Complete news archive

  • 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

  • Collateral management tool introduced

    Riskart has introduced a collateral management module to its software that integrates its back office OTC derivatives processing application.

    The new module aims to automate the process of calculating cross-asset net exposure per counterparty on the basis of the relative CSA agreements, while introducing automation in the reconciliation and management of collateral calls. The function is also intended to reduce .......

    News Round-up 2 November 2010

  • Bank adds CVA trading head

    Paul Bowmar has joined BNP Paribas as head of its fixed income CVA trading and credit/rates/fx hybrid trading for the Americas. He will be based in New York.

    Bowmar was previously an md in the CVA group at RBS.

    .......

    Job Swaps 2 November 2010

  • CDPC's ratings corrected

    S&P has corrected its issuer credit ratings on the Athilon CDPC to double-B from double-B minus and on Athilon's senior subordinate note issues to single-B plus from triple-C plus. The move follows the agency's detection of the inclusion of an ABS CDO in the calculation of the corporate backed tranche's capital exposure in the capital report Athilon sent on 9 .......

    News Round-up 2 November 2010

  • Irish RMBS restructurings affirmed

    Bank of Ireland has restructured its Colston 2-4 RMBS deals, originated under the Bristol & West and Bank of Ireland Home Mortgages brands, following its formation of a new UK bank - Bank of Ireland UK (BoIUK). Under the restructuring, certain assets were repurchased from all three transactions' pools and transferred to BoIUK.

    To reduce the size of the asset .......

    News Round-up 2 November 2010

  • Gracechurch master trust restructured

    Barclays Bank has restructured its RMBS master trust, Gracechurch Mortgage Financing. Moody's believes that the restructuring will not impact the current ratings assigned to any of the notes and that it is ratings positive.

    Under the restructuring, Barclays has made a refinancing contribution to repay all amounts currently outstanding on the Gracechurch Mortgage Financing Series 2009-1 notes, which it had .......

    News Round-up 2 November 2010

  • Foreclosure defects to prolong US housing correction

    Fitch expects the in-flux state of US mortgage foreclosures to increase an already high 'shadow' inventory and lengthen foreclosure delays, both of which may prolong the US housing correction. Liquidation timelines of non-performing loans are already at historical highs and, based on recent resolution trends, it would take over three years to clear the existing distressed mortgage inventory in the .......

    News Round-up 2 November 2010

  • Debut Euro CMBS resecuritisation rated

    S&P has rated what are believed to be the first public resecuritisations of a European CMBS bond. The Asset Repackaging Vehicle series 2010-4 and 2010-5 transactions are backed by portions of GEMINI (ECLIPSE 2006-3)'s double-B plus rated class A notes, sold by Lazuli Ltd (in the case of the series 2010-4 resecuritisation) and HSBC Bank (2010-5).

    The £69.41m series 2010-4 .......

    News Round-up 2 November 2010

  • CRA, OTC derivatives guidelines outlined

    The Financial Stability Board (FSB) last week released two reports - 'Implementing OTC Derivatives Market Reforms' and 'Principles for Reducing Reliance on Credit Rating Agency (CRA) Ratings'.

    The first report sets out common approaches to implementing reforms in OTC derivatives markets, setting out 21 recommendations that address implementation of the G20 commitments. In particular, it focuses on standardisation, central clearing, .......

    News Round-up 2 November 2010

  • Risk advisor recruited

    Moelis & Company has appointed Landon Parsons as senior advisor in its risk advisory group. He will be based in New York, serving clients globally as they manage their financial assets and key position and portfolio risks.

    Parsons has nearly 25 years of structured credit experience as an analyst, investor and advisor, and has worked as a consultant to Moelis .......

    Job Swaps 2 November 2010

  • Hudson CDO class action filed

    Klayman & Toskes has filed a class action lawsuit against Goldman Sachs on behalf of investors who purchased Hudson CDO securities. According to the suit, the defendants failed to disclose to investors that the CDOs were structured to lose value and that Goldman would profit enormously from proprietary short positions when the CDOs did lose value.

    The securities affected include .......

