Securitization - Article Archive

  • Structured Finance News in Brief, October 1, 2010

    • 30 Sep 2010
  • Credit cards escape new FDIC rules

    US credit card issuers had a reprieve from the Federal Deposit Insurance Corp this week when it published its final rule on the legal isolation safe harbour for securitisations.

    • 30 Sep 2010
  • Paragon restarts lending with £200m warehouse

    UK specialist buy-to-let lender Paragon is to resume new origination after it secured a £200m warehouse facility from Macquarie Bank, signalling a potential return for the non-bank lending sector.

    • 30 Sep 2010
  • Santander restructures Holmes and adds redemption reserve

    Santander UK announced on Thursday a restructuring of its Holmes master trust ahead of widely expected public issuance.

    • 30 Sep 2010
  • JPM Securitization To Pay Down CMBS 1.0 Loans

    Nearly half of the collateral underlying J.P. Morgan’s upcoming $1.1 billion commercial mortgage-backed securities deal may be resecuritizations of loans from older vintage deals, according to Barclays Capital analysts Julia Tcherkassova and Keerthi Rhagavan.

    • 30 Sep 2010
  • AM Demand Continues Through ’07s

    Even 2007-vintage AM commercial mortgage-backed securities are seeing prices bid up as investors chase yield in a yield-suppressed environment.

    • 30 Sep 2010
  • Ford Prices Floorplan ABS

    The Royal Bank of Scotland and Morgan Stanley priced Ford Motor’s latest asset-backed securities on Tuesday, the $586.7 million Ford Credit Floorplan Master Owner Trust A, Series 2010-5.

    • 30 Sep 2010
  • CLOs Rally Amid Recent Liquidation

    Trading desks are seeing record supply of secondary collateralized loan obligation paper, with bank analysts tallying nearly $2.4 billion in bids-wanted-in-competition in September and a high volume of bonds being offered outside of public lists.

    • 30 Sep 2010
  • MBA Sees CRE Fundamentals Improve

    The Mortgage Bankers Association reported commercial real estate fundamentals as showing signs of stabilization in the second quarter.

    • 30 Sep 2010
  • FDIC’s Bair Testifies On Agency “Priorities”

    Federal Deposit Insurance Corporation chairwoman Sheila Bair testified in Congress today about the FDIC’s enforcement priorities for implementing the Dodd-Frank Act.

    • 30 Sep 2010
  • GS’s Tourre Has New Defense In SEC Suit

    Lawyers for Goldman Sachs trader Fabrice Tourre, the only individual to be charged in the U.S. Securities and Exchange Commission’s suit against Goldman over the sale of its Abacus 2007 collateralized debt obligation, are now saying the suit is invalid.

    • 30 Sep 2010
  • What’s Up Holmes? Santander Restructures U.K. RMBS Master Trust

    Santander is overhauling Holmes, its U.K. residential mortgage-backed securities master trust, in a bid to make the structure more simple and transparent for investors, as well as to cut its own exposure to the notes.

    • 30 Sep 2010
  • Moody’s Knocks Spain’s Credit Rating Down To Aa1

    Moody’s Investors Service downgraded Spain’s credit rating from AAA to Aa1 today, citing, in part, higher borrower needs and weak economic growth caused by the global financial crisis.

    • 30 Sep 2010
  • ECB Calls EU Banking “Vulnerable”

    The European Central Bank said the European Union’s banking structure was still in the vulnerable, early stages of recovery.

    • 30 Sep 2010
  • Investec Planning Mixed Prime, Non-Conforming RMBS

    Investec, an Anglo-African bank, is planning a new £186 million ($292.7 million) residential mortgage-backed securitization through its U.K. lending arm, Kensington.

    • 30 Sep 2010
  • ABN Rolls Out Dual RMBS Issue

    ABN Amro has issued €7.1 billion ($9.6 billion) of notes from its Dolphin Master Issuer residential mortgage-backed securities vehicle and €3.9 billion ($5.3 billion) of notes from its Goldfish Master Issuer program, which is backed by home loans guaranteed by the Dutch government.

