Complete news archive

  • Roadmap for adoption

    Paul Middleton and Simon Rees-Goddard, vps at Sapient Global Markets, answer SCI's questions

    Q: How did Sapient Global Markets become involved in the structured credit market?
    SRG:     Sapient Global Markets has been working with institutions involved in structured credit for over 20 years. Our unique perspective - born from being closely aligned with both market participants and system providers, intermediaries and regulatory bodies - enables us to provide a differentiated service to clients that .......

    Provider Profile 15 July 2011

  • Shock tactics

    Senior RMBS tranches to withstand interest rate rises

    European interest rates are set to come off the lowest levels seen in over a decade, sparking concern about the impact on the RMBS market. But a new study shows that transactions are generally well structured and senior tranches shouldn't necessarily be impacted by interest rate shocks - although different results can be expected for mezzanine and junior tranches.

    Andrew .......

    News Analysis 15 July 2011

  • Servicing advance recovery policies updated

    Ocwen Loan Servicing has updated its servicing advance recovery policies on future servicing acquisitions, including its impending acquisition of Litton Loan Servicing. The firm says that the policy adjustments are intended to minimise cash shortfalls on current investment grade rated non-agency RMBS bonds following a servicing acquisition or transfer.

    Ronald Faris, Ocwen president and ceo, comments: "Acquisition opportunities are increasing .......

    News Round-up 15 July 2011

  • Portuguese ABS ratings hit

    Moody's has downgraded the ratings of 18 tranches of 13 Portuguese ABS and 95 tranches of 29 RMBS transactions. 12 ABS tranches from seven ABS deals remain on review for possible downgrade. The agency has also placed on review the rating of an ABS tranche guaranteed by the European Investment Fund, as the benefit of the guarantee may be conditional .......

    News Round-up 15 July 2011

  • Non-conforming RMBS review completed

    Moody's has completed a review of the UK non-conforming RMBS market, noting that performance trends are in line with current expected loss assumptions for the majority of transactions. Furthermore, its ratings are resilient to stressed future loss scenarios, the agency says.

    The conclusion is based on stress-testing 75 of the 84 outstanding UK non-conforming RMBS transactions. The review took into .......

    News Round-up 15 July 2011

  • CFTC provides Dodd-Frank relief

    The CFTC has issued an order clarifying the effective date of the provisions in the swap regulatory regime established by Title VII of the Dodd-Frank Act. The order provides temporary relief from certain provisions that will become effective as of 16 July, until the CFTC completes the rulemakings specified in the order.

    The action is aimed at avoiding disruption in .......

    News Round-up 15 July 2011

  • Ex-Freddie Mac counsel recruited

    SNR Denton has appointed Robert Bostrom as partner and co-head of its global financial institutions and funds sector. He was previously evp, general counsel and corporate secretary of Freddie Mac, having directed its legal strategy through the financial crisis and recovery.

    Bostrom will share leadership of the global financial institutions and funds sector with partner Jana Cohen Barbe. He is .......

    Job Swaps 15 July 2011

  • ABS CDO transferred

    Cutwater Asset Management is set to replace Western Asset Management Company (WAMCO) as collateral manager on Coronado CDO. Moody's has confirmed that the move will not result in the withdrawal, reduction or other adverse action with respect to the ratings on the notes. In assessing the credit impact of the appointment of Cutwater, the agency assessed the history of Cutwater's .......

    Job Swaps 15 July 2011

  • Aladdin to focus efforts on alternatives

    Aladdin Capital has announced a strategic reorganisation by downsizing its global capital markets business. The firm says it will now focus its efforts on its alternative credit asset management business, which has been the core area of expertise since it was founded in 1999. Aladdin will continue to grow its established platform of investment products while looking to provide new .......

    Job Swaps 15 July 2011

  • CRE CDO hits the market

    Deutsche Bank has arranged the first CRE CDO to hit the market post-crisis. The US$670.5m transaction, dubbed Prima Capital CRE Securitization 2011-1, will be managed by Prima Capital Advisors. Amherst Securities, Bank of America Merrill Lynch, Morgan Stanley and Wells Fargo are co-lead managers on the deal.

    The collateral pool comprises 57 assets: 22 CMBS certificates from 11 trusts (accounting .......

