Complete news archive

  • US CMBS showing signs of recovery?

    US commercial real estate is exhibiting signs of recovery, according to S&P. While delinquency rates for CMBS remain elevated, the rate of growth has slowed considerably from recessionary levels.

    Additionally, the agency reports that property fundamentals are improving, investment capital is slowly flowing back into the sector, commercial mortgage originations are increasing and demand for CMBS issuance is gaining traction.

    News Round-up 30 November 2010

  • Hunt for absolute yield driving Euro CLOs

    The recent flurry of activity in the European secondary CLO market has come to a brief standstill, with the sovereign crisis diverting investor attention. However, investors' quest for absolute yield continues to drive demand for mezzanine paper, causing the credit curve to flatten and - combined with positive CLO market technicals - limit potential pricing downside into the year-end.

    "It's .......

    Market Reports 30 November 2010

  • Boutique adds asset advisor

    The Prytania Group has appointed Matthias Mosler as senior advisor. In this role, he will advise the firm's clients on their legacy asset positions.

    With over 25 years of industry experience, Mosler was previously at Deutsche Bank in its debt capital markets group. Prior to this, he was md in the corporate finance and capital markets group at Goldman Sachs .......

    Job Swaps 29 November 2010

  • Going down?

    Distressed investors forecast ABS leg-down

    Distressed investors are predicting a leg-down for the market in the near future. They suggest that while opportunities can be found in CLOs - particularly in the US - problems persist across the ABS asset classes.

    Paul Rivlin, joint ceo of Palatium Investment Management, believes it will still be a few years before the European commercial real estate markets fully .......

    News Analysis 29 November 2010

  • Debt advisory md named

    Quayle Munro has appointed Stuart Roberts as md in its newly created advisory team. Based in Edinburgh, Roberts will be primarily responsible for the development of the firm's debt advisory business while assisting in building its corporate finance capability in Scotland.

    Roberts joins the firm from RBS, where he was head of structured finance in Aberdeen. Prior to this, he .......

    Job Swaps 29 November 2010

  • Loss assumptions raised for UK BTL

    Moody's has increased its lifetime loss assumptions in 11 UK buy-to-let RMBS, due to worse performance of the underlying mortgage portfolios than previously assumed. The affected transactions are Auburn Securities 5; Ludgate Funding Series 2007-FF1; and Paragon Mortgages No 7 to 15. The agency has taken no rating action on these deals, however, in consideration of the sufficient levels of .......

    News Round-up 29 November 2010

  • Flip clause validity clarified

    Ongoing uncertainty over the validity of provisions subordinating swap termination payments owed by structured finance vehicles to defaulting counterparties - known as 'flip clauses' - has no rating impact for most cashflow transactions, according to Moody's. The agency says that the validity of flip clauses is not a material consideration in relation to liquid interest rate and currency swaps that .......

    News Round-up 29 November 2010

  • Gresham CLO restructured

    The class A1 note of Gresham Capital CLO 1, which carried a double-A plus rating, has been retranched and renamed Metropolis II series 2010-8. S&P has assigned the new €50.6m class A notes a triple-A rating, while the new €12.65m class B deferrable notes are unrated. The new rating reflects the expected level of credit support in the form of .......

    News Round-up 29 November 2010

  • Marlin restructuring proposed

    A noteholder meeting will convene on 10 December to vote on the proposed restructuring of the Marlin (EMC II) CMBS. Blackstone Real Estate Partners, the borrower, is seeking an extension of the loan to 17 June 2011. It has already sold down the majority of the original assets and expects to dispose of two more by June 2011 and fully .......

    News Round-up 29 November 2010

  • Continued stress for Euro CMBS

    S&P reports that despite glimmers of renewed activity in recent weeks, the stresses in the European CMBS market continue to be felt at both the loan and note levels.

    Property value declines contributed to appraisal reductions in two transactions, Talisman 6 Finance and Windermere X. More significantly, the agency says, the declines contributed to principal losses on two loans - .......

    News Round-up 29 November 2010

  • Improved performance for Aire Valley

    S&P has affirmed its credit ratings on Aire Valley Funding 1's mortgage-backed notes and removed all long-term ratings from credit watch negative, where they were placed in July 2010 due to collateral performance and potential negative selection. A more detailed analysis indicated that negative selection relating to the prepayment of lower risk, low LTV loans is currently not prevalent, the .......

