Search results for

Morgan Stanley Dean Witter launched the fifth in its series of conduit securitisations of UK commercial mortgages this week, and achieved the tightest senior pricing yet for the 18 month old programme. European Loan Conduit No 5 offered £524.91m of FRNs backed by 13 loans secured on 72 properties. The average loan to value ratio is 75.7% and maximum LTV is 83%.

Igroup Limited, the UK non-conforming mortgage lender, launched a £200m securitisation this week that achieved tight spreads compared with recent issues in the sector. Lead managed by Credit Suisse First Boston, Originated Mortgage Loans 8 plc offered a £176m senior tranche rated triple-A by Fitch and Standard & Poor's. The note was priced at 40bp over one month Libor with an average life of 2.1 years and 2008 expected maturity.

HSBC Bank, the former Midland Bank, this week delivered on its promise of becoming a regular issuer of collateralised loan obligations. The bank launched two almost identical three and five year securitisations from its master trust, Clover Securitisation Ltd, which is backed by the bank's loans to investment grade UK corporates.

Robert Palache, one of the most high profile figures in the European ABS market, resigned from his post as co-head of securitisation at Nomura in London this week. The bank issued a statement which quoted Palache as saying: "I have immensely enjoyed my time at Nomura, and I would like to express my appreciation to all the talented people I have worked with.

RBS Financial Markets and Schroder Salomon Smith Barney this week began marketing the £2.026bn bond issue that will finance the sale of Welsh Water, the UK utility, to an equity-less company that will run the business in the interests of customers. The transaction will repay bridge debt that the leads have extended to Western Power Distribution (WPD), a consortium of US electricity companies that bought Welsh Water last year.

Rheinische Hypothekenbank last Friday raised Eu1.539bn with its second securitisation of multi-jurisdictional European commercial mortgages. Lead managed by Commerzbank, Europa Two Ltd is a little larger than Rheinhyp's first transaction a year ago - a Eu1.345bn issue led by Barclays Capital (books) and Commerzbank.

WR Grace is the latest asbestos-related name to take a fall due to litigation. The company announced a surge of lawsuits this year and says it will file for Chapter 11 bankruptcy protection. A total of $10 to $15 million traded between 40 and 50.

Wall Street firms, including J.P. Morgan and Salomon Smith Barney, are gearing up to recommend long single-stock vol positions on companies about to report earnings. While earnings seasons often offer opportunities for going long vol via buying straddles, calls or puts, this season should present plenty of opportunities to benefit from long vol positions given overall negative investor sentiment, said New York-based equity strategists. Worse-than-expected earnings releases from one company can send shockwaves through the entire market.

A proposed bankruptcy reform bill that has cleared both houses of the U.S. Congress contains cross-product netting provisions that are crucial for the derivatives community. "It expands the scope of assets and transactions that can take advantage of cross-product netting, and clarifies its enforceability," said Paul Saltzman, general counsel at the Bond Market Association, according to DW sister publication BondWeek. For example, though Saltzman says a strong argument could currently be made for netting out an interest-rate swap and a repurchase agreement, passage of the legislation would make netting those different products much easier.

Adam Friedman, managing director, equity derivatives marketing to corporates at Bear Stearns in New York, has taken the new position of director, equity derivatives structuring for U.S. and Latin America at Scotia Capital in New York. Friedman worked at Bear Stearns for approximately two weeks before moving over to Scotia--he had previously covered corporates at J.P. Morgan, coming from the Chase Manhattan side of the merged entity.

BMO Nesbitt Burns is planning to become a credit-derivatives market maker for clients. Credit spreads have been widening in the cash markets, spurring more interest from clients in credit derivatives as a means of gaining synthetic exposure and a means to hedge credit exposure, said David Hyma, executive managing director and head of capital markets in Toronto. Clients interested in the product include internal BMO clients, such as loan portfolio managers, asset swap portfolio managers, and collateralized debt obligation stucturers, and external clients, including corporates, financial institutions, and regional commercial banks.