DeltaCredit Ruble Covered Bond Due in Dec.
Slated for December issuance, a mortgage covered bond from Russia’s DeltaCredit Bank is being shopped to both local and foreign investors.
Economic news
Moody’s Downgrades MBIA Insurance Corp.
Moody's has downgraded MBIA Insurance Corp. to 'Caa2' and MBIA to 'Caa1.'
Dechert: Re-Launch of China’s ABS Program A Milestone
In its July legal update, Dechert described the re-launching of China’s ABS program as a “milestone” in the development of ABS in the country. The People’s Bank of China, the China Banking Regulatory Commission (CBRC), and the Ministry of Finance announced the re-launching of China’s pilot securitization program on May 17. The securitization initiative comes at a time when […]
Proposed Regs Credit Positive for Brazil’s ABS Market
Moody’s Investors Service believes that the modifications that Brazilian regulators have proposed to the regulatory framework governing ABS are a credit positive for the country’s securitization market, according to its Weekly Credit Outlook. “It would be detrimental if these rules got watered down,” said Johann Grieneisen, senior analyst in Moody’s Sao Paulo office. Brazil’s Securities […]
LatAm Pros Get Down to Market Building
Dealmakers, issuers and investors in Latin American structured finance are often quick to point out that they’ve been spared the worst brutalities of the global financial crisis and the more recent sovereign debt anxiety in Europe, with the exception of the nonbank real estate sector in Mexico. But the region’s devotees will have to do […]
Can Brazil’s Housing Boom Spark a Nascent RMBS Market?
Brazil’s housing market boom continues to make headlines. From January 2008 through April 2012, home prices in Sao Paulo and Rio de Janeiro jumped 135% and 169%, respectively, according to the FipeZap Index, which tracks prices every month in the country’s seven biggest cities. Average home prices in Sao Paulo and Rio de Janeiro rose […]
Mortgage Lender Infonavit Looks Ahead to New Life as Investor
While participants of the 2012 SiLAS conference hosted by Euromoney Seminars and LatinFinance were happy to move on from the Mexico-centric talk of previous years, more than a few players were still buzzing about the plans by Mexican originator and recurring RMBS issuer Infonavit to eventually morph into an investor. (See graph at right for […]
Rig Lease Receivable Deals in LatAm: Are Pipelines Next?
At the 2012 SiLAS conference hosted by Euromoney Seminars and LatinFinance, a panel on rig lease receivable deals sparked hope that the architecture of this sector could be applied to other businesses. The rig lease deals that have come out of Latin America have been backed by revenues stemming from a charter agreement between Petroleos […]
Covered Bonds in LatAm: Still Waiting
In a twist on the old cliche about Brazil, it seems at times that covered bonds in Latin America are the instrument of the future, and always will be. Bolstering this view is the buzzed-about deal from Panama’s Global Bank – touted as the region’s first – which was pulled in early May, although reports […]
S&P Releases Report on Role of Credit Ratings
Standard & Poor’s today released research on the role of credit ratings in the financial system. The report stated that despite how common credit ratings are in the financial markets, they are often misunderstood. The confusion regarding what credit ratings are, and the role they play in the financial system, has “sometimes led to their misuse and prevented them from […]
Nigeria’s Skye Bank Collateralizes Remittances in a First for Africa
Nigeria’s Skye Bank has received a $150 million, five-year loan backed by remittances generated from Nigerians living abroad, according to a press release put out by the transaction’s participants. This would be the first deal in Africa collateralized by any type of electronic money flows, but it is different from transactions that securitize diversified payment […]
Fitch Appoints New Australian Head
Fitch Ratings has appointed John Miles as head of Fitch Australia effective immediately. Based in Sydney, he will be responsible for managing the rating agency’s day-to-day business operations in Australia and New Zealand. The new appointee takes over from Ben McCarthy, who was both the acting head of Australia and head of structured finance for the Asia-Pacific […]
Agreeing to Disagree
Two and a half years ago, regulators opened the door for rating agencies to offer ratings or commentary on credits even when they haven’t been hired to do so. Since then, all NRSROs can access detailed transaction data that issuers are required to post on designated issuer Web sites. The intended effect: a side market […]
Recent Aussie RMBS Harbinger of Buyer Interest
Recently National Australia Bank (NAB) had priced a $1 billion RMBS for Member Equity Bank that was sold to global investors, which include money market investors, and domestic buysiders. A media release from the bank explained that the securitization offered different securities in various currencies. The deal was split in a way that offered a U.S. […]
Panama’s Global Bank Readies LatAM’s 1st Covered Bond
Standard & Poor’s today rated a $200 million covered bond deal from Panama’s Global Bank, the first of its kind in Latin America. Rated ‘BBB-,’ the transaction is part of a $500 million program. The deal’s creditworthiness is supported by an initial overcollateralizaton of 18.5%, apart from the standard double-recourse feature of a covered bond. […]
Proposal of Ratings Rotation Troubles European Players
The latest wave of proposed European regulations on rating agencies, known as CRA3, contains a rule that has unsettled players from every corner of the financial market: enforced ratings rotation. That is, an issuer would have to periodically change the agencies that rate it or a given deal according to a set timetable. Depending on […]
ABS Part of Hogan Lovells’ Rio Office
Opportunities in the structured finance practice were among the motivators for Hogan Lovells to open an office in Rio de Janeiro, according to Emil Arca, a partner at the firm. Hogan Lovell recently announced that it was opening an office in this port city, its first in Brazil. “Opening on office in Rio is part […]
More Mezz among Brazil Banks, As Long as Investors Sign On
New regulations in Brazil are steering small and medium-sized bank originators toward building more, and bigger, mezzanine tranches into their securitizations, typically done through the receivable investment-fund (FIDC) vehicle. Players see little choice outside this route for issuers wanting to grow their portfolios, as alternative sources cannot possibly pick up the slack. But, at the […]
REO-to-Rent to the Rescue!
As securitization players seek out new collateral, their relationship with the government has lurched between friend and foe. For now at least, in the mortgage market we appear to be in a friend phase, with RMBS investors embracing the Federal Housing Finance Agency’s recent REO-to-rent initiative. Bondholders can now line up for the chance to […]
Turkish DPR Deals Solid Amid Eurozone Crisis: S&P
Steep spreads in the Eurobond market may provide incentives for Turkish banks to issue deals backed by diversified payment rights (DPRs) this year, said Standard & Poor’s in a text box accompanying a video presentation on Turkish DPRs. DPRs are related to cash flows processed by these banks. These flows come in the form of […]
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