Securitization - Article Archive

  • CDO Settlement Could Cost Goldman $621 Mln

    Goldman Sachs could shell out $621 million to settle fraud charges by the U.S. Securities and Exchange Commission over collateralized debt obligations the investment bank sold, according to Brad Hintz, an analyst with Bernstein Research.

    • 28 May 2010
  • FINRA Eyes Subprime-Related Disclosures

    The Financial Industry Regulatory Authority is looking into whether broker-dealers made misstatements or provided erroneous information about subprime mortgage-backed securities offerings.

    • 28 May 2010
  • ResCap To Return To Wholesale Mortgages

    Residential Capital is returning to the wholesale mortgage lending market two years after leaving it.

    • 28 May 2010
  • Consumer ABS Issuance Battered By European Crisis

    The European debt crisis has taken its toll on issuance of consumer asset-backed securities.

    • 28 May 2010
  • Allonhill Names Securitization Director

    Allonhill has named Kathy Ireland director of securitizations.

    • 28 May 2010
  • Lawmaker Repeats Call For GSE Reform

    Rep. Shelley Moore Capito (R-W.Va.) has repeated her call for reform of Fannie Mae and Freddie Mac.

    • 28 May 2010
  • Looming Direct Loan Program Sparks Student Loan Deals

    Fitch Ratings is seeing a steady flow of privately originated student loans securitizations ahead of the July 1 implementation date for the Direct Loan Program when student loans will begin to come directly from the U.S. Department of Education instead of private lenders under the Federal Family Education Loan (FFEL) program

    • 28 May 2010
  • Spread Volatility Settles In On CMBS Lenders

    Volatility in the bond market over the past two weeks has caused a big headache for commercial mortgage-backed securities lenders looking to price new loans.

    • 28 May 2010
  • Stanfield Cut A Path For Others To Follow

    There weren't many loan-only investors setting out on their own without institutional backing in 1998.

    • 28 May 2010
  • "They were three veterans when they set this up, it was a brave thing to do...You're a new asset class and a new guy; you're not a known entity. I think establishing themselves and growing as quickly as they did was the challenge."

    • 28 May 2010
  • EU Banks Relying Less On State Aid

    Banks in the European Union are relying less on emergency funding from their government, a sign that the banking sector is returning to normal, according to the European Commission.

    • 28 May 2010
  • Aussie Lender Doubles RMBS Offer

    Suncorp Metway, the Australian insurer and lender, says strong investor demand has prompted it to double the size of its residential mortgage-backed securities offer to A$1 billion ($847.5 million).

    • 28 May 2010
  • Swiss Re Places $150 Mln Insurance-Linked Securitization

    Swiss Re Capital Markets has structured and placed a $150 million securitization issued by Blue Fin that covers U.S. hurricane and earthquake risk.

    • 28 May 2010
  • Russian Banks Press Gov’t To Continue Emergency Funding

    Russian banks are pressing the government to continue its emergency liquidity plan or run the risk of keeping lending at current tight levels.

    • 28 May 2010
  • Aussie Mortgage Delinquencies Rise in Q1

    Delinquencies on Australian prime mortgages more than 30 days rose in the first quarter to 1.34%, up from 1.10% at the end of 2009, according to Moody’s Investors Service.

    • 28 May 2010
  • JPM Rescues Santander’s Fosse RMBS (UPDATE)

    Santander U.K. yesterday priced and closed the residential mortgage securitization Fosse 2010-2, the deal it recently shelved due to market volatility.

    • 28 May 2010
  • U.K. Non-Conforming Market Shows Life Signs

    The U.K.’s non-conforming market could make a comeback soon as investors chase higher yielding assets and sponsor banks look for cheaper funding solutions.

    • 28 May 2010
  • Italian Bank Launches First RMBS

    Italy-based Banca di Bologna has issued a €247.5 million ($306 million) residential mortgage securitization from its Felsina Funding vehicle.

