Securitization - Article Archive

  • Fed’s CP Facility Rolls Over Third Of Maturing Paper

    The Federal Reserve’s Commercial Paper Funding Facility this week has rolled over one-third of its 90-day paper maturing between Jan. 27 and Feb 3.

    • 30 Jan 2009
  • Option ARMS Add To Mortgage Grief

    Rising delinquencies in the $750 billion option adjustable-rate mortgage market stand to add more grief to the already devastated home loan sector.

    • 30 Jan 2009
  • Fannie Mae Enters Mortgage Modification Pact

    Fannie Mae reportedly has inked an agreement with the Neighborhood Assistance Corp. of America to work on modifying home mortgages in an effort to prevent foreclosures.

    • 30 Jan 2009
  • N.Y. AG Eyes $4 Bln In Merrill Bonuses

    New York’s attorney general reportedly may try to force Merrill Lynch staffers who shared in $4 billion in early bonuses to return the money.

    • 30 Jan 2009
  • Freddie Follows Fannie In Landlord Biz

    Freddie Mac has taken its cue from Fannie Mae and is likewise entering the landlord business.

    • 30 Jan 2009
  • Congressional Panel Proposes Sweeping Reforms

    A five-member bipartisan congressional panel has proposed reforms regarding credit rating agencies.

    • 30 Jan 2009
  • Morgan Stanley, Goldman Mull More Layoffs

    Morgan Stanley and Goldman Sachs reportedly are considering another round of layoffs.

    • 30 Jan 2009
  • Mortgage Mart Sounds Alarm On Cramdowns

    Mortgage market participants are sounding the alarm on cramdown legislation as the bill inches through Congress.

    • 30 Jan 2009
  • Mizuho Ramps MBS Trading Platform

    Mizuho Securities is starting up a platform in New York for trading mortgage-backed securities in the secondary market with a team of former UBS professionals.

    • 30 Jan 2009
  • ICG Sees Distressed Assets Watch List Grow

    Intermediate Capital Group, the London-based third-party fund manager and mezzanine and leveraged loan investor, has seen its watch list of distressed assets grow to 13% of its £3.1 billion portfolio.

    • 30 Jan 2009
  • B of E Needs Treasury OK To Print Money

    The Bank of England will require approval from Treasury to print more pounds in the event the central bank feels it will need to allocate more for its just-announced facility to buy troubled assets.

    • 30 Jan 2009
  • UBS Investment Bank Bonuses Trimmed 80%

    UBS has confirmed that it is reducing bonuses for its investment bank staff by more than 80% and that its top executives would receive theirs only in deferred shares.

    • 30 Jan 2009
  • BNP To Get More Fortis Toxic Assets

    BNP Paribas has agreed to take on more of Fortis’ toxic assets and less of its insurance unit in an effort to save the controversial deal.

    • 30 Jan 2009
  • Spain Buys €6 Bln In MBS

    The Spanish government has purchased €6 billion ($7.71 billion) of mortgage-backed assets in its latest auction to help struggling banks boost their liquidity.

    • 30 Jan 2009
  • Dexia To Slash 900 Jobs

    Dexia has announced that it will slash an estimated 900 jobs to lower costs after take a €2.3billion ($3 billion) loss in the fourth quarter.

    • 30 Jan 2009
  • Net Mortgage Lending In U.K. Soars

    Net mortgage lending in the U.K. rose dramatically in December, though gross mortgage lending continued its downward trend.

    • 30 Jan 2009
  • MBIA Preps Investor-Bound CLO (update)

    MBIA in Europe is said to be arranging its first collateralized loan obligation, which may be also a first in the monoline industry.

    • 30 Jan 2009
  • Development Strife To Hit Securitization Mart In Middle East

    The real estate securitization market in the Middle East is expected to suffer deeply over the next year as the region’s once booming development sector grinds to a halt.

    • 30 Jan 2009
  • UK RMBS mostly resilient to 30% drop in HPI, but some master trust juniors weak

    • 30 Jan 2009
  • Market Frets Tax Law As Buybacks, Amendments Mount

    Companies looking to buy back their debt at a discount or complete an amendment are facing significant taxes on the gains between the purchase price of the loan and par.

    • 30 Jan 2009
  • Missed Interest Payments Become Newest CLO Concern

    Missed interest payments by companies are becoming another thorn in the side for collateralized loan obligation managers.

    • 30 Jan 2009
  • Small BWIC Offered

    Bids wanted in competition for a $100 million portfolio closed last Tuesday.

