Weekly Issue Archive »

Issue 197- August 18th

• News Analysis

  • CLOs

    • Structured credit boost

      BDCs could help kick-start the CLO market

      Business development companies (BDCs) could be set to become the new source of the structured credit bid. Golub Capital BDC 2010-1, a US$300m CLO (SCI passim), is the lowest cost middle-market CLO since April 2008 when the bar was set by a previous G...

  • Regulation

    • Long road ahead

      Loopholes remain in GSE reform proposals

      Amid what works and doesn't work in reforming the GSEs, one thing remains certain - the US government's firm grasp over the entities is not likely to loosen anytime soon. But whether that remains at an arm's length or not is open for debate...

  • CMBS

    • Taking control

      New structural features boost US CMBS

      A pair of new US CMBS transactions priced over the last fortnight (see also last issue). The structural innovations of one in particular - the US$788m GSMS 2010-C1 - caught the market's attention. The GSMS 2010-C1 deal, via Gold...

  • Legislation and litigation

    • Non-agency MBS alternative?

      US covered bond developments debated

      Congress is set to debate the Covered Bonds Act next month - a move that has been welcomed by investors looking for an alternative to non-agency RMBS. However, issuers appear to be less convinced about the development of a covered bond mark...

  • Advisory

    • Independent insight

      New service to address audit and corporate governance issues

      As the degree of challenge that auditors and financial institutions' audit committees are able to bring to in-house valuations of complex securities is being questioned, Green Street Capital believes it can provide the market with a solution. The adv...

  • CDO

    • Standing firm

      CLO spreads hold amid more liquidations

      The majority of recent BWICs, when they do trade, transact between one or two participants until a f...

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• News

  • CLOs

    • New breed of CLO prepped

      Fitch and Moody's have assigned expected ratings to the class A and B notes of a European arbitrage...

  • • Macro CLO hedges suggested

      The hedging of CLO risk continues to be challenging, given the absence of a specific instrument that...

  • CMBS

    • CMBS loan liquidations set to rise

      CMBS analysts at Deutsche Bank suggest that LNR's recent liquidation of a US$1bn portfolio of 270 di...

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• Talking Point

  • CDS

    • Re-thinking valuation - part 2

      In this second column in a series of articles on structured credit valuations, R2 Financial Technolo...

      Valuation and model riskWhat is the price of a security? In a formal sense, a price is the exchan...

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• The Structured Credit Interview

  • Investors

    • Delivering premium returns

      Sander Nieuwland, ceo of IMC asset management (IMCam), answers SCI's questions

      Q: How and when did IMCam become involved in structured credit? A: The asset management activity of...

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• Job Swaps

  • ABS

    • Takeover boosts SF valuations practice

      Houlihan Lokey has acquired Red Pine Advisors, a New York‐based advisory firm that special...

  • • Broker-dealer adds in ABS trading

      Eric Londa has joined Ally Financial as head ABS trader in New York, reporting to Tom Marano, chief...

  • • Portfolio manager joins distressed specialist

      Scott Burg has joined Deer Park Road as associate portfolio manager. He will report to Michael Schec...

  • • EMEA ABS head hired

      Cecile Houlot has joined Morgan Stanley as md and head of its European securitisation effort within...

  • • Americas SF head appointed

      BNP Paribas has appointed Dan Cozine as head of structured finance for the Americas. He reports loca...

  • • Boutique finds UK trading partner

      Odeon Capital Group and Hobart Capital Markets are forming a new joint venture division in London, O...

  • Advisory

    • London hire for advisory firm

      StormHarbour has hired Thierry Sciard as managing principal, based in London. He will be responsible...

  • CDO

    • Trustee adds CDO svp

      US Bank Corporate Trust Services has appointed Joseph Giordano as svp and manager of its CDO busines...

  • CDPCs

    • CDPC acquired

      AGH Acquisition Partners, which is owned by funds that are managed and controlled by EBF & A...

  • • Strategic alternatives sought for PAM

      Primus Guaranty has disclosed that during Q210 it retained Berkshire Capital Securities to advise on...

  • CDS

    • US fixed income solutions head hired

      BNP Paribas has appointed Matt Salvner as head of fixed income solutions for the Americas. He will r...

  • • AIGFP records gain on super-senior CDS

      AIG Financial Products (AIGFP) has reported unrealised market valuation gains related to its super-s...

  • • Two new global heads for Aussie bank

      HSBC Australia has appointed Chris Russell and Gavin Powell to its executive committee. As head of...

  • • Risk specialist moves

      Kinetic Partners has appointed Isabelle Tykoczinski as a member of the firm. She joins the London ri...