    • 28 May 2010
  • JPMorgan steps in to help Fosse out of ditch

    Alliance & Leicester took advantage of the shift in market sentiment late this week to price its delayed UK RMBS, Fosse 2010-2, with the backing of a $1.5bn order from a JPMorgan affiliate.

    • 27 May 2010
  • Structured Finance - news in brief, May 28, 2010

    • 27 May 2010
  • Ambac RMBS holders fail in their bid to prevent restructuring

    Holders of $35bn of US RMBS guaranteed by Ambac have lost their bid to have the monoline insurer’s regulator-imposed restructuring overturned.

    • 27 May 2010
  • Longer Delinquencies Fall For Third Month In A Row

    Delinquencies of 60 days or more fell for the third straight month on bonds on the ABX.HE index, according to the latest remittance reports.

    • 27 May 2010
  • Calpine Pricing To Flex On Soft Demand

    Calpine is set to increase pricing on its $1.4 billion financing by 25-50 basis points after drawing lukewarm interest from institutional investors who are weighing the deal against the company’s debt in the secondary market.

    • 27 May 2010
  • Lehman Charges JPM With Hastening Bankruptcy

    Lehman Brothers Holdings together with a group of unsecured creditors has filed a $5 billion suit against JPMorgan Chase, charging that the investment bank engaged in actions that hastened Lehman’s descent into bankruptcy.

    • 27 May 2010
  • Equifax Introduces MBS Data Service

    Equifax has introduced Equifax ABS Credit Risk Insight Direct, a service that it says statistically matches more than 90% of an investor’s mortgage loan data to anonymous borrower credit information.

    • 27 May 2010
  • Court OK’s Lehman’s Plan To Restructure REIT Loans

    U.S. Bankruptcy Judge James Peck of Manhattan has approved a plan by Lehman Commercial Paper to restructure loans it provided to Archstone-Smith Trust, a real estate investment trust.

    • 27 May 2010
  • Moody’s Cuts Ratings On 75% Of Jumbo RMBS

    Moody’s Investors Service has downgraded more than 75% of some $9.4 billion of residential mortgage-backed securities backed by jumbo loans.

    • 27 May 2010
  • Another $2.03 Bln In CDOs Downgraded

    Standard & Poor’s has downgraded another $.203 billion of collateralized debt obligations, all of it from five mezzanine structured-finance CDOs of asset-backed securities.

    • 27 May 2010
  • First Capital Scopes Out ABL Securitization Deals

    First Capital expects to issue at least one securitization of asset-based loans within the next quarter, and has two more similar deals in the works, said John Kiefer, ceo.

    • 27 May 2010
  • Basel Liquidity Ratios May Change

    The Basel Committee on Banking Supervision may revise its proposed liquidity ratios and acceptable-capital requirements after the banking industry complained they were too tough.

    • 27 May 2010
  • Spain Eyes Quicker Fix For Banks

    The Bank of Spain has proposed a requirement that banks’ recognize losses on bad loans at a quicker pace than they have to accelerate the cleanup of financial institutions with toxic debt.

    • 27 May 2010
  • Spanish Bank ECB Borrowing At 18-Month High

    Spanish lenders borrowed €89.4 billion ($100 billion) from the European Central Bank in April, the most since November 2008, according to the Bank of Spain.

    • 27 May 2010
  • U.K., France Oppose EU Bank Levy Proposal

    The U.K. and France have come out against a European Union proposal to impose a levy that would generate funds for a program to ensure against future bank failures.

    • 27 May 2010
  • Lenders Make Bank Borrowing Tougher

    Lenders are imposing tougher borrowing standards on European banks over sovereign-debt concerns and as investors have become queasier about credit risk.

    • 27 May 2010
  • BarCap Structures Credit Card ABS, Targets U.S. Buy-side

    Barclays Capital is structuring an asset-backed securitization of U.K. credit card receivables from its Gracechurch Programme Funding vehicle.

