Weekly Issue Archive »

Issue 337 - 22nd May

  • News Analysis

    • RMBS
      • Differences of opinion

        RMBS rep and warranties scrutinised

        Year-to-date US non-agency RMBS issuance stands at US$7.7bn, with volumes forecast to reach US$20bn by year-end, well in excess of 2012's US$6.9bn total. However, the debate over required credit enhancement and representation and warranties continues...

    • Risk Management
      • SEF certainty

        CFTC clears up CDS concerns

        A perceived regulatory preference for CDS futures over swaps has caused serious consternation in the market. However, the publication of final SEF rules yesterday (16 May) has assuaged most concerns and paved the way for participants to advance. Bl...

    • CDS
      • Asian liberalisation?

        Signs of CDS gaining ground as Asian markets open up

        The OTC derivatives market in Asia continues to be fragmented and largely weighted towards FX and interest rate swaps. However, CDS remains a core constituent and there are encouraging signs that the sector is evolving. Overall CDS volume in the As...

  • Market Reports

    • RMBS
      • Freddie sale meets strong demand

        Further details have emerged on the US$1bn-plus US RMBS non-agency bid-list put out by Freddie Mac earlier this week (SCI 14 May). The collateral consisted mostly of subprime and adjustable rate prime or Alt-A loans, with all of the bonds originated...

  • News

    • Structured Finance
      • SCI Start the Week - 20 May

        A look at the major activity in structured finance over the past seven days

        Pipeline A broad range of transactions remained in the pipeline at the end of last week. These deals comprise four ABS, four RMBS and two CMBS. The ABS currently in the pipeline consists of: €800m Bavarian Sky German Auto Loans 1; US$238...

    • CLOs
      • Compelling case for CLO calls

        Equity investors in callable 2010 and 2011 CLOs should call them now and take advantage of the low current funding costs in the new issue market, suggest CLO strategists at Morgan Stanley. Many holders of legacy deals would also benefit from exercisi...

    • CMBS
      • Equitable subordination risk rises

        The risk of equitable subordination has arisen for the first time during insolvency proceedings of German CMBS borrowers. The case involves the Orange loan securitised in Talisman 6, which is sponsored by Treveria. An insolvency creditor contested...

  • Talking Point

    • CDO
      • Zombie deals: the living dead of structured credit

        Dave Jefferds, co-founder and COO of DealVector, examines how noteholder communication could help he...

        Five long years ago, the global financial crisis hit. Many deals imploded almost immediately, like ABS deals that blew through their event of default triggers. That capital was more or less destroyed. Other deals, like CLOs, were stretched but did...

  • Job Swaps

    • Structured Finance
    • CLOs
      • CLO specialist recruited

        Lawrence Berkovich has joined Mayer Brown in Charlotte as a partner in the banking and finance pract...

    • Insurance-linked securities
      • Willis taps Asia head

        Willis Capital Markets & Advisory has appointed Michael Guo as md and head of Asia. Based in...

      • REIT subsidiary spun off

        Newcastle Investment Corp has spun off its New Residential Investment Corp subsidiary. New Residenti...

  • News Round-up

    • Structured Finance
      • SSFA provision clarified

        The OCC has clarified a provision of the market risk capital rule. Specifically, it has addressed th...

      • RPI ABCP rating intact

        Moody's says that the Prime-1 rating of the ABCP issued by Royal Park Investments (RPI) is unaffecte...

    • CDS
      • Urbi credit event called

        ISDA's Americas Credit Derivatives Determinations Committee has resolved that a failure to pay credi...

      • CLO pricing tool offered

        Thetica Systems has rolled out an enhanced CLO analytics module as part of its ABS Trader Tools stru...

    • Risk Management
      • Operations tool enhanced

        Misys has released Sophis VALUE v5, which is designed to offer increased transparency for traditiona...

      • ResCap plan agreed

        Ally Financial has entered into a comprehensive plan support agreement with the Residential Capital...

      • Co-op RMBS on review

        Moody's has placed on review for downgrade the ratings of 28 tranches in eight UK RMBS sponsored by...

  • Research Notes

    • Risk Management
      • Counterparty credit risk uncovered - part two

        Terri Duhon, managing partner at B&B Structured Finance and author of 'How the Trading Floor Rea...

        As explained in the first in this series of articles (SCI 3 May), counterparty credit risk in interest rate swaps can generally be thought of as a symmetric picture of potential future exposure, a fraction of the notional of the trade and non-correla...

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