Complete news archive

  • Sovereign stress test calculations clarified

    CEBS has defended the European stress testing exercise, the results of which were published on 23 July (see SCI issue 195). In particular, it has clarified how gross sovereign exposures were calculated.

    The gross exposures disclosed in the stress tests were on-balance sheet exposures net of impairments but gross of collateral and hedging, according to CEBS. In order to provide .......

    News Round-up 15 September 2010

  • Streamlined CDS novation platform launched

    Ahead of the implementation of ISDA's 'Credit Consent Equals Confirmation' project (see SCI issue 198), IntercontinentalExchange - via its ICE Link platform - has launched Novation Consent = Confirmation (C=C), an industry-wide CDS novation initiative.

    Several key features of the C=C initiative were first introduced on ICE Link, including making the transferee a full participant in the work flow, support .......

    News Round-up 15 September 2010

  • Relative value themes identified

    Wells Fargo has updated its Relative Value Indicator (RVI) - a technical analysis model designed to give an alternative, unconventional view of relative value - to account for recent moves in ABS spreads. The tool was launched in June (see SCI issue 189).

    ABS analysts at the bank find that, three months later, the model points to better relative value .......

    News Round-up 15 September 2010

  • LCDS auction results released

    The final results of the Truvo LCDS auction have been published. The final price was determined to be 41.125, with eight dealers submitting inside markets, physical settlement requests and limit orders. Due to a zero net open interest, there was no subsequent bidding period.

    Separately, the auction for Boston Generating has been scheduled for 21 September.

    .......

    News Round-up 15 September 2010

  • Buy-side CDS clearing service in development

    Eurex has confirmed that plans for its client asset protection (CAP) solution are still going ahead as it seeks to enhance its CDS clearing offering. CAP is intended to provide segregation and portability of customer assets and positions.

    Eurex Clearing says it will continue market consultation for its buy-side service and CAP "once this solution has been adapted to the .......

    News Round-up 15 September 2010

  • FDIC structured transaction completed

    The FDIC has closed on a sale of 40% equity interest in a limited liability company (LLC) created to hold approximately US$762m from 20 failed bank receiverships. The winning bidder of the multibank structured transaction is Mariner Real Estate Partners, with a price of 30.93% of the unpaid principal balance.

    As an equity participant, the FDIC will retain a 60% .......

    News Round-up 15 September 2010

  • CDS price action analysed

    Credit strategists at Goldman Sachs have analysed price action in global CDS markets over the past few months to identify which themes have driven moves in credit spreads. This involved looking at a cross-section of returns from 1000 corporate single-name CDS through a factor model based on rating quality, industry, region and other technical factors across sectors.

    The analysis revealed .......

    News Round-up 15 September 2010

  • Innkeepers-related trades touted

    A new Five Mile-Midland reorganisation plan is expected to be filed for Innkeepers if the exclusivity of the original - and since rejected - Lehman-Apollo plan is lifted. Based on the latest developments, MBS analysts at Barclays Capital believe that existing Innkeepers-related loans are likely to remain in their respective CMBS trusts.

    However, the BarCap analysts warn that the loans .......

    News Round-up 15 September 2010

  • Artificial constraints

    Distressed CRE prices pushing beyond fundamental value

    An artificially constrained supply of US distressed commercial real estate is driving asset prices up beyond their fundamental value. Investors are consequently being urged to analyse more carefully both sources of property and their valuations.

    Carlos Vigon, md at NewOak Capital, notes that the primary method of identifying value in the current market is to buy non-performing debt, convert it .......

    News Analysis 15 September 2010

  • Qualitative Level 3 disclosure recommended

    ISDA's Accounting Policy Committee has submitted comment letters to the IASB and FASB on the respective exposure drafts 'Measurement of Uncertainty Analysis Disclosure for Fair Value Measurement' and 'Amendments for Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs'. The association notes that the comments and the solutions proposed by its members to the two exposure drafts .......

    News Round-up 8 September 2010

  • Troubled company index deteriorates

    The Kamakura index of troubled public companies deteriorated slightly in August, rising by 0.22% to 9.85%. The reversal was rare, in that the index has improved in 13 of the past 16 months, according to the firm.

    David Boldon, Washington DC representative for Kamakura Corporation, says: "This month showed a larger group of public firms with deteriorating short-term default probabilities. .......