    • 27 May 2010
  • Credit Suisse Keeps Crowns; B of A, Barclays Leverage New Heft

    Credit Suisse maintained its place atop the secondary loan trading market, winning all three titles in Total Securitization & Credit Investment’s 13th Annual Best Trading Desk Survey.

    • 27 May 2010
  • Suncorp drives RMBS tighter as government backs longer tenors

    The Australian Office of Financial Management’s participation in a tightly-priced A$500m ($414m) mortgage securitisation for Suncorp Bank signals a turning point in the recovery of Australia’s RMBS market, bankers said this week.

    • 26 May 2010
  • Investec eyes ABS return after Impala thrills

    Investec Bank (Australia) is planning to become a repeat issuer in the securitisation market after pricing a A$240.7m ($200m) debut asset backed securitisation last week. Impala Trust Series 2010-1 is a securitisation of medical receivables issued by Investec Experian.

    • 26 May 2010
  • Recent Ruling Strengthens FDIC’s Position In Failed Bank Deals

    A legal dispute involving an asset-backed commercial paper’s trust property could extend the process for reclaiming assets from a failed bank once it has entered into receivership with the Federal Deposit Insurance Corp.

    • 26 May 2010
  • Reg AB II May Kill Resecuritization

    Resecuritization is one area that will likely take a big hit when the proposed changes to Regulation AB come into effect.

    • 26 May 2010
  • Investors Get Break On Discovery Bond Covenants

    Discovery Communications, the parent of Discover Channel, TLC and Animal Planet, has outfitted its multi-billion senior unsecured bond issue with modest carve-outs and broad coverage.

    • 26 May 2010
  • Senate OKs Foreclosure Prevention Program

    The Senate has approved a program that will receive $3 billion from the Troubled Asset Relief Program to help unemployed homeowners avoid foreclosure.

    • 26 May 2010
  • FHFA Says GSE Losses Will Keep Mounting

    The acting director of the Federal Housing Finance Agency said losses at Fannie Mae and Freddie Mac will continue to mount as housing prices keep falling.

    • 26 May 2010
  • Ambac RMBS Holders Lose Bid To Stop Wind-Down

    A Wisconsin judge has rejected a motion by Ambac Financial Group clients to halt a state-planned wind-down of the bond insurer.

    • 26 May 2010
  • Freddie Mac Names Multifamily Head

    Freddie Mac has appointed Mike McRoberts as v.p. of multifamily production and sales.

    • 26 May 2010
  • Euro Debt Woes Ice Two More Pipelined Auto ABS

    Europe’s sovereign debt crisis has delayed two more auto asset-backed deals being originated by Renault and PSA Peugeot and arranged through Société Générale, according to market sources.

    • 26 May 2010
  • B of E Poised To Regain Greater Authority

    Queen Elizabeth has revealed plans for financial reform in the U.K. that include restoring to the Bank of England greater oversight powers.

    • 26 May 2010
  • U.K. Mortgage Deals Plunges 88% Since 2007

    The number of mortgage deals available to U.K. consumers has plunged 88% since 2007, according to Moneysupermarket.com.

    • 26 May 2010
  • B of E Details New Collateral Rules

    The Bank of England has issued detailed rules for a new framework that would facilitate the user of a wider range of collateral in times of stress.

    • 26 May 2010
  • Swedish Mortgage Debt Rate Spikes In Q1

    Swedish household mortgage debt rose by annualized rate of 8% in the first quarter of the year, one of the highest rate increases in the world, according to Statens bostadskreditnämnd, the country’s Housing Credit Guarantee Board.

    • 26 May 2010
  • JPM Rescues Santander’s $1.5 Bln Fosse RMBS

    JPMorgan has bought the $1.5 billion class A of the Fosse 2010-2 U.K. residential mortgage securitization, the deal Santander U.K. recently shelved due to market volatility.

