While countless Argentine issuers sank into default under the weight of the crisis, Salta Hydrocarbon Royalty stood among the few that made good on their debt during 2002. Yet recent events suggest the structure is under serious strain. Standard & Poor's yanked the trust's 2015 11.5% notes to CCC-' after the issuer dipped into reserve funds for the second time in order to make a payment. The paper is sized at US$234 million. The structure is backed by royalty payments to the province of Salta from a group of 18 companies running oil and gas concessions. According to S&P, the issuer's ability to meet payments has been crippled by withered conditions in the industry brought on by the transfer of gas prices from dollars to pesos and other disincentives to invest. Royalties could rise if gas prices recover, but that appears improbable. "A potential utility tariff adjustment and the renegotiation of existing contracts with industrial clients also remain uncertain," S&P said in a release. The transaction has an insurance policy protecting the issuer from convertibility risk.
-
The House Financial Services Committee also sent to the full House two bipartisan bills, including one that would prevent large banks from opting out of having to recognize Accumulated Other Comprehensive Income in regulatory capital.
2h ago -
The portfolio does not have any meaningful originations that have completed a full repayment cycle, making the company's performance data thin.
3h ago -
Formerly of Wells Fargo, she will coordinate several key units to create a structure for a sustained capital markets program that capitalizes on recent innovation and growth in home equity finance.
April 17 -
The Structured Finance Association questions whether funding closed-end seconds is an appropriate role for the government-sponsored enterprise, while newer lenders welcome the liquidity support.
April 17 -
The CFPB has dissolved the Office of Supervision, Enforcement and Fair Lending and eliminated the job of associate director in a move that impacts how it designates nonbanks for supervision.
April 17 -
The bank is a top auto lender, with a managed portfolio of $7.1 million through December 2023, and has a strong servicing track record.
April 17