Complete news archive

  • Support issues

    Starkly different outlooks for Australian ABS and RMBS

    The outlooks for Australian ABS and RMBS are starkly different. While the record ABS volumes seen in 2010 are expected to continue next year, growth in the RMBS sector appears to be being distorted by a lack of cheap funding and the government's deposit guarantee scheme.

    2010 has been the busiest year on record for Australian ABS, according to Ilya .......

    News Analysis 23 December 2010

  • Portuguese ABS, RMBS on review

    Moody's has placed the ratings of 25 Portuguese structured finance transactions on review for possible downgrade. The ratings under review include the triple-A ratings on two RMBS, most of the mezzanine and junior notes in 21 other RMBS transactions, and six notes in four ABS transactions.

    The rating actions reflect the expectation of further asset performance deterioration, due to Portugal's longer-term .......

    News Round-up 23 December 2010

  • European evolution

    2011 to be evolutionary, not revolutionary for European ABS

    Next year is expected to be a good one for European ABS, albeit somewhat unspectacular. The strong performance of RMBS and other positive trends from 2010 should continue, but conditions will remain tough and issues such as regulation will persist into 2011.

    "I would not expect any kind of quantum leap forward for ABS next year. I think you will .......

    News Analysis 23 December 2010

  • Fourth consecutive monthly decline for charge-offs

    Charge-offs on US credit cards fell for a fourth consecutive month in November to 8.58% - down from 8.79% in October, according to Moody's Credit Card Indices. Delinquencies and early-stage delinquencies also continued to fall during the month, indicating that charge-offs could carry on declining in the coming months.

    Jeffrey Hibbs, Moody's avp says: "The early stage delinquency rate in particular .......

    News Round-up 23 December 2010

  • Stable outlook for Brazilian ABS

    Moody's says its outlook for Brazilian securitisation performance remains stable. Favourable and stable economic conditions are set to continue to support performance, as well as promote new issuance, the agency notes.

    "Favourable macroeconomic fundamentals and the overall economic stability of the government of Brazil continue to drive the demand for consumer credit, vehicle financing and real estate financing as the middle .......

    News Round-up 23 December 2010

  • Euro CMBS extensions, restructurings to continue

    Loans across the European CMBS market suffered maturity breaches, term payment defaults or contributed to shortfalls on note payments last month, according to S&P. The assets backing these loans include retail, mixed-use, office and multi-family properties located in the UK, France and Germany.

    The number of loans in the agency's delinquency index in November rose to 62, with euro- and .......

    News Round-up 23 December 2010

  • Counterparty risk update hits Euro SF

    S&P estimates that approximately 29% of all its outstanding rated structured finance transactions could be affected and placed on credit watch negative on 17 January 2011, following the updates made to its methodology and assumptions for assessing counterparty risk (see SCI 3 December). S&P has derived this estimate by counting transactions that include counterparty roles covered by the new criteria .......

    News Round-up 23 December 2010

  • CDO manager replacements minted

    One new CDO manager transfer has been proposed and two others agreed ahead of year-end.

    First, CWCapital Investments is proposing to replace Ventras Capital Advisors as the collateral manager for the Crest G-Star 2001-1 and 2001-2, and G-Star 2002-1, 2002-2 and 2003-3 CRE CDOs. Second, Pramerica Investment Management is to replace Aladdin Capital Management UK as the collateral manager for .......

    Job Swaps 23 December 2010

  • MBIA downgraded on higher loss expectations

    S&P has lowered its counterparty credit, financial strength and financial enhancement ratings on MBIA Insurance and National Public Finance Guarantee to single-B from double-B plus and to triple-B from single-A respectively. At the same time, it has lowered the counterparty credit rating on MBIA Inc to single-B minus from double-B minus. While the outlooks on MBIA Insurance and MBIA Inc .......

    News Round-up 23 December 2010

  • Greek RWN impacts SF

    Fitch has placed all tranches of its rated Greek structured finance transactions on rating watch negative, following the placement of the triple-B Greek sovereign rating on RWN. The agency currently rates 18 SF transactions ­- 15 RMBS and 3 ABS - containing Greek collateral.

    Fitch says that if the sovereign rating is downgraded, it will assess the rating cap impact .......

