Complete news archive

  • Credit events to be determined

    ISDA's Japan Determinations Committee is deliberating on whether a bankruptcy credit event occurred with respect to Takefuji Corporation. The move comes after the company filed for bankruptcy with Y433.6bn in debts.

    Meanwhile, Barclays Capital has requested that ISDA's Americas Determinations Committee rule on whether a bankruptcy credit event occurred with respect to Blockbuster Inc. This follows Blockbuster's filing of a .......

    News Round-up 29 September 2010

  • European financial supervision reform agreed

    The European Parliament has approved a financial supervision reform package that will see a systemic risk board and three new European supervisory authorities (ESAs) for the financial services sector being created.

    The ESAs comprise a European Banking Authority (EBA) based in London, a European Insurance and Occupational Pensions Authority (EIOPA) in Frankfurt and a European Securities and Markets Authority (ESMA) .......

    News Round-up 29 September 2010

  • Pre-emptive funding channels recommended

    Debt finance for M&A activity is available to companies with pre-emptive funding strategies, according to Bishopsfield Capital Partners. The firm recommends that in the current environment corporates shift their focus away from cost of funding and develop other financing objectives, including strong liquidity management, diversification of funding instruments, internationalisation of funding relationships and frequent credit access.

    "The recent acceleration in .......

    News Round-up 29 September 2010

  • Serviced mortgage credit quality remains steady

    The credit quality of first-lien mortgages serviced by the largest US national banks and thrifts remained steady during the 2Q10, according to a report by Office of the Comptroller of the Currency and the Office of Thrift Supervision.

    The report indicates no clear trend in mortgage performance during the quarter, with delinquency levels remaining steady but elevated after rising for .......

    News Round-up 29 September 2010

  • Benchmark indices to see CMBS changes

    Barclays Capital has announced that, as of 1 January 2011, US CMBS classified as an A1A tranche will be removed from its US CMBS and US Aggregate Bond Indices. These securities are held primarily by US agencies and do not frequently trade in the secondary market and are consequently being removed because of investors' difficulty in purchasing them.

    In addition, .......

    News Round-up 29 September 2010

  • Paragon re-enters BTL market

    Paragon has signed a new £200m mortgage warehouse funding facility with Macquarie for four years at a cost of 287.5bp over Libor. It confirms its intention is to "use the facility to warehouse loans prior to arranging term funding in the MBS markets". As such, the firm will begin lending in the buy-to-let market again effective immediately.

    The lender disclosed .......

    News Round-up 29 September 2010

  • Basel 2 implementation analysed

    A survey conducted by the Financial Stability Institute (FSI) on the Basel 2 implementation in 2004 and updates in 2006, 2008 and 2010 indicates that 112 countries - out of 133 jurisdictions surveyed - have implemented or are currently planning to implement the standard. This is compared to 106 countries in the 2008 survey.

    The survey shows that the standardised .......

    News Round-up 29 September 2010

  • Latest US CMBS signals conduit re-emergence

    Some US$10bn of new US CMBS debt is expected to be sold to investors this year, with JPMorgan, Goldman Sachs, Wells Fargo, Bank of America and Morgan Stanley among the banks rebuilding their conduit operations. The US$1.1bn J.P. Morgan Chase Commercial Mortgage Securities Trust 2010-C2 (JPMCC 2010-C2) is the latest such deal to hit the market.

    The transaction is backed .......

    News Round-up 29 September 2010

  • Senior versus sub iTraxx trade touted

    Approximately half of existing bank Tier 2 bonds could disappear over the next five years if the current Basel proposals are implemented, according to Goldman Sachs credit analysts. Existing Tier 2 subordinated bonds should continue to benefit from the likelihood that they will be either called, tendered or exchanged as banks reshape their capital structures.

    New Tier 2 instruments are .......

    News Round-up 29 September 2010

  • Credit union legacy assets addressed

    The US National Credit Union Administration (NCUA) has announced a plan to isolate impaired assets - mainly underwater RMBS - in the corporate credit union system, which involves repackaging them into securities that can be issued on the open market. The move comes after it assumed control of three undercapitalised corporate credit unions and is a key element in its .......

    News Round-up 29 September 2010

  • Liquidity spike for technology sector CDS

    Fitch Solutions reports that, in contrast to the broader stability of its CDS market liquidity indices, the global technology sector has experienced a sharp increase in CDS liquidity since early September.

