Complete news archive

  • Positive performance continues for US credit cards

    US credit card ABS performance registered positive gains across the board for the second straight month, according to Fitch's latest credit card ABS index results. All variables - including charge-offs, delinquencies, yield, monthly payment rate (MPR) and excess spread - improved again during the December collection period. Credit card defaults dropped to a 23-month low, while delinquencies fell to a .......

    News Round-up 2 February 2011

  • Prime RMBS loss model prepped

    Fitch has published an exposure draft introducing its new rating model for determining losses on pools of newly originated US residential mortgage loans. The model framework includes the application of a proprietary sustainable home price model to measure a property's effective or sustainable value. The agency will then be able to take a forward view on the potential for negative .......

    News Round-up 2 February 2011

  • Concerns outlined over special servicer replacements

    The current trend of controlling class noteholders (CCN) replacing special servicers in European CMBS transactions is creating additional operational risk in the sector, according to Fitch. Should newly-appointed special servicers lack demonstrable expertise and experience in the functions associated with the office, the transfer may lead to negative rating action for affected CMBS, the agency warns. The likelihood of negative .......

    News Round-up 2 February 2011

  • Q4 APAC downgrades driven by Japanese CMBS

    Fitch reports that a total of 35 Asia-Pacific structured finance tranches were downgraded during Q410. At the same time, 15 were upgraded and over 250 tranches were affirmed.

    "The most significant rating actions in Q410 were once again the downgrades of Japanese CMBS classes as property values continued their downward path and losses were crystallised in one transaction. A number .......

    News Round-up 2 February 2011

  • SLABS back-up servicers recommended

    Some US student loan ABS servicers may go the way of the now-defunct US FFELP programme, which in turn leaves some SLABS transactions susceptible to rating downgrades, according to Fitch.

    With the Health Care and Education Reconciliation Act of 2010 (HCERA) effectively ending new FFELP originations, many not-for-profit and state-owned servicers are now left with a portfolio that will run-off .......

    News Round-up 2 February 2011

  • Put-back loss estimates revised downwards

    Losses resulting from loan repurchases and any related settlements are unlikely to materially affect the capital adequacy of the largest US banks, according to Fitch. While repurchase risk has limited the near-term upside momentum in the ratings of certain institutions, the agency does not see any immediate negative rating implications at this point.

    However, growing litigation risk related to private .......

    News Round-up 2 February 2011

  • CLO rating process enhanced

    Fitch has enhanced its rating process for US CLOs by working more closely with its leveraged finance team to render credit opinions and recovery ratings on portfolio assets that are shadow rated. By increasing its coverage on the portfolio, the agency's CLO analysis will be less reliant on external ratings.

    "Augmenting our structural analysis with corporate credit opinions, which we .......

    News Round-up 2 February 2011

  • Hiring spree begins for advisory group

    The Broadsmoore Group has appointed Brian Anderson as ceo in its effort to re-engineer the investment model with an in-depth due diligence process and risk analysis objective.

    Anderson has over 29 years of experience working in fixed income sales and trading, mortgage finance and operational expertise. He was previously coo at Vanquish Capital Group and prior to this was at .......

    Job Swaps 2 February 2011

  • Beacon Seattle mod creates waves

    The modification of the second largest US CMBS loan ever securitised - the Beacon Seattle & DC Portfolio loan - has significant implications for a broad base of investors, according to MBS analysts at Barclays Capital. It was modified in December, with its maturity date extended by five years (see SCI 15 December).

    Under the modification, several components of the .......

    News 1 February 2011

  • Institutional coverage team expanded

    BNP Paribas has named Tim Bitsberger md of its official institutions coverage team for the Americas. Based in New York, he will focus on the global needs of central banks, sovereign wealth funds, government agencies, GSEs and supranationals. He will report to Véronique Ormezzano, head of the firm's official institutions coverage in Paris, and to Joe Malley, head of the .......

    Job Swaps 1 February 2011

  • New agency index series prepped

    Markit is set to launch new MBX, IOS and PO indices that reference 2010 agency pools on 12 February. They will include a 3.5 series, as well as 4, 4.5 and 5 series, complementing the existing indices that reference 2009 pools.

