Securitization - Article Archive

  • Ford ABS Brushes Off Regs, Sees Tight Pricing

    Ford Motor Credit’s $1.4 billion prime auto loan securitization brushed off any concerns about new collateral disclosure rules and rating agency liability issues.

    • 30 Jul 2010
  • UBS To Re-Launch U.S. RMBS Trading

    UBS plans to re-launch its U.S. residential mortgage-backed securities trading desk by summer’s end.

    • 30 Jul 2010
  • London Sale Tagged As CMBS Health Guide

    A major West End of London property sale is being tipped as a yardstick to gauge the health of commercial mortgage securitizations backed with similar collateral.

    • 30 Jul 2010
  • “We are not trying to figure out how to get out of the expert status but just to lessen the amount of liability we would be responsible for,”

    —Rob Dobilas, president and ceo of Realpoint, on the firm’s response to industry reforms that increase raters liability on valuations assigned in new offering documents.

    • 30 Jul 2010
  • Securitized CMBS Loan Losses Set To Rise

    The number of securitized U.S. commercial mortgage loans experiencing substantial losses is expected to rise quickly as market fundamentals continue to deteriorate.

    • 30 Jul 2010
  • Citi To Pay $75 Mln To Settle Subprime Charges

    Citigroup has agreed to pay $75 million to settle charges brought by the U.S. Securities and Exchange Commission that the bank and two executives misled investors about the company’s exposure to subprime assets.

    • 30 Jul 2010
  • Cumulative CMBS Defaults Reach 9.48%

    Cumulate default rates on fixed-rate conduit U.S. commercial mortgage-backed securities hit 9.48% in June, according to Fitch Ratings.

    • 30 Jul 2010
  • Deutsche Bank Said To Arrange $350 Mln Garrison CLO

    Deutsche Bank reportedly has been tapped to arrange a $350 million collateralized loan obligation for Garrison Investment Group to refinance existing debt managed by the firm.

    • 30 Jul 2010
  • Foreclosure Starts On GSE Loans Hit Record

    Foreclosure starts on loans owned by Fannie Mae and Freddie Mac have hit an all-time high, according to Lender Processing Services.

    • 30 Jul 2010
  • No New Refinance Wave Expected

    Researchers say they don’t expect a new wave of government-sponsored refinancing, despite investors fears that a refi boom could help accelerate prepayments of securitized mortgages to levels not seen in seven years.

    • 30 Jul 2010
  • Fannie Mae Delinquency Rate Improves

    The delinquency rate for single-family mortgages repurchased by Fannie Mae dropped to 5.15% in May, the lowest level recorded so far this year.

    • 30 Jul 2010
  • Tougher Tests Would Have Failed More Banks

    Citigroup said 24 European banks would have failed the recent stress tests—more than three times the seven that actually did—had it included losses on sovereign bonds held on their books.

    • 30 Jul 2010
  • KBC Sued Over CDO

    Van de Velde, the Belgian lingerie group, has sued KBC over losses it sustained from collateralized debt obligations it bought from the Belgian bank.

    • 30 Jul 2010
  • U.K. Court Says Lehman MBS Not In Default

    A London court has ruled that a Lehman Brothers Holdings’ mortgage-backed securities deal was not in default.

    • 30 Jul 2010
  • Poland Presses To Limit Mortgage Lending In FX

    Poland’s Financial Supervision Authority is pressing banks to limit mortgage lending in foreign currencies.

    • 30 Jul 2010
  • Greek Bank Issues €1.5 Bln Covered Bond

    The National Bank of Greece has offered a second tranche in its €15 billion ($19.55 billion) Covered Bond Program.

    • 30 Jul 2010
  • StormHarbour Seeks CMBS Analyst

    StormHarbour Securities is looking to hire an analyst with two years of underwriting experience for its commercial mortgage-backed securities trading desk in New York.

    • 30 Jul 2010
  • S&P MD Moves To Manage Ireland’s Bad Debt

    Ronan Fox, London-based commercial mortgage-backed securities analyst and managing director at Standard & Poor’s, has left the firm to work for Ireland’s National Asset Management Agency.

    • 30 Jul 2010
  • UBS Appoints ABS Trading Strategist

    Michael Cox, London-based partner at financial boutique Chalkhill Partners, has left the firm to join UBS.

    • 30 Jul 2010
  • ABS market responds to ‘non-event’ stress tests with a shrug

    Securitisation market participants declared Europe’s bank stress tests a "non-event" for ABS, with little impact on secondary markets and primary markets almost closed for the summer.