    • 30 Sep 2010
  • RMBS issuers walk from state scheme — for more state cash

    Australian issuers of residential mortgage backed securities (RMBS) are deserting a government programme to support serial issuers — as they can get more money from the government without it.

    • 29 Sep 2010
  • Former DB Research Chief Joins Seer Capital

    Karen Weaver, formerly the New York-based head of securitization research at Deutsche Bank, has moved to investment management firm Seer Capital Management.

    • 29 Sep 2010
  • ABS East Pipeline Full Of Esoteric ABS

    A senior banking official told TS a handful of esoteric asset-backed securities deals are being readied for launch at next week’s ABS East conference in Miami.

    • 29 Sep 2010
  • Uptick In Prime RMBS Delinquencies

    Delinquencies on prime residential mortgage backed securities rose slightly in August to 11.2%, while other RMBS generally saw a decrease, according to JPMorgan.

    • 29 Sep 2010
  • Broker-Originated Subprimes More Likely To Default

    Subprime loans that originated with brokers were four to five times more likely to default than those from other sources, according to a study by the Joint Center for Housing Studies at Harvard University.

    • 29 Sep 2010
  • RMBS Case Against Countrywide Dismissed

    A federal judge in New York has dismissed a lawsuit against Countrywide Financial charging that it misled investors about the risk level in its residential mortgage-backed securities.

    • 29 Sep 2010
  • Foreclosure Probe May Increase RMBS Loss Severities

    Investigation of the foreclosure process by mortgage servicers may ultimately result in a stalled foreclosure process that could lead to increased loss severities of residential mortgage backed securities, according to Fitch Ratings.

    • 29 Sep 2010
  • BofA Lags In Alternative Loan Mods After HAMP Cancellation

    Bank of America lags other servicers in offering alternative workouts for those whose Home Affordable Modification Program trials were canceled, according to the Department of the Treasury.

    • 29 Sep 2010
  • CRE Loans Prices Rise In August

    The aggregate value of commercial real estate loans used to collateralize commercial mortgage-backed securities rose in August to 81%, up from 79.4% a month earlier, according to DebtX.

    • 29 Sep 2010
  • Panelists See Life In Euro ABCP

    Europe’s asset-backed commercial paper market is showing signs of life, as the post-crisis shrinkage in demand eases and originators overhaul structures in order to boost investor confidence, according to panelists at Fitch Ratings’ annual asset-backed commercial paper conference in London today.

    • 29 Sep 2010
  • Investors Sidelined By 122a Uncertainty

    Continued uncertainty over the European Commission’s Capital Requirements Directive amendments, which industry professionals say will place costly and time-consuming compliance burdens on investors in securitizations, is keeping many buyside firms on the sidelines.

    • 29 Sep 2010
  • Fitch To Stress Test Aussie Mortgages

    Fitch Ratings says it will conduct stress tests on Australia’s mortgage market as concerns grow that the nation’s housing market may crumble.

    • 29 Sep 2010
  • U.K. Mortgage Approvals Down, Re-Mortgages Up

    Residential mortgage approvals were down in August, while re-mortgages were up, according to the Bank of England.

    • 29 Sep 2010
  • NAMA To Take On €4 Bln In N. Ireland Assets

    Ireland’s National Asset Management Agency estimates it will take on roughly €4 billion ($5.44 billion) in loans linked to assets in Northern Ireland.

    • 29 Sep 2010
  • New Regs To Force Barclays To Add £150 Mln In Risk Assets

    New regulations could require Barclays to add £150 million ($237 million) in risk-weighted assets, according to Bob Diamond, president and incoming ceo.

    • 29 Sep 2010
  • German State Bank Merger Plan By Mid-2011

    A merger plan for Germany’s eight state-owned banks may be ready by the middle of next year, according to Steffen Kampeter, the country’s deputy finance minister.

    • 29 Sep 2010
  • Ashurst Loses Structured Finance Head To BarCap

    The U.K. law firm Ashurst has lost Erica Handling, its structured finance and securities chief, to its client Barclays Capital.

    • 29 Sep 2010
  • Fitch To Stress Test Aussie Mortgages

    Fitch Ratings says it will conduct stress tests on Australia’s mortgage market as concerns grow that the nation’s housing market may crumble.