    News Round-up 29 November 2010

  • Euro ABS head named

    Jefferies has appointed James Fadel as md and head of European structured debt capital markets in London. He will be responsible for the origination, execution and syndication of structured products, including MBS and ABS.

    With over 28 years of experience, Fadel spent over 12 years at Morgan Stanley in New York and London as md and head of European ABS .......

    Job Swaps 29 November 2010

  • Self-sufficiency drive

    Portfolio risk managers taking matters into their own hands

    The changing investor perception of rating agencies is driving a more independent attitude towards risk management. At the same time, while the need for due diligence is a given in the post-crisis securitisation market, increased transparency is creating its own challenges for risk managers.

    The perception of the rating agencies' role has fundamentally changed post-crisis, with the overcompensation in safeguarding .......

    News Analysis 29 November 2010

  • Law firm strengthens Irish presence

    Walkers is further expanding its Dublin office by creating a significant number of jobs in Ireland. With approximately 25 new positions made by the end of 2010, this will rise to approximately 50 new jobs by the end of 2011. This, the firm says, demonstrates their confidence in the Irish economy.

    "The International Financial Services Centre has been a beacon .......

    Job Swaps 26 November 2010

  • Lawsuit filed over SIV restructuring

    Abu Dhabi Commercial Bank (ADCB) has filed a lawsuit against - among others - Credit Suisse and S&P in New York. The suit alleges that Credit Suisse failed to disclose conflicts of interest and provided misleading information when structuring, marketing and selling an investment - Farmington. Further, the bank claims that S&P provided inaccurate investment-grade ratings to assets associated with .......

    News Round-up 26 November 2010

  • Timing sensitivities

    Schedule of CDS introduction in China, India questioned

    The introduction of credit derivatives in China and India has been welcomed by market participants. Some are nevertheless questioning the timing.

    The Chinese authorities last month licensed 17 financial institutions to trade CDS-like contracts, dubbed 'credit risk mitigation instruments'. Rohan Douglas, ceo of Quantifi, confirms that the contracts are similar to standard CDS, but have different terms and a legal .......

    News Analysis 25 November 2010

  • Unrated issuance

    Hilton CMBS unlikely to set a trend

    The recent privately-placed Bank of America Large Loan Trust transaction, backed by Hilton Worldwide assets, is believed to be the first unrated CMBS to hit the US market. Only a few unrated deals are expected to follow in its wake, however.

    Most traditional CMBS investors are life insurance firms, which are ratings-driven in terms of their investments. This automatically limits .......

    News Analysis 25 November 2010

  • New assets for ILS

    A new asset class is being brought to the insurance-linked securities (ILS) market - medical benefit claims. The deal, Vitality Re, is likely to prove popular with investors starved of diversification in the catastrophe bond sector.

    The transaction's US$125m class A and US$75m class B notes have been assigned preliminary ratings of triple-B minus and double-B respectively by S&P. The .......

    News 25 November 2010

  • Seasonal strength bolsters US auto ABS

    Fitch reports that the unprecedented seasonal strength in the US used vehicle market, combined with two months of lower new jobless claims has bolstered auto ABS performance for October.

    "Historically high used vehicle values brought on by positive supply and demand dynamics by manufacturers are helping to contain loss levels," says Fitch director Hylton Heard. "Lower loss levels are expected .......

    News Round-up 25 November 2010

  • Restructuring credit event confirmed

    ISDA's EMEA Determinations Committee has resolved that a restructuring credit event occurred in respect of Anglo Irish Bank Corporation (see SCI 24 November). The credit event will be settled under the terms of the CDS Definitions as supplemented via the 'Small Bang Protocol' in July 2009. The Committee determined that one or more auctions may be held in respect of .......

    News Round-up 25 November 2010

  • CMBS delinquent unpaid balance decreases

    The delinquent unpaid balance for US CMBS decreased last month for the first time in over a year, by US$3.02bn, according to Realpoint's latest Monthly Delinquency Report. The delinquent unpaid balance fell to US$59.18bn from US$62.19bn a month prior - a 4.8% decrease.

    The previously reported monthly decline came in July 2009 after nearly US$4.8bn of GGP-sponsored loans tied to .......

    News Round-up 25 November 2010
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