Complete news archive

  • FLTST 1 senior noteholders fire warning shot

    M&G is to convene an informal meeting of the class A noteholders in Fleet Street Finance One to discuss the pending maturity of the outstanding loan, which is scheduled for February 2011. European asset-backed analysts at RBS suggest that the action is a direct response to Cairn's appointment as financial advisor to the Queens Moat House borrower, which may be .......

    News Round-up 19 October 2010

  • Tighter sovereign linkage likely for Irish RMBS

    European asset-backed analysts at RBS note that Irish RMBS appear to be caught in a pincer movement between the deterioration of collateral performance and the sensitivity of banks to the sovereign rating, due to the extent of government support for the banking industry.

    RMBS typically enjoy a six-notch rating differential with the sovereign. But Moody's latest watch placement of five .......

    News 19 October 2010

  • US synthetic CDO trading activity declines

    US synthetic CDOs (SCDOs) saw a decline in trading activity in 3Q10, compared with the previous quarter, according to S&P. However, as in 2Q, companies in the financial intermediaries sector were traded most frequently among the corporate obligors in US SCDO reference portfolios.

    The rating agency has also identified and ranked the top-10 most-widely added corporate names among US SCDO .......

    News Round-up 19 October 2010

  • Majority of Extended Stay CMBS pays down

    Extended Stay Inc last week emerged from Chapter 11 bankruptcy protection. The company was bought by a group of private equity investors for a total of US$3.925bn in July.

    Most of the hotels the company owns had debt securitised in the WBCMT 2007-ESH CMBS. The October remittance report for the transaction indicates that classes A through to J were paid .......

    News Round-up 19 October 2010

  • Countrywide RMBS investigation continues

    The Countrywide investigation regarding ineligible mortgages continues (see SCI issue 198). The holders of over 25% of the voting rights in more than US$47bn of Countrywide-issued RMBS have sent a notice of non-performance to Countrywide Home Loan Servicing, as master servicer on the transactions, and to Bank of New York as trustee.

    The notice, which is the first step in .......

    Job Swaps 19 October 2010

  • Asset manager acquired

    RBC is to acquire BlueBay Asset Management for £963m. The offer price, equivalent to 485p per BlueBay share, represents a premium of 29.1% to the closing price of a BlueBay share (375.7p) on 15 October 2010 (the last business day prior to the announcement date) and 57.7% to the average closing price of a BlueBay share (307.6p) for the three .......

    Job Swaps 19 October 2010

  • Prytania partner replaced

    Prytania has recruited Oliver Fochler as a partner. Fochler was previously head of global business solutions at Moody's Analytics in London and has significant experience in credit and structured finance. He will be responsible for the firm's origination and client management, replacing Marc Jones, who is leaving to pursue an opportunity with RBS.

     

    .......

    Job Swaps 19 October 2010

  • Trups CDO bank deferrals spike

    Fitch says that bank deferral rates within US Trups CDOs increased notably last month, while overall defaults remained flat. Meanwhile, new bank deferrals increased by 1.6% to 18.8%, with default rates remaining steady at 14.2%.

    "Last month's spike in deferrals was actually due to one bank beginning to defer payments on a substantial amount of issuance. Absent this outlier, deferrals .......

    News Round-up 19 October 2010

  • Japanese CMBS loan defaults reaching peak

    Fitch says that the number and balance of defaulted loans underlying Japanese CMBS has declined as of end-September. Despite its expectations that the previous upward trend in defaulted loans is reaching a peak, there is a possibility, the agency says, that the total defaulted loan balance may increase again in Q410.

    "This is the first time that both the number .......

    News Round-up 19 October 2010

  • Rating review hits 13 Spanish RMBS

    Fitch has placed 45 tranches of 13 Spanish RMBS transactions on rating watch negative (RWN), due to the performance of their underlying assets. The agency says it is particularly concerned with the reserve fund depletions in combination with elevated arrears of high LTV loans.

    Of the 13 transactions, seven have depleted their reserve funds and have seen a build-up of .......

    News Round-up 19 October 2010

  • Sovereign CDS liquidity linked to bond yield

    Fitch Solutions has conducted a study which suggests that the liquidity of a sovereign's CDS is highly correlated to its underlying bond yield. Additionally, the firm claims that any market intervention that might reduce CDS liquidity during periods of market stress would, in fact, exacerbate sovereign funding issues.