    "The liquidity spike could be due to recent M&A activity in the sector and the fact that the CDS market is still to make its mind up on who .......

    News Round-up 22 September 2010

  • US real estate md named

    Miller Buckfire & Co has expanded its investment banking and real estate capabilities with the appointment of Kevin Stahl as md. He will assist clients in managing financial issues while pursuing long-term value-creation strategies.

    With over 16 years of real estate experience, Stahl was previously md and co-head of US real estate investment banking at RBC Capital Markets. Here, he .......

    Job Swaps 22 September 2010

  • CRE investors focusing on core assets

    PricewaterhouseCoopers' latest Korpacz Real Estate Investor Survey indicates that, with CRE fundamentals still ailing from the recession and lacking clear signs of near-term improvement, investors remain focused on core assets and proven markets. The survey further highlights an improved lending environment and strong appetite from both debt and equity capital for quality real estate assets, with some surveyed investors noting .......

    News Round-up 22 September 2010

  • Swap pricing considered

    ISDA has released two new additions to its Research Notes series, 'The Value of a New Swap' and 'The Economic Role of Speculation'.

    The first publication seeks to reconcile the theoretical and actual pricing of swaps at inception. Theoretically, swaps are priced at zero net present value at inception, yet in practice, originating and executing a transaction involves costs that .......

    News Round-up 22 September 2010

  • New criteria hits US Trups CDOs

    Following the implementation of updated surveillance criteria, Fitch has taken rating actions on 86 US bank Trups CDO transactions. The agency reviewed 498 classes, affirmed 314 classes and downgraded the ratings on 184 classes of notes. Negative outlooks were assigned to 155 of the 156 notes with a rating of single-B or higher.

    The agency's new Trups CDO surveillance criteria .......

    News Round-up 22 September 2010

  • Premium concerns

    Should seasoned ABS deals be priced differently?

    The fact that some US auto loan ABS paper is currently trading at premium dollar prices has sparked concern that rising auto sales could create a prepayment wave that hits bond valuations. This, in turn, has caused some to question whether seasoned ABS deals should be priced differently.

    Going back to 2005, auto sales in the US have run at .......

    News Analysis 22 September 2010

  • Credit solutions

    CDS and CLN hedges for rate risk suggested

    The current interest rate environment and changes anticipated in the short- to medium-term are creating challenges for credit investors. However, analysts suggest that there are a range of credit derivatives-based solutions that could help.

    Three analysts have each discussed strategies which they believe will allow investors to cope best with the conditions and continue investing, while still limiting interest rate .......

    News Analysis 22 September 2010

  • M&B on review following property disposals

    Moody's has placed five classes of notes issued by Mitchells & Butlers Finance on review with direction uncertain. The affected notes are insured by Ambac Assurance.

    Ambac's current rating is Caa2 on review with direction uncertain. Consequently, the current ratings are now based solely on the underlying credit strength of the notes.

    Mitchells & Butlers Finance is a whole business .......

    News Round-up 22 September 2010

  • Servicing slow-down

    GMAC episode heightens concern over foreclosure glut

    Ally Financial has denied that GMAC Mortgage instituted a moratorium on all residential foreclosures across 23 states in the US. [This story updates the one published 21 September on the same topic.] The episode nonetheless hit a raw nerve among MBS investors, who remain concerned about the impact of slowing foreclosure rates on bond valuations.

    Ally issued a statement saying .......

    News Analysis 22 September 2010

  • SF legal risk factors analysed

    Moody's has commented on the unique risk factors of structured finance transactions, indicating that recent economic stress has tested some of the legal principles related to SF deals. It also discusses how legal risk is integrated into the ratings of SF transactions.

    "Legal risk is a central factor considered when assigning a structured finance rating, but is often inextricably intertwined .......

    News Round-up 22 September 2010

  • Partnership expands risk solutions access

    Numerix has partnered with Softek Computer Services to offer integrated pricing and risk solutions within the Softek Capital Adequacy Services (CAS) platform. Users of the Softek CAS platform will now be able to access the Numerix CrossAsset library of independent pricing models and methods. They will also be able to utilise Numerix's suite risk management capabilities, including Monte Carlo Value .......

    News Round-up 22 September 2010
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