A domestic Mexican CMBS with a number of multinational companies attached, including Wall Mart, is expected out in the first quarter of next year, said a market source familiar with the matter. The planned size is Ps1 billion ($75 million), with a ten year maturity. The deal is largely backed by leases paid by companies […]
Chris Corcino has moved over to GE Capital, where he is a senior vice president in the global syndications & emerging markets group. Prior to GE Capital, Corcino worked on Latin American ABS at Deutsche Bank. He also had a stint at Standard Bank that began when the South African bank was looking to beef […]
Because of still challenging market-making conditions, Credit Suisse Group is set to either downsize or cut altogether some securitization businesses and fixed-income units. In a presentation this morning on 3Q11 results, Brady Dougan, chief executive officer at Credit Suisse, said that the bank is downsizing or exiting fixed-income areas where it cannot “meet our return hurdle.” […]
Securitization pros have had to constantly come up with new deal structures to respond to challenges posed by the ongoing financial crisis. Nowhere is this more obvious than in CMBS. After a prolonged lull in issuance after the onset of the meltdown, CMBS 2.0 emerged in late 2009. But by February 2011, deals were getting […]
The Commercial Real Estate Finance Council in Japan plans to revive CMBS by implementing new market standards. The Tokyo-based council, whose members include Deutsche Bank and Mitsubishi UFJ Trust & Banking Corp., will concentrate on improving CMBS’s disclosure, documentation and structure, said Tokio Ueyama, head of CRE at Deutsche Bank in Japan who is also co-chair of the industry […]
Reinstating trust in the ratings process is key to growing investor interest, according to buyside participants in a Tuesday panel at the ABS East conference hosted by Information Management Network. “Ratings won’t go away.” said John Kerschner, head of securitized products at Janus Capital. “We need ratings to help frame the calculus for a bond […]
The Dodd-Frank Act’s call for the creation a self-regulatory organization (SRO) or other entity to assign new ratings was mostly panned by structured-finance industry participants, but relying on existing Rule 17g-5 – the industry’s preferred alternative – may have a fatal flaw. Rule 17g-5’s amendment requiring nationally recognized statistical rating organizations (NRSROs) to freely share […]
U.S. structured finance players are exploring new frontiers. With ABS issuance volume not as robust as it once was, yield-hungry investors have turned to esoteric assets. The sector has not only broken new ground in terms of market share versus other ABS asset classes, but has also branched out into nontraditional products. Next stop: residential […]
Not too long ago, Turkey’s Sekerbank was a name with no resonance in the structured finance world. Then, in mid-summer, the bank issued a covered bond deal that broke two barriers. It was the first of its kind from Turkey and the first covered bond globally to be backed by SME loans. Some covered bond […]
The banking craze in Mexico for state and municipal debt may be dying down, and signs point to a revival in market issuance. The closing on Sept. 23 of a Ps3 billion ($221 million) bond backed by payroll taxes from the state of Chihuahua could usher in more bond deals from sub-sovereigns. “We think that […]
Moody’s Investors Service in a recent report warned of the danger posed to Hungarian covered bonds of a Sept. 19 law that allows mortgages denominated in foreign currency to be repaid in Hungarian forints. The exchange rate for the switchover represents a discount from the prevailing one. Since a chunk of cover bonds are denominated […]
In removing about 134 tranches of future flow deals from its structured finance bucket, Moody’s Investors Service will no longer apply regulatory rule 17g-5 to them, said a spokesman for the agency. The shift may help business in this emerging market asset class. “This means they have joined the position taken by Standard & Poor’s and […]
Moody’s Investors Service has modified its criteria for what counts as a structured finance instrument, the agency said today. This determines whether Moody’s attaches the (sf) suffix to a deal. Now considered structured finance are student-loan-backed bonds that are issued by a non-profit or public agency and consist of fewer than three classes of debt. […]
This is a weekly securitization news update from the staff of Asset Securitization Report sponsored by Deloitte.
ASR just launched a weekly video news update to give our readers a quick rundown of breaking news throughout the week. Capital markets reporter Tamika Cody will be bringing you the news every week. This week Redwood Trust‘s third RMBS deal is the highlight of the newscast along with the busy ABS pipeline that featured a […]
Turkey’s Garanti Bank is in discussion with the Overseas Private Investment Corp. (OPIC) over receiving straight funding or a guarantee in a deal that could potentially be a structured transaction, said two sources familiar with the process. While the talks are preliminary, both sources also said that the transaction might involve a unit of MBIA Inc as a re-insurer. […]
The International Finance Corp. (IFC) is investing $100 million into a fund that will provide coverage at the mezzanine risk level on portfolios of emerging market debt through a synthetic securitization structure. This is designed to free up capital at the originating banks that would be otherwise constrained by regulatory rules. Banks using the fund […]
Guatemala’s Banco Industrial has closed a three-tranche $160 million structured deal, an upsize from the $100 million initially proposed, according to sources close to the deal. Pricing was undisclosed. The transaction was a private placement. The floating-rate 2011-1 tranche for $50 million and fixed-rate 2011-2 tranche ($40 million) mature in 2018, while the 2011-3 fixed-rate […]
Mexican non-bank institutions known as sofols and sofoms continue to see extraordinarily high delinquencies in their RMBS deals, according to a recent report by Fitch Ratings. Deals among these originators have seen 180-day-plus delinquencies as high as 40%. The hardest hit loans are those that are denominated in the inflation index (UDIs). Fixed-rate peso loans […]
Having proven their mettle in crisis conditions, covered bonds are gaining popularity outside their traditional enclave of continental Europe. A number of emerging markets are looking into the product, and a few have recently made concrete moves. Turkey, for instance, saw its first covered bond a couple of months ago. In Latin America, players are […]
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