Securitization - Article Archive

  • Global Market Crawling Back

    Securitization in the three largest markets outside of the U.S. seems to be coming back —slowly, according to Paul Burke, managing director at Citibank, and Juan De Mollein, managing director at Standard & Poor’s, during a presentation on the opening day of ASF2010.

    • 31 Jan 2010
  • Total ASF Sunday: Bad Thoughts Of Ice

    • 31 Jan 2010
  • Slow Start To ASF2010

    The mood at the first day of ASF2010 was subdued as attendees trickled into snow-covered National Harbor, Md.

    • 31 Jan 2010
  • Delinquencies Spark Prime Fears

    Rising delinquencies in prime nonagency residential mortgage-backed securities have the market worried the sector could be next to fall.

    • 29 Jan 2010
  • CLOs Looking To Spend, Nothing To Buy

    Collateralized loan obligation managers have more cash on hand as companies use bond issuance proceeds to pay down bank debt, but until new issuance picks up in the loan market that money is burning a hole in their pockets, market players said.

    • 29 Jan 2010
  • Ford Credit ABS Upped To $1.5 Bln On Demand

    Demand has driven Ford Credit Auto Lease Trust’s asset-backed securities to $1.5 billion, 50% greater than its original size.

    • 29 Jan 2010
  • BarCap Moves To Dismiss Lehman Suit

    Barclays Capital has filed a motion to dismiss a suit brought by the bankruptcy estate of Lehman Brothers over the U.K.’s firm acquisition of the fallen firm’s North American operations in September 2008.

    • 29 Jan 2010
  • Treasury Issues First PPIP Report

    The Department of the Treasury has issued its first quarterly report on its Legacy Securities Private-Public Investment Program.

    • 29 Jan 2010
  • Fed Nears Agency MBS Max

    The Federal Reserve is drawing close to its goals of buying $1.25 trillion of agency mortgage-backed securities, with an additional net purchase of $12 billion for the week ended Jan. 27.

    • 29 Jan 2010
  • U.K. Government Not Sufficiently Focused On RMBS, Report Says

    The U.K. government has placed too much emphasis on safeguarding retail deposits and senior unsecured bonds, neglecting the residential mortgage-backed securities market, according to the Council of Mortgage Lenders.

    • 29 Jan 2010
  • Negative Home Equity Presents Challenges For All Borrowers

    The latest figures to be released on the volume of Home Affordable Modification Program trial and permanent loan modifications show that through the end of November, the number of permanent modifications totals only 31,382 despite a cumulative total of 697,026 trial plans offered to borrowers in the seven months since May.

    • 29 Jan 2010
  • "What the issuer is doing to the senior noteholders is completely wrong. This is setting a dangerous precedent for other Russian deals, and European investors will think twice about buying from Russian issuers."

    --Shammi Malick, head of asset-backed securities at Brains, on Gazprombank's move to switch the currency of the Class A-1 notes in one of its securitizations from euros to rubles.

    • 29 Jan 2010
  • One Year Ago In The Credit Markets

    Smurfit-Stone Container and lead banks JPMorgan and Deutsche Bank asked investors to buy the paper packaging company’s debtor-in-possession loan in a strip, as opposed to putting in for separate tranches.

    • 29 Jan 2010
  • U.S. CDO Ruling To Send Shockwaves Through Structured Products (update)

    Monday’s ruling by a U.S. court to apply U.S. bankruptcy law to the unwinding of Lehman Brothers’ Dante collateralized debt obligation could trigger restructurings and downgrades in a raft of structured products.

    • 29 Jan 2010
  • JPM Said To Be Eyeing Global Corporate Banking Unit

    JPMorgan Chase reportedly is planning to launch a global corporate banking unit that would sell loans and offer commercial banking services to multinational companies.

    • 29 Jan 2010
  • Bankers Battling Proposed Restrictions

    International bankers attending the World Economic Forum in Davos, Switzerland, are battling, at least symbolically, proposals that would limit their institutions’ activities.