    • 30 Jan 2009
  • BNY Mellon Opposes Lyondell DIP

    The Bank of New York Mellon was expected to file a formal objection to LyondellBasell's planned $8 billion debtor-in-possession loan, saying the new facility does not offer adequate protection for bondholders.

    • 30 Jan 2009
  • Lenders Swap Chemtura Revolver For AR Facility

    Certain lenders on Chemtura's $500 million revolver have downsized their positions pro-ratably in exchange for giving the company a new $150 million accounts receivable securitization facility.

    • 30 Jan 2009
  • Public Debt Markets Could Predict REITs' Direction--Part One of Two

    Commercial real estate, like most other asset sectors, has experienced a severe re-pricing over the past two years.

    • 30 Jan 2009
  • Ineos Downgrade Hits CLOs

    Ineos has been downgraded from B to CCC+ by Standard & Poor's, putting more pressure on collateralized loan obligations that own the credit.

    • 30 Jan 2009
  • Market Players Eye Chemical Sector

    After months of high-profile bad press for the chemical sector, including LyondellBasell Industries' bankruptcy filing and the drawn-out breakup of the Huntsman International-Hexion Specialty Chemicals merger, market players suggest many names may be undervalued.

    • 30 Jan 2009
  • MotorCity Sweetens Terms

    MotorCity and lead Deutsche Bank have sweetened the terms on an amendment to loosen leverage covenants after investors balked.

    • 30 Jan 2009
  • CLO Downgrades Could Be Coming

    Collateralized debt obligations, including collateralized loan obligations, could face significant downgrades by Moody's Investors Service, similar to the ones imposed on synthetic collateralized debt obligations earlier this month.

    • 30 Jan 2009
  • Pfizer Nabs $22.5 Bln For Acquisition

    Pfizer, the world's biggest drugmaker, has received commitments for a $22.5 billion bridge loan to help finance its $68 billion acquisition of Wyeth.

    • 30 Jan 2009
  • Landsbanki Chooses Bank of Montreal As Replacement

    High Liner Foods, a Nova Scotia-based seafood company, has removed Landsbanki Islands from its credit facility and replaced the bankrupt Icelandic bank with BMO Bank of Montreal. Kelly Nelson, cfo, said Landsbanki requested the change following the bankruptcy.

    • 30 Jan 2009
  • Foamex Misses Payment, Filing Predicted

    The grace period on Foamex International's missed loan interest payment expired Jan. 21, prompting market players to suggest a bankruptcy filing is coming.

    • 30 Jan 2009
  • Airlines Back In Investors' Good Graces

    First-lien airline debt has been steadily climbing even as airlines report large fourth quarter losses, revealing renewed investor confidence in the beaten-down industry, market players said.

    • 30 Jan 2009
  • Valassis Buyback Passes

    A JPMorgan amendment for Valassis, a Livonia, Mich.-based marketing services company, passed last Monday, allowing it to buy back up to $125 million of its debt in the secondary market.

    • 30 Jan 2009
  • Bleak Outlook For Auto Parts

    A wave of defaults is expected to hit the auto parts industry soon and market players say American Axle & Manufacturing and Visteon Corp. are among the most vulnerable companies.

    • 30 Jan 2009
  • Claire's Drops On Negative Retail Outlook

    Claire's Stores loans sank to 36-37 last Tuesday from 38-39 last Monday, reflecting a lack of faith in the retail environment's future.

    • 30 Jan 2009
  • Low collections force Oman’s Blue City Investments 1 CMBS into restructuring

    • 30 Jan 2009
  • Structured Finance News In Brief, January 30, 2009

    • 30 Jan 2009
  • Market Up In Low-Volume Trading

    The loan market found a stronger tone last week, market players said, despite the low volume of trading activity.

    • 30 Jan 2009
  • Accuride Amendment Rejected

    Investors rejected an amendment last Wednesday for Accuride Corp., which was looking to extend its loosened leverage covenants through 2010.

    • 30 Jan 2009
  • Investors Asked To Buy Four-Way Slices Of Smurfit DIP

    JPMorgan and Deutsche Bank are asking investors to buy all four tranches of Smurfit-Stone Container Co.'s debtor-in-possession loan as a strip in order to participate.

    • 30 Jan 2009
  • "We're like the Betty Ford Clinic really; if you are here nobody will know."

    --Ron D'Vari, co-founder of NewOak Capital, on the high-level hires his firm has made.