    News Round-up 15 July 2011

  • CDS operations challenges outlined

    Citi has released a whitepaper that outlines the top-five issues that OTC derivative investors must plan for in the wake of Dodd-Frank reforms. Specifically, the report describes the challenges facing investment managers across operations and technology infrastructure.

    Citi estimates that about 60% of the current OTC derivatives market by volume will be centrally cleared. "Investment managers should expect significant technology .......

    News Round-up 14 July 2011

  • Granite hit in counterparty criteria action

    S&P has lowered its credit ratings on 91 tranches from Northern Rock's Granite UK RMBS master trust. At the same time, the agency affirmed its ratings on 76 tranches and withdrew ratings on an additional six tranches. The downgrades reflect the application of S&P's 2010 counterparty criteria for structured finance transactions.

    The agency placed the senior classes of notes on .......

    News Round-up 14 July 2011

  • Securitisation vet promoted

    Linklaters has named Jim Rice as divisional practice head of finance & projects, for a four-year term, replacing John Tucker. Rice will retain his role as global practice head for capital markets and Tucker is returning to full-time client work. Alongside his new role, Rice will continue to be engaged in client work.

    .......

    Job Swaps 14 July 2011

  • RMBS recovery service launched

    Glass, Lewis & Co has launched a new service designed to help institutional investors and plan sponsors recover their losses on private-label RMBS. Pension funds and institutional investors are believed to have lost more than US$750bn over the past five years.

    "Many of our 950 institutional investor clients are participants in the US RMBS market," comments Katherine Rabin, ceo of .......

    News Round-up 14 July 2011

  • CDS risk manager added

    Pierre Bourlatchka has been appointed a director at Kinetic Partners and will join the risk management consulting and monitoring team in London. He joins the firm from F&C Asset Management, where he worked for the alternative investment market risk team, focusing on AI risk management and reporting. Prior to this, he worked within risk management and quantitative analysis at Deephaven .......

    Job Swaps 14 July 2011

  • US rating review hits guaranteed ABS

    Moody's has placed the US government's Aaa bond rating on review for possible downgrade, given the rising possibility that the statutory debt limit will not be raised on a timely basis, leading to a default on US Treasury debt obligations. In conjunction with this action, the rating agency has placed on review the Aaa ratings of financial institutions directly linked .......

    News Round-up 14 July 2011

  • Sound supervisory framework recommended

    The Joint Forum has released its 'Report on Asset Securitisation Incentives'. The report is based on an extensive literature review, as well as interviews in Europe, the US and Australia with originators, issuers, service providers and investors.

    The report analyses the incentives to engage in securitisation throughout the market before the financial crisis, the distortions created by misalignments and conflicts .......

    News Round-up 14 July 2011

  • ML2 auctions dampen subprime CDS rally

    A modest decline for US subprime CDS prices has effectively closed the chapter on an unprecedented rally, according to Fitch Solutions in its latest commentary on the sector. Subprime CDS prices declined by 1.8% last month, after a seven-month rally that saw prices rise by 126%.

    "The modest subprime price weakness last month was driven in part by Maiden Lane .......

    News Round-up 14 July 2011

  • US CLO investors return

    The US CLO market has been kept busy by a string of BWICs, with softness in the market drawing investors back in. Additionally, a rare upsizing of a deal has occurred, while one upbeat CLO trader also describes liquidations coming back into 'active mode'.

    "It has been a noteworthy week, despite the slippage and bad tone in the peripheral countries .......

    Market Reports 13 July 2011

  • NHP alternatives analysed

    All landlords of Southern Cross Healthcare Group have indicated their intention to leave the group, according to a recent investor notice, which also states that the "smooth transition" of homes to landlords and their new operators is underway. The move has sparked calls for more transparency around performance of the care homes to aid analysis by Titan Europe 2007-1 (NHP) .......

    News 13 July 2011

  • TFG shareholder action filed

    A shareholder derivative action was filed yesterday in the US District Court - Southern District of New York - against the current and former directors of Tetragon Financial Group by a purported shareholder. The action involves a series of allegations specifically with respect to performance fees charged by TFG's investment manager and asks for money damages and equitable relief against .......

    Job Swaps 13 July 2011
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