Weekly Issue Archive »

Issue 195 - July 28th

• News Analysis

  • Regulation

    • Reform repercussions

      Dodd-Frank arbitrage pondered as SEC blinks first

      The Dodd-Frank Act, which effectively repeals Rule 436(g) of the Securities Act, has many ABS practitioners and industry participants alike scratching their heads over what move the SEC will make next. But others are turning their wheels over what ar...

  • ABS

    • Overhang overture

      New structures anticipated to deal with legacy assets

      Banks are estimated to hold 80%-85%, or €550bn in volume, of outstanding European legacy ABS as at mid-June. However, there is expected to be some forced selling of these positions in the coming months. So far, there hasn't been much pres...

  • RMBS

    • Repressing recidivism

      Latest HAMP figures show low redefault rates, but may not tell whole story

      The recidivism rate for permanently modified HAMP loans has been published for the first time by the US Treasury Department (see separate News Round-up story). Recidivism rates appear to be extremely impressive, with only 7.7% of loans modified in Q3...

  • Regulation

    • Increased transparency?

      Stress-test positives outweigh negatives

      CEBS published the results of the European stress tests on 23 July, indicating that seven banks had failed them. Although the tests were seen to fall short in many respects, most market participants appear to have a positive view of the outcome. "T...

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• Market Reports

  • CDO

    • On a roll

      Robust US CLO secondary market sparks activity across CDO sectors

      Last week saw enthusiastic secondary market trading across a range of US CDO sectors. The activity f...

  • RMBS

    • Positive tone

      European RMBS market eases past stress tests and moves tighter

      The European RMBS secondary market has seen seasonally-typical thin volumes over the past week or so. However, a return of some stability to the sector is generating a positive attitude. "Summer is definitely here - we're seeing low to no...

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• News

  • CLOs

    • Timing of LCM CLO deal questioned

      As Bank of America Merrill Lynch markets a US$300m CLO for LCM Asset Management, market participants...

  • RMBS

    • GSE reform debate reignited

      SIFMA was among a number of parties that delivered comment letters to the US Treasury last...

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• Job Swaps

  • ABS

    • AmeriCredit's securitisation practices to stay

      General Motor's acquisition of AmeriCredit will not alter the securitisation practices of the subpri...

  • • FI sales and trading platform expands

      BTIG continues to expand its US fixed income sales and trading platform with the addition of three d...

  • • Bank beefs up in sales

      Nomura has announced three senior appointments. Guy Cornelius and Raffaele Ricci have been named co-...

  • • US boutique boosts sales force

      Odeon Capital Group has appointed Ronald Tesmond as svp. The move comes as the firm opens a new offi...

  • • Structured products pro to lead research services

      Fitch Solutions has appointed Neil Smith as md of its research services group in New York. Smith wil...

  • • Two new partners for Jersey law firm

      Law firm Carey Olsen has announced the promotion of both Robert Milner and Simon Marks to partner in...

  • • Advisory services subsidiary sold

      Ambac Financial Group has completed the sale of its advisory services subsidiary, RangeMark Financia...

  • CDO

    • NY Fed enhances supervisory practices

      The Federal Reserve Bank of New York has appointed Sarah Dahlgren as head of bank supervision and Ro...

  • CDS

    • Structured credit trading vet hired

      UniCredit has appointed Tim Armitage as an md in London. He was previously senior md and European co...

  • • Cleared CDS salesman hired as md

      After winning his CDS insider-trading case with the US SEC, Jon-Paul Rorech is believed to be joinin...

  • CLOs

    • Credit fund names new managing partner

      Jack Yang has joined Onex Credit Partners (OCP) as managing partner, bringing over 25 years of credi...

  • • Certain CLO duties delegated

      Neuberger Berman Fixed Income has delegated certain loan amendment administration services for two C...

  • CMBS

    • CMBS vet finds new home

      Arvind Bajaj has joined The Lightstone Group in New York as evp of investments. He will oversee and...

  • Investors

    • Asia Pacific investment head named

      PIMCO has appointed Ki Myung Hong as md and head of the Asia Pacific region. Hong will also oversee...

  • • PPIF portfolio composition unveiled

      Western Asset Mortgage Defined Opportunity Fund has disclosed its portfolio composition, as of 30 Ju...

  • Operations

    • Risk manager joins mortgage servicer

      PHH Corporation has appointed Smriti Laxman Popenoe as evp and chief risk officer. Popenoe will be r...

  • RMBS

    • Subprime misrepresentations costs bank US$7.5m

      FINRA has fined Deutsche Bank Securities (DB) US$7.5m for negligently misrepresenting delinquency da...

  • • Ex-Northern Rock exec fined for misconduct

      The UK FSA has fined David Jones, former finance director of Northern Rock (NR), £320,000 a...

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• News Round-up

  • ABS

    • Sallie Mae concerned over CP market

      SLM Corp said on its 21 July conference call that it remains concerned over the liquidity in the com...

  • • Issuers given six-month Reg AB reprieve

      The SEC Division of Corporation Finance on 22 July issued a no-action letter that provided some reli...

  • • Details emerge on Ford ABS deal

      Ford Motor Credit's US$1.082bn prime auto ABS transaction, which was delayed due to the impasse over...