    • 29 Jan 2010
  • FSA Issues New Rules For Sale, Rent-Back Market

    The U.K.’s Financial Services Authority has issued new rules and guidance to protect consumers in the sale-and-rent back market.

    • 29 Jan 2010
  • Search Directory

    • 29 Jan 2010
  • U.S. Manager Quits Euro CDOs

    Florham Park, N.J.-based Jersey-based GSC Partners has resigned the management of two of its collateralized debt obligations, GSC European CDO III and IV.

    • 29 Jan 2010
  • BMW Leasing on lap of honour after ABS return

    Investors piled into the first publicly offered ABS of 2010 this week, making BMW Leasing’s Bavarian Sky Compartment 2 the first non-private securitisation to breach the 100bp barrier since 2008. The Eu742m deal was covered three times.

    • 29 Jan 2010
  • Dante CDO ruling sets up US/UK swap conflict

    A landmark ruling by the Lehman Brothers bankruptcy court this week has cast a shadow over the securitisation market, rendering a near-ubiquitous market practice void and threatening the ratings of thousands of deals.

    • 29 Jan 2010
  • Dollar tranche helps Lloyds draw demand for Permanent in first MBS deal of 2010

    Lloyds Banking Group, which reopened the European ABS market last September with its UK master trust RMBS Permanent 2009-1, is set to price the first mortgage backed deal of the year today (Friday). The £2.47bn equivalent issue from the same trust will also mark the first European ABS since the start of the credit crisis to carry a US dollar tranche.

    • 29 Jan 2010
  • LeasePlan to follow private placement with groundbreaking operating lease securitisation

    Further evidence of the European securitisation market’s continuing recovery emerged on Monday as Royal Bank of Scotland revealed it had privately placed Eu139.5m of triple-A notes from LeasePlan’s UK auto lease securitisation, Bumper 3. Moreover, the issuer told EuroWeek that it is preparing a groundbreaking new securitisation.

    • 29 Jan 2010
  • TelePacific Launches Refi

    TelePacific Communications today launched a refinancing of its outstanding credit facilities.

    • 28 Jan 2010
  • Cedar Fair Upsizes Loan

    Cedar Fair Entertainment has increased the size of its term loan by $200 million, bringing it to $1.2 billion and the overall size of the financing to $2.15 billion from $1.95 billion.

    • 28 Jan 2010
  • Seattle FHLB Sues Banks For $2 Bln

    The Federal Home Loan Bank of Seattle has filed suit against several major banks alleging certificates backed by mortgages were defective.

    • 28 Jan 2010
  • Allonhill Releases New Securitization Solution

    Allonhill has unveiled its complete securitization solutions for issuers and underwriters of residential mortgage backed securities.

    • 28 Jan 2010
  • Fate Of Fed MBS Purchase Plan Still Uncertain

    The Federal Open Market Committee has suggested that it is still unclear whether the Federal Reserve’s program to purchase $1.25 trillion in mortgage backed securities will continue beyond the current expiration at the end of the first quarter.

    • 28 Jan 2010
  • Debts Seen Trumping Equities In Trading Opportunities

    Debt instruments are expected to provide more trading opportunities than equities this year, according to Michael Hintze, ceo of hedge fund group CQS.

    • 28 Jan 2010
  • Carmike Trades Up On Break

    Carmike Cinemas’ $305 million term loan traded up on the break yesterday, rising more than a point after the deal was met with strong demand.

    • 28 Jan 2010
  • TALF Tally Ratchets Up With Floorplan Deals

    Two auto floorplan deals eligible as collateral under the Term Asset-Backed Securities Facility are in the market.

    • 28 Jan 2010
  • Lloyds Doubles Dollar Class Of Permanent

    Lloyds Banking Group has doubled the dollar-denominated 1A senior tranche of its latest Permanent Master Trust issuance to $1 billion, proving its popularity with U.S. investors, according to a London broker.

