Complete news archive

  • SIVs affirmed following review

    S&P has affirmed - following a review - its issuer credit ratings (ICRs) and senior liability ratings on the Centauri, Five Finance, Links Finance, Parkland, Harrier Finance Funding, Kestral Funding and Nightingale Finance SIVs. The rating affirmations follow an assessment of the support arrangements of each SIV. In each case, the SIV's ICR and senior liabilities ratings are linked to .......

    News Round-up 5 November 2010

  • Boutique strengthens real estate team

    Future Capital Partners (FCP) has appointed Elodie George, Tim Mycock and Aysha Banks to its real estate team. The team, led by Peter Young, is responsible for managing the investment partnerships for the firm's £150m luxury real estate development in Budva, Montenegro, as well as a number of landmark UK real estate developments.

    As real estate manager, George is responsible .......

    Job Swaps 5 November 2010

  • Broker adds CDO/ABS trading head

    Braver Stern Securities has appointed Peter Howard as md and head trader of CDOs, CLOs and esoteric ABS. Howard joins Braver Stern from Cross Point Capital, where he was most recently head trader focusing on all securitised products. Prior to this, he spent three years with Peloton Partners, as partner and head of the firm's ABS master fund.

    .......

    Job Swaps 5 November 2010

  • Counterparty risk assessment highlighted

    The financial disruptions of the past few years underscore the central role that counterparty risk assessment plays in the analysis of structured finance securities' creditworthiness, according to S&P.

    "Under stressed conditions, there is a risk that a counterparty might not perform its duties, which - in some cases - could lead to a payment default on the securities," says S&P .......

    News Round-up 5 November 2010

  • Servicer ratings sector on negative outlook

    Fitch has assigned a negative outlook for the entire US residential mortgage servicer ratings sector on increased concerns surrounding alleged procedural defects in the judicial foreclosure process. This industry-wide issue will cause all servicers to be under increased scrutiny from a wide range of state and federal regulators, attorneys and GSEs, the agency says.

    Fitch's survey showed that approximately one-third .......

    News Round-up 4 November 2010

  • Door 'left open' for Fed MBS purchases

    Under its widely-anticipated second round of quantitative easing, the US Fed is to purchase US$600bn Treasuries outright by June 2011, in addition to US$250bn-US$300bn reinvestment of MBS paydowns in US Treasuries. Contrary to the expectations of some MBS market participants, it did not commit to buying any MBS as part of this purchase programme.

    However, MBS analysts at Bank of .......

    News 4 November 2010

  • CSCF exposure sold on

    The Business Development Bank of Canada (BDC) has announced the sale of C$250m ABS - original face value - to RBC Capital Markets. The sale represents a portion of the term auto loan ABS that BDC purchased under the provisions of the Canadian Secured Credit Facility (CSCF).

    Paula Cruickshank, BDC vp of securitisation, says: "This transaction is very encouraging because .......

    News Round-up 4 November 2010

  • Mortgage finance partner recruited

    Berwin Leighton Paisner has appointed structured finance lawyer, Lucy Oddy, as partner in its banking and capital markets team in London. Joining the firm from Clifford Chance, she has experience in working on UK and pan-European SF transactions, with a focus on residential and commercial mortgage financing portfolio disposals.

    .......

    Job Swaps 4 November 2010

  • UK mortgage arrears hits North harder

    S&P's study of regional differences in UK mortgage arrears and borrowers' equity positions indicates that the recent recession hit borrowers in the North of the country harder than those in the South. Using data from approximately 1.5m loans backing UK prime RMBS, the agency found that the level of arrears among mortgage borrowers in the North was almost 25% higher .......

    News Round-up 4 November 2010

  • Swaps fraud prevention rule proposed

    The US SEC has proposed a new rule to help prevent fraud, manipulation and deception in connection with security-based swaps. The rule is proposed under Title VII of the Dodd-Frank Act and aims to ensure that market conduct in connection with security-based swaps is subject to the same general anti-fraud provisions that apply to all securities.

    The proposed antifraud rule .......

    News Round-up 4 November 2010

  • Mortgage servicer sale completed

    Walter Investment Management has acquired Marix Servicing, a high-touch specialty mortgage servicer. Marix, based in Phoenix, Arizona, focuses on default management, borrower outreach, loss mitigation, liquidation strategies and component and specialty servicing. The closing of the transaction will allow Walter to expand its portfolio acquisition and revenue growth opportunities, the firm says.

