Complete news archive

  • Euro OTC trade repository discussed

    OTC post-trade services and data provider Xtrakter is entering into consultation with members of its user community and other market representatives to discuss the development of a European managed trade repository for all asset classes.

    "Given our position as a major reporting mechanism [and] the significant changes that will emerge following the current European markets infrastructure regulation consultation, it is .......

    Job Swaps 14 July 2010

  • CMSA-Europe adopts name-change

    CMSA-Europe has changed its name to Commercial Real Estate Finance Council Europe, aligning itself with the North American association that changed its name to Commercial Real Estate Finance Council on 23 March 2010 (SCI passim). Similar in practice to North America, the Europe organisation also includes forums - collections of commercial real estate finance market participants that drive the global .......

    Job Swaps 14 July 2010

  • ICE passes US$10trn in CDS clearing

    ICE reports that cumulative gross notional value cleared by its CDS clearinghouses surpassed US$10trn during the week ending 2 July.

    Scott Hill, ICE svp and cfo, comments: "ICE developed CDS clearing in 2009 to support the reduction of systemic risk amid significant market turmoil. Since then, ICE has cleared US$10trn in gross notional value, bringing substantial transparency and counterparty risk .......

    Job Swaps 14 July 2010

  • ELCDS credit event called

    Markit iTraxx LevX index dealers have voted to conduct a credit event auction to facilitate the settlement of second-lien European loan-only CDS (ELCDS) trades referencing Truvo. Truvo is a constituent of LevX Subordinated Series 2 and 3.

    The move follows last week's vote by ISDA's Determinations Committee to hold an auction on 15 July for CDS trades referencing the entity (see .......

    News Round-up 14 July 2010

  • Index growth

    Tradable sector CDS interest stirs

    A growing interest in using sector CDS indices for hedging purposes is stirring among institutional investors and dealers alike. The interest comes as exchanges push for enhanced CDS clearing and Washington calls for more transparency in all derivatives markets.

    "We see indices as a good way to capture movement in a group without the risk of just one name," says .......

    News Analysis 14 July 2010

  • GSE prepayment speeds expected to increase

    Aggregate fixed rate prepayments for 30-year Fannie Mae and Freddie Mac mortgages respectively fell and increased last month. Fannie prepayments fell by 38% from 28.1% CPR to 17.5% CPR, while Freddie prepayments increased by 19% from 14.4% CPR to 17.2% CPR.

    MBS analysts at Bank of America Merrill Lynch note that, overall, prepayments for new production (2008/2009) Fannie 4.5s and .......

    News Round-up 14 July 2010

  • Milestone call for Aussie lender

    Pepper Australia has acquired a portfolio of residential mortgage loans from Permanent Custodians in its capacity as trustee of the First Permanent Securities Mortgage Warehouse Trust. The mortgage lender has also purchased the class F certificates, residual income units and residual capital units in the Warehouse Trust and the First Permanent Super Prime RMBS Trust 2006.

    The total loan portfolio .......

    News Round-up 14 July 2010

  • Advances made in mortgage valuations

    Integrated Asset Services has released a new report on the state of the mortgage servicing industry. The report, entitled 'A New Era of Mortgage Servicing: Out of Crisis, Solutions', outlines the latest advances in valuation technology that has emerged in response to the US foreclosure crisis.

    Known as 'intelligent granularity', the IAS paper asserts that this powerful new technology and .......

    News Round-up 14 July 2010

  • Euro CMBS bondholder communication tool launched

    Savills Capital Advisors and Giltspur Capital have launched a new database for bondholders in European CMBS. The database, administered by Savills, will provide a service to enable CMBS bondholders to initiate communication with fellow bondholders in order to facilitate the efficient restructuring of CMBS transactions.

    Simon Dunne, Savills' director, says: "The European CMBS sector has been severely affected by the .......

    News Round-up 14 July 2010

  • US prime RMBS delinquencies rising

    Fitch's latest performance metrics show that US prime RMBS serious delinquencies have risen for the 37th consecutive month. Conversely, Alt-A RMBS delinquencies declined for the third successive month, while subprime late-pays fell for the fourth straight month.

    While the improvements in subprime and Alt-A RMBS delinquencies are noteworthy, the portion of borrowers who were current on their mortgage the previous .......