    • 26 May 2010
  • JPM steps in to bring Fosse out from the shadows

    Alliance & Leicester’s new RMBS, Fosse 2010-2, has emerged from limbo with JPMorgan as an anchor investor.

    • 25 May 2010
  • Hudson Hotel Loan Hits Special Servicing

    The $217 million senior mortgage backing the Hudson Hotel on Manhattan’s West Side has been transferred to special servicer CW Capital due to an imminent maturity default, according to Fitch Ratings.

    • 25 May 2010
  • Delinquent-Loan Securitizations On The Rise

    Investor demand for higher yields is expected to increase the number of securitizations of non-performing loans by the end of next month, according to John Daurio, ceo of Kondaur Capital, a distressed loan buyer.

    • 25 May 2010
  • Fitch Takes Actions On 10-Year-Old CDOs

    Fitch Ratings has taken actions on 14 tranches of five structured finance collateralized debt obligations that closed in 1999 and 2000.

    • 25 May 2010
  • FHFA Announces New Mortgage Data Program

    The Federal Housing Finance Agency has announced the launch of its Uniform Mortgage Data Program, which will help Fannie Mae and Freddie Mac improve the consistency and quality of data for appraisals ad other loan information.

    • 25 May 2010
  • Bank-Held Commercial Mortgage Defaults At 18-Year High

    The default rate on commercial mortgages held by banks hit 4.17% in the first quarter, the highest level since 1992, according to Real Capital Analytics.

    • 25 May 2010
  • DebtX Offerings $500 Mln In Loans

    DebtX, the loan sale advisor, says it is offering $500 million of mostly commercial real estate loans from three unnamed institutions.

    • 25 May 2010
  • FDIC Unloads $233 Mln In CMBS

    The Federal Deposit Insurance Corp. has sold $233 million in commercial mortgage-backed securities from 22 financial institutions for which the agency was appointed receiver.

    • 25 May 2010
  • Delinquent-Loan Securitizations On The Rise

    Investor demand for higher yields is expected to increase the number of securitizations of non-performing loans by the end of next month, according to John Daurio, ceo of Kondaur Capital, a distressed loan buyer.

    • 25 May 2010
  • Fitch Takes Actions On 10-Year-Old CDOs

    Fitch Ratings has taken actions on 14 tranches of five structured finance collateralized debt obligations that closed in 1999 and 2000.

    • 25 May 2010
  • FHFA Announces New Mortgage Data Program

    The Federal Housing Finance Agency has announced the launch of its Uniform Mortgage Data Program, which will help Fannie Mae and Freddie Mac improve the consistency and quality of data for appraisals ad other loan information.

    • 25 May 2010
  • Bank-Held Commercial Mortgage Defaults At 18-Year High

    The default rate on commercial mortgages held by banks hit 4.17% in the first quarter, the highest level since 1992, according to Real Capital Analytics.

    • 25 May 2010
  • DebtX Offerings $500 Mln In Loans

    DebtX, the loan sale advisor, says it is offering $500 million of mostly commercial real estate loans from three unnamed institutions.

    • 25 May 2010
  • FDIC Unloads $233 Mln In CMBS

    The Federal Deposit Insurance Corp. has sold $233 million in commercial mortgage-backed securities from 22 financial institutions for which the agency was appointed receiver.

    • 25 May 2010
  • Market Sweats Timing Of Calpine Deal

    Investors and bankers are keeping a close eye on the syndication Calpine’s $1.4 billion financing backing its $1.65 billion purchase of several power plants from Conectiv Energy as they watch for effects from uncertain European credit markets.

    • 25 May 2010
  • Capita Named NAMA Master Servicer

    Dublin-based Capita Asset Servicers has been appointed the master servicer for Ireland’s National Asset Management Agency, the country’s state-owned bad bank.