    • 28 Jan 2010
  • FSA Head Calls For Limits On Bank Lending

    Lord Adair Turner, chairman of the U.K.’s Financial Services Authority, has recommended the creation of a “macro-prudential body” to limit lending or borrowing at times that a dangerous bubble in the market may be building.

    • 28 Jan 2010
  • Irish Banks Face High Loan Losses

    Irish banks face potentially high loan losses, despite the creation of an agency to hold their toxic debts.

    • 28 Jan 2010
  • Aussie Gov’t To Buy Another A3.5 Bln In RMBS

    The Australian Office of Financial Management said it will buy up to A$3.4 billion ($3.06 billion) in residential mortgage-backed securities sold by five lenders.

    • 28 Jan 2010
  • Strong CMBS Recovery In EMEA Unlikely In 2010

    Moody’s Investors Services said it is unlikely that there will be a strong recovery in the Europe, Middle East and Africa commercial mortgage-backed securities market this year.

    • 28 Jan 2010
  • Gradual ECB Stimulus Phase-Out Expected

    Axel Weber, a governing council member of the European Central Bank, said the ECB will gradually phase out stimulus programs designed to boost liquidity because of expected weak economic improvement in the 16-nation euro zone.

    • 28 Jan 2010
  • European ABS – Two Weeks In Review By Markit (Jan. 15-29) (Mobile Version)

    The European cash asset-backed securities levels for the past fortnight initially rallied albeit at a slower pace than the first half of January.

    • 28 Jan 2010
  • European ABS – Two Weeks In Review By Markit (Jan. 15-29)

    The European cash asset-backed securities levels for the past fortnight initially rallied albeit at a slower pace than the first half of January.

    • 28 Jan 2010
  • AMP beats RMBS target as Australian recovery continues

    AMP Bank raised A$1bn ($902m) last Friday (January 22) as investors warmed to the first mortgage-backed securitisation to benefit from a revised government support programme.

    • 28 Jan 2010
  • Two Credit Card ABS Hit Mart

    Two credit card securitizations, one eligible as collateral under the Term Asset-Backed Securities Loan Facility and another that is not, are out in the market.

    • 27 Jan 2010
  • UBS Realigns Securities Business

    UBS has realigned its securities business unit with new appointments and a merger of its fixed income and equity sales segments.

    • 27 Jan 2010
  • B of A Signs On To Second-Lien HAMP Program

    Bank of America has become the first bank to sign on to the Department of Treasury’s Home Affordable Modification Program for second liens.

    • 27 Jan 2010
  • Fortress Fund Said To Pay Holding’s Creditors

    Fortress Investment Group reportedly is dipping into its newest private equity fund to pay creditors of one of its largest holdings.

    • 27 Jan 2010
  • Changes To Homeowners Program Mulled

    The Federal Housing Administration is said to be considering ways to boost the success rate of the government’s Hope for Homeowners Program.

    • 27 Jan 2010
  • Judge Tosses Some Lehman MBS Cases

    A federal judge in New York has dismissed claims against McGraw-Hill and Moody’s Corp. involving mortgage-backed securities sold by Lehman Brothers Holdings. U

    • 27 Jan 2010
  • CS Launches Bolthouse Farms Refi

    Credit Suisse yesterday launched syndication of a $790 million refinancing for Bolthouse Farms that includes a revolver, a first-lien term loan and a second-lien term loan.

    • 27 Jan 2010
  • Hearing Required To Harmonize U.K., U.S. Rulings In Dante CDO Case

    A special hearing will be required to harmonize conflicting U.K. and U.S. judgments on the Dante collateralized debt obligation lawsuit after this week’s U.S. court ruling.

    • 27 Jan 2010
  • Prime Australian RMBS Arrears Seen Rising

    Standard & Poor’s predicts that arrears in Australian prime residential mortgage-backed securities are likely to rise in coming months following an interest rate hike implemented in October by the Reserve Bank of Australia.

    • 27 Jan 2010
  • Restructuring Firm Launches Debt Advisory Group

    MCR, the U.K. corporate restructuring and insolvency firm, has formed a new debt advisory group to help corporate clients and their investors to come up with solutions to their funding problems.