    MBS analysts at Barclays Capital indicate that prepayment speeds on 2010 agency pools could be significantly slower than 2009 .......

    News Round-up 1 February 2011

  • PPIF IRRs decline

    The US Treasury reported in its latest quarterly update that PPIP managers drew down an additional US$2.1bn, compared to US$3.3bn in Q3, bringing total draws to US$20.4bn. This represents 69.3% of the US$29.4bn in total purchasing power available to PPIFs.

    Of the managers, only RLJ/WAMCO has fully invested all its funds. Oaktree, in comparison, has only deployed US$375m of its .......

    News Round-up 1 February 2011

  • Euro CMBS loan repayment falls

    European CMBS loan repayments decreased in January due to the large proportion of maturing loans that were not redeemed, according to Fitch. The agency's CMBS Maturity Repayment Index decreased to 36.1% from 38.8% during January, excluding loans that were repurchased by their originators. Including repurchases, the index decreased to 42% from 45.3%.

    The 23 loans that matured in January increased .......

    News Round-up 1 February 2011

  • Fannie Mae multifamily offerings expanded

    Fannie Mae has introduced Fannie Mae Guaranteed Multifamily Structures (GeMS), an expanded multifamily MBS execution that will include DUS Megas, DUS REMICs and syndicated DUS Megas. This expansion builds on the agency's DUS REMIC issuances, providing additional GeMS products with similar features and liquidity. Other new structures are expected to join the roster of multifamily structured product offerings in 2011.

    News Round-up 1 February 2011

  • RMBS litigation pro recruited

    Sadis & Goldberg has appointed Sam Lieberman as of counsel in its litigation group. He has extensive experience handling all stages of high-profile securities class actions, complex commercial litigation and government investigations.

    Prior to joining Sadis & Goldberg, Lieberman was senior counsel at Bernstein Litowitz Berger & Grossman, litigating securities actions on behalf of plaintiffs and defendants, including matters involving .......

    Job Swaps 1 February 2011

  • Permacap acquisition completed

    Greenwich Loan Income Fund (GLIF) has completed the acquisition of Asset Management Investment Co (see SCI 26 October). In addition, it has confirmed the admission of the enlarged group to the official list of the CISX. 11,333,610 new GLIF shares were admitted to trading on AIM at the same time.

    .......

    Job Swaps 1 February 2011

  • Plantation Place sale to progress

    The owners of Plantation Place, the property in the REC 5 CMBS portfolio, have confirmed that they will pursue a strategy to sell the property. This is despite the same single class B noteholder blocking their proposal to break the deadlock on the transaction (SCI passim).

    At a vote held yesterday (31 January), the owners' proposal - which seeks a .......

    News Round-up 1 February 2011

  • Boutique adds senior advisor

    The Williams Capital Group has appointed Joseph Fichera as a senior advisor. He will advise the firm on various securities and capital markets-related initiatives involving its corporate and municipal client service efforts.

    In 2000 Fichera founded Saber Partners, a financial advisory firm for corporate and public sector entities that specialises in auction rate securities and securitised debt. He will continue .......

    Job Swaps 1 February 2011

  • Maturity delinquencies weigh on Euro CMBS

    S&P says that the European CMBS downgrades of late last year have set the tone for 2011. Factors that caused the credit watch negative placements in December include special servicing fees and declining cashflow, and in turn value declines and country risk in the case of loans backed by assets in the Hellenic Republic and Portugal.

    "Despite signs of recovery .......

    News Round-up 1 February 2011

  • Deco 11 special servicer replaced

    Moody's has commented on the replacement by Solutus Advisors of Hatfield Philips International as the special servicer on the Wildmoor Northpoint and CPI Retail loans in the Deco 11 - UK Conduit 3 CMBS transaction.

    Based on its assessment of the capability of Solutus Advisors to perform the role of special servicer and the relatively small size of the loans, .......

    News Round-up 1 February 2011

  • ISDA comments on derivatives reporting

    ISDA says it welcomes the efforts of the IASB and FASB to seek convergence on their current US GAAP and IFRS models regarding offsetting of assets and liabilities in the balance sheet (see SCI 31 January). However, the association notes that the Boards' proposal to report derivatives on a gross basis rather than on a net basis is counterintuitive and .......

    News Round-up 1 February 2011
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