    • 25 May 2010
  • EU To Propose Upfront Levy On Banks

    The European Union is planning to announce Wednesday a proposal for an upfront levy on banks to provide funds to faltering banks in an effort to prevent them from destabilizing the financial system.

    • 25 May 2010
  • Australia To Buy RMBS At Tighter Levels

    The Australian Office of Financial Management says it will continue its program of buying residential mortgage-backed securities, but at tighter levels.

    • 25 May 2010
  • Citi Expands European ABS Sales

    Citigroup has expanded its European asset-backed sales desk amid “encouraging signs” in the securitization market, according to John Miles, head of global securitized markets sales in London.

    • 25 May 2010
  • European CMBS Defaults Expected To Rise

    Defaults of European commercial mortgage-backed securities are expected to rise along with those on commercial mortgages as banks increasing limit lending to prime properties, according to Moody’s Investors Service.

    • 25 May 2010
  • Aussie Lender Launches A$500 Mln RMBS Offer

    Suncorp Metway has begun offering a deal involving A$500 million ($412 million) in residential mortgage-backed securities.

    • 25 May 2010
  • CESR Rules Could Sprout ABS Funds

    New European guidelines dictating how money market funds account for asset-backed securities could spark a round of ABS fund start-ups, according to European researchers.

    • 25 May 2010
  • Suncorp tempts investors with tightly structured RMBS

    Australia’s Suncorp Bank has approached investors with price guidance for a A$500m ($415m) mortgage securitisation, and hopes the conservative structure will allow it to print the tightest RMBS deal this year.

    • 25 May 2010
  • ArcLight Snags Extension On Acquisition Loan

    Lenders in $220 million B loan backing ArcLight Capital Partners’ purchase of five power and transmission assets have agreed to extend the facilities drop-dead date to next month, as seller Energy Investors Funds resolves a dispute with one of the power plant’s electricity buyers.

    • 24 May 2010
  • Covered Bond Legislation Sweetens Outlook For Sector

    The U.S. Covered Bond Act of 2010 contains two little-known provisions that could help spur the development of the domestic covered bond market.

    • 24 May 2010
  • NY Broker-Dealer Boutique Hires Salesman/Trader

    Odeon Capital has hired Alex Masri to sell and trade structured products.

    • 24 May 2010
  • GSEs Untouchable For Now

    The Obama administration appears to have put the future of Fannie Mae and Freddie Mac on the back burner for now despite the fact that the government-sponsored entities represent the single-biggest drain on taxpayers’ funds from the financial crisis.

    • 24 May 2010
  • Wells Fargo, Servicer Eye $2 Bln Loans, Assets Sale

    Wells Fargo and LNR Property, servicer of commercial mortgaged backed securities, reportedly are looking to each unload some $1 billion in distressed commercial real estate loans and assets.

    • 24 May 2010
  • Risk Retention Won’t Solve Securitization Issues: Amherst

    Focusing on improved disclosure and risk retention will not solve conflict of interest issues in the securitization process, according to Laurie Goodman, head of the mortgage-backed securities at Amherst Securities Group.

    • 24 May 2010
  • Fed Mulls Five-Year Plan For Selling MBS

    Most Federal Reserve policymakers appear to favor a plan that would sell off the central bank’s $1.2 trillion in mortgage-backed securities holdings over five years.

    • 24 May 2010
  • Allonhill Hires CMBS Expert

    Allonhill, a Denver-based review firm, has named Ross Gammill to head its new commercial mortgage due diligence group.

    • 24 May 2010
  • U.K.’s First Post-Lehman Sub-Prime Deal In The Works

    Bank of America is putting together Europe’s first residential mortgage securitization backed by non-conforming U.K. home loans since the collapse of Lehman Brothers, according to investors.

    • 24 May 2010
  • Hypo Write-Downs Send SoFFin To €4.26 Bln Loss

    Write-downs at Hypo Real Estate, the German lender, may have the German Financial Markets Stabilization Fund (SoFFIN) to a €4.26 billion ($5.3 billion) loss in 2009.