    • 29 Jul 2010
  • Ford Motor Credit returns with auto ABS after SEC reprieve

    The US ABS market’s regulatory hiatus came to an end this week as Ford Motor Credit returned with the auto loan ABS it had previously pulled.

    • 29 Jul 2010
  • Precedent setting Eurosail court decision due

    A key ruling is due on Friday at the High Court in London, which will set an important precedent for the ABS market.

    • 29 Jul 2010
  • Buysiders Find Sweet Spot For CLO Equity

    Secondary collateralized loan obligations investors are spying opportunity in equity tranches.

    • 29 Jul 2010
  • UBS To Re-Launch U.S. RMBS Trading

    UBS plans to re-launch its U.S. residential mortgage-backed securities trading desk by summer’s end.

    • 29 Jul 2010
  • Zions, Deutsche Bank In Trust-Preferred CDO Swap Deal

    Zions Bancorp. and Deutsche Bank have agreed to a total-return swap and interest-rate swaps deal in which the German bank will assume all the credit risk of Zions’ $1.16 billion in trust-preferred collateralized debt obligations.

    • 29 Jul 2010
  • SIFMA Backs Covered-Bond Act

    The Securities Industry and Financial Markets Association says it supports the creation of a covered-bond market as proposed by the H.R. 5823, the U.S. Covered Bond Act of 2010.

    • 29 Jul 2010
  • HAMP Redefault Rates Being Revised

    Redefault rates on loan modifications completed by the U.S. Department of Treasury’s Home Affordable Modification Program are being revised after the figures were criticized for being too low.

    • 29 Jul 2010
  • Quick Action On Bank Tax Unlikely

    A proposed massive bank tax supported by the Obama administration but that failed to make into financial reform regulation is unlikely to be acted upon anytime soon, according to Democrat lawmakers.

    • 29 Jul 2010
  • U.S. Hearings On Basel Capital Requirements Eyed

    The lawmakers who crafted financial reform are planning hearings to determine whether capital requirements for global banks proposed by the Basel Committee on Banking Supervision are being weakened as the measures are discussed.

    • 29 Jul 2010
  • DBRS Updates Servicer Evaluation Methodology

    DBRS has updated the methodology it uses for evaluating servicers in structured finance transactions.

    • 29 Jul 2010
  • Big Banks Seen Benefiting From Stress Tests

    Recent stress tests results are benefiting Europe’s largest banks in terms of access to wholesale funding, according to Fitch Ratings.

    • 29 Jul 2010
  • FSA To Update Remuneration Code

    The U.K.’s Financial Services Authority plans to update its Remuneration Code to cover an additional 2,500 investment and financial advice firms.

    • 29 Jul 2010
  • CEBS Issues Capital-Requirements Guidelines

    The Committee of European Banking Supervisors has published implementation guidelines for capital requirements.

    • 29 Jul 2010
  • U.K. Mortgage Lending Slides In June

    U.K. mortgage approvals slid 3.7% in June to their lowest level since January, according to the Bank of England.

    • 29 Jul 2010
  • Subprimes Rebounding In U.K.

    Subprime mortgages are making a rebound in the U.K., according to Paragon Mortgages.

    • 29 Jul 2010
  • FSA Mortgage-Policy Post Remains Vacant

    The U.K.’s Financial Services Authority is without a director of mortgage policy as the consultation policy on its Mortgage Market Review gets underway.

    • 29 Jul 2010
  • Spanish Gov’t Lender Issues €14.8 Bln CLO

    Spanish government lender Instituto de Credito Oficial has structured a €14.8 billion ($19.38 billion) collateralized loan, ICO Mediacion II AyT.

    • 29 Jul 2010
  • Covered Bond Bill Passes Committee

    Covered bond legislation was unanimously approved in the markup of the House Financial Services Committee at 5:30 p.m. yesterday.

    • 29 Jul 2010
  • London Sale Tagged As CMBS Health Guide

    Details of a major West End London property sale yesterday ill be used to gauge commercial mortgage securitizations backed with similar collateral.

    • 29 Jul 2010
  • Ford ABS Brushes Off Regs, Sees Tight Pricing

    Ford Motor Credit’s prime auto loan securitization priced tighter than expected this week, tracking in a range of 2 to 10 basis points across the deal’s AAA-rated securities.