    • 27 Jan 2010
  • Banks Needs Billions To Avoid New Crisis

    The International Monetary Fund said banks will need to raise billion in capital to avoid the pain of another financial crisis.

    • 27 Jan 2010
  • B of E Head Backs Breaking Up Big Banks

    Mervyn King, the governor of the Bank of England, said he favors separating investment banking and high-risk trading businesses from their core businesses.

    • 27 Jan 2010
  • Lloyds Releases Size, Pricing Of Latest RMBS

    Lloyds Banking Group has released price guidance and initial sizes of the four tranches of its latest Permanent Master Trust residential mortgage-backed securities issuance that will be publicly placed.

    • 27 Jan 2010
  • Permanent offers price guidance in the low 100s

    Bank of America Merrill Lynch, JP Morgan and Lloyds have released price guidance for HBOS’s £2bn equivalent RMBS Permanent Master Issuer 2010-1.

    • 27 Jan 2010
  • Warner Chilcott Considers Repricing Counter

    Warner Chilcott wasn’t able to secure approval for the proposed repricing on its $2.1 billion term loan to finance its acquisition of Procter & Gamble’s prescription drug unit.

    • 26 Jan 2010
  • Investors Divided On Secondary Prices

    Distressed debt investors are split on where they think prices will go in 2010, according to a survey conducted by Debtwire for Bingham McCutchen, FTI Consulting and Macquarie Capital.

    • 26 Jan 2010
  • FDIC Rules Require Clarity On Damages, Moody’s Says

    The Federal Deposit Insurance Corp.’s proposed safe harbor rules require more clarity on how investors will be repaid should the regulator take back assets from securitizations originated by banks it has taken over, according to Moody’s Investors Service.

    • 26 Jan 2010
  • Home Builders Group Endorses Gov’t-Backed Secondary-Market

    The National Association of Home Builders says it endorses continued government support of the secondary mortgage market.

    • 26 Jan 2010
  • S&P Unit Launches Valuations and Strategies Group

    Standard & Poor’s Fixed Income Risk Management Services has launched a new valuation and strategies group designed to provide investors with a cross-market approach to assessing risk and value in portfolios.

    • 26 Jan 2010
  • RMBS Ratings Cuts Contribute to $4.2 Bln In CDO Downgrades

    Credit deterioration and rating cuts on subprime residential mortgage-backed securities prompted Standard & Poor’s to downgrade $.2 billion in U.S. collateralized debt obligations of asset-backed securities deals.

    • 26 Jan 2010
  • Debt Investors Said To Take Over Gambling Co.

    Distressed debt investors of Gala Coral reportedly are set to take control of the gambling company after building up a large enough stake to throw out the buyout owners.

    • 26 Jan 2010
  • Ratings On Dutch RMBS Withdrawn Follow Bond Redemption

    Moody’s Investors Service today withdrew the ratings of the €400 million ($564 million) EMAC 2003-I Dutch residential mortgage-backed securities, following the full redemption of its notes last week.

    • 26 Jan 2010
  • Russian Issuer Switches Currencies Of Class A-1 Notes

    Gazprombank in February plans to switch the currency in which the senior class of its Gazprombank Mortgage Funding Two is denominated, changing from euros to rubles, a first for Europe.

    • 26 Jan 2010
  • European Securitization Market Seen Opening

    Moody’s Investors Service said there are signs the European securitization is opening up, but the threat of new regulations and their potential impact are likely to slow the return.

    • 26 Jan 2010
  • U.K. Interest In Tracker Loans Plunges, Santander Says

    Only 13% of homeowners looking for a new mortgage are planning to choose a tracker over a fixed-rate loan, according to Santander UK.

    • 26 Jan 2010
  • Europe Facing Refinancing Crisis

    Some of the largest companies in Europe are staring at a potential refinancing crisis in 2010 as debt matures and banks still are not lending, according to Alix Partners.

