Complete news archive

  • Mixed message for Euro RMBS

    It has been a mixed week for European secondary RMBS. Although mezzanine paper continues to perform well, Irish sovereign credit concerns are the main focus for the rest of the market.

    "A lot of people are talking about the Ireland situation, which has had a real impact on activity over the past week," one trader says. Concern over Irish sovereign .......

    Market Reports 16 November 2010

  • Thunder cat bond closes

    Mariah Re, the first ever catastrophe bond to solely cover severe thunderstorm risk (SCI 27 October) closed yesterday, 15 November. The US peril-focused US$100m single-tranche three-year deal priced at 625bp over Treasury money market funds.

    The transaction, which has been given a single-B rating by S&P, will cover losses in the covered area (a range of specified US states) resulting .......

    News 16 November 2010

  • US RMBS foreclosure risks examined

    Moody's has released a report that examines four foreclosure-related risks that currently pose a threat to US RMBS.

    First is the issue of missing and defective documents in foreclosures, which presents the most serious risk to RMBS, according to the agency. "We expect the issue of missing and defective documents to arise frequently in foreclosures," says Yehudah Forster, Moody's vp .......

    News Round-up 16 November 2010

  • SF CDO manager replaced

    Ischus Capital Management has replaced GE Asset Management as collateral manager on Summer Street 2005-1, a cashflow mezzanine structured finance CDO. S&P has issued a rating confirmation in connection with the new collateral management agreement, which reflects its opinion that the change will not cause the current ratings on the transaction to be lowered or withdrawn.

    .......

    Job Swaps 16 November 2010

  • BoA trust business sale agreed

    US Bank has entered into an agreement to purchase the US- and European-based securitisation trust administration businesses of Bank of America. The transaction is expected to close in December 2010, subject to regulatory approval.

    US Bank Corporate Trust Services will acquire approximately 2,153 active securitisation and related transactions, more than 2.4m residential mortgage files, 84,000 commercial files and US$1.1trn in .......

    Job Swaps 16 November 2010

  • Indian MFI CLO risks analysed

    Fitch has issued a report highlighting risks in Indian microfinance securitisations, providing an insight into the key risk factors in these transactions. In the absence of suitable mitigants to such risks, these deals are unlikely to receive the highest long- or short-term ratings, the agency says.

    Deep Mukherjee, Fitch director of structured finance, explains: "The intricate servicing arrangements, coupled with .......

    News Round-up 16 November 2010

  • CDO fraud claims to proceed in part

    The US District Court for the Southern District of New York has sustained, in substantial part, CDO-related fraud claims against Citigroup and its senior officers that were filed by Kirby McInerney. The Citigroup employees include former ceo Charles Prince, former cfo Gary Crittenden and former chairman Robert Rubin.

    The plaintiffs allege that during early and mid-2007, Citigroup experienced, recognised and .......

    Job Swaps 16 November 2010

  • REIT closes private RMBS

    Walter Investment Management has privately placed US$135m RMBS notes issued by Mid-State Capital Trust 2010-1. The deal is backed by US residential mortgage loans, building and instalment sale contracts, promissory notes, related mortgages and other security agreements.

    The US$56m class A notes priced at 350bp over Libor, while the US$78m class M notes came at 525bp over. Both notes are .......

    News Round-up 16 November 2010

  • Chinese CDS pricing service unveiled

    Bloomberg has launched a new service that delivers daily reference prices for the Chinese Renminbi credit derivatives market. The service aims to reduce risk and increase transparency, while providing accurate pricing for risk assessments, the firm says.

    The credit risk mitigation instrument fixing (CRMC) tool provides current market information on CNY credit risk mitigation instrument fixing, as well as individual .......

    News Round-up 16 November 2010

  • US CLO concentrations trend higher

    The concentrations of corporate obligors in US cashflow CLOs rose slightly between the second and third quarters of 2010, according to S&P's latest CLO Exposure Report.

    "The top 100 corporate names accounted for 37% of the total balance of cashflow CLO collateral in the third quarter, up marginally from 36% in the second quarter," says S&P analyst Ramki Muthukrishnan. "The .......

    News Round-up 16 November 2010

  • Credit opportunities fund launched

    Wiltshire Capital has launched a credit opportunities fund. The fund, which is sponsored by nabInvest, will invest in mispriced, stressed and distressed sub-investment grade European corporate debt.