  • • Electricity tariff bonds prepped

      The Spanish government has confirmed that it plans to issue electricity tariff bonds as soon as all...

  • • Timeshare ABS completed

      Wyndham Worldwide Corporation has completed its second term securitisation this year - the...

  • • Equipment finance activity up on month

      The Equipment Leasing and Finance Association reports new business volume for the month of June rose...

  • • US credit card charge-offs continue to fall

      According to Moody's latest credit card indices report, charge-offs on US credit cards declined for...

  • • Positive performance reported for prime auto ABS

      According to Fitch, US auto loan ABS is continuing to defy historical seasonal patterns at a time of...

  • • EMEA asset performance stabilising

      According to the latest Fitch report on the sector, asset performance and ratings outlooks for EMEA...

  • Asia

    • Korean ABS performance boosted

      Moody's reports that Korea's improving employment market, combined with beneficial asset attributes...

  • CDO

    • Wrapped CDOs fill auction pipeline

      A further two ABS CDOs previously insured by Ambac - Diversey Harbor and Lancer Funding &a...

  • • CRE CDOs repurchased, recollateralised

      Resource Capital Corp has disclosed that during the quarter ended 30 June it purchased US$36.1m par...

  • • Trups swapped out of Taberna transactions

      Trups have been swapped out of Taberna Preferred Funding II, III and IV under supplemental indenture...

  • CDS

    • Succession events mulled

      Two succession event determinations are being mulled by ISDA's Determinations Committees. The Amer...

  • • CDS data availability expanded

      The DTCC has expanded its public CDS data, providing more detailed market segmentation information o...

  • • ABX CDR decrease reverses

      The latest ABX remittance data indicates that CDR levels have increased slightly on the month, after...

  • Clearing

    • Client OTC clearing service launched

      Goldman Sachs has launched a derivatives clearing services (DCS) business, providing clients with an...

  • CLOs

    • CLO equity holders benefit from Libor floor

      CLO equity is proving to be a significant beneficiary from low US interest rates. Structured credi...

  • CMBS

    • CRE Finance Council cautious on Dodd-Frank

      As President Barack Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act into...

  • • Tale of two carehome CMBS

      The restructuring of two Titan CMBS deals illustrate the potential outcome disparities for two seemi...

  • • CMBS delinquent unpaid balance continues to rise

      The delinquent unpaid balance for US CMBS increased by US$3.11bn in June 2010, up to US$60.45bn from...

  • • Aussie CMBS downgraded on restructuring

      S&P has lowered the ratings on five classes of notes issued by Becton CMBS No 1, following a...

  • • Challenging month ahead for US CMBS

      According to Fitch's latest US CMBS newsletter, eight US CMBS loans are due to mature next month and...

  • • Euro CMBS hit by first loss allocations

      According to Moody's latest surveillance report for the sector, the first loss allocations since the...

  • • Gulf spill to have no immediate CMBS ratings impact

      Based on an analysis of what effect the Gulf spill is having on commercial real estate collateral, S...

  • Investors

    • PPIF activity revealed

      Further details on PPIP fund activity have emerged in a new SIGTARP report. Final capital raised by...

  • • Improvement expected across RMBS

      The most recent Fitch Ratings/Fixed Income Forum Survey of Senior Investors, conducted in June, find...

  • Ratings

    • Fitch comments on unsolicited ratings issue

      Fitch has commented on the recent regulatory initiatives in the US and Europe that make it increasin...

  • Regulation

    • Agreement reached on Basel reforms

      The Group of Central Bank Governors and Heads of Supervision has met to review the Basel Committee's...

  • RMBS

    • HAMP recidivism exceeds expectations

      The US Treasury Department has issued its first report on recidivism rates for loans that have been...

  • • CPR spike points to rising Irish loan mods

      Q210 prepayment rates in the Kildare 2007-1 RMBS shot up to 13.87%, a significant increase from 3.43...

  • • More Greek deals downgraded

      Fitch has downgraded two RMBS tranches and affirmed 36 others from its rating universe of 14 Greek R...

  • • Rating error corrected

      S&P has reinstated its triple-A credit rating on Eurosail 2006-3NC's class A3c notes. At the...

  • • Enhancements made to valuations service

      S&P Valuation and Risk Strategies has added a number of enhancements to its valuations offer...

  • SIVs

    • SIV note ratings withdrawn

      Moody's has withdrawn its ratings on notes issued by seven SIV and SIV-lite programmes because it be...

  • Technology

    • Risk system integrates CMBS deal library

      The Kamakura Risk Manager (KRM) enterprise risk system now offers direct access to Trepp's CMBS deal...

  • • Pricing and risk analysis tool enhanced

      Quantifi has released the latest version of its pricing and risk analysis software, version 9.4. The...

  • • SaaS version of risk surveillance platform offered

      Principia Partners has launched a software-as-a-service (SaaS) version of Principia SFP. The valuati...

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• Research Notes

  • Trading

    • Trading ideas: time for a fill-up

      Dave Klein, senior research analyst at Credit Derivatives Research, looks at a capital structure arb...

      Valero Energy's CDS has been on a roll this month. After the company's CDS hit tights in April along...

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