    Job Swaps 2 November 2010

  • First losses seen on Euro CMBS matured loans

    Fitch says in its latest bulletin that European CMBS loan repayments fell in October, with two loans reporting their first losses.

    Fitch's Maturity Repayment Indices reduced from 38.5% to 36.6% during the month, as less than 4% of maturing loan balance was successfully repaid. Overall, the outstanding matured loan balance has increased by 9% to €4.84bn. Of the 96 loans .......

    News Round-up 1 November 2010

  • Business as usual for US CMBS

    It has primarily been business as usual in the US CMBS market this week, with deals pricing as expected and spreads remaining tight. However, one investor segment appears to be changing its approach to the sector.

    According to one CMBS trader, a shift is taking place in how issuers are currently marketing their deals to mainstream investors such as US .......

    Market Reports 1 November 2010

  • Calypso closes up

    AXA's European windstorm catastrophe bond Calypso Capital has closed at nearly double the originally anticipated size (see SCI 13 October 2010). The deal's double-B rating has been confirmed by S&P.

    The three-year Calypso capital had begun marketing at €150m but closed at €275m. Its single tranche of notes priced at 350bp over three-month Euribor.

    The series 2010-1, class A notes .......

    News 1 November 2010

  • GSC auction completed

    Black Diamond Capital Management and its affiliate Black Diamond Commercial Finance (BDCF) have entered into a definitive agreement to acquire the investment management business and related assets of GSC Group. Subject to other required approvals, Black Diamond says it expects that the sale will be approved by the US Bankruptcy Court for the Southern District of New York at a .......

    Job Swaps 1 November 2010

  • Ambac outlines its options

    Ambac Financial Group says it has decided not to make the regularly scheduled interest payment due today, 1 November, on its 7.5% Debentures due 1 May 2023. If the interest is not paid within 30 days, an event of default will occur under the indenture for the notes, which would permit the holders to accelerate their maturity.

    Ambac also confirms .......

    Job Swaps 1 November 2010

  • Commercial ventures

    Property derivatives gain momentum as real estate hedges

    Funds that invest in property derivatives remain a rarity. But the recent launch of two new vehicles in the space has moved the market a step closer to becoming a mainstream means of managing real estate risk.

    Indeed, there are parallels between the property derivatives and CMBS index swap markets, according to inProp Capital partner Paul Ogden. "Property derivatives are .......

    News Analysis 1 November 2010

  • Progress for Lehman 'busted-swap' deals?

    The Lehman bankruptcy process appears to be positioning to consider compensation amounts in respect of the hedging agreements with Lehman companies in their 'busted-swap' securitisations. The trustee for ESAIL 2007-6NC, for example, has proposed that noteholders give it authority to negotiate on their behalf with the Lehman estate over the size of the claim.

    The market is currently pricing notes .......

    News 1 November 2010

  • Alburn tender 'generous' for junior bonds

    The borrower in the Alburn REC 6 CMBS has announced a tender offer for the outstanding bonds via a single price bid. Against current credit-based 'fair values', the tender looks relatively generous for the junior bonds that otherwise risk full impairment, according to European asset-backed analysts at RBS.

    They suggest that on an immediate liquidation basis the class Cs and .......

    News 1 November 2010

  • Primus ceo moves on

    Primus Guaranty has promoted cfo Richard Claiden to the position of ceo, succeeding Thomas Jasper. Claiden will also serve on Primus Guaranty's board of directors.

    Before joining the firm in 2003, Claiden was md and head of operational risk at the investment banking division of JPMorgan Chase. Prior to this, he held executive positions at the Canadian Imperial Bank of .......

    Job Swaps 1 November 2010

  • Lawsuit filed over MBS fund deviation

    Klayman & Toskes (K&T) has filed a class action lawsuit against Charles Schwab on behalf of investors who purchased Schwab's Total Bond Market Fund. According to the suit, Charles Schwab caused the fund to deviate from its fundamental investment objective to track the Lehman Brothers US Aggregate Bond Index - specifically by investing a 25% of its portfolio in high .......

    Job Swaps 1 November 2010
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