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Issue 139 - June 3rd

• News Analysis

  • Distressed assets

    • Asian opportunities

      Inefficiencies of Asian distressed debt offer risk and rewards

      With more than US$2trn in supply, Asia is fast becoming the largest distressed assets market in the...

  • ABS

    • Limited mandate

      Consolidation on the cards for new entrants to ABS scene?

      The number of firms expanding into the ABS broking and advisory space shows no sign of letting up &a...

  • Trading

    • Compression catalysts

      Limited time left for negative basis opportunities?

      Current trends point to continued compression in the cash-CDS basis, suggesting that profitable trad...

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• News

  • Investors

    • SEC brings CMO fraud charge

      The SEC has charged 10 brokers with fraud for falsely marketing investments in MBS derivatives as sa...

  • Monolines

    • Monoline commutes/restructures CDS exposure

      Syncora Guarantee on 28 May successfully executed a master transaction agreement - the 200...

  • Operations

    • DTCC to establish European Warehouse subsidiary

      The DTCC has filed applications to establish a limited purpose trust company that will house the fun...

  • • FSA updates on UK stress tests

      The UK FSA has issued a report that clarifies how stress tests have been used within the UK. It has...

  • Regulation

    • IASB issues fair value exposure draft

      The IASB has published for public comment an exposure draft on its guidance on fair value measuremen...

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• Talking Point

  • ABS

    • Global ambition

      ABS community gathers in London

      The IMN-ESF Global ABS conference was held on London's Edgware Road this week - a far cry...

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• Job Swaps

  • ABS

    • Equity house targets ABS/MBS

      Rochdale Securities, an institutional equity trading firm, has established a fixed income sales and...

  • • Structured finance lawyer hired

      James Rumball has joined Ogilvy Renault as a partner in its business law group. Rumball has over 12...

  • CDO

    • Former BAIS broker alleges improper promotion of CDOs

      A FINRA arbitration claim, Case No. 09-02485, has been filed by a former Banc of America broker agai...

  • • Private equity firm hires TRUPS CDO expert

      Jim Brennan, former lead analyst for trust preferred CDOs at Moody's, has joined private equity firm...

  • CLO Managers

    • Other CDOs in DSCM's sights

      Further details have emerged about Dock Street Capital Management's (DSCM) potential assumption of c...

  • • Cohen's CDO manager rating withdrawn

      Fitch has withdrawn the CAM2 CDO asset manager rating assigned to Cohen & Company Financial...

  • CMBS

    • CMBS analyst recruited

      Mark Nichol has joined Banc of America Securities - Merrill Lynch's structured finance research team...

  • • Promotions made at CW Financial Services

      CW Financial Services (CWFS) has promoted three of its staff to management positions. David Iannaron...

  • Distressed assets

    • ABS opportunity fund aims for control rights

      Henderson Global Investors is set to launch a European ABS opportunity fund, aimed at institutional...

  • Emerging Markets

    • EFH brings sukuk fund

      European Finance House (EFH) has launched the EFH Global Sukuk Plus Fund with substantial seed capit...

  • Investors

    • Thames River Capital adds two in credit

      Thames River Capital has added two new senior fund managers, Stephen Drew and Simon Ulcickas, to its...

  • • Duo hired ahead of opportunity fund launch

      Third Avenue Management, an investment adviser to private and institutional clients, has hired Jeffr...

  • • GLC launches advisory business

      Global Leveraged Capital (GLC), a private investment and merchant banking firm, has launched GLC Adv...

  • Ratings

    • DBRS to re-enter European market

      DBRS is planning to re-enter the European market, a panellist from the rating agency confirmed at th...

  • Regulation

    • ICFR appoints director of research

      The International Centre for Financial Regulation (ICFR) has appointed Richard Reid as its director...

  • Structuring/Primary market

    • Restructuring and advisory group minted

      FBR Capital Markets, a US middle-market investment bank, is continuing its expansion with the launch...

  • Trading

    • CDS trader departs

      Nigel Brady has left BNP Paribas, where he was a credit index trader. A spokesperson for the bank co...

  • • Jefferies updates on expansion plans

      Jefferies has provided an update on the progress of its focused hiring effort to expand the firm in...

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• News Round-up

  • ABCP

    • Consumer assets are bulk of ABCP conduit holdings

      Consumer assets continue to make up most ABCP conduit holdings, according to a recent review of US a...

  • ABS

    • June TALF deals gather pace

      The 2 June TALF subscription saw loan applications worth US$11.45bn, with some new collateral includ...

  • • Credit card act unlikely to impact ABS

      The credit card reform bill that President Obama signed into law on 22 May is unlikely to have a det...

  • • North American credit card trust losses rise ...

      In the US losses on rated bankcard trusts totaled 9.4% and losses for retail cards hit 11.7% in Apri...

