Complete news archive

  • Basel 3 rules text released

    The Basel Committee has issued the Basel 3 rules text, which presents the details of global regulatory standards on bank capital adequacy and liquidity agreed by the Governors and Heads of Supervision, and endorsed by the G20 leaders at their November Seoul summit. The Committee also published the results of its comprehensive quantitative impact study (QIS).

    The Basel 3 framework .......

    News Round-up 16 December 2010

  • CDS trader fined and banned

    The UK FSA has banned and fined Nabeel Naqui - the former head of the credit products group (CPG) Europe and Asia Pacific at Toronto Dominion Bank - £750,000 for deliberately mismarking his trading positions and misleading fellow staff to conceal his losses over a period of two years.

    Between July 2006 and June 2008, Naqui headed the CPG Europe and .......

    Job Swaps 16 December 2010

  • Refinancing Register criteria updated

    Fitch has updated its rating criteria for analysing the securitisation transactions that use the German Refinancing Register. In particular, the updated report contains the agency's view on and criteria aspects for transactions that use the register to accept loans instead of only mortgage liens.

    The refinancing register is a file in which an originator can record the loans and mortgage .......

    News Round-up 16 December 2010

  • CMBS partner hired

    Dechert has appointed Laura Swihart as partner in its finance and real estate practice based in New York. She will contribute to the firm's CMBS and structured finance coverage.

    Swihart was most recently a partner at Winston & Strawn. Prior to this, she acted as securitisation counsel to Freddie Mac in connection with the Freddie Mac multifamily CMBS programme. In .......

    Job Swaps 16 December 2010

  • Credit fund PM named

    Third Avenue Management has promoted Thomas Lapointe to portfolio manager of the Third Avenue Focused Credit Fund, naming him a partner in the firm. The fund builds on the firm's distressed debt experience and invests throughout the capital structure, including high yield bonds, bank loans, capital infusions and debt-for-equity exchanges.

    Lapointe will continue to be supported by a team of 29 .......

    Job Swaps 16 December 2010

  • Absolute return fund launched

    Loomis, Sayles & Company has launched the Loomis Sayles Absolute Strategies Fund - a global absolute return-oriented fixed income strategy. The fund, the firm says, aims to be an 'all weather' product for investors seeking consistent returns through all market environments.

    The investment process will begin by identifying key global macro themes - including global inflation scenarios, yield curves, currency .......

    News Round-up 16 December 2010

  • CMBS prepayment announced

    MEPC is to prepay £102m of the £470m loan securitised in the Opera Finance (MEPC) CMBS. The prepayment will take place on 20 January 2011, in advance of the loan's maturity in July 2012, and is part of a wider financing strategy.

    The CMBS, which was completed in November 2005 and arranged by Eurohypo, is secured against four of MEPC's .......

    News Round-up 15 December 2010

  • Special servicer strategies analysed

    About half of all loans transferred to the six largest special servicers in the US CMBS conduit universe - LNR, CWCapital, C-III, Berkadia, Midland and JER - remain unresolved, according to MBS analysts at Barclays Capital. Totalling around US$60bn, the actions of the special servicers and their preferred resolution strategies in relation to these assets are a concern heading into .......

    News 15 December 2010

  • Pressure to continue for US mortgage servicers

    The intense spotlight placed on US mortgage servicers after the disclosure of irregularities in foreclosure documentation will continue into 2011, according to Moody's. However, although the scope of irregularities should become better defined over the next few months, the scrutiny may lead to fresh controversies about additional servicing practices.

    Moody's expects that more clarity will come as servicers complete their .......

    News Round-up 15 December 2010

  • Bankruptcy credit event mulled

    ISDA's Americas Determinations Committee is mulling whether a bankruptcy credit event has occurred with respect to The Great Atlantic & Pacific Tea Company, after it filed for Chapter 11 reorganisation on 12 December.

    .......

    News Round-up 15 December 2010

  • Receivables securitisation programme launched

    Armstrong World Industries has established a US$100m receivables securitisation programme. Under the programme, Armstrong World Industries and its subsidiary Armstrong Hardwood Flooring Company will sell their US receivables to Armstrong Receivables Company (ARC), a Delaware special purpose entity. ARC will in turn initially finance those receivables through Credit Agricole.

