Complete news archive

  • AIG outlines government exit

    AIG has entered into an agreement-in-principle with the US Treasury, the Federal Reserve Bank of New York and the AIG Credit Facility Trust designed to repay all its obligations to American taxpayers and position the firm as strong, independent and worthy of investor confidence. The plan involves three key components: repaying and terminating the FRBNY credit facility with AIG; facilitating .......

    Job Swaps 6 October 2010

  • UKAR integration completed

    Northern Rock Asset Management (NRAM) and Bradford & Bingley (B&B) are being integrated under a newly established holding company, UK Asset Resolution (UKAR). The integration has been planned for some time (see SCI issue 179).

    NRAM says UKAR will maximise taxpayer value and exists to ensure the orderly management of the closed mortgage books of NRAM and B&B. The two .......

    Job Swaps 6 October 2010

  • WaMu court case continues

    In the case of Boilermakers National Annuity Trust Fund versus WaMu Mortgage Pass Through Certificates, Series AR1, the US District Court for the Western District of Washington has issued an order denying in part the defendants' motions to dismiss the plaintiffs' Securities Act claims.

    The court ruled that the plaintiffs have alleged actionable claims with respect to seven offerings totalling .......

    Job Swaps 6 October 2010

  • ABS CDO class action suit filed

    A client of Berger & Montague has filed a class action suit in the US District Court for the Southern District of New York against Goldman Sachs (Dodona I, LLC v. Goldman, Sachs & Co), concerning two CDOs. The defendants are alleged to have sold two CDOs, while failing to disclose to investors both that the transactions were structured such .......

    Job Swaps 6 October 2010

  • State Street pair charged with misleading investors

    The US SEC has charged a pair of former State Street Bank and Trust Company employees with misleading investors on subprime investments. John Flannery is the firm's former cio and James Hopkins was head of product engineering for North America.

    The SEC's Division of Enforcement alleges that State Street's Limited Duration Bond Fund was marketed as an 'enhanced cash' investment .......

    Job Swaps 6 October 2010

  • Securitisation sub-advisory mandate sealed

    UCM Partners has launched its next generation core fixed income strategy, along with BlackRock, with approximately US$200m in AUM. In this direct sub-advisory relationship, UCM is responsible for managing the securitised debt portion of the strategy, while BlackRock will manage the government and credit portions of the strategy.

    The securitised debt portion of the strategy - consisting of MBS, CMBS .......

    Job Swaps 6 October 2010

  • New EM fund launched

    Threadneedle has launched its Absolute Emerging Market Macro Fund, which has been rated single-A by S&P. The fund aims to achieve a positive absolute return of 7.5%-12.5% on an annualised basis on a long-term investment horizon - independent of any benchmark limitation, the firm says.

    The lead manager on the fund will be Richard House, the firm's head of emerging .......

    Job Swaps 6 October 2010

  • Whole business add-on securitisation executed

    NUCO2 Funding has executed a US$40m add-on securitisation to fund future acquisitions, pay securitisation expenses and for other general corporate purposes. The new 2010-1 deal will be issued out of the existing securitisation trust and will be pari-passu with the outstanding senior notes (series 2008-1 class A notes).

    The notes are backed by cashflows generated by substantially all of NuCO2 .......

    News Round-up 6 October 2010

  • Auditor inspection reveals accounting weaknesses

    The Public Company Accounting Oversight Board (PCAOB) has released a report summarising its observations of audits undertaken by financial institutions and other companies during the economic crisis.

    "This report provides illustrative examples of the kinds of issues our inspection programme has uncovered during the past three years as a result of the impact of the economic crisis on the work .......

    News Round-up 6 October 2010

  • Holmes restructuring is 'rating positive'

    Santander intends on 8 October to restructure its Holmes Master Trust RMBS programme (see also separate News Analysis). The proposal involves refinancing all amounts currently outstanding under the Second Master Issuer term advances (corresponding to the retained Second Master Issuer notes), as well as repurchasing around £36bn of trust collateral and adding a redemption reserve of £5.8bn from which the .......

    News Round-up 6 October 2010

  • US CMBS delinquencies breach 9% mark

    US CMBS delinquencies topped 9% for the first time in history at end-September, reaching 9.05%, according to the latest Trepp CMBS Delinquency Report. However, the rate of increase slowed dramatically to just 13bp - the second lowest increase of 2010 and the smallest since July's 12bp increase. The average monthly increase for the past 12 months has been 33bp.