  • CLOs

    • Tetragon eyes buys away from CLOs

      Tetragon Financial Group, the closed-ended investment company that recently bought GreenOak Real Est...

  • • Stanfield CLO transfers completed

      The Carlyle Group says it has completed the purchase of the management contracts on US$4.2bn in CLO...

  • CMBS

    • Acquisition creates US CMBS platform

      MountainView Capital Holdings has acquired Capmark Securities and hired a fixed income team from Mad...

  • • New CRE investment banking model created

      Cantor Fitzgerald and CIM Group have formed a real estate financing business, Cantor Commercial Real...

  • • New director for CMBS advisory team

      Brookland Partners has appointed Prabjot Mann as director and senior member of its real estate inves...

  • • Broker enhances CRE finance team

      Knight Capital Group has appointed Barry Funt and Winston van Buitenen as mds in its CRE finance tea...

  • • CMBS strategist appointed

      Richard Parkus has joined Morgan Stanley as CMBS and CRE debt strategist. He is based in New York an...

  • • CRE firm finds NY president

      Peter Hennessy has joined Cassidy Turley as president of its New York tri-state region and will serv...

  • • CMBS research analyst hired

      Christian Aufsatz is joining Barclays Capital's London research team. He comes from Moody's, where h...

  • • REIT discloses role in CMBS deal

      Starwood Property Trust has announced its participation in a recently completed CMBS transaction, wh...

  • Investors

    • New funds management team announced

      BlackRock Advisors has made a number of new md-level appointments within its portfolio management te...

  • Monolines

    • FGIC Corp files for Chapter 11

      FGIC Corp has filed a voluntary petition for relief under Chapter 11 of the US Bankruptcy Code in th...

  • Real Estate

    • Broker adds US real estate head

      John Ockerbloom has joined Jefferies as md and US head of real estate investment banking. With ove...

  • Regulation

    • FDIC makes changes for Dodd-Frank

      The FDIC Board of Directors approved a new office and division that will help it carry out its respo...

  • RMBS

    • Permacap seeks new name, investment focus

      Queen's Walk Investment Ltd (QWIL) is proposing to change its name, conditional on the approval of s...

  • • Reps and warranties figure in Wells action

      A class action has commenced in the US District Court for the Northern District of California on beh...

  • • Broker names RMBS trading head

      KGS-Alpha Capital Markets has recruited Brian Bowes as head of non-agency mortgage trading, as it bu...

  • Technology

    • Firms collaborate on real estate valuations

      FNC has entered into a partnership with Integrated Asset Services (IAS) to offer FNC's servicing cli...

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• News Round-up

  • ABS

    • Subordinate ABS relative value touted

      ABS strategists at JPMorgan maintain that the best relative value in the US market can be found by "...

  • • Private SLABS market-weight recommended

      ABS analysts at Bank of America Merrill Lynch recommend a market-weight to the private student loan...

  • • J.G. Wentworth expects one more before year-end

      Specialty finance firm J.G. Wentworth intends to issue at least one more ABS transaction by the end...

  • • Emirates auto loan ABS prices tight

      Emirates NBD and Citi have closed the Y19bn Aa2 rated Emirates NBD Auto Finance (see SCI issue 193)...

  • • July credit card ABS performance positive

      A credit card performance report by Bank of America Merrill Lynch ABS analysts has found that delinq...

  • • Stable trend for global SF ratings

      Fitch says that the ratio of affirmations to downgrades in its global structured finance ratings imp...

  • • 'Seasonal effect' to hit timeshare ABS performance

      According to Fitch's latest timeshare ABS indices, US timeshare ABS delinquencies and defaults are d...

  • • German performance lifts EMEA auto ABS

      According to Moody's latest sector review, strong auto loan performance in Germany has enabled auto...

  • • Euro SF proves resilient through crisis

      S&P has published a ratings transition study which shows that over the last three years &...

  • CDO

    • Unusual liquidation decision for CDO

      BlackRock, the CDO manager for LEAFS 2002-1, has voluntarily auctioned off the transaction's underly...

  • • Trups CDO defaults continue to escalate

      According to Fitch's latest default and deferral indices for the sector, defaults on US bank Trups C...

  • • Repurchases lift CRE CDO delinquencies

      US CRE CDO delinquencies decreased slightly last month as asset repurchases slowed, according to Fit...

  • CDS

    • DTCC gets Euro repository go-ahead

      The DTCC's new European subsidiary, DTCC Derivatives Repository, has received UK FSA approval to ope...

  • • RFC issued on Indian CDS guidelines

      The Reserve Bank of India (RBI) has released for comment a draft report on the introduction of CDS i...

  • • SEF core principles draft released

      The Wholesale Market Broker's Association, Americas (WMBAA) has released for comment a draft of its...