    • 26 Jan 2010
  • Lending Up In U.K., Down In Spain

    Gross mortgage lending in the U.K. climbed 12.5% to £10.2 billion ($16.45 billion) in December, compared with the preceding month, according to the British Bankers Association.

    • 26 Jan 2010
  • 2010’s first ABS flies high, breaks the 100bp barrier

    Investors piled into the first publicly offered ABS of 2010, BMW Leasing’s Bavarian Sky Compartment 2, covering the Eu742m deal three times.

    • 26 Jan 2010
  • California Counties Eye Bond Searches

    The Santa Barbara County Employees Retirement System, the Kern County Employees Retirement System and the Sonoma County Employees Retirement Association are looking to invest in a variety of fixed-income strategies this year.

    • 25 Jan 2010
  • Loan Bids At Six-Month High As Buyers Flood Mart

    Bids in the leveraged loan market rose after the market holiday to 90 for the first time since July as mutual funds and collateralized loan obligations continue to search for paper to buy.

    • 25 Jan 2010
  • Ex-CS Broker Handed Five-Year Sentence

    A former broker for Credit Suisse received a five-year prison sentence and slapped with a $5 million fine relating to the sale of subprime securities to corporate clients.

    • 25 Jan 2010
  • FDIC Plans To Sell $36 Bln In Bad Assets

    The Federal Deposit Insurance Corp. reportedly is developing a plans to package some $36 billion in banks toxic assets it holds to help jump-start the U.S. securitization market.

    • 25 Jan 2010
  • Final Risk-Based Capital Rules Issued

    The government has issued the final risk-based capital rules related to the Financial Accounting Standards Board's adoption of Statements of Financial Accounting Standards Nos. 166 and 167.

    • 25 Jan 2010
  • Frank Eyes End To Fannie Mae, Freddie Mac

    Rep. Barney Frank (D-Mass.) says the House Financial Services Committee, which he chairs, is going to recommend abolishing Fannie Mae and Freddie Mac and coming up with “a whole new system of housing finance.”

    • 25 Jan 2010
  • Nacos Replaces Vaccaro at Deutsche Bank

    John Nacos, a 20-year veteran of the industry, has been named global head of commercial real estate at Deutsche Bank.

    • 25 Jan 2010
  • BMW Auto ABS Three Times Oversubscribed

    BMW’s €800 million ($1.13 billion) Bavarian Sky Compartment Two auto asset-backed securities deal was oversubscribed by three times in less than four hours today, reflecting high investor demand for scarce paper.

    • 25 Jan 2010
  • Moody’s Negative On EMEA Securitization

    Moody’s Investors Service says the outlook for performance of asset-backed securities and residential mortgage-backed securities in Europe, Middle East and Africa, is negative.

    • 25 Jan 2010
  • B of E, U.S. Ink Enhanced Cooperation Pact

    The Bank of England and the U.S. Federal Deposit Insurance Corp. have signed a memorandum of understanding aimed at enhancing their cooperation when they serve as resolution authorities in resolving troubled deposit-taking financial institutions with activities in both countries.

    • 25 Jan 2010
  • Two European Banks Now Run N.Y. RE Complex

    Two European banks are now among the credits that will be running a massive New York apartment complex.

    • 25 Jan 2010
  • B&B, Northern Rock To Merge Bad Banks

    The European Union reportedly will approve plans to merge the toxic assets of Bradford & Bingley and Northern Rock into a single so-called bad bank.

    • 25 Jan 2010
  • Lloyds Said To Prep Covered Bond Sales

    Lloyds Banking Group reportedly is gauging investor interest in the possible sale of covered bonds.

    • 25 Jan 2010
  • Liberty Redeems U.K. CMBS Early

    Liberty International, sponsor of the £550 million ($888 million) Opera Finance (Lakeside) U.K. commercial mortgage-backed-securities deal, plans to redeem the notes in full this Friday.

    • 25 Jan 2010
  • AMP beats RMBS target as Australian recovery continues

    AMP Bank raised A$1bn ($902m) on Friday as investors warmed to the first mortgage-backed securitisation to benefit from the government's revised support programme.