    • 29 Sep 2010
  • U.K. Mortgage Approvals Down, Re-Mortgages Up

    Residential mortgage approvals were down in August, while re-mortgages were up, according to the Bank of England.

    • 29 Sep 2010
  • NAMA To Take On €4 Bln In N. Ireland Assets

    Ireland’s National Asset Management Agency estimates it will take on roughly €4 billion ($5.44 billion) in loans linked to assets in Northern Ireland.

    • 29 Sep 2010
  • New Regs To Force Barclays To Add £150 Mln In Risk Assets

    New regulations could require Barclays to add £150 million ($237 million) in risk-weighted assets, according to Bob Diamond, president and incoming ceo.

    • 29 Sep 2010
  • German State Bank Merger Plan By Mid-2011

    A merger plan for Germany’s eight state-owned banks may be ready by the middle of next year, according to Steffen Kampeter, the country’s deputy finance minister.

    • 29 Sep 2010
  • Ashurst Loses Structured Finance Head To BarCap

    The U.K. law firm Ashurst has lost Erica Handling, its structured finance and securities chief, to its client Barclays Capital.

    • 29 Sep 2010
  • Paragon restarts lending with £200m warehouse

    UK specialist buy-to-let lender Paragon is to resume new origination after it secured a £200m warehouse facility from Macquarie Bank.

    • 28 Sep 2010
  • ABN Amro finds Eu3.9bn of appetite for Goldfish

    ABN Amro has privately placed Eu3.9bn of senior notes from its Goldfish master trust, which securitises mortgages backed by a guarantee from Nationale Hypotheek Garantie.

    • 28 Sep 2010
  • HARP Means Slower Voluntary Prepayment Speeds

    The Obama administration’s Home Affordable Refinance Program, designed to aid underwater borrowers refinance their mortgages, will likely slow, rather than accelerate, prepayment speeds on mortgage-backed securities, according to Royal Bank of Scotland analysts in a new report.

    • 28 Sep 2010
  • New Study Questions Mortgage-Feature Restrictions

    A study by the Mortgage Bankers Association questions whether mortgage features restricted under the Dodd-Frank Act will reduce the number of defaults in the U.S.

    • 28 Sep 2010
  • Ally RMBS Ratings On Review After Foreclosure Reports

    Moody’s Investors Service will review ratings of $7.6 billion of residential mortgage-backed securities originated by Ally Financial following investigation of the firm’s foreclosure process.

    • 28 Sep 2010
  • MS Said To Freeze I-Banking Hiring

    Morgan Stanley has put a freeze on hiring at its investment-banking unit for the rest of the year, but does not plan any layoffs.

    • 28 Sep 2010
  • A GS CMBS Benchmark Experiences Shortfalls, Says BarCap

    Barclays Capital says a AA-rated Goldman Sachs commercial mortgage-backed securities pool, the benchmark GSMS 2007-GG10 transaction, has experienced shortfalls.

    • 28 Sep 2010
  • Fed May Balance MBS With Treasury Holdings

    The Federal Reserve may have opted to reinvest in Treasuries rather than in mortgage-backed securities to bring balance to its portfolio, according to Michael Gapen, Barclays’ director of U.S. economics research.

    • 28 Sep 2010
  • Loan Credit Quality Improving

    The credit quality of large loans that U.S. and foreign financial institutions are committed to make this year has improved in the past year, but is still weak, according the annual Shared National Credits Review for 2010.

    • 28 Sep 2010
  • Ally Back With Another Floor Plan Auto ABS

    Ally Financial is again in the market with its fifth dealer floor plan-backed transaction of 2010, only weeks after successfully placing its fourth deal last month.

    • 28 Sep 2010
  • High Credit Enhancement To Remain In U.K. Structures

    Industry professionals in London say credit enhancement in U.K. securitizations will remain high as issuers strive to tempt investors back to the market and reduce ratings volatility.

    • 28 Sep 2010
  • German Banks’ Tier 1 Ratio Up

    The Tier 1 capital ratio of Germany’s 14 largest banks rose to 10.1% from 9.3% a year ago, even before new capital requirements were introduced, according to Ernst & Young.

