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Rating agencies want back-up on RMBS

Third-party mortgage servicers say rating agencies are beginning to insist there must be back-up arrangements to service mortgage-backed securitisations if the primary issuer is unable to do so.

They also believe rating agencies are getting stricter even where there are back-up agreements in place.

Crown Mortgage Management group chief executive officer Eric Stoclet says: “I think what the rating agencies are saying, given the uncertainties in the market, is we need to have a back-up plan. In particular, they are not accepting cold back-up servicing arrangements anymore. Where securitisations have a cold back-up servicing arrangement, they are threatening to downgrade the bond if it is not upgraded to at least a warm back-up servicing arrangement.”

In both hot and cold servicing agreements, the back-up servicer will step in and manage the RMBS if the primary servicer is unable to do so. But in hot servicing agreements, the back-up servicer has the benefit of having detailed performance information about the bond, before it replaces the primary servicer, from being regularly informed about the performance of the RMBS.


IMA and NAPF urge rethink of Euro bid to harmonise pension rules

The Investment Management Association and the National Association of Pension Funds are lobbying the European Commission to rethink plans to harmonise pension rules across member states and raise the number of cross-border schemes. In March, the Commission issued a “call for advice” to the European Insurance and Occupational Pensions Authority as part of a review […]

Argonaut set to split from Ignis Asset Management

Argonaut Capital Partners is set to become operationally independent from Ignis Asset Management, following in the footsteps of previous joint venture boutique Hexam which split off last year. Ignis will retain a financial interest in the European equity-focused boutique, as it did with Hexam. Currently, the business is structured as a 50/50 joint venture between […]


DWP auto-enrolment campaign is a nightmare task

Any advertising or communications agency winning the DWP account intended to promote pension auto-enrolment might think it had died and gone to heaven. If reports of a £10m 2012 budget are correct, that is pretty chunky by any standards, about as much as, say, price comparison sites Go Compare and Moneysupermarket spend on advertising. And […]


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