  • • ... while UK card trusts under increasing pressure

      Delinquency and charge-off levels reported on UK credit card trusts increased further in April 2009...

  • • Italian leasing ABS delinquencies on the rise

      The Italian leasing ABS market accounted for €18.4bn with 28 underlying receivables pools...

  • CDO

    • ... while US CDOs have 'limited' exposure

      S&P says its rated US CDO transactions have limited exposure to General Motors Corp, GMAC, V...

  • • US ...

      S&P has lowered 432 ratings from 239 US synthetic CDO transactions. Concurrently, 238 of the...

  • • ... and European synthetic CDOs impacted

      S&P has taken credit rating actions on 315 European synthetic CDO tranches. Specifically, th...

  • • ABS CDOs hit

      S&P has lowered its ratings on 70 tranches from 22 US cashflow and hybrid...

  • CDS

    • GM CDS settlement should be 'easily manageable'

      The DTCC reports that the net notional amount of CDS outstanding on GM is US$2.3bn as of 22 May, wit...

  • • CDS notionals grow

      CDS notionals rose significantly last week (by US$750bn or 2.65%, according to the DTCC), with singl...

  • • Americas CDS liquidity has reduced significantly

      Fitch Solutions says in the latest edition of its Global CDS liquidity scores commentary that liquid...

  • • Trade bodies update on transparency efforts

      ISDA's Board Oversight Committee (IBOC), the Operations Management Group (OMG), the Managed Funds As...

  • CLOs

    • 'Neutral' recommendation for double-A CLOs

      Structured credit analysts at JPMorgan have upgraded their view to 'neutral' on double-A CLOs, close...

  • • US CLO deterioration moderates slightly

      US CLO performance continued to weaken in April 2009, but the pace of deterioration appeared to mode...

  • CMBS

    • CMBS review continues

      S&P has placed on watch negative 129 tranches in 27 European CMBS transactions due to its re...

  • Distressed assets

    • CDEs likely to increase

      Fitch says that it expects an increased number of restructurings or debt exchanges in structured fin...

  • Indices

    • Troubled company index sees improvement

      The Kamakura index of troubled public companies made a second consecutive dramatic improvement in Ma...

  • Investors

    • Senior credit investor risk perceptions improve

      Fitch's European senior credit investor survey for March 2009 indicates a minor calming of investors...

  • • Rabobank tender offer results in ...

      The results of Rabobank's tender offer of Skyline 2007 mezzanine and junior notes have been released...

  • • ... while Clydesdale announces new offer

      Clydesdale Bank has announced a tender offer, which will expire on 10 June, for the Class 3A1, 3A2 a...

  • Operations

    • Two auctions settled, more announced/pending

      The Syncora CDS auction took place on 27 May, followed by one for Edscha ELCDS the next day. Meanwhi...

  • Ratings

    • GM bankruptcy already reflected in auto ABS ratings ...

      A high likelihood of a GM bankruptcy was already reflected in Moody's ratings of GM vehicle-related...

  • • Moody's introduces new format for presale reports

      Moody's has introduced a new presales report/new issue report format for EMEA ABS and RMBS, which it...

  • Real Estate

    • CRE CDOs downgraded

      S&P has lowered its ratings on 233 tranches from 32 commercial real estate (CRE) CDO transac...

  • RMBS

    • Prime borrowers under pressure

      ABS analysts at Wachovia note that prime mortgages are increasingly driving delinquency rates and th...

  • • AOFM mandates three further RMBS

      The Australian Office of Financial Management (AOFM) has selected three RMBS in its second selection...

  • • Prime RMBS 'well placed' to withstand recession ...

      Following the FSA's announcement that it is stress testing bank's capital against the impact of a 50...

  • • ... despite increase in delinquencies

      Key performance measures for UK prime RMBS indicate that delinquencies continued increasing in Q109,...

  • • Dutch NHG-backed RMBS on watch

      Fitch has placed 11 tranches from eight Dutch RMBS backed by Nationale Hypotheek Garantee (NHG) on r...

  • • Australian mortgage delinquencies decrease

      Fitch says in its latest report on the topic that Australian mortgage delinquencies have primarily d...

  • Technology

    • CDS post-trade event management tool released

      Fiserv has released the latest version of its multi-asset, post-trade processing solution &...

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• Research Notes

  • Indices

    • 'Old' indexes: the forgotten treasures?

      Citi's structured credit strategy team discuss off-the-run trade ideas

      Investors looking to take a view on a portfolio of credits are at a disadvantage in the current mark...

  • Trading

    • Trading ideas: credit therapy

      Byron Douglass, senior research analyst at Credit Derivatives Research, looks at an outright short o...

      The Chicago Purchasing Managers Index for May came in at a 'surprisingly' low 34.1. To wrap this wit...

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