Four classes of notes issued by Gleacher CBO 2000-1 were downgraded by Moody's Investors Service today. The tranches affected were: the $276M Class A Floating Rate Notes due May 9, 2012 were downgaded to Baa1 from A2; the $33M Class B-1 Floating Rate Notes due May 9, 2012 were downgraded to B1 from Ba3; the $10M Class B-2 Fixed Rate Notes due May 9, 2012 were downgraded to B1 from Ba3; the $13M Class C Floating rate Notes due May 9, 2012 were downgraded to Caa3 from B1; the $21M Class D-1 Floating Rate Notes due May 9, 2012 were downgraded to Ca from Caa3; and the $5M Class D-2 Fixed Rate Notes due May 9, 2012 were downgraded to Ca from Caa3. According to Moody's, the CBO is failing the required rating distribution test by more than 2000 points and is holding a 42% concentration in assets rated Caa1 and below. Moody's also noted that the issuer is failing the minium coupon test mainly due to a 10% exposure to "step-up" securities that are currently paying 0%.
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Price growth is decelerating but still driving historic home equity gains for owners and widening the gap between the haves and have-nots in housing, ICE finds.
May 6 -
Under the capital structure the senior notes will be repaid on a pro rata basis. Otherwise, the notes in the structure will benefit from excess spread and a senior-subordinate structure.
May 6 -
Both pools have exposures to large dealers, so losses could be more pronounced if one dealer goes bankrupt, while both series have revolving periods, when noteholders will not receive any principal.
May 3 -
The Federal Reserve, Federal Deposit Insurance Corp. and Office of the Comptroller of the Currency issued a 30-page guidebook on managing affiliate risks. The report builds on formal guidance issued last year.
May 3 -
In talks with OCC officials, "it became obvious that we would not gain near-term approval given their recent experience with multifamily and CRE positions," FirstSun CEO Neal Arnold says. The companies announced other revisions to their deal, too.
May 3 -
Subordination provides credit enhancement to the notes, as well as deposits in the reserve and redemption accounts.
May 3