Weekly Issue Archive »

Issue 137 - May 20th

• News Analysis

  • CLOs

    • Double-A focus

      CLO trading activity moves down capital structure

      CLOs still lag the broader rally seen in other structured finance securities, but more competitive p...

  • Documentation

    • Issue settled

      Europe moves to integrate restructuring into auction mechanism

      A new proposal to integrate restructuring as a credit event into the auction mechanism for CDS settl...

  • Monolines

    • New exposure

      KBC's bailout puts spotlight on other MBIA policyholders

      KBC's third bailout in eight months - following new CDO write-downs and revelations of sub...

  • Regulation

    • Unclear thinking?

      Mixed views on Geithner's initiative

      US Treasury Secretary Tim Geithner last week released details of the Administration's proposed compr...

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• News

  • ABS

    • ABCMT tender 'too low'

      Advanta Corp announced on 11 May that its securitisation trust (ABCMT) will go into early amortisati...

  • CDS

    • ICE on track for European CDS launch

      ICE has announced that it is working closely with the European CDS community to provide clearing ser...

  • CMBS

    • GGP ruling recognises 'integrity of SPE structure'

      The judge ruling on the General Growth Properties (GGP) bankruptcy case said the REIT can use cashfl...

  • Distressed assets

    • Second European 'bad bank' scheme proposed

      Further details have emerged about Germany's 'bad bank' model, following the German Cabinet's approv...

  • Regulation

    • VIEs/QSPEs subject to new FASB disclosures

      The FASB has concluded its deliberations on two proposals that will be finalised as standards in Jun...

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• Provider Profile

  • CDS

    • Counterparty risk reduction

      Michael Shapiro, director, and Andrew Scott, md at NetDelta answer SCI's questions

      Andrew Scott Q: How and when did you/your firm become involved...

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• Job Swaps

  • ABCP

    • ABCP conduit moved onto balance sheet

      State Street is moving its ABCP conduits on-balance sheet. This follows results of the US stress tes...

  • ABS

    • Eight hired for new ABS unit

      Brokerage Miller Tabak Roberts Securities (MTR) has launched an MBS/ABS department with a founding t...

  • CDO

    • Citi structured credit director appointed

      Olivier Renault, former director of global structured credit products at Citi, has joined StormHarbo...

  • CDPCs

    • CLO manager in CDPC move

      Jerry Donohue is rumoured to have joined CDPC Channel Capital Advisors. Donohue was previously md at...

  • CDS

    • PTCo goes to court over Mahogany notes

      Perpetual Trustee Company (PTCo) has commenced legal proceedings against BNY Corporate Trustee Servi...

  • CMBS

    • Advisory firm adds in CMBS

      NewOak Capital has hired Malay Bansal, former head of CRE CDOs at Merrill Lynch, as an md in CMBS. A...

  • Distressed assets

    • Belgium offers asset relief solution to KBC

      KBC has reached an agreement with the Belgian government regarding an asset relief solution, followi...

  • Investors

    • Eaton Vance moves into DIP loans

      Eaton Vance is understood to be raising US$1bn in order to invest in DIP loans. The firm joins Aladd...

  • • CDO manager ousted by controlling class

      Realty Finance has been given written notice from MBIA of its decision to terminate the existing col...

  • Listed products

    • Slight improvement for Volta ...

      Volta Finance has published its April monthly report. As of the end of April 2009, the gross asset v...

  • • ... while another Permacap's NAV drops

      Carador reports that, at the close of business on 30 April 2009, the unaudited NAV per share were &a...

  • Monolines

    • MBIA refutes banks' challenge

      MBIA has released a statement that says the litigation filed on 13 May 2009 by the MBIA Policyholder...

  • • Wrapped RMBS purchased

      The BCP Voyager Master Funds SPC, acting on behalf of and for the account of the Distressed Opportun...

  • Operations

    • Insurers get access to TARP

      US insurers Prudential Financial, Hartford, Allstate, Principal Financial, Lincoln and Ameriprise lo...

  • Trading

    • New credit trading platform launched

      FBR Capital Markets has expanded its institutional brokerage business by launching a new credit sale...

  • • Lighthouse mints derivatives platform

      Lighthouse Financial, a New York-based investment bank and institutional securities firm, is launchi...

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• News Round-up

  • CDO

    • Negative outlook for synthetic CDOs

      Continued deterioration in the corporate credit markets, declining recoveries and the related volati...