    • 28 Jul 2010
  • Judge Puts Two Goldman CDO Suits On Hold

    A New York state trial judge has put on hold two lawsuits brought against Goldman Sachs over collateralized debt obligations it sold to give plaintiff’s attorneys more time to coordinate 16 other related federal cases.

    • 28 Jul 2010
  • Deutsche Bank Said To Shut CRE Advisory

    Deutsche Bank reportedly is shutting its commercial real estate advisory group in New York.

    • 28 Jul 2010
  • Goldman, Citi To Market $788.5 Mln CMBS

    Goldman Sachs and Citigroup plan to sell a commercial mortgage-backed securities valued at nearly $788.5 million.

    • 28 Jul 2010
  • Insurance Commissioners Seek Model For CMBS Losses

    The National Association of Insurance Commissioners has issued a request for a financial model to be used to set regulatory capital for commercial mortgage-backed securities owned by U.S.-based insurers.

    • 28 Jul 2010
  • B of A Merrill To Offer $92 Mln Reverse Mortgage RMBS

    Bank of America Merrill Lynch is planning to offer $92 million in residential mortgage backed securities guaranteed by distressed reverse mortgages insured by the federal government.

    • 28 Jul 2010
  • Fitch Downgrades MS CDOs

    Fitch Ratings has downgraded 18 classes of Morgan Stanley Capital I 2005-RR, a static collateralized debt obligation that closed in 2005.

    • 28 Jul 2010
  • RBS Adds CMBS Vet To Origination Platform

    The Royal Bank of Scotland has hired Wayne Potters, a commercial real estate securities veteran, as a senior v.p. in the Americas real estate advisory division.

    • 28 Jul 2010
  • Covered Bond Market Disappointed With Basel III Addition

    The covered bond community is disappointed with the latest revisions to the Bank for International Settlement’s Basel III capital requirements, according to a market official.

    • 28 Jul 2010
  • European Buyside U.S. Sales Keeps Traders Busy

    Legacy U.S. asset and mortgage-backed securities are being sold back into the States from European investors at a faster frequency than earlier this year, keeping traders busy in the traditional summer quiet period.

    • 28 Jul 2010
  • ECB Announces Graduated Valuation Haircuts

    The European Central Bank has announced that it will introduce graduated valuation haircuts for lower-rated assets January 1.

    • 28 Jul 2010
  • Stingy U.K. Lenders Could Face Tax On Profits

    U.K. banks that use cash to award bonuses to staffers rather than to lend could face a tax on their profits, warns Vince Cable, the British business secretary.

    • 28 Jul 2010
  • Stress-Test Results Spur Lenders’ Sale Of Debt

    The release of the results of stress tests on European banks has spurred financial institutions to sell debt to respond to investor demand.

    • 28 Jul 2010
  • European Banks Tightened Lending Standards In Q2

    European banks tightened their lending standards in the second quarter, according the European Central Bank.

    • 28 Jul 2010
  • Spanish Lender Offers Record Spread On Covered Bond

    Bankinter has added €400 million ($518 million) to covered bonds it is offering at a spread of 240 basis points above the benchmark swap rate.

    • 28 Jul 2010
  • Stress Tests Seen More As Disclosure Exercise

    The recent stress tests conducted on 91 European banks were more a disclosure exercise than an assessment of how well financial institutions would weather adverse economic situations, according to Guy de Blonay, a co-manager of the Jupiter Financial Opportunities Fund.

    • 28 Jul 2010
  • Rating Agency Eyes Point-In Time Model

    Realpoint, a subsidiary of Morningstar, is discussing a new ratings model in response to Nationally Registered Statistical Rating Organizations (NRSROs) provisions in the recently passed Dodd-Frank Act.

    • 27 Jul 2010
  • GSE Reform May Be Years Off

    Reform for Fannie Mae and Freddie Mac could be years off, according to Brian Harris, a s.v.p. at Moody’s Investors Service.

    • 27 Jul 2010
  • GS Cleared To Issue Securities

    The U.S. Securities and Exchange Commission has informed Goldman Sachs that it is still qualified to issue securities despite charges of fraud, which the investment bank agreed to pay $550 million to settle.

    • 27 Jul 2010
  • Freddie Mac Delinquencies Dip To 3.96%

    The delinquency rate of single-home mortgages guaranteed by Freddie Mac dropped to 3.96% in June, down from 4.06% in May, the third consecutive month of declines after three years of increases.