    News Round-up 8 September 2010

  • Bank strengthens Euro HY trading

    Deutsche Bank has made two key hires to strengthen its high yield trading business in Europe. Andrew Jarman has joined the bank as senior high yield credit trader and Askin Aziz as senior high yield credit analyst. Both are based in London and will report to Antoine Cornut, the bank's European head of credit trading.

    Jarman joins from Morgan Stanley, .......

    Job Swaps 8 September 2010

  • Pushing the envelope

    Wake-up call for CDO equity investors

    The failure to replace the collateral manager on Flatiron CLO 2003-1 and 2004-1 last month (see last issue) highlights the potential for conflicts of interest to arise between equity investors and CDO managers. It has underlined the importance of equity investors pushing the envelope in terms of their protections.

    Vanquish Capital Group (VCG) has owned the equity of the Flatiron .......

    News Analysis 8 September 2010

  • Primary positives

    Healthy outlook for European new issuance

    The successful pricing of Santander's Fosse Master Issuer 2010-4 RMBS has been taken as a positive sign for European primary ABS issuance. Public placement of the deal with a number of different investors indicates that the market could finally be moving away from private, club-type closings towards a healthier regime.

    Two tranches were on offer in the latest Fosse transaction .......

    News Analysis 8 September 2010

  • Revitalising Russian RMBS

    State support helps securitisation market get back on track

    The Russian RMBS market is showing signs of life, spurred on by the government. Programmes launched by the Agency for Housing Mortgage Lending (AHML) and the state development bank VEB (Vnesheconombank) to help originating banks are providing a welcome boost to the country's securitisation market.

    Loans originated by AHML were used for one recent R13.5bn securitisation (see SCI issue 194), .......

    News Analysis 8 September 2010

  • Limited opportunity

    CDO management contracts continue to trade well

    Prices for CDO management contracts continue to trade well. The window of opportunity will only last as long as the new issue CDO market remains broken, however.

    Matt Natcharian, head of structured credit investing for Babson Capital Management, confirms: "Prices for CDO management contracts are trading well because there is so much demand for them, with managers looking for a .......

    News Analysis 8 September 2010

  • Regulation vet joins advisory team

    Link Financial Group has appointed Marco Angheben as project director in its advisory team. The receivables management firm says Angheben will work on its ABS loan level data project to assist the European Central Bank in developing data handling infrastructure.

    Angheben has 10 years' experience in regulation, with a focus on structured finance. He was previously director at the Association .......

    Job Swaps 8 September 2010

  • Analyst appointed to hedge funds team

    Alkesh Chohan has joined Matrix Group as analyst in its fund of hedge funds group, led by the group's cio Stuart Ratcliff.

    Chohan will strengthen the firm's five-strong fund of funds team and be responsible for conducting due diligence on prospective managers, as well as developing existing relationships with fund managers and prime brokers. He joins from TCP Asset Management, .......

    Job Swaps 8 September 2010

  • Countrywide reps and warranties investigation opens

    Clients of Gibbs & Bruns have issued binding instructions to Bank of New York, as trustee, to open an investigation of ineligible mortgages in pools securing over US$26bn of Countrywide RMBS. The securities that are the subject of the instruction letter include a number of CWALT, CWHL and CWL issuances.

    Under the pooling and servicing agreements (PSAs) terms, the holders .......

    Job Swaps 8 September 2010

  • Suit filed over MBS fund violation

    Hagens Berman Sobol Shapiro has filed a class-action lawsuit against Charles Schwab on behalf of investors who owned shares in the Schwab Total Bond Market Fund, as of 30 November 2006.

    The suit accuses San Francisco-based Charles Schwab of causing the fund to deviate from its fundamental business objective to track the Lehman Brothers US Aggregate Bond Index. The suit .......

    Job Swaps 8 September 2010

  • IDB promotes Asia Pacific pair

    BGC Partners has promoted Vanessa Ko to director and regional head of e-commerce for Asia Pacific and Norliza Kamardin to associate director of e-commerce for Asia.

    Ko will spearhead the continued expansion of BGC's electronic coverage in the region with its electronic platform, BGC Trader. She joined BGC in 2005 as a product manager for credit and has been responsible .......

    Job Swaps 8 September 2010
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