Company hires and sector developments

Euro CMBS 2.0 default

Elizabeth Finance 2018 has become the second European CMBS 2.0 deal to suffer a loan EOD, after the Maroon Properties were valued at £86m - a decrease of £18.7m from the initial valuation in November 2017 – triggering an LTV covenant breach. Based on the updated valuation, the Maroon LTV is 77.7%, whereas the Maroon obligors are obliged to ensure that the LTV does not exceed 75%. The obligors have not cured the default and, accordingly, a loan EOD has occurred and is continuing. Notice has been served to the mezzanine lender, which may cure the EOD within 15 business days.

Infra lawyer poached

Bryan Cave Leighton Paisner (BCLP) has hired Dominic Gregory as partner, strengthening the firm’s global banking and infrastructure finance practices in Asia. Gregory will join BCLP’s Singapore office but his finance practice will span Asia, with a particular focus on Singapore, Hong Kong, Japan and Indonesia. He previously led Ashurt’s Tokyo office and has over 20 years’ experience as a finance lawyer and covers most forms of finance, including project finance, acquisition and leveraged finance, real estate finance, restructurings and high yield, asset finance, sovereign lending, investment grade lending and trade and structured finance.

New York counsel hired

Hunton Andrews Kurth has expanded its structured finance and securitisation practice with the addition of Serena Mentor as counsel in New York. Mentor has experience representing issuers, sponsors, underwriters, agents, trustees and servicers in connection with public and private ABS, with a special focus on mortgage and mortgage-related assets. She was previously senior capital markets counsel at Wells Fargo Bank.

SF indices published

Fitch Ratings has started tracking the performance of transactions issued in the China Interbank Bond Market by publishing RMBS and Consumer ABS indices. In addition, Fitch's auto ABS indices, which were launched in 4Q17, are now inclusive of both auto finance companies (AFC) and bank-originated transactions; AFC auto ABS accounts for 80% of total auto ABS.