Complete news archive

  • 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

  • CDS clearing service enhanced

    LCH.Clearnet has enhanced the clearing functionality of its CDS offering in collaboration with its clearing members, the firm says. The enhancements include an enhanced risk management framework, integration of the DTCC's new automated credit events procedures and implementation of the CLS system connection, for product-related cashflow settlement.

    Christophe Hémon, LCH.Clearnet chief executive, says: "We seek to build clearing models which .......

    News Round-up 6 October 2010

  • ABCP 'flight to quality' to continue in 2011

    Fitch predicts that investor demand in the ABCP market will continue to focus on simple structures with high quality assets in 2011.

    Heather Collins, associate director in Fitch's ABCP ratings team, says: "Programme sponsors have taken steps to increase credit enhancement and asset quality over the past three years in recognition of investors' 'flight to quality'. This is set to .......

    News Round-up 6 October 2010

  • FASB exposure draft rebuffed

    The Financial Reporting Executive Committee (FinREC) of the American Institute of Certified Public Accountants (AICPA) has submitted its comments on FASB's Exposure Draft of a Proposed Accounting Standards Update, 'Accounting for Financial Instruments and Revisions to the Accounting for Derivative Instruments and Hedging Activities'. AICPA reiterates that it does not believe all loans should be carried at fair value, as .......

    News Round-up 6 October 2010

  • Auction for Takefuji Corp, but not Blockbuster

    ISDA's Japan Determinations Committee resolved that a bankruptcy credit event occurred in respect to Takefuji Corporation on 28 September (see last issue). The Committee also voted to hold an auction for Takefuji and will publish the auction terms in due course.

    Meanwhile, the Americas DC ruled that a bankruptcy credit event in connection with Blockbuster Inc occurred on 23 September, .......

    News Round-up 6 October 2010

  • US$35bn US CMBS issuance forecast for 2011

    Tightening credit spreads for US CMBS since the highs reached in 1Q09 should continue to spur new issuance in the near term, according to S&P. The agency notes that issuance for the fourth quarter could fall within the US$4bn-US$8bn range - the largest total since early 2008 - based on the current public pipeline of CMBS transactions.

    Annualising S&P's fourth-quarter .......

    News Round-up 6 October 2010

  • Final FDIC rule an 'improvement' on original

    Moody's says that the final safe harbour adopted by the FDIC on 27 September is an improvement from the original rule, in terms of its credit impact on bank-sponsored securitisations (see also last issue). The final rule protects assets transferred to bank-sponsored securitisation vehicles from an FDIC receivership or conservatorship of the bank sponsor - effective for transactions closing after .......

    News Round-up 6 October 2010

  • Higher recovery rates driving SF CDO liquidations

    Moody's has examined data relating to the amount and timing of liquidation proceed distributions, as reported by trustees, for 164 structured finance CDOs from the 2003 to 2007 vintages. The sample - of which 85% were originated in 2006 and 2007 - consists of 69% mezzanine and 31% high grade SF CDOs.

    The agency notes its key observations from the .......

    News Round-up 6 October 2010

  • Taking cover

    Investors seek ways to hedge against tail risk

    With uncertainty continuing to dog the markets, more and more investors are looking to protect themselves. Concerns over sovereign debt are resurfacing and double-dip fears are yet to be expunged, so as investors continue to do business an increasing number are looking at ways to hedge against tail risk.

    Risk appetite still exists and has been encouraged by recent market .......

    News Analysis 29 September 2010

  • Multi-borrower issues

    Euro CMBS servicers adapting to new challenges

    The role of CMBS servicers in Europe has changed significantly post-crisis. Challenges remain, however, as the market prepares to begin restructuring a raft of multi-borrower transactions.

    Nassar Hussain, managing partner at Brookland Partners, confirms that the role of primary servicers has changed dramatically since the crisis - from reactive to proactive and solutions-orientated. He notes that many have adopted a .......

    News Analysis 29 September 2010

  • New beginning?

    Redrawn index tranches set to bring liquidity

    Tranche trading on the new Markit CDX.IG.15 index began yesterday, 28 September, following a redrawing of the capital structure from six tranches into four. Liquidity has been absent for past on-the-run index tranches, but a more concerted effort is now expected from dealers to ensure liquidity in the new tranches.