    • 27 Jul 2010
  • Delinquent Unpaid CMBS Balance Soars 111%

    The delinquent unpaid balance on commercial mortgage backed securities soared 111% in the past 12 months, according to Realpoint.

    • 27 Jul 2010
  • Wyndham Completes $350 Mln Term Securitization

    Wyndham Worldwide says it has completed a term securitization involving the issuance of $350 million of investment-grade asset-backed notes.

    • 27 Jul 2010
  • More Than 900 Lenders Lose FHA Certification

    The number of lenders to lose certification form the Federal Housing Administration for originated mortgages has topped 900.

    • 27 Jul 2010
  • Industry Spars Over ASF Reg AB II Letter

    Market observers say the American Securitization Forum is catering too much to investors while drafting a comment letter on the U.S. Securities and Exchange Commission Reg AB II proposals.

    • 27 Jul 2010
  • Higher U.K. Securitization Capital Charges Spied

    The Bank of England could be given greater scope to increase capital charges for securitizations under new powers to change risk weight for deals retained in banking and trading books.

    • 27 Jul 2010
  • UBS Seeks CLO Trader

    UBS is seeking to hire a trader to head collateralized loan obligation desk in New York as part of its ongoing effort to beef up its European and U.S. securitization desks.

    • 27 Jul 2010
  • Spain Eyes Largest ABS

    A Spanish government agency that issues loans to businesses is planning the country’s largest asset-backed securitization.

    • 27 Jul 2010
  • Basel Goes Easier On Capital, Liquidity Requirements

    The Basel Committee on Banking Supervision has eased up on some of its proposed capital and liquidity rules.

    • 27 Jul 2010
  • EMEA CMBS Notes Suffer First Loss Allocations

    Commercial mortgage-backed securities notes for the Europe, Middle East and Africa region suffered their first loss allocations since the beginning of the financial crisis in the second quarter of this year, according to Moody’s Investors Service.

    • 27 Jul 2010
  • Half Of Irish Banks’ MBS Face Negative Equity

    Moody’s Investors Service has warned that more than half of the €43.6 billion ($56.38 billion) of mortgage-backed securities sold by Irish banks could face negative equity.

    • 27 Jul 2010
  • Stable Outlook For Aussie RMBS

    The outlook for Australian residential mortgage-backed securities is stable, according to Moody’s Investors Service.

    • 27 Jul 2010
  • Eurozone Mortgage Lending Accelerates

    Mortgage lending in the eurozone accelerated at its fastest pace in June since September 2008, according to the European Central Bank.

    • 27 Jul 2010
  • Fitch To Limit Unsolicited Ratings

    Fitch Ratings said that it does not expect to assign unsolicited ratings, namely, those made without backing by an issuer or arranger, on a regular basis.

    • 27 Jul 2010
  • EC Extends Portuguese, Spanish Aid Schemes

    The European Commission has approved extensions to three government aid schemes in Portugal and Spain.

    • 27 Jul 2010
  • FSA Fines Ex-Northern Rock Chief

    The Financial Services Authority has fined David Jones, former finance director at Northern Rock, £320,000 ($497,318) for misreporting mortgage arrears.

    • 27 Jul 2010
  • Ford Deal Tipped For Tight Pricing

    Investors are expecting tight pricing on Ford Motor Credit’s $1.08 billion prime auto loan securitization.

    • 26 Jul 2010
  • FDIC Sees RMBS Deal As Template

    The Federal Deposit Insurance Corporation intends its planned $500 million new residential mortgage-backed securitization to be a template for deals to qualify for its safe harbor provisions, according to FDIC spokesman David Barr.

    • 26 Jul 2010
  • FINRA Said To Probe Banks On CDO Sales

    The Financial Industry Regulatory Authority is said to be investigating the practices of several investment banks over the sale of collateralized debt obligations to institutional investors.

    • 26 Jul 2010
  • S&P Lowers More RMBS To ‘D’

    Standard & Poor’s Ratings Service has downgraded an additional 505 class of mortgage pass-through certificates from 394 U.S. residential mortgage-backed securities.

    • 26 Jul 2010
  • B of A Backs Bad-Bank Plan For GSEs

    Bank of America has come out in favor of creating a bad bank as an option for helping Fannie Mae and Freddie Mac dispose of its legacy assets.

    • 26 Jul 2010
  • Newer Auto ABS Performing Better

    Later vintage automobile asset-backed securities are performing better than their older counterparts, according to Bank of America Merrill Lynch research.