    The .......

    News Round-up 6 October 2010

  • Pre-red SF cashflow tool launched

    Intex Solutions has launched its INTEXreds web-based cashflow projection tool. The offering aims to support investor analysis and due diligence for structured finance securities during a deal's initial marketing phase - commonly referred to as the 'pre-red' period.

    The service leverages RMBS, ABS, CMBS and CDO cashflow modelling language and structuring software, the firm says. It also provides investors with .......

    News Round-up 6 October 2010

  • Stable performance for Indian ABS

    The majority of Fitch-rated Indian ABS transactions have performed as expected, with the ratings outlook on the sector remaining stable, according to the agency.

    Asset classes like construction equipment loans have exhibited a stable performance, Fitch confirms, resulting in the availability of substantial credit enhancement to cover for future defaults. However, the commercial vehicle loans of recent vintage transactions have .......

    News Round-up 6 October 2010

  • Synthetic CDO surveillance assumptions updated

    S&P has clarified its methodology and assumptions for surveilling rated global synthetic CDO transactions.

    S&P's methodology includes guidelines for upgrade and downgrade, as well as its recovery rate assumptions for unsettled credit events within a reference portfolio. It also includes guidelines for changing ratings when a tranche breaches an attachment or detachment point.

    The analysis is based on the use .......

    News Round-up 6 October 2010

  • Auto residual value criteria updated

    Fitch has updated its EMEA auto residual value ABS criteria, which formalises its opinion on key risk drivers and provides a framework for transaction-specific base case and stress assumptions. In comparison to the previous criteria, the transaction-specific stress levels are typically higher. As assumptions in line with the updated criteria are already captured within the existing ratings, Fitch says it .......

    News Round-up 6 October 2010

  • Euro CLO performance stabilising

    The pace of negative credit migration within European CLO portfolios is slowing, according to Fitch's latest European performance tracker for the sector.

    Since Fitch's last such report in July, two defaults have occurred. However, the names were not heavily referenced in the transactions included in the CLO tracker universe.

    Meanwhile, CLO portfolios saw their triple-C exposure decline to 7.4% from .......

    News Round-up 6 October 2010

  • NAIC ratings review completed

    In response to a rule-change request from the National Association of Insurance Commissioners (NAIC), Fitch has formally reviewed 99% of its US structured finance ratings during the past 12 months.

    According to these rule changes, US insurers may use SF ratings from acceptable rating organisations in certain risk-based capital calculations only if it can be confirmed that the rating has .......

    News Round-up 6 October 2010

  • US credit cards improve against seasonal odds

    Moody's believes that US credit card performance will improve, despite the August 58bp rise in charge-offs. Even with the August increase, the agency notes, the charge-off rate is below the 10% mark on a three-month rolling average basis - for the first time since May 2009.

    "The relative improvement in card charge-offs is due to credit tightening, including lower credit .......

    News Round-up 6 October 2010

  • CMBS maturity repayment index rises

    Fitch reports that its European CMBS Maturity Repayment Index increased to 38.5% from 36.8% during the month of September, due to two loans paying in full and partial repayments on six other loans.

    Of the three loans that were scheduled to mature in September 2010, only the €31m Hofplein loan (from Plato No. 1) paid in full. However, the Vich .......

    News Round-up 6 October 2010

  • LCDO tender offer launched

    Columbia Point, a wholly owned subsidiary of Elliott International, has commenced tender offers for several classes of junior notes issued by Pebble Creek LCDO 2006-1 (class C and D notes), Airlie CDO I (class B, C and Ds) and Pebble Creek 2007-1 (class C and Ds). The offer and withdrawal rights will expire on 27 October, unless extended.

    The Pebble .......

    News Round-up 6 October 2010

  • SLABS ARS buyback launched

    Nelnet has commenced a fixed price cash tender offer for the outstanding senior and subordinate auction rate student loan asset-backed notes of Nelnet Student Loan Trust 2003-2. The class A-5 notes are being tendered at a consideration of US$985 per US$1,000 principal amount, the class A-6s at US$960 and the class Bs at US$920.

    In addition to the notes consideration, .......

    News Round-up 6 October 2010
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