    • 28 Sep 2010
  • Regulators ‘Unanimous’ On Big-Bank Capital Requirements

    Mario Draghi, head of the Financial Stability Board, said regulators from around the world are unanimous in agreeing that banks considered too big too fail should hold more capital than required by the Basel Committee on Banking Supervision.

    • 28 Sep 2010
  • RBS To Slash 500 I-Banking Jobs

    Royal Bank of Scotland will reduce its investment banking staff by 500 employees.

    • 28 Sep 2010
  • Paragon Eyes Buy-To-Let Securitization

    Paragon Group is looking to securitize buy-to-let loans once it has reached a sufficient volume of originated mortgages, according to John Heron, director of mortgages.

    • 28 Sep 2010
  • Ukraine Proposes Raising Banks’ Capital Levels

    The National Bank of Ukraine is proposing a more than 400% hike in regulatory capital required by banks from UAH120 million ($15.2 million) to UAH500 million ($63 million).

    • 28 Sep 2010
  • ECB Says It Will Heed New Regulator’s Warnings

    Vitor Constancio, v.p. of the European Central Bank, said it will heed risk warnings from the newly created European Systemic Risk Board, even though the agency has no formal enforcement authority.

    • 28 Sep 2010
  • Ulster Bank Names Intermediary-Mortgage Chief

    Ulster Bank has named Steve Carruthers as head of intermediary mortgages in Northern Ireland.

    • 28 Sep 2010
  • U.K. Card Redemptions Could Spark New Demand

    The next new issuance of U.K. credit card asset-backed securities should enjoy solid demand thanks to a number of scheduled redemptions over the next few weeks, even though accessing public markets remains tricky, according to London-based ABS analysts.

    • 28 Sep 2010
  • Dollar Denominated Covered Bond Issues Have Banks Scrambling For Coverage

    Foreign issuers marketing new dollar denominated covered bonds are causing U.S. banks to scramble to locate secondary trading for the asset class within their existing desks.

    • 27 Sep 2010
  • Deutsch: FDIC’s Safe Harbor Could Stall Credit Card Deals

    The Federal Deposit Insurance Corporation’s adoption today of the new safe harbor rule could immediately impact master trust structures, such as credit card asset-backed securities, according to Tom Deutsch, executive director of the American Securitization Forum.

    • 27 Sep 2010
  • Arch Bay Plotting RMBS Deal

    Arch Bay Capital has been actively buying up mortgages with the intention of issuing a residential mortgage-backed securities deal, according to officials familiar with the Irvine, Calif.-based hedge fund’s strategy.

    • 27 Sep 2010
  • HAMP Loan Mods Have Lower Redefault Rates

    The redefault rate on loans modified under the government’s Home Affordable Modification Program is half that of workouts performed outside HAMP, according to a report by the Office of the Comptroller of the Currency and the Office of Thrift Supervision.

    • 27 Sep 2010
  • Credit Unions Eye Securitization Exit For Toxic ABS

    The National Credit Union Administration is planning to create a securitization trust to deal with some $50 billion of toxic asset-backed securities held by failed credit unions.

    • 27 Sep 2010
  • JPM To Sell $1.1 Bln In CMBS

    JPMorgan Chase reportedly is planning to sell $1.1 billion in commercial mortgage-backed securities.

    • 27 Sep 2010
  • SSgA Taps Smith Graham To Help Manage MBS Program

    State Street Global Advisers has retained Smith, Graham & Co. Investment Advisors to help manage a portfolio of an estimated $180 billion in mortgage-backed securities issued by Fannie Mae and Freddie Mac.

    • 27 Sep 2010
  • Lawmakers Questions GSE On Foreclosure-Attorney Use

    Three Democrat members of the House of Representatives want Fannie Mae to explain why it hired law firms that allegedly specialize in accelerating foreclosures.

    • 27 Sep 2010
  • More Modifications, Extensions For Floaters

    Fitch Ratings predicts there will be a spike in modified or extended loans for most U.S. large loan floating-rate commercial mortgage-backed securities as they approach maturity.

    • 27 Sep 2010
  • Ratings Agencies Blasted For Ignoring Bad-Loan Data

    Testimony before the Financial