    On the back of investor feedback, the 7%-10% and 10%-15% .......

    News Analysis 29 September 2010

  • Foreclosure scrutiny

    GMAC servicing issues weigh on shadow inventory

    The furore over servicing issues at GMAC Mortgage (see last issue) continued this week, as Ally Financial released further details about the firm's foreclosure processes. The episode could prolong the housing recoveries for the affected US states by keeping shadow inventory outstanding for longer.

    Ally Financial says that a procedural error was found to have occurred in certain affidavits required .......

    News Analysis 29 September 2010

  • Liquidation and supply to drive CLOs forward

    The secondary US CLO market has been extremely active over the past week, with mezzanine paper attracting the most attention.

    "The CLO market this week has been a listathon, with size, scale and numbers of people - there has been up to eight lists per day," says one CLO trader. A few liquidations that contained a lot of CLO paper .......

    Market Reports 29 September 2010

  • 'Peripheral' Euro ABS attracts more interest

    There has been a positive continuation of activity in the European ABS market over the past week, with Spanish, Portuguese and Greek deals seeing a rise in interest.

    "It has been pretty good this week: there have been a couple of new issues, which may weaken the secondary prime deals slightly - but overall the ABS market is holding up .......

    Market Reports 29 September 2010

  • Showdown for Innkeepers' future

    Sponsors of competing reorganisation plans in the pending Innkeepers USA Trust bankruptcy case will meet on Thursday (30 September). Innkeepers, which filed for bankruptcy protection in July (see SCI issue 197), is an Apollo Investment Corp REIT that owns 73 upscale and extended-stay hotels in 19 states.

    The first plan comes from Five Mile Capital and Midland Loan Services, which .......

    News 29 September 2010

  • PPIP 2.0 proposed

    MBS analysts at Bank of America Merrill Lynch suggest that a 'PPIP 2.0' should be included as part of the upcoming GSE reform proposal, to accompany the second round of quantitative easing (QE2). They believe a new PPIP could allow for the smooth absorption of the millions of homes expected to come onto the market in the next several years .......

    News 29 September 2010

  • Uproar over final safe harbour rule

    The FDIC has approved a final rule to extend through to 31 December its securitisation safe harbour, under which all transactions or participations in process before the end of the year are permanently grandfathered under the existing terms of 12 C.F.R. Part 360.6. However, industry responses suggest that it will be difficult for bank-sponsored securitisations to occur under the rule.

    News 29 September 2010

  • Investor caution remains in recovering market

    Morrison & Foerster partners Peter Green and Jeremy Jennings-Mares discussed at a seminar the firm hosted on 23 September the outlook for, and investor confidence in, the European securitisation market.

    Green began the discussion by outlining recent activity and signs of recovery in the market. "There are signs that the market is slowly recovering in some areas and, for the .......

    Talking Point 29 September 2010

  • Global bond fund launched

    ING Investment Management Americas has launched the ING Global Bond Collective Trust Fund, which aims to provide institutional investors with a proven and broadly diversified strategy to global fixed income investing. The strategy is based on an approach to global fixed income markets that the firm has overseen since 2006 that combines fundamental and quantitative analysis in seeking out opportunities .......

    Job Swaps 29 September 2010

  • Hires made as manager preps new strategies

    TCP Global Investment Management has appointed David Vuchinich as cio and Greg Jacobs as md in its fixed income absolute return strategies group.

    Brad Goldman, md, fixed income sales and marketing at TCP Global, says: "The addition of this highly experienced investment team also reaffirms our commitment to our client-first culture and complements our core fixed income team, comprised of .......

    Job Swaps 29 September 2010

  • Japanese consumer ABS criteria explained

    S&P has published a report to help market participants better understand its approach to rating Japanese credit card receivables and consumer loans ABS transactions. The agency says the report aims to introduce a benchmark pool concept to Japanese credit card receivables and consumer loans ABS, which currently assumes a default rate of 9.5%-10.5% as a base case.

    The criteria will .......

    News Round-up 29 September 2010
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