Sign up today and take advantage of member-only content — the kind of timely, cutting edge industry insight that only Structured Finance News can deliver.
FREE site registration entitles you to:
Exclusive Online Only Content
Structured Finance Weekly Recap and ASR Europe, our free email alerts
Industry White Papers
Expert Blogs
The adverse impact on value for KBC came to €600 million.
Babson Capital Management is ramping up global distribution with the establishment of the global business development group.
Gulf Stream Asset Management said last week that it is establishing a credit dislocation fund and a multi-strategy credit hedge fund.
Morgan Joseph & Co., a full-service investment bank, expanded the firm’s analytics and trading group.
Babson Capital Management announced a series of promotions today.
Weak economic conditions have put capital strains on trust preferred securities (TruPS) issuers, causing a rise in payment deferrals and defaults within pools of these assets, TruPS CDOs. Despite the government's promise of liquidity via the Troubled Asset Relief Program (TARP), market participants are not convinced that helping the banks will be enough to offset losses in these pools.
The ABS market suffered yet another week of frozen new issuance and paltry trading activity in the secondary market. Hopes of pricing clarity for illiquid assets were quashed when Treasury Secretary Henry Paulson made the announcement that he would not be implementing the troubled asset purchase program as previously expected. On news of the announcement, the ABX-HE-AAA 07-2 dropped to close Wednesday at 36.67, a record low for the index.
As the U.S. government continues to unveil measures aimed at preventing foreclosures and shoring up liquidity in the capital markets, industry participants have widely expressed concern over the lack of activity in the loan modification space. Services have been handed the job, but with limitations in the pooling and servicing agreements and REMIC restrictions (see cover story), they have not been able to effectively carry out these measures.
It seems the only busy sector of the structured finance market lately is litigation. With the dearth of liquidity, market participants ranging from banks and insurers to private investors and hedge funds are wrestling with deal terms and hoping on one end to benefit from a hefty payout, or to avoid one altogether on the other.
CLO market participants at the Information Management Network's 14th annual ABS East conference in Hollywood, Florida last week expressed confidence in the sector's long-term performance, despite the currently depressed spreads. With triple-A CLO spreads at 500 to 600 basis points, double-A spreads at 800 to 1,000 basis points and single-A spreads at 1,000 to 1,500 basis points, pricing has begun to factor in macroeconomic uncertainties, panelists agreed.
|
©2009 Structured Finance News and SourceMedia, Inc. All rights reserved. |
|
