Complete news archive

  • Japanese origination review underway

    Moody's is reviewing Japanese mortgage loan originations, with the aim of preventing unexpected loss in the securitised pools. A number of loans in some Japanese RMBS monitored by the agency have either become delinquent or default very shortly after origination.

    The review comprises a qualitative examination of the effects of originator policies and procedures on loan performance. It is divided .......

    News Round-up 7 July 2011

  • Punch split confirmed

    Punch has announced its formal intention to split the business in two via the creation of a new listed entity called Spirit Pub Company, which will consist of the existing Spirit securitisation as well as a number of managed pubs outside the deal. The demerger remains conditional upon a shareholder vote and is expected to become effective on 1 August.

    News Round-up 7 July 2011

  • Investor uproar in Euro RMBS

    The European ABS market has been ticking along this week, with trading seen for old Lehman Brothers bonds and notes from Northern Rock's Granite transactions. However, the main focus has been on an abrupt u-turn by Northern Rock regarding its Graphite tender (SCI 27 June), which has left investors fuming.

    "A big list of bonds from Lehman has been circulating, .......

    Market Reports 7 July 2011

  • Updated NHG criteria rolled out

    Fitch has updated its criteria for rating RMBS transactions backed by the Nationale Hypotheek Garantie (NHG). As a result of the updated criteria, the agency has maintained all 50 outstanding notes of the 15 NHG-backed Dutch RMBS it rates on rating watch negative (RWN).

    Issuers will have the opportunity to indicate whether they intend to make any amendments to the .......

    News Round-up 6 July 2011

  • US CMBS delinquencies fall for second month

    For the first time since the credit crisis began in 2008, the US CMBS delinquency rate has fallen for two consecutive months according to Trepp's latest delinquency report. The rate reduction was driven primarily by a sharp spike in loans being resolved with losses, rather than delinquent loans actually curing.

    Overall, the delinquency rate for U.S. commercial real estate loans .......

    News Round-up 6 July 2011

  • Countrywide settlement sets 'a low bar'

    The 'class warfare' predicted to occur following Bank of America's reps and warranties settlement with 22 institutional investors (SCI 29 June) is already emerging. Indeed, the agreement is said to have set a low bar for future settlements of this kind.

    Under the Countrywide settlement, BofA will pay US$8.5bn to 525 first-lien and five second-lien RMBS trusts after final court .......

    News 6 July 2011

  • Associations warn on extra-territoriality

    Eight global and regional trade associations have called on regulators to intensify cooperation to prevent, alleviate or limit the harmful effect of overlap, inconsistency and ambiguity resulting from extra-territoriality in regulatory efforts to implement G20 commitments. Extra-territoriality is a fundamental concern in derivatives business, where it is common for counterparties based in different parts of the world to transact with .......

    News Round-up 6 July 2011

  • Q2 CDS performance reviewed

    Greece remains the most risky sovereign debt, with the worst performance during 2Q11, according to CMA's latest sovereign credit risk report. Greek CDS spreads peaked on 27 June - one day before the austerity measures set by the EU and IMF were approved by the Greek parliament.

    Spreads rallied following the decisive vote, but remain high with five-year probability of .......

    News Round-up 6 July 2011

  • Restructuring credit event called

    ISDA's EMEA Determinations Committee has ruled that a restructuring credit event occurred with respect to Irish Life & Permanent on 1 July. It remains to be decided whether an auction will be held to settle credit derivatives trades in the name.

    .......

    News Round-up 6 July 2011

  • SIVs hit in Landesbank review

    Moody's has placed under review for downgrade the ratings of notes issued by the Carrera Capital and Harrier Finance Funding SIVs. The ratings of the latter are also under review with direction uncertain. The actions follow the agency's review of German Landesbanken ratings.

    Carrera Capital is managed and sponsored by HSH Nordbank. There is a direct linkage between the ratings .......

    News Round-up 6 July 2011

  • Broker beefs up in ABS

    Laeken International says it plans to establish a structured finance strategy and analytics team. The firm is eyeing James Woodrow to lead the team, with Marius Grant, Glenn Morris and Shannon Kelly completing it. The team will provide the fixed income sales and trading department with analysis and support, focusing especially on mortgage- and other asset-backed securities products.