    News Round-up 14 July 2010

  • Municipal CDO marketed

    BB&T Capital Markets is in the market with a cashflow muni CDO - the US$391.68m Custody Receipts Series 2010 Tax-Exempt Assets Pool (Multistate Non-AMT). The deal is expected to close on 29 July and has been originated by AIG Commercial Equipment Finance.

    The balance sheet transaction is backed by equipment leases and bonds to state and local US municipal entities. .......

    News Round-up 14 July 2010

  • Dutch private placement completed

    AEGON has completed the sale of €1bn triple-A rated RMBS in a private placement with institutional investors. The SAECURE 7 transaction is expected to have a weighted average life of 4.3 years and priced at par with a coupon of 135bp over three-month Euribor.

    The net proceeds will be used to finance a part of the existing Dutch mortgage portfolio .......

    News Round-up 14 July 2010

  • Loan weakness reflected in CLO prices

    Babson Capital Management points out in its latest quarterly newsletter that - unlike in previous periods, when moves in the CLO market lagged the loan market by as much as a couple of weeks - US CLO liabilities reacted quickly to the weakness in the loan market this quarter. This may be due in part to the particularly fast correction .......

    News Round-up 14 July 2010

  • Tension in CMBS regulatory reform outlined

    A draft Commercial Real Estate Finance Council document entitled 'Best Practices for CMBS Restart' is circulating among US CMBS practitioners. According to Annaly Capital Management's latest analyst note, the document has two themes - alignment of interests and transparency.

    The Annaly analysts suggest that the proposed minimum risk retention of 5% may raise borrowers' cost of execution due to FAS .......

    News Round-up 14 July 2010

  • Long mezz risk touted as recovery trade

    Structured credit strategists at Morgan Stanley review correlation performance themes of the last six months and implications for the future in their latest research note. They point out that in the tranche space investors are braced for a cyclical slow-down.

    "Correlation is considerably higher, but it's mostly junior mezzanine that has borne the brunt of the sovereign volatility," the Morgan .......

    News Round-up 14 July 2010

  • Private-label MBS subpoenas issued

    The FHFA has issued 64 subpoenas to various entities, seeking documents related to private-label MBS (PLS) that both Fannie Mae and Freddie Mac invested in. The documents will enable the FHFA to determine whether PLS issuers and others are liable to the GSEs for certain losses they have suffered on such securities. If so, the conservator expects to recoup funds .......

    News Round-up 14 July 2010

  • High Court to rule on RMBS EOD

    The Trustee of Eurosail UK 2007-3BL is seeking directions from the High Court as to whether an event of default has occurred by reason of the issuer's assets being less than its liabilities. The outcome of the proceedings may increase the likelihood of a switch to the post-enforcement waterfall, according to Moody's, which would benefit some noteholders to the detriment .......

    News Round-up 14 July 2010

  • 'Many' deals would fulfil 10% retention requirement

    The current European primary market is characterised by many deals that would fulfil the 10% retention requirement voted in by Germany's lower house last week, according to European securitisation analysts at Deutsche Bank. The requirement will be applied to ABS issued after 2013 and is higher than the CRD 2-mandated 5%.

    The requirement would apply to German investors, ruling out .......

    News Round-up 14 July 2010

  • White Tower 06-3 portfolios acquired

    The Carlyle Group has exchanged contracts for the acquisition of six landmark central London properties, which were formerly part of the portfolio securing the White Tower 2006‐3 CMBS. The properties, comprising the Thames Portfolio and Alban Gate, total in excess of 1.6m square feet and currently generate over £62m of rent per annum. They have been acquired for a total .......

    News Round-up 14 July 2010

  • Eurozone CDS market confidence returning

    Fitch Solutions says that average CDS liquidity for developed market sovereigns has continued to decline since mid-June, suggesting that CDS market confidence is slowly returning to the eurozone. Since 10 March, sovereigns have moved from being the fourth most liquid to the joint least liquid sector (along with Technology) as of 9 July - with average sovereign CDS liquidity moving .......

    News Round-up 14 July 2010

  • Small rise for US CMBS delinquencies

    According to Moody's delinquency tracker (DQT), the delinquency rate on loans included in US CMBS increased by 21bp in June to 7.71%. In the US, 3,986 loans are currently delinquent with a total balance of US$49.8bn.

    In June, nearly 300 loans became newly delinquent, while just under 250 loans became current, worked out or disposed, creating a 49 loan net .......

    News Round-up 14 July 2010
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