    In addition to the financing of receivables by Credit Agricole, under .......

    News Round-up 15 December 2010

  • End-of-year boost for Euro CLO underlying

    As European CLO market participants begin preparing for year-end, managers report an above average peak in new underlying loan activity for December. At the same time, a flurry of acquisitions has resulted in related loans prepaying.

    "We've committed to the Vue Cinemas deal this week; in fact, it's our only active deal at the moment," one CLO manager says. Other .......

    Market Reports 15 December 2010

  • Questions raised over Beacon Seattle mod

    The US$2.7bn Beacon Seattle & DC Portfolio loan - one of the largest loans in the US CMBS universe, spread across six deals - has been modified. However, the disclosure of the modifications - via an S&P press release - leaves more questions than answers, according to MBS analysts at Bank of America Merrill Lynch.

    "This is just another example .......

    News 14 December 2010

  • Positive outlook for auto ABS

    Moody's outlook for the US auto ABS sector in 2011 is positive, benefiting from continued strong underwriting, a turnaround in the US auto industry and a strong used car market. The volume of issuance in the sector is likely to increase substantially in 2011, the agency says.

    The quality of underwriting should ensure that loan and lease ABS performance continues to .......

    News Round-up 14 December 2010

  • Need for fundamental credit analysis reinforced

    According to S&P, market participants relying on price signals from the bond and CDS markets for credit analysis may receive a limited view of credit risk. While market price data contain a wealth of information that can shed light on credit quality, credit market dynamics are far more complicated than a simple price or bond spread might suggest, the agency .......

    News Round-up 14 December 2010

  • US CMBS delinquencies continue rising

    The delinquency rate on loans included in US CMBS conduit/fusion transactions increased by 24bp in November to 8.63%, according to Moody's Delinquency Tracker (DQT). The increase was larger than the 15bp increase in October and continues a trend of moderate increases that has prevailed over the second half of the year.

    In November, 294 loans became newly delinquent, while 245 .......

    News Round-up 14 December 2010

  • NCUA student loan deal closes

    The US National Credit Union Administration (NCUA) has closed its debut student loan ABS resecuritisation - the US$1.16bn NCUA Guaranteed Notes Trust 2010-A1 - via Barclays Capital. The coupon pays 35bp over Libor - an indication of strong investor interest, the agency says.

    The NCUA has now completed 60% of the securitisations designed to fund deposits assumed by the bridge corporate .......

    News Round-up 14 December 2010

  • Swiss Re closes Vega Capital II

    Swiss Re has closed the second collateralised risk obligation from its Vega Capital catastrophe bond programme. The reinsurer obtained US$106.5m in coverage against North Atlantic hurricane, European windstorm, Californian earthquake, Japanese earthquake and Japanese typhoon.

    Vega has a flexible structure that allows multiple issuances of securities at any time. Vega is the first cat bond programme with a reserve account .......

    News 14 December 2010

  • Mortgage-related litigation on the rise

    The Mortgage Litigation Index, a collaboration between Patton Boggs and Mortgage Daily, indicates that legal actions tied to mortgage-lending rose by over 40% in the third quarter of the year. The index tracked activity on more than 100 civil and criminal mortgage-related cases between 1 July and 30 September 2010.

    Activity in this period leapt from the second quarter's 75 cases .......

    News Round-up 13 December 2010

  • Aussie RMBS support welcomed

    The Australian Securitisation Forum (ASF) has welcomed the introduction of a further A$4bn AOFM investment to support the country's RMBS market and the Treasury's announcement that it is to accelerate the development of a 'bullet bond' structure for RMBS.

    The RMBS investment through the Australian Office of Financial Management has been critical to keeping competition - the second-tier banks, mutuals and .......

    News Round-up 13 December 2010

  • Mortgage servicing council formed

    The US Mortgage Bankers Association (MBA) has assembled a task force of MBA members to examine and issue recommendations for the future of residential mortgage servicing. Dubbed the Council on Residential Mortgage Servicing for the 21st Century, the task force will be led by Debra Still, MBA vice chairman and president and ceo of Pulte Mortgage.

    Berman says: "The residential mortgage .......

    News Round-up 13 December 2010
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