    • 30 Jan 2009
  • Amherst Taps Former Merrill Trader For Research

    Broker-dealer Amherst Securities has hired former Merrill Lynch trader Roger Ashworth as a residential mortgage-backed securities researcher as it builds out its research team.

    • 29 Jan 2009
  • U.S. To Back Student Loan Plan

    The U.S. Treasury reportedly has agreed to provide up to $60 billion as a backstop for an initiative by Citigroup and Morgan Stanley to buy existing and new student loans from banks and to issue asset-backed commercial paper to finance itself.

    • 29 Jan 2009
  • Pimco’s Gross Urges Policy Makers To Buy Assets

    Bill Gross, co-cio of Pacific Investment Management Co., says policy makers need to buy a variety of assets to stop the decline in asset price and help revive the economy.

    • 29 Jan 2009
  • Banker Pleads Guilty To MBS Fraud

    Mark Turkcan, one-time president of Missouri’s First Bank Mortgage, has pleaded guilty to a scheme that involved the buying and selling of mortgage-backed securities.

    • 29 Jan 2009
  • Morgan Stanley Level 3 Assets Climb 17%

    Morgan Stanley has reported that the volume of its level 3, hard-to-value asset, jumped 17% in its past fiscal year to $86.2 billion.

    • 29 Jan 2009
  • Ex-Mortgage Securitizer Pleads Guilty

    Steven Gordon, a former principal at mortgage securitizer Bayview Financial, has pleaded guilty to wire fraud in connection with a scheme to inflate the value of mortgage loans in order to boost his commission.

    • 29 Jan 2009
  • U.S. Commercial Paper Outstanding Plunges $98.8 Bln

    U.S. commercial paper outstanding plunged $98.8 billion in the week ended Jan. 28, more than three times the amount from the preceding week.

    • 29 Jan 2009
  • MBS, CDOs Contribute To Allstate Losses

    Slumping value of mortgage-backed securities and collateralized debt obligations reportedly contributed to Allstate’s $1.13 billion fourth-quarter loss.

    • 29 Jan 2009
  • Fed Program To Jump-Start ABS Market

    The Federal Reserve is close to launching a program aimed at jump-starting the asset-backed securities market, but observers are not sure it will be a hit with investors.

    • 29 Jan 2009
  • Broker To Double ABS/MBS Team In ’09

    Exchange-traded futures and options broker MF Global plans to double the size of its asset- and mortgage-backed securities sales team by the end of the year.

    • 29 Jan 2009
  • U.K. Mortgage Approvals Trail Buyer Inquiries

    The number of mortgage approvals in the U.K. has not been keeping up with rate of buyer inquiries over the past few months, according to building society Nationwide.

    • 29 Jan 2009
  • U.K. MBS Could Flop, Says Analyst

    A U.K. plan to revive the mortgage-backed securities market could fail because of the complexity and the yields may not attract investors, according to Harpreet Parhar, an analyst at Calyon.

    • 29 Jan 2009
  • Lloyds Sell Part Of Life Assurance Biz

    Lloyds Banking Group reportedly may consider offers for part of its life assurance business in order to shore up its balance sheet.

    • 29 Jan 2009
  • U.K. Adopts Fed-Like Purchase Plan

    The Bank of England and the U.K. government have announced an asset-purchase plan modeled after one created by the U.S. Federal Reserve.

    • 29 Jan 2009
  • Soros Backs ‘Bad Bank’ Model

    George Soros says he basically favors the currently discussed good bank/bad bank medal aimed at restoring the financial system, but with some modification.

    • 29 Jan 2009
  • Credit Raters Admit Assessment Errors

    The three top credit rating agencies have acknowledged that they made errors when assessing some of the securities that have been blamed for the current credit crisis.

    • 29 Jan 2009
  • Hefty CLO Pipeline Builds In Greece

    A sizable pipeline of collateralized loan obligations is said to be building in Greece, with three of the country’s larger banks reportedly working on deals.

    • 29 Jan 2009
  • European ABS -- A Week In Review By Markit (Jan. 22-29) (Mobile Version)

    The Markit ABX and CMBX indices continued to rally on positive news from the U.S. Existing homes sales increased by 6.5% from November to December when many were expecting a decrease.

    • 29 Jan 2009
  • S&P slashes ratings of 35 synthetic CDO tranches

    Standard and Poor’s downgraded the ratings of 35 different Asia Pacific synthetic CDO tranches this week, striking another blow to Asia’s struggling structured finance sector.