    • 25 Jan 2010
  • LeasePlan joins auto ABS fray

    Further evidence that the European securitisation market is continuing to recover emerged on Monday as RBS revealed it had privately placed Eu139.5m of triple-A notes from LeasePlan’s UK auto lease securitisation, Bumper 3.

    • 25 Jan 2010
  • RMBS returns as Lloyds brings Permanent 2010-1

    Lloyds Banking Group, which re-opened the European ABS market last September with its UK master trust RMBS Permanent 2009-1, is marketing the first mortgage backed deal of the year with a equivalent issue from the same trust.

    • 25 Jan 2010
  • AMP beats RMBS target as Australian recovery continues

    AMP Bank raised A$1bn ($902m) on Friday as investors warmed to the first mortgage-backed securitisation to benefit from the government's revised support programme.

    • 24 Jan 2010
  • Hill To CMSA: "Don't Sweat It"

    Sen. Bob Corker (R-Tenn) says that Congress is backing off from threats to pass substantial legislation aimed at regulating the commercial real estate industry.

    • 22 Jan 2010
  • Consultant Tells Clients To Ax TCW

    Ennis, Knupp & Associates, a Chicago-based investment consultant, is recommending all clients with fixed-income assets managed by TCW terminate the manager.

    • 22 Jan 2010
  • Complex Commercial RE Pacts Spawn Lender War

    Complex financing arrangements are said to be the underlying cause for infighting among lenders with different classes of debt as commercial real estate prices continues to fall.

    • 22 Jan 2010
  • Complex Commercial RE Pacts Spawn Lender War

    Complex financing arrangements are said to be the underlying cause for infighting among lenders with different classes of debt as commercial real estate prices continues to fall.

    • 22 Jan 2010
  • IBM Mortgage Servicer Gets Fannie Mae Portfolio

    Wilshire Credit Corp., the mortgage servicer that IBM acquired last fall, reportedly will pick up a large servicing portfolio from Fannie Mae.

    • 22 Jan 2010
  • Disclosure Proposal Could Change Distressed Debt Industry

    A proposal to broaden the current rule involving disclosures investors in bankrupt companies must make could change the face of the distressed-debt industry.

    • 22 Jan 2010
  • Fed Picks Up $12 Bln Net In Agency MBS

    The Federal Reserve has picked up another $12 billion net in agency mortgage-backed securities, a drop of $2 billion from the previous week.

    • 22 Jan 2010
  • SEC Unit Has CDS, CDOS In Sights

    The U.S. Securities and Exchange Commission’s new structured products unit is launching a wide-ranging search for fraud in over-the-counter derivatives and securitized products, said Kenneth Lench, the unit chief.

    • 22 Jan 2010
  • One Year Ago

    European market officials were coming to grips with the extension risk of residential mortgage-backed securities if banks decided not to call the bonds on their call dates.

    • 22 Jan 2010
  • Lloyds Markets Year’s First Public Euro RMBS

    Lloyds Banking Group is marketing what may be the first public European residential mortgage-backed securities deal, an issuance from its Permanent Master Trust.

    • 22 Jan 2010
  • Transparency Called Essential To Revive Securitization

    Transparency is essential to restoring confidence of investors and reviving securitization, says José Manuel González-Páramo, a member of the European Central Bank’s executive board.

    • 22 Jan 2010
  • European Banks May Benefit From Proposed U.S. Rules

    European banks are seen as benefiting from a proposal by President Barack Obama to restrict proprietary trading operations of U.S. financial institutions.

    • 22 Jan 2010
  • Deloitte, Drivers Jonas Form RE Advisory

    Deloitte and Drivers Jonas have merged to form a new real estate advisory business.

    • 22 Jan 2010
  • ECB Governor Urges Overhauling Shadow Banking Regs

    Paul Tucker, deputy governor of the Bank of England, is calling on regulators to revise the rules that regulate banking activities by financial institutions outside the commercial banking system.

    • 22 Jan 2010