    • 26 Jul 2010
  • Securitization Founder Defends MBS

    Lewis Ranieri, the reputed father of mortgage securitization, defended his product against charges that it caused the collapse of the U.S. housing market.

    • 26 Jul 2010
  • Fed Names Bank Supervision Chief

    The Federal Reserve Bank of New York has named Sarah Dahlgren as head of bank supervision, effective Jan. 1.

    • 26 Jul 2010
  • Freddie Mac Appoints Multifamily Underwriting and Credit Head

    Freddie Mac has appointed Deborah Jenkins v.p. and national head of multifamily underwriting and credit.

    • 26 Jul 2010
  • ECB Defends Stress Tests

    The European Central Bank has defended the just-completed stress tests, denying charges they were not tough enough.

    • 26 Jul 2010
  • Germany Talks Down Failed Stressed Test

    The recent stress tests performed on Germany’s Hypo Real Estate did not consider the restructuring now under way, according to the German Finance Ministry.

    • 26 Jul 2010
  • RMBS Seen Benefiting From Self-Cert Ban

    Moody’s Investors Service said U.K. residential mortgage-backed securities would benefit from the proposed ban on self-certified and fast-track loans.

    • 26 Jul 2010
  • Spanish Mortgage Lending Rises 10.8%

    The number of residential mortgages approved in Spain rose 10.8% in May, compared with the preceding month, according to the National Institute of Statistics.

    • 26 Jul 2010
  • U.K. Banks, Insurers Bear Brunt Of Regs Costs

    Banks and insurers in the U.K. are likely to bear the brunt of the costs associated with new financial regulation.

    • 26 Jul 2010
  • CEBS Stress Test Take ABS In To Account

    The Committee of European Banking Supervisors has distanced its recently finalized bank stress test report from a similar test carried out on U.S. banks two years ago, pointing to its focus on securitization positions.

    • 26 Jul 2010
  • Greek Bank Closes €1 Bln Covered Bond

    Greece’s Alpha Bank has closed a €1 billion ($1.29 billion) four-year covered bond from its €8 billion ($10.33 billion) direct issuance program—the first from the vehicle.

    • 26 Jul 2010
  • ABS market responds to stress tests with a shrug

    Securitisation market participants declared Europe’s bank stress tests a “non-event” for ABS, with little impact on secondary markets and primary markets almost closed for the summer.

    • 25 Jul 2010
  • FDIC To Sell $500 Mln Of RMBS

    The Federal Deposit Insurance Corp. says it plans to sell $500 million in residential mortgage-backed securities that it had acquired from collapsed banks.

    • 23 Jul 2010
  • Deutsche Bank Unit Fined Over Subprime MBS

    The Financial Industry Regulatory Authority has slapped Deutsche Bank Securities with a $7.5 million fine for negligently misrepresenting delinquency data in connection with six subprime mortgage-backed securities.

    • 23 Jul 2010
  • Comp Czar Lashes Out At Big Bonus

    Kenneth Feinberg, the special master for executive compensation, has lashed out at banks that awarded more than $2 billion in bonuses and other payments to their top earners even in the face of a collapse of the financial system.

    • 23 Jul 2010
  • Eight Large CMBS Face Default In Aug.

    Eight large U.S. commercial mortgage-backed securities with balances of more than $20 million that will hit maturity next month are likely to default, according to Fitch Ratings.

    • 23 Jul 2010
  • Fed In A Bind Over Mortgage Securities

    The Federal Reserve appears to be in a bind over its mortgage securities.

    • 23 Jul 2010
  • "It's a very serious analogy, but if the financial crisis was a war, you can't just say, wars are violent. There are also war crimes."

    --James Frischling, president and co-founder of NewOak Capital, on the legal fall-out of the financial crisis, including the new wave of 64 subpoenas issued by the Federal Housing Finance Authority last week.

    • 23 Jul 2010
  • Reason for Optimism in Rating Agency Reform

    President Barack Obama last week signed into law the most extensive overhaul of the U.S. financial regulatory system in history.

    • 23 Jul 2010
  • Symphony Plots CLO Launch

    San Francisco-based Symphony Asset Management is again broaching investors to re-launch a roughly $525 million collateralized loan obligation.

    • 23 Jul 2010
  • NextStudent Auction A First For The Sector

    Wednesday’s auction of the underlying collateral of the NextStudent Master Trust I notes (TS, 7/8) was the first public liquidation auction of student loan asset-backed securities, according to Moody’s Investors Service.

    • 23 Jul 2010