    • 29 Jan 2009
  • S&P Sheds More Staffers

    Standard & Poor’s is understood to have laid off approximately 50 people in structured finance.

    • 29 Jan 2009
  • European ABS -- A Week In Review By Markit (Jan. 22-29)

    The Markit ABX and CMBX indices continued to rally on positive news from the U.S. Existing homes sales increased by 6.5% from November to December when many were expecting a decrease.

    • 29 Jan 2009
  • MBIA Shopping Investor-Bound CLO

    MBIA is understood to be arranging an infrastructure collateralized loan obligation driven by clients of the firm looking to invest and it is expected to close in the second quarter, according to an official familiar with the matter.

    • 29 Jan 2009
  • January ABX Remittance Reports Show Continued Deterioration

    January’s ABX remittance data showed continued deterioration in collateral performance.

    • 28 Jan 2009
  • Fed To Renegotiate Mortgages

    The Federal Reserve is launching a program to renegotiate mortgages it owns in order to reduce foreclosures.

    • 28 Jan 2009
  • Wachovia Deal Sends Wells Fargo To Q4 Loss

    Wells Fargo has posted a loss of $2.55 billion in the fourth quarter as a result of the mortgage assets it assumed when it took over Wachovia.

    • 28 Jan 2009
  • Can. Pledge Aimed Get Banks To Lend

    The Canadian government has pledged to expand its insure mortgage purchase program by C$50 billion ($40.8 billion) in an effort to get banks to start lending again.

    • 28 Jan 2009
  • Jumbo, Home Equity Loans Defaults Surge

    Delinquencies on jumbo loans and home-equity loans jumped by double digits in December, making them the worst-performing loan segments.

    • 28 Jan 2009
  • Mortgage Applications Tumble 38.8%

    Mortgage applications plunged 38.8% for the week ending Jan. 23, according to the Mortgage Bankers Association.

    • 28 Jan 2009
  • House Panel OK’s Cram Down Bill

    A House of Representatives panel has approved a measure that would allow bankruptcy judges to reduce the principal balances on home loans, known as cram downs.

    • 28 Jan 2009
  • Canada Creates Securities Regulator

    Canada’s federal government has called for the creation of a new national securities regulator.

    • 28 Jan 2009
  • Regulator Raises GSE Portfolio Cap

    The Federal Housing Finance Agency has raised the volume of mortgages Fannie Mae and Freddie Mac can hold to a maximum of $850 billion through the end of the year.

    • 28 Jan 2009
  • Dalton Grows Distressed Mortgage Fund

    Dalton Investments has bucked the trend of falling fund assets and seen its Dalton Distressed Mortgage Strategy grow to $150 million since launching in late summer with $90 million, thanks to increased investor interest in distressed strategies, said Managing Partner Steve Persky.

    • 28 Jan 2009
  • Weekly Trade Round Up

    Delta Air Lines’ term loan lost one point after the carrier reported a $1.4 billion net fourth quarter loss Tuesday but the loss was dwarfed by the loan’s week-long ascent to 70 1/2-72 1/2 Monday from 68-69 and Claire’s Stores loans sank to 36-37 yesterday from 38-39 Monday, reflecting a lack of faith in the retail sector. Investors don’t expect consumer spending to rebound any time soon, one banker explained.

    • 28 Jan 2009
  • Mayer Brown Forms Asset-Based Lending Workout Group

    Mayer Brown has launched an asset-based lending workout group in response to client demand for cross-practice initiatives linking asset-based lending and securitization with restructuring and insolvency.

    • 28 Jan 2009
  • Global CLO Sector Hit By Rising Loan Defaults

    The global collateralized loan obligation sector is feeling pressure from rising levels of distress in underlying loan portfolios, according to research by Citi.

    • 28 Jan 2009
  • European Bad Bank Plan Not Problem-Free

    A plan to create a so-called bad bank to buy toxic assets from financial institutions is not without problems, according to Joaquin Almunia, the European Union’s commissioner of monetary affairs.

    • 28 Jan 2009
  • Fortis Presses Ahead With BNP Talks

    Fortis Holding has confirmed that it is in talks with the Belgian government and BNP Paribas after a court-appointed panel recommended changes to an earlier plan to split up the bank.

    • 28 Jan 2009
  • Hidden ABS Allocation Riles Standard Fund Investors

    Retail investors in Standard Life’s Sterling Fund were in for a shock to discover that their nearly half of their safe investment had money in risky asset-backed securities.

