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GC Asia
Securitization - Article Archive
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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.
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Total ASF Sunday: Bad Thoughts Of Ice
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Slow Start To ASF2010
The mood at the first day of ASF2010 was subdued as attendees trickled into snow-covered National Harbor, Md.
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Delinquencies Spark Prime Fears
Rising delinquencies in prime nonagency residential mortgage-backed securities have the market worried the sector could be next to fall.
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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.
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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.
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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.
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Treasury Issues First PPIP Report
The Department of the Treasury has issued its first quarterly report on its Legacy Securities Private-Public Investment Program.
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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.
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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.
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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.
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"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.
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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.
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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.
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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.
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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.
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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.
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Search Directory
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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.
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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.
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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.
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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.
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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.
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TelePacific Launches Refi
TelePacific Communications today launched a refinancing of its outstanding credit facilities.
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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.
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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.
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Allonhill Releases New Securitization Solution
Allonhill has unveiled its complete securitization solutions for issuers and underwriters of residential mortgage backed securities.
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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.
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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.
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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.
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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.
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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.
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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.
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Irish Banks Face High Loan Losses
Irish banks face potentially high loan losses, despite the creation of an agency to hold their toxic debts.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.”
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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.
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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.
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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.
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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.
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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.
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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.
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Lloyds Said To Prep Covered Bond Sales
Lloyds Banking Group reportedly is gauging investor interest in the possible sale of covered bonds.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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Deloitte, Drivers Jonas Form RE Advisory
Deloitte and Drivers Jonas have merged to form a new real estate advisory business.
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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.
