up 2 August 2011

  • Capita expands financial services remit

    Capita is set to acquire AIB's international financial services business (AIBIFS) for a cash consideration of £29m, on a cash-free, debt-free basis. AIBIFS provides outsourced services - including corporate administration, treasury management, securitisation and middle/back office services - to financial institutions and corporate clients.

    Paul Pindar, Capita ceo, comments: "The acquisition of AIBIFS is an excellent strategic fit for Capita. .......

    Job Swaps 2 August 2011

  • Japanese CMBS see more defaults and downgrades

    A high proportion of maturing underlying loans of Japanese CMBS transactions continued to default in 2Q11, according to S&P. At the same time, the agency says downgrade numbers have increased significantly.

    Twelve out of the 18 S&P-rated loans that matured in the quarter were not redeemed on their respective maturity dates. However, five other loans that had previously defaulted were .......

    News Round-up 2 August 2011

  • Call for Dodd-Frank CLO exemption

    The Loan Syndications and Trading Association (LSTA) has submitted to joint regulators a comment letter explaining why managers of open market CLOs are not subject to the risk retention provisions of the Dodd-Frank Act and thus should not be subject to the risk retention rules proposed by the joint regulators. The Association urges the joint regulators to retract their suggestion .......

    News Round-up 2 August 2011

  • Aviation finance pro recruited

    Christian Wulf has joined BNP Paribas' aviation finance group as director in charge of Latin America. He is based in New York and reports to Olivier Trauchessec, head of aviation finance, Americas.

    Wulf joins from KfW's aviation finance group in Frankfurt, where he headed its North American activities. Prior to KfW, he was responsible for WestLB New York branch's transportation .......

    Job Swaps 2 August 2011

  • Growth predicted for Argentinean ABS

    Argentina's domestic securitisation activity should continue to grow during the second half of the year, dominated by infrastructure deals and consumer loan-backed transactions, according to Moody's. During the first six months of 2011, structured finance issuance totalled the equivalent of US$2.4bn - an increase of 20% over the same period of last year, excluding infrastructure transactions.

    Delinquencies higher than 90 .......

    News Round-up 2 August 2011

  • RFC issued on RMBS methodology

    Kroll Bond Ratings Agency (KBRA) is seeking public comment on its RMBS rating methodology overview before 9 September. KBRA's rating of an RMBS transaction considers the strategy and operational strength of the originator and servicer, the quality and expected performance of the underlying collateral, and the security's credit enhancement and other terms.

    The document outlines KBRA's methodology for non-agency RMBS, .......

    News Round-up 2 August 2011

  • Flip clause enforceability 'remains to be seen'

    Fitch reports that the judgement of the UK Supreme Court last week regarding the so-called 'flip-clause' in a structured finance derivative (SCI 29 July) is positive for the noteholders and appears to be positive for SF generally. The agency confirms that the ruling will not have any rating impact and its criteria with respect to derivatives will remain unchanged.

    The .......

    News Round-up 2 August 2011

  • European loans in special servicing hit 100

    The number of loans in special servicing in European CMBS transactions reached 100 for the first time last month and 15% of euro loans (by balance) is now in special servicing. These figures attest to the troubles that the sector continues to face, according to S&P's July CMBS bulletin.

    "Although there were no delinquencies in June, this was to be .......

    News Round-up 2 August 2011

  • US CMBS market 'treacherous'

    The last week and a half has been "pretty treacherous" in the US CMBS market, reports one trader. The ongoing wrangling over the US debt ceiling and the threat of a US downgrade has helped create an environment of confusion, which has not been eased by S&P's latest actions.

    Two single-borrower CMBS deals, both backed by Blackstone portfolios, priced on .......

    Market Reports 1 August 2011

  • CMBS loan liquidations retreat in July

    Over US$1.3bn in US CMBS conduit loans were resolved with losses in July, according to Trepp, representing a retreat from June's record level.

    In total, Trepp says 175 loans were liquidated in July, compared to 197 loans and US$1.8bn in face amount in June. The losses on the July liquidations were about US$538m - representing an average loss severity of .......

    News Round-up 1 August 2011

  • Mods dominate non-agency performance

    Modified loans are increasingly driving overall performance in the non-agency US RMBS space and now account for 10%-15% of all non-agency loans from the 2005-2007 vintage, according to Barclays Capital securitisation analysts. This is particularly the case in weaker credit sectors, with over 25% of all subprime loans now modified.

    Modification rates from delinquent loans peaked around a year ago .......

    News 1 August 2011

  • Irish Life results released

    Inside markets, physical settlement requests and limit orders were submitted to the Irish Life and Permanent CDS auction by 13 dealers on 29 July. The auction comprised six buckets: final prices for senior buckets 1, 2 and 3 were determined to be 83, 71 and 71 respectively; final prices for subordinated buckets 1, 2 and 3 were determined to be .......

    News Round-up 1 August 2011

  • Further Greek rating actions taken

    Moody's has taken rating actions on a limited number of Greek structured finance transactions that have high linkage to the Greek government or Greek banks. The actions follow the downgrade to Ca from Caa1 of the Greek government debt rating and the placement on review for downgrade of the ratings of Greek banks on 25 July.

    The rating actions comprise: .......

    News Round-up 1 August 2011

  • Spanish guaranteed deals on review

    Moody's has placed on review for downgrade the Aa2 ratings of six Spanish SME CLOs and the ratings of four notes in an ABS transaction backed by payment rights related to Spanish electricity tariff deficits. At the same time, the agency placed on review for downgrade the junior notes of one of these six affected SME transactions - GC FTPYME .......

    News Round-up 1 August 2011

  • Euro CMBS maturity defaults increasing

    Fitch says in a new report that the performance of European CMBS loans deteriorated during 2Q11, primarily due to an increasing number of maturity defaults.

    The proportion of loans categorised as being fully performing decreased to 67.2% from 71.2% during the second quarter. Fitch says this was primarily driven by a continued increase in the proportion of loans in maturity .......

    News Round-up 1 August 2011

  • Super-senior CMBS structure criticised

    The introduction of the super-senior structure is credit negative for CMBS underwriting because it can diminish so much of the credit risk for senior investors that they no longer exert much-needed discipline on the underwriting process, according to an article in Moody's latest Weekly Credit Outlook. The development is also credit negative for the bond that supports the super-senior bond, .......

    News 1 August 2011

  • Tranche thickness metric introduced

    Fitch has introduced new tranche thickness metrics designed to convey the relative thickness of a tranche in new structured finance transactions. At the same time, the agency has withdrawn its loss severity (LS) ratings criteria, which will be replaced by the new metrics.

    "LS ratings were originally introduced by Fitch in 2009 as an ancillary rating scale, largely to highlight .......

    News Round-up 29 July 2011

  • US fixed-rate CMBS defaults approaching 13%

    Fitch's US CMBS cumulative default rate for fixed-rate CMBS increased to 12.9%, as of the end of 2Q11. This represents a 228bp increase compared to year-end 2010.

    "Limited conduit issuance so far this year has not yet helped to stabilise the cumulative CMBS default rate," says Fitch md Mary MacNeill. To date, US$9.95bn in new fixed rate conduit CMBS has .......

    News Round-up 29 July 2011
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