Weekly Issue Archive »

Issue 150 - September 2nd

• News Analysis

  • Operations

    • Looking up

      Recruitment prospects improve as banks return to hiring mode

      Recruitment prospects for those with structured credit and ABS expertise are beginning to improve. A...

  • Secondary markets

    • Valuation question

      Pricing still causing investor concern

      Despite improving market conditions, structured credit investors continue to report serious valuatio...

  • Operations

    • Motivation shift

      Repo-driven CLO issuance drops as banks refocus priorities

      The once-popular funding method whereby banks structured balance sheet CLOs and CDOs to repo with th...

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• News

  • Documentation

    • Solution needed for CDS triggering complexity

      TriOptima's portfolio compression cycle following the restructuring event under the ISDA sm...

  • Investors

    • European primary issuance rumours intensify

      Rumours about the imminent launch of a new publicly-distributed European...

  • Operations

    • TALF could be extended again

      ABS analysts at Wells Fargo are not surprised by the Fed's decision to extend the TALF programme&...

  • Secondary markets

    • Real money leads CLO bid

      Based on public BWIC data, structured credit analysts at JPMorgan estimate that approximately US$6bn...

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• Job Swaps

  • Alternative assets

    • Canadian DIP fund launched

      Brookfield Asset Management has established a C$1bn fund with the backing of Export Development Cana...

  • CDO

    • Swap counterparty replaced on two CDOs

      Merrill Lynch Derivative Products (MLDP) has replaced AIG Financial Products as interest rate swap c...

  • CDPCs

    • CDPC eyes increased management fee caps

      Channel Capital is set to amend its investment management agreement (IMA), operating guidelines and...

  • Clearing

    • CMA ceo appointed to CME management team

      CME Group has appointed Laurent Paulhac, an executive with more than 17 years of derivatives industr...

  • CLO Managers

    • MBIA Capital takes on another CDO

      MBIA Capital Management intends to assume the collateral management duties for Acacia CDO 6. This co...

  • • CSO rating unaffected by collateral change

      Ratings on Amura II - issuance made under Shakespeare Managed CSO Series 1, 2 and 3 &#...

  • CLOs

    • Two Swiss asset managers merge

      Alpstar Capital has replaced Mignon Genève as investment adviser to the Alpstar funds and i...

  • CMBS

    • Asset manager adds CMBS/CRE specialists

      CWCapital Asset Management (CWCAM) has made six appointmets aimed at strengthening its expe...

  • • SBS bankruptcy impact monitored

      S&P is monitoring the impact that Successor Borrower Services' (SBS) 29 July voluntary petit...

  • Distressed assets

    • Distressed credit fund launched

      Third Avenue Management has launched the Third Avenue Focused Credit Fund, which aims to capitalise...

  • • Structured credit guarantee provided

      BPCE, a bank formed through the merger of Banque Populaire and the Caisse d'Epargne groups and 72% s...

  • Investors

    • Fund hires four in credit research

      BlueMountain Capital Management has expanded its fundamental credit research team with the hire of f...

  • Operations

    • Non-primary dealers named as TALF agents

      The Federal Reserve Bank of New York has named four non-primary dealer broker-dealers as agents for...

  • Regulation

    • AIFM directive impact assessment welcomed

      AIMA has welcomed the impact assessment of the European Commission's draft directive on Alternative...

  • Structuring/Primary market

    • Law firm adds two in restructuring

      Chadbourne & Parke has named Alper Deniz as a partner in its bankruptcy and financial restru...

  • Technology

    • LBHI asset servicing mandate awarded

      Citadel Solutions has been selected by Lehman Brothers Holdings International to provide ad...

  • • Vendors form valuation partnership

      Pricing Partners and ActiveEon have formed a partnership that is aimed at improving the Pri...

  • Trading

    • French bank hires ABS trader

      Colm Corcoran joined Société Générale in late July as an ABS tra...

  • • European credit sales and trading head hired

      Jefferies has hired Jon Pliner as an md and head of European credit sales and trading, based in Lond...

  • • Asia-Pacific trading and sales team expanded

      Credit Suisse has expanded its Asia-Pacific fixed income franchise with several new credit trading a...

  • • Bank adds in credit index trading

      Mohit Gover has joined Bank of America-Merrill Lynch's credit index trading team as a director, repo...

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• News Round-up

  • • ECB pushes for CDS market improvements

      The European Central Bank's Banking Supervision Committee (BSC) has issued a report on the CDS marke...

  • • Downgrade hits restructured monoline

      Moody's has downgraded to Caa2 from Ba3 the insurance financial strength ratings of CIFG Guaranty, C...

  • ABS

    • EMEA ABS revival remains uncertain

      The performance of the consumer loan ABS sector in EMEA continued to deteriorate in Q209, says Moody...

  • • Mortgage underwriting trends stabilise

      ABS analysts at Wells Fargo Securities note that the latest Loan Officer Opinion Survey indicates a...

  • • Reserve fund depletions to hit Spanish SME ABS

      The real estate market downturn and its impact on unemployment, delinquencies and default rates mean...

  • • Deterioration in Italian leasing ABS continues

      The performance of the Italian leasing ABS sector continued to deteriorate in Q209, according to the...

  • CDO

    • US$351.6bn in CDOs suffer EODs

      S&P received notification of 369 events of default (EODs) on cashflow and hybrid mezzanine A...

  • CDS

    • CDS concentration risk remains

      Corporate single name and index CDS remained resilient in 2008 and so far in 2009 in the face of num...

  • • Materials/healthcare sectors drive Euro CDS liquidity

      Market uncertainty over the future direction of the European basic materials and healthcare sectors...