    News Round-up 23 December 2010

  • Positive momentum continues for US auto ABS

    Positive momentum in the US used vehicle market continues to buck seasonal trends, according to Fitch. However, while the agency remains optimistic about the effect used vehicle values will have in the auto ABS sector in the near term, it remains cautious in its outlook for the medium term.

    "Tight vehicle supply continues to push used vehicle values to record .......

    News Round-up 23 December 2010

  • Lehman repo fraud case filed

    US Attorney General Andrew Cuomo has filed a Martin Act lawsuit against Ernst & Young (E&Y), in which it is charged with helping Lehman Brothers Holding engage in an accounting fraud involving the surreptitious removal of tens of billions of dollars of fixed income securities from Lehman's balance sheet. The lawsuit - filed in the New York Supreme Court - .......

    Job Swaps 23 December 2010

  • Trups CDO defaults, deferrals slowing

    The rate of increase for both defaults and deferrals in US bank Trups CDOs continues to slow, according to Fitch's latest default and deferral indices. The combined default and deferral index increased to 32.08% in November, compared to 31.95% in the previous month.

    New deferrals year-to-date (currently 161) remain lower than the 246 through to the end of last November. .......

    News Round-up 22 December 2010

  • Enhanced reporting requested for student loan ABS

    S&P is requesting issuers and servicers of US student loan ABS to provide it with data reporting enhancements during its surveillance process. The agency says that the enhanced data will enhance its surveillance efforts and increase market transparency by including the additional information in its published articles.

    The data reporting enhancements collectively constitute what the agency views to be a .......

    News Round-up 22 December 2010

  • CLO manager merger announced

    Deerfield Capital (DFR) and Commercial Industrial Finance (CIFC) have merged. The firm will be headquartered in New York and maintain operations in Chicago. Subject to closing conditions, the merger is expected to close in the first part of 2011.

    DFR, through its subsidiaries, Deerfield Capital Management and Columbus Nova Credit Investments Management, is a Chicago-based investment manager with approximately US$9.4bn .......

    Job Swaps 22 December 2010

  • DSB case highlights back-up servicer role

    More than a year after the bankruptcy of DSB Bank, its delinquency rates for ABS and RMBS transactions have declined significantly, despite an initial spike. However, Moody's notes the continued efficiency of DSB's servicing operations, as well as uncertainty regarding the size of losses from its 'due care claims'.

    The agency says it has seen a substantial drop in 60+ .......

    News Round-up 22 December 2010

  • FDIC closes three structured transactions

    The FDIC yesterday closed three structured transactions. Two relate to commercial loans and one to residential loans.

    A consortium of investors organised by Colony Capital participated in the acquisition of two separate structured transactions with the FDIC, comprised of two portfolios of loans - one concentrated in the Western part of the US and one concentrated in the Northern part .......

    News Round-up 22 December 2010

  • AVMs under scrutiny

    The recently-issued guidance from the Financial Institutions Examination Council (FFIEC) on real estate appraisals and evaluations will have a major impact on institutions relying on automated valuation models (AVMs), according to Integrated Asset Services (IAS).

    New interagency appraisal and evaluation guidelines were issued earlier this month by the five federal bank regulatory agencies that make up the FFIEC - the .......

    News Round-up 22 December 2010

  • Tobacco settlement bonds reviewed

    Moody's has taken action on 35 securitisations of payments owed to the issuers pursuant to the Master Settlement Agreement (MSA) between domestic tobacco manufacturers and 46 states and certain territories party thereto.

    The actions are being taken as a result of the adjudication of the Freedom Holdings case - the outcome of which reduces the uncertainty surrounding certain legal risks .......

    News Round-up 22 December 2010

  • US CLO market ends 2010 with a bang

    It has been an industrious and robust week in the US secondary CLO market, with last week's bid-lists producing high volumes of paper. Although this momentum is set to continue into 2011, the main threat to current prices is said to be lack of market supply.

    "With the numerous bid-lists of last week, we saw a fairly decent volume of .......

    Market Reports 22 December 2010

  • BMO SIVs on review

    Moody's has placed the Euro and US MTN programmes of the Links Finance and Parkland Finance SIVs on review for possible downgrade. The vehicles are sponsored by the Bank of Montreal (BMO) and there is a direct linkage between the ratings of the SIVs and of BMO due to the commitment of BMO to provide a liquidity facility for the .......

    News Round-up 22 December 2010
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