  • • IG and HY CDS moving 'in tandem'

      Fitch expects that the new derivatives legislation for 'riskier trades' will not impact liquidity fo...

  • • Impact of CDS margining explored

      Fitch has analysed how the use of leverage by investors in credit default swap transactions R...

  • CLOs

    • Second-priority US CLO risk recommended

      The yield pick-up for second- versus first-priority CLOs is one of the most compelling opportunities...

  • • Golub sees appeal of one-stop assets

      Golub Capital is in favour of more one-stop assets, or having control over the assets from sourcing...

  • • Negative outlook for Euro SME CLOs

      Fitch has maintained its negative outlook for European SME borrowers - supported by the re...

  • • Criteria review to affect Euro SME CLOs

      S&P is conducting a review of its assumptions and methodologies used to rate securitisations...

  • CMBS

    • Innkeepers bankruptcy to set CMBS precedent

      MBS strategists at RBS have analysed the largest Innkeepers loan - the US$825.4m Innkeeper...

  • • Interest shortfalls reaching higher up CMBX

      US conduit CMBS interest shortfalls rose by 60% in the first half of this year, after nearly doublin...

  • • Backstop to Euro CMBS loan extensions?

      The special servicer for the Castlegate loan (the last remaining within the Ursus 1 CMBS) has announ...

  • • Small rise seen in US CMBS delinquencies

      The delinquency rate on loans backing US CMBS increased by 18bp in July to 7.89%, according to Moody...

  • • Singapore CMBS stays strong

      Singaporean CMBS are showing strong cashflows from their underlying properties, according to a quart...

  • • Euro CMBS remains vulnerable

      European CMBS remains vulnerable to further note losses, according to S&P. July's loan perfo...

  • • US CMBS loan pay-offs improve

      According to Trepp, 49.9% of the US CMBS loans that reached their maturity date last month paid off...

  • Insurance-linked securities

    • ILS indices launched

      Aon Benfield Securities has launched the Aon Benfield ILS Indices, which will provide a quantitative...

  • Operations

    • Survey suggests easing lending standards

      The US Federal Reserve Board has released its July 2010 Senior Loan Officer Opinion Survey on Bank L...

  • Ratings

    • Federal agencies seek ratings comments

      In a joint release, the Board of Governors of the Federal Reserve System, the FDIC, Office of the Co...

  • Regulation

    • Covered Bond Act implications weighed

      Moody's outlines in its latest ResiLandscape publication the positive and negative aspects of the US...

  • • Capital reform costs estimated

      The Financial Stability Board (FSB) and Basel Committee on Banking Supervision (BCBS) have prepared...

  • RMBS

    • Housing finance, GSE reform on the agenda

      The Obama administration's Housing Finance Reform Conference convened yesterday (17 August). Other t...

  • • GSE buyout impact on prepay speeds to lessen

      GSE buyouts are expected to remain a component of prepayment speeds going forward, but the impact on...

  • • New housing programmes to have minimal impact

      New programmes are being launched by the US Treasury and Department of Housing and Urban Development...

  • • Upsized Aussie RMBS prices

      Bank of Queensland (BOQ) has priced its Series 2010-2 REDS Trust RMBS, after the deal was upsized fr...

  • • Mortgage/Treasury basis to underperform

      The decision by the US Federal Reserve to keep constant its holdings of securities at their current...

  • • Permanent loan mods near one million mark

      HOPE NOW estimates that the mortgage industry has completed approximately 975,000 permanent loan mod...

  • • Subprime RMBS index stabilising

      Prices continue to stabilise in Fitch Solutions' Subprime RMBS Total Market Price Index, though the...

  • • Bank MBS holdings drop

      Second-quarter bank holding company (BHCs) consolidated financial statements released by the Nationa...

  • • Spanish RMBS reviewed on reporting error

      The share of written-off loans has been understated in recent investor reports for most of the trans...

  • • Mexican RMBS shows 'lacklustre' performance

      S&P says that despite diminishing borrower credit risk, it expects the Mexican RMBS market's...

  • • US prime RMBS delinquencies 'slowing'

      According to Fitch's latest performance metrics results, the slowing rate of US prime RMBS serious d...

  • • Criteria review hits 10 South African RMBS

      Fitch has placed 10 South African RMBS transactions on rating watch negative (RWN), reflecting its r...

  • • Short sales process speeding up

      ServiceLink reports that its short sale business model is resulting in dramatically reduced short sa...

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• Research Notes

  • Trading

    • Trading ideas: wind at its back

      Byron Douglass, senior research analyst at Credit Derivatives Research, looks at a negative basis tr...

      Aggressive high yield bond buying came back in fashion recently as bond inflows shot upwards and Win...

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