  • Clearing

    • EC given derivatives industry feedback

      ISDA, along with SIFMA and the London Investment Banking Association, has welcomed further improveme...

  • • Debut single name CDS cleared

      Eurex Credit Clear has successfully cleared a single name CDS contract. The cleared transaction had...

  • CLOs

    • Rating actions for cancelled KKR CLO notes

      Moody's has taken a number of rating actions on the KKR Financial CLO 2005-1, 2005-2 and 2006-1 tran...

  • • 112 Euro CLO tranches on review

      Fitch has placed 112 mezzanine tranches from 23 European CLO transactions on rating watch negative....

  • CMBS

    • Rare Australian CMBS rated

      S&P has assigned preliminary triple-A ratings to the two classes of Series 3 CMBS to be issu...

  • • EMEA CMBS performance deteriorates further

      The performance of CMBS and multifamily transactions in EMEA exhibited further deterioration during...

  • • US CMBS delinquencies fall

      The delinquent unpaid balance for US CMBS transactions decreased in July for the first time since Au...

  • Constant Proportion technology

    • Spread tightening positive for CPDOs

      Moody's has confirmed its ratings on five series of CPDO notes, consisting of both static and manage...

  • Emerging Markets

    • Stabilisation for Asian RMBS markets

      Moody's says that the RMBS markets in Korea, Hong Kong and Taiwan largely stabilised in the second q...

  • Indices

    • Stable collateral performance for ABX

      Markit ABX remittance reports for the August distribution date indicate that collateral performance...

  • • Sovereign risk to outperform financial risk

      Counterparty and sovereign credit risks have increased to near one-month highs as summer exuberance...

  • • Improvement continues for troubled companies index

      The Kamakura index of troubled public companies made its fifth consecutive dramatic improvement in A...

  • • Index rolls confirmed

      Markit has confirmed that the roll process for the Markit iTraxx Europe, iTraxx Asia Pacific (Series...

  • Investors

    • Euro ABS buybacks to optimise funding profiles

      Fitch says the increased numbers of European banks and other originators making tender offers to buy...

  • • Fed may not spend full agency MBS quota

      The US Federal Reserve may not purchase the full US$1.25trn of agency MBS it was authorised to do so...

  • • SCI '09 New York initial line-up announced

      The initial line up of panellists for SCI '09, the third annual Structured Credit Investor conferenc...

  • LCDS

    • ISDA to publish auction terms for SSP

      Markit iTraxx LevX market makers have voted to hold an auction for European LCDS transactions refere...

  • Legislation and litigation

    • FAS 166 prompts safe harbour concern

      The American Securitization Forum (ASF) has submitted a formal proposal to the FDIC in connection wi...

  • • Basel releases accounting recommendations

      The Basel Committee on Banking Supervision has released a set of high-level guiding principles to as...

  • Operations

    • Final AOFM submissions limited to non-deposit takers

      The Australian Office of Financial Management (AOFM) has requested proposals for the third and final...

  • • Accounts receivable securitisation launched

      Dutch staffing company Randstad has launched a standby facility with Fortis Commercial Finance that...

  • Ratings

    • Fitch to update ratings models

      Fitch says it is taking steps to mitigate operational risk exposure within the rating models that it...

  • • Granite notes placed on watch negative

      S&P has placed on credit watch negative 101 classes of notes issued by Granite Master Issuer...

  • • First Australian RMBS default recorded

      S&P has lowered its rating on the Class F notes of Seiza Augustus 2007-1 to single-D from do...

  • • RFC issued on recovery analytics tool

      S&P is requesting feedback on a potential new product to provide market participants with a...

  • • US credit card performance improves

      The charge-off rate on US credit cards dropped to 10.52% in July, marking the first month-over-month...

  • • South African securitisation performance negative

      The performance outlook for South African auto ABS, RMBS and CMBS remained negative in the first hal...

  • • European RMBS performance indicators worsen

      Performance indicators generally continue to worsen across Europe, particularly for Spanish and UK n...

  • • EMEA consumer ABS criteria updated

      Fitch has updated its criteria for rating EMEA consumer ABS transactions to incorporate forward-look...

  • RMBS

    • UK prime RMBS concerns 'overdone'

      ABS analysts at Barclays Capital have published a report that provides investors with a 'health-chec...

  • • RMBS cashflow modelling criteria updated

      Fitch has updated its cashflow modelling criteria for analysing RMBS, effective on 1 September. Fi...

  • • Steep increase in delinquencies for Irish RMBS

      Irish RMBS delinquencies experienced another steep increase, according to Moody's in its latest inde...

  • • UK RMBS delinquencies rise

      Key performance indicators for the UK prime RMBS market show that delinquencies continued increasing...

  • • Recession takes toll on NC RMBS performance

      Fitch says in a new report that the ongoing recession continues to negatively affect the performance...

  • Secondary markets

    • Fair value disclosure exposure draft issued

      The FASB has issued an exposure draft (ED) of a proposed accounting standards update intended to imp...

  • Technology

    • Enhancements made to surveillance tool

      S&P has released Version 2.18 of its ABSXchange platform (see also SCI issue 148). New enhan...

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• Research Notes

  • Ratings

    • Reconsidering ratings in a post-crisis market

      Katie Reeves, research analyst at Deutsche Bank, finds that for non-mortgage ABS in general the rati...

      One of the roadblocks to full recovery of the securitisation markets has been the need to regain con...

  • Trading

    • Trading ideas: run for the border

      Byron Douglass, senior research analyst at Credit Derivatives Research, looks at a pairs trade on El...

      El Paso's margins, accruals and implied volatility all improved with its latest earnings announcemen...

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