  • • ... and US SROC figures in

      S&P has taken the following rating actions on 228 US synthetic CDO transactions, following i...

  • • Cash/hybrid CDOs downgraded

      S&P has lowered its ratings on 55 tranches from 20 US cashflow and hybrid CDO transactions....

  • CDS

    • GGP settled, other auctions called

      LCDS on General Growth Properties were settled at 44.25 on 13 May, after 10 dealers participated in...

  • • CDS notionals continue to contract

      The BIS has released its semiannual statistics on positions in the global OTC derivatives market for...

  • • Sovereign CDS continue liquidity streak

      Fitch Solutions' latest global CDS liquidity scores commentary shows that CDS on Mexico continue to...

  • CLOs

    • Euro CLOs at risk of undercollateralisation EODs

      Fitch says that some European CLO transactions may be susceptible to undercollateralisation event of...

  • • Leveraged loan negative credit migration hits CLOs

      Fitch says that the performance of European CLOs has recently suffered from a rapid negative credit...

  • CMBS

    • TALF to accept legacy CMBS

      The US Federal Reserve has announced that, starting in July, certain high-quality CMBS issued before...

  • • Euro ...

      S&P has placed on credit watch negative 35 tranches in eight European CMBS transactions. At...

  • • ... and Japanese CMBS on review

      Fitch has placed 20 classes in seven Japanese CMBS transactions on rating watch negative (RWN). Thes...

  • Emerging Markets

    • BTA deal to test DPR securitisations

      The 24 April announcement by Kazakhstan's Bank TuranAlem (BTA) that it will cease principal repaymen...

  • Indices

    • CDO EOD index launched

      As part of S&P's efforts to provide CDO market participants with greater transparency with r...

  • Investors

    • Trio of tender offers announced

      Two European issuers announced a tender offer on their ABS debt last week. Greene King has offered t...

  • LCDS

    • Cancellable LCDS protocol released

      ISDA has launched the 2009 European Cancellable Form Loan CDS Protocol. The purpose of the protocol...

  • Operations

    • Transactional administrative issues on the rise

      Fitch notes that issues with respect to the discharge of administrative roles within certain structu...

  • Ratings

    • RFC on changes to US RMBS methodology

      S&P is requesting comments on proposed changes to its methodology and assumptions for rating...

  • • Criteria released for optional call provisions

      S&P has published its general criteria methodology for rating structured finance securities...

  • • Current-pay criteria updated for CDOs

      S&P has updated its current-pay criteria to provide for corporate debt held by CDO transacti...

  • • V scores published for consumer ABS

      Moody's has published a report showing how its supplemental risk measures for structured finance tra...

  • • European ...

      After running its month-end SROC figures, S&P has taken credit watch actions on 339 European...

  • • Q109 Asia Pacific rating actions analysed

      Fitch says that negative structured finance rating actions during Q109 in Asia Pacific were driven b...

  • • CMBS downgrades increase, ABS more stable

      Deteriorating performance in US and European CMBS led to significant negative rating action in the f...

  • • LBSF-guaranteed CDOs downgraded

      Moody's has downgraded or removed from review for possible downgrade its ratings of certain syntheti...

  • Real Estate

    • US CRE CDO delinquencies could exceed 15%

      Over 20 newly-delinquent assets led to an increase in US CRE CDO delinquencies to 7.8% for April 200...

  • Regulation

    • OTC reform proposal unveiled

      US Treasury Secretary Tim Geithner has released details of the Administration's proposed comprehensi...

  • • Loan mod effectiveness analysed

      Analysts at Wachovia Capital Markets examine in a new report loan modifications, borrower credit tre...

  • • Focus on interaction of market and credit risk

      The Basel Committee on Banking Supervision has issued a working paper entitled 'Findings on the inte...

  • RMBS

    • UK non-conforming RMBS deterioration continues

      Fitch says the performance of UK non-conforming RMBS continues to deteriorate, with higher loss leve...

  • • Irish RMBS delinquencies on the rise

      Irish RMBS delinquencies increased in Q109, while prepayments declined, says Moody's in its latest i...

  • Technology

    • Risk management reform to be far-reaching

      The Economist Intelligence Unit undertook a survey in March focused on enterprise risk management st...

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• Research Notes

  • Trading

    • Trading ideas: fill the tank

      Dave Klein, senior research analyst at Credit Derivatives Research, looks at an equity outperform tr...

      Marathon Oil made our list of top equity long recommendations last week, primarily on the strength o...

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