     

    .......

    Job Swaps 4 November 2010

  • New issuance takes precedence in Euro ABS

    The European ABS sector has had a busy week, with a growing volume of new issuance in the primary market taking centre stage. A focus among investors on diversification is helping to boost activity.

    "The market is relatively busy; new issuance is just piling up," one ABS trader confirms. One new issue that is generating interest is the £325m BAA .......

    Market Reports 3 November 2010

  • CMBS interest shortfalls likely containable

    Interest shortfalls are on the rise in US CMBS, but are expected to generally be contained at the BB/BBB level. The probability of single-A exposure is potentially higher for the 2007 vintage, according to MBS analysts at Barclays Capital, although most of these shortfalls should be reimbursed in the near term.

    The BarCap analysts note that more than half of .......

    News 3 November 2010

  • CLO liquidation risk examined

    Moody's has comprehensively reviewed the indentures and related documents for all US cashflow CLOs it rates and concludes that, notwithstanding the presence of overcollateralisation-based event of default (EOD) triggers and OC haircuts in the documentation, EODs should remain rare among these transactions.

    The rating agency explains in its latest CLO Interest publication that it examined: the extent to which CLO .......

    News 3 November 2010

  • Canadian RFC issued on OTC regulation

    The Canadian Securities Administrators (CSA) is seeking input on its proposals regarding the regulation of OTC derivatives. The proposals were released in CSA Consultation Paper 91-401, 'Over-the-Counter Derivatives Regulation in Canada', and form part of Canada's response to the G20's commitments to develop more robust oversight of the financial markets.

    "As an active participant in the global financial markets, it .......

    News Round-up 3 November 2010

  • Value judgement

    Regulatory uncertainty, distribution issues limiting CVA market

    An increasing number of banks are establishing credit value adjustment (CVA) desks, leading to suggestions that CVA could become the next major traded risk. However, regulatory uncertainty and the lack of an appropriate distribution vehicle are limiting the growth of the market for now.

    Joyce Frost, partner at Riverside Risk Advisors, notes that the background to CVA potentially emerging as .......

    News Analysis 3 November 2010

  • SF legal team poached

    Katten Muchin Rosenman has hired a team of structured finance lawyers from Dewey & LeBoeuf, including four structured finance partners in New York and a financial products tax partner in Washington. The attorneys are Chris DiAngelo, Anna-Liza Harris, Howard Schickler, Joseph Topolski and John Keiserman.

    The team will focus on public and private securitisation of consumer and commercial assets, and .......

    Job Swaps 3 November 2010

  • Extended Stay resolution dampens delinquencies

    Trepp has issued its October 2010 Delinquency Report, which indicates that the US CMBS delinquency rate fell in October, marking the first month-to-month drop in over a year. The percentage of loans 30 or more days delinquent, in foreclosure or REO fell by 47bp during the month to 8.58%, putting the value of delinquent loans at US$58.3bn. This compares to .......

    News Round-up 3 November 2010

  • New share placement for permacap

    Carador Income Fund (CIF) has raised approximately US$10.25m through a placing of new shares. The fundraising has been undertaken in order to enable the company to take advantage of what it believes are attractively priced assets in the market, with 91% of the net proceeds raised already invested. Of the proceeds, CIF intends to use 30% to purchase CDO equity .......

    News Round-up 3 November 2010

  • ABS analytical, operational challenges highlighted

    A recent due diligence survey undertaken by Principia Partners confirms that investor and issuer confidence in securitisation is growing, with 60% of respondents stating they would increase their activity in the sector within the next 12 months. However, while trading activity is set to increase, analytical, risk oversight and operational challenges remain a major concern for financial institutions and asset .......

    News Round-up 3 November 2010

  • Euro CDO market holds investor attention

    It has been a strong and steady week for the European CDO secondary market, with investor demand in the lower end of the capital structure and the Stanton CDO 1 liquidation both boosting activity.

    "The past week has been good; we've seen a steady flow of activity," one CDO trader says. Contributing to this, he notes, is the current high .......

    Market Reports 2 November 2010
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