    • 28 Jan 2009
  • Aussie MBS Market Outlook Bleak

    Industry leaders don’t expect Australia’s mortgage-backed securities market to show any signs of life this year.

    • 28 Jan 2009
  • RBS Wraps £6.4 billion RMBS Deal

    Royal Bank of Scotland has closed a jumbo securitization of residential mortgages spread throughout the U.K. called Greenock Funding No.4.

    • 28 Jan 2009
  • Deutsch Bank Bonuses To Be Slashed By 75%

    Annual bonuses for European Deutsche Bank employees will be cut by at least 75%, with structured product players and senior staffers expected to receive the least.

    • 28 Jan 2009
  • Babson Preps Foray Into Third-Party Surveillance

    Babson Capital Management has begun fielding requests to perform surveillance on structured credit portfolios for other managers.

    • 27 Jan 2009
  • Treesdale Seeks CMBS PM

    New York-based asset manager Treesdale Partners is looking for a commercial mortgage-backed securities trader or portfolio manager.

    • 27 Jan 2009
  • GSE Cash Needs May Top $51 Bln

    Fannie Mae and Freddie Mac may ask the government for an additional combined $51 billion to continue operating, about $6 billion more than earlier projections.

    • 27 Jan 2009
  • Senator Says ‘Bad Bank’ A Good Thing

    The chairman of the Senate Banking Subcommittee on Securities, Insurance and Investment, says a so-called “bad bank” to hold toxic assets is a good idea.

    • 27 Jan 2009
  • Broadpoint Adds Trio To Structured Products Group

    Broadpoint Capital has added five sales professionals to its Broadpoint DESCAP’s Structured Products Group.

    • 27 Jan 2009
  • Moment Of Truth For Commercial Paper Program

    The Federal Reserve commercial paper purchase program is expected to face a moment of truth Friday when about two-thirds of the $350 million three-month debt it owns reaches maturity.

    • 27 Jan 2009
  • Smurfit Loans Settle Above Pre-Bankruptcy Levels

    Smurfit-Stone Container Co. loans gave up some of yesterday’s gains today, sliding to 65-67 from post-bankruptcy filing levels in the low 70s.

    • 27 Jan 2009
  • NewOak Launches Distressed Strategy, Adds MD

    New York-based advisory and asset-management firm NewOak Capital has launched a new distressed strategy to buy high-yield corporate and leveraged loans, while separately bringing on managing director David Bigelow from the Clinton Group.

    • 27 Jan 2009
  • Sydney FoF Boutique Marketing Paulson Funds

    Sydney-based fund-of-funds manager Ashton Funds is offering Australian investors access to three funds run by John Paulson.

    • 27 Jan 2009
  • U.K. Securitization Market Sets Record

    The U.K. securitization market had its best year in 2008, thanks to the Bank of England’s Special Liquidity Scheme.

    • 27 Jan 2009
  • EMEA Structured Finance Slows In New Markets

    Structured finance in the new markets of Europe, Middle East and Africa slowed in 2008 and will likely continue the trend this year, according to Moody’s Investors Service. In

    • 27 Jan 2009
  • ABS Team Gives Threadneedle £1 Bln Boost

    A team of asset-backed securities specialists help give Threadneedle a more than £1 billion ($1.38 billion) in assets under the management.

    • 27 Jan 2009
  • Irish Bank First To Cut Jobs

    Ulster Bank has become the first mainstream Irish bank to announce job cuts, up to 750 across its various businesses.

    • 27 Jan 2009
  • Spanish Banks Want Gov. To Buy Bad Assets

    Spanish banks reportedly want the country’s government to create a fund that will purchase distressed property assets.

    • 27 Jan 2009
  • Second-Largest CLO Borrower Hit By Downgrade

    The second-largest obligor in European collateralized loan obligations, Ineos, has suffered a multi-notch downgrade, which may hit equity holders the hardest among investors.

    • 27 Jan 2009
  • First Grecian Leasing ABS Closes

    An asset-backed securities deal backed by leasing receivables has become the first transaction of its kind to close in the Grecian market.

    • 27 Jan 2009
  • Honda Prices First Auto ABS Of ‘09

    American Honda Finance priced on Friday the $1.3 billion Honda Auto Receivables 2009-1 Owner Trust, the first U.S. auto securitization this year.

    • 26 Jan 2009