    "Where sovereign CDS liquidity is high, bond yields tend to fall, thus .......

    News Round-up 19 October 2010

  • Improved performance for Euro SME CLOs

    Fitch reports that European SME CLO performance has now stabilised or improved across all jurisdictions. However, further default volatility during 2011 is expected as austerity measures are introduced across the region.

    Nevertheless, the agency predicts that the ratings will remain stable, as the benefits of the expected recoveries and deleveraging will provide sufficient credit protection for SME CLO transactions during .......

    News Round-up 18 October 2010

  • LTV breaches should be 'treated with caution'

    Hatfield Philips International (HPI) says that CMBS LTV breaches should be treated with caution and should rarely form the basis of a decision leading to foreclosure for commercial properties.

    Indeed, enforcing on the basis of an LTV breach should only be considered in exceptional circumstances, according to the firm. For example, where the asset itself is beyond recovery or has .......

    News Round-up 18 October 2010

  • Industry heads join newly-formed SEF

    Javelin Capital Markets, a swap execution facility (SEF) for credit derivatives and interest rate swaps, has appointed James Cawley as ceo and Chris Augustin as chief information officer.

    Cawley is a founder of the Swaps and Derivatives Market Association and was most recently the founder and ceo of IDX Capital. Prior to this, he was the founder of Axiom.

    Augustin .......

    Job Swaps 18 October 2010

  • Countrywide executive pays record penalty

    Former Countrywide Financial ceo Angelo Mozilo will pay a record US$22.5m penalty to settle SEC charges that he and two other former Countrywide executives misled investors as the subprime mortgage crisis emerged (see SCI issue 140). The settlement also permanently bars Mozilo from serving as an officer or director of a publicly traded company.

    Mozilo's financial penalty is the largest .......

    Job Swaps 18 October 2010

  • EM ABS recommendations released

    A report containing securitisation-related recommendations for regulators in emerging markets jurisdictions has been approved by IOSCO's Emerging Markets Committee (EMC). The report suggests that a stable macroeconomic environment, a robust legal and accounting framework, a neutral tax system, investor education and a robust framework for the securities regulator are all necessary for the development of a securitisation market.

    The EMC .......

    News Round-up 18 October 2010

  • OTC task force formed

    IOSCO's Technical Committee has formed a 'task force' on OTC derivatives regulation. The aim is to coordinate securities and futures regulators' efforts in working together in the development of OTC derivatives supervisory and oversight structures.

    Hans Hoogervorst, chairman of IOSCO's technical committee, says: "IOSCO has identified the need for enhanced international coordination between securities regulators in order to support the .......

    News Round-up 18 October 2010

  • CRE CDO delinquencies on the rise

    Fitch reports that US CREL CDO delinquencies rose to 12.9% in September, with 19 new delinquent assets reported. 34 of 35 Fitch-rated CREL CDOs reported delinquencies ranging from 1% to 41.3%.

    Meanwhile, CREL CDO asset managers reported over US$70m in realised losses from the disposal of distressed assets during the month. Total realised losses across the CREL CDO universe total .......

    News Round-up 18 October 2010

  • UK credit card ABS performance stabilising

    Fitch reports that the performance of UK credit card trusts is showing signs of stabilisation, as delinquency rates remain unchanged from the previous month. Nevertheless, the agency says, the risk of increased charge-offs - as a result of the write-offs of delinquent and debt management accounts - still remains.

    The August 2010 Fitch 60-to-180 day Delinquency Index remained unchanged from .......

    News Round-up 18 October 2010

  • Claims of invalid loan transfers dismissed

    Seven law firms have come out strongly against misinformation circulating within the financial markets that transfers of residential mortgage loans to securitisation trusts were not valid. Each of the firms reiterated their belief that the conventional process for loan transfers embodied in standard legal documentation for mortgage securitisations is adequate and appropriate to transfer ownership of mortgage loans to the .......

    News Round-up 18 October 2010

  • October on track for record BWIC volumes

    Structured credit analysts at Citi estimate that US$2.5bn US CLO BWICs hit the market in September - the highest monthly volume on record since they started tracking bid-lists in May 2009. This month's volumes look set to follow suit, with US$1bn of BWICs already offered (SCI passim).

    Supply has mostly come from bank workout groups looking to reduce exposure into .......

    News 18 October 2010
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