    The fund has been designed to operate through credit and market cycles and targets over 15% returns using minimal or no leverage, the firm says.

    Wiltshire has formed a joint venture with PCE, .......

    Job Swaps 16 November 2010

  • CRE firm adds svp

    George Smith Partners has appointed Eric Hamermesh as svp and director of its business development team. He will work alongside the firm's md and principal David Rifkind to underwrite, place and close client business.

    With over 30 years of CRE and securitisation experience, Hamermesh was most recently principal and founder of Platinum Capital Advisors. He has also worked at Goldman .......

    Job Swaps 16 November 2010

  • Modest rise in OTC derivatives volumes

    The BIS reports in the second part of the Triennial Central Bank Survey of Foreign Exchange and Derivatives Market Activity that positions in the OTC derivatives market rose for the first time in three years to US$583trn, although at a slower pace than the previous period of 2004 to 2007. The modest overall increase is the result of a surge .......

    News Round-up 16 November 2010

  • US RMBS proving resilient

    US secondary RMBS has proved resilient to the recent foreclosure scandal and is exhibiting robust pricing levels. At the same time, a surge of investor interest in wrapped paper has created a buzz among traders.

    "There was a lot of noise about the potential for RMBS foreclosure put-backs and it felt like the market was going to pull back a .......

    Market Reports 16 November 2010

  • US CLO pipeline gains visibility

    Price guidance has emerged for three of the four deals currently in the US CLO pipeline.

    First in the queue is GSO/Blackstone Debt Funds Management's US$400m Morningside Park CLO via Bank of America. The deal comprises US$265m triple-A rated class A notes (talked at 160bp-170bp over Libor), US$22m double-A class Bs (275bp), US$38m single-A class Cs (375bp), US$17m triple-B class .......

    News 15 November 2010

  • Adverse selection for Euro CMBS


    Fitch reports that despite low repayment rates on maturing loans, the lack of new issuance means that the number of loans securitised in European CMBS is shrinking. Excluding granular transactions, the agency says, the number of loans in the Fitch-rated CMBS universe fell to 701 from 740 during 3Q10.

    Fitch European CMBS director Gioia Dominedo says: "As loans reach their .......

    News Round-up 15 November 2010

  • Retraining required

    Expanded skill-sets to become a necessity for RMBS 2.0

    Redwood Trust and PennyMac Mortgage Investment Trust each intend to complete RMBS deals early next year, while BlackRock is also preparing a fund that will buy jumbo mortgages with a view to securitisation. Whether these initiatives will revive US private label RMBS remains to be seen, but what is clear is that investors, originators and servicers will all need different .......

    News Analysis 15 November 2010

  • Succession event pending

    ISDA's Americas Determinations Committee is mulling whether a succession event occurred with respect to Coca Cola Enterprises Inc (CCE). Coca Cola Co completed on 2 October its acquisition of the North American operations of CCE, pursuant to the terms of a business separation and merger agreement.

    .......

    News Round-up 15 November 2010

  • AFME warns on Basel phased implementation

    The Association for Financial Markets in Europe (AFME) says it welcomes the G20's decision to take forward the Basel Committee's recommendations, but warns that many unanswered questions remain.

    In particular, a phased implementation for some aspects of Basel will be a significant challenge, both for the industry and regulators. AFME notes it is therefore crucial that the Committee address as .......

    News Round-up 15 November 2010

  • Loan extensions reduce CRE CDO delinquencies

    The increased incidence of loan extensions has helped precipitate a slight drop in US CRE CDO delinquencies, according to Fitch's latest indices for the sector.

    "Many new loan extensions are short-term remedies designed to allow added time for further negotiation of pending loan modifications," says Fitch director Stacey McGovern.

    CRE CDO delinquencies fell slightly to 12.8% last month from 12.9% .......

    News Round-up 15 November 2010

  • Vendor sees growth in New York

    Brian Sentence, the founder director and ceo of Xenomorph, has moved to New York to spearhead growth of the firm's sales and support operations. He will join co-founder and consultancy director Mark Woodgate in leading the firm's marketing efforts.

    Meanwhile, Matthew Skinner takes over as Xenomorph md for Europe, with Naj Alavi continuing as md for the Americas.

    .......

    Job Swaps 15 November 2010
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