    • 24 May 2010
  • Basel Capital Proposals Flawed, Says IIF

    The Institute of International Finance says plans by the Basel Committee on Banking Supervision and the Financial Stability Board for increasing bank capital and improving liquidity have “significant design flaws.”

    • 24 May 2010
  • Exact Launches Broker-Only Lender

    Exact Mortgage Experts has launched Precise Mortgages, a broker-only lender.

    • 24 May 2010
  • U.K. Brokers Lose Access To High LTV Products

    U.K. mortgage brokers have lost some access to high loan-to-value mortgage products as a growing number of them are marketed directly to consumers.

    • 24 May 2010
  • End Of ECB Program Seen Hurting German, French CB Marts

    German and French covered bond programs could be the worst affected from the completion of the European Central Bank’s €60 billion ($74.3 billion) purchasing program.

    • 24 May 2010
  • Aussie ABS sentiment stays strong as Investec sells A$241m

    Investec securitised A$240.7m ($200m) of medical receivables last week, showing the resilience of the Australia’s asset-backed securitisation market to global market worries.

    • 24 May 2010
  • Auto ABS Losses Plunge 30%

    Delinquencies and losses on securities backed by U.S. automobile loans plunged 30% in April compared with the end of 2009, Fitch Ratings reports.

    • 21 May 2010
  • MS Role In Citi CDO Questioned

    Citigroup reportedly did not fully disclose to investors that Morgan Stanley played in a collateralized debt obligation that defaulted and eventually costs investors more than $150 million in losses.

    • 21 May 2010
  • CDO Created By Bear Is Liquidated

    A collateralized debt obligation that Bear Stearns Asset Management created has been liquidated after it defaulted on its payments.

    • 21 May 2010
  • Special Servicing For Loans In CMBS Up 10%

    The number of loans in commercial mortgage-backed securities that need special servicing rose 10% to $81.7 billion in the first quarter compared with the preceding three-month period, Fitch Ratings reports.

    • 21 May 2010
  • Lenders Buy $3.1 Bln In Mortgages From GSEs

    Mortgage lenders repurchased $3.1 billion of mortgages from Fannie Mae and Freddie Mac in the first quarter, an increase of 64% from a year ago, according to a Fannie Mae filing with the U.S. Securities and Exchange Commission.

    • 21 May 2010
  • BTIG To Expand ABS Group

    BTIG has tapped Dan Castro to as a strategist as the broker-dealer expands its fixed-income business.

    • 21 May 2010
  • DTCC’s New Payment Plan Shifts Risk, Responsibility

    Issuers and paying agents face a new world when the Deposit Trust and Clearing Corp. changes the way it processes principal and interest payments starting January 1.

    • 21 May 2010
  • Market Grapples With 17G-5 Implementation As Deadline Approaches

    Market participants continue to grapple with compliance with the Securities and Exchange Commission’s amended Rule 17g-5 as the June 2 deadline approaches.

    • 21 May 2010
  • One Year Ago

    Greg Branch, head of European asset-backed securities and collateralized debt obligation trading at Deutsche Bank, left the bank after nine years.

    • 21 May 2010
  • “We’ve seen a number of distressed exchanges in this cycle that were not material enough to improve the issuer’s capital structure.”

    —Lenny Ajzenman, senior v.p. of Moody’s Investors Service, on non-financial companies that made distressed debt exchanges to avoid bankruptcy. As the debt matures between 2010 and 2014, Moody’s sees a majority of these companies being unable to improve low credit ratings.

    • 21 May 2010
  • One-Fifth Of U.K. Property Loans In Breach, Default

    One-fifth of U.K. real estate debt is either in default or in breach of its contract terms, according to De Montfort University’s annual bank lending report.

    • 21 May 2010