    .......

    Job Swaps 6 July 2011

  • European Parliament backs OTC reforms

    Proposals to strengthen the OTC derivatives market and reduce speculative practices linked to short selling have received the backing of the European Parliament, ahead of negotiations with Member States.

    The short selling proposal requires traders to settle their uncovered short positions by the end of each trading day and restricts purchases of CDS contracts to owners of related government bonds .......

    News Round-up 5 July 2011

  • Post-crisis CLO structures assessed

    Despite limited issuance to date, post-crisis CLOs appear to be more conservatively-structured than their pre-crisis counterparts. They also feature additional underwriting clauses designed to avoid some of the pitfalls that beset the asset class during and shortly after the financial crisis.

    According to Moody's latest CLO Interest publication, typical subordination levels for triple-A rated CLO tranches have increased from around .......

    News 5 July 2011

  • Key man clause triggered

    A meeting of Faxtor ABS 2005-1 class C noteholders is to be held at Ashurst's offices on 22 July to consider and, if thought fit, pass an extraordinary resolution regarding key person provisions.

    Among other things, the collateral manager - IMC Asset Management - is requesting consent to replace two key persons (Frans Wesseling and Jeroen Bakker) with existing employees .......

    Job Swaps 5 July 2011

  • CLO manager replaced

    Bankia has replaced Caja Madrid as lead investment manager on Neptuno CLO I, II and III. EuroDekania Management remains the junior investment manager for Neptuno CLO III. Bankia has expressly agreed to assume all of the investment manager's duties and obligations under the investment management agreement and each other transaction document to which the investment manager is a party.

    .......

    Job Swaps 5 July 2011

  • ABS CDO liquidations scheduled

    Dock Street Capital Management (DSCM) has been retained to act as liquidation agent for the Silver Marlin CDO I and Tazlina Funding CDO II transactions. Noteholders have been invited to bid on the collateral, which will be sold at four sales. Two Silver Marlin portfolios will be sold on 12 July and two Tazlina portfolios will be sold on 14 .......

    News Round-up 5 July 2011

  • Swaps granted temporary relief

    The US SEC has provided additional guidance to clarify which US securities laws will apply to security-based swaps starting on 16 July, the effective date of Title VII of the Dodd-Frank Act. Under the Dodd-Frank Act, security-based swaps are defined as 'securities' subject to existing federal securities laws, including the Securities Act of 1933 and the Securities Exchange Act of .......

    News Round-up 5 July 2011

  • US auto ABS remains strong

    Credit fundamentals for US auto ABS remain strong in spite of recent economic headwinds, according to Fitch. But the agency warns that performance may soon begin to level off.

    Auto ABS losses declined to near record levels in May, while delinquencies remained relatively stable. However, performance gains for the year may be approaching a peak, according to Fitch director Brian .......

    News Round-up 5 July 2011

  • MERS challenged

    Change in business model mooted

    The recent ruling in the Bank of New York vs Stephen Silverberg case is the latest to call into question the effectiveness of Mortgage Electronic Registration Systems (MERS). However, any changes to the MERS business model are expected to increase further the cost and time-to-market of new issue RMBS.

    Taken with a number of other recent foreclosure-related suits, the Silverberg .......

    News Analysis 4 July 2011

  • Regulation tops CLO investor concerns

    The results of JPMorgan's latest global CDO client survey indicate that the number-one concern among the 107 respondents is regulation - unsurprising, given that Dodd-Frank risk retention proposals may soon be finalised. Eurozone sovereign risk was relegated to second place, even though the Greek crisis erupted as the survey was underway.

    Nevertheless, the majority (56%) of CLO investor respondents plan .......

    News 4 July 2011

  • Op risk vet recruited

    Allonhill has recruited Jim Sadler as md of business process management and analytics. He is charged with developing custom analytics to measure and report the firm's performance and help establish a new client-facing implementation team.

    Sadler brings more than 20 years of operational risk management, process management and financial modeling experience to Allonhill. Most recently, he served as director of .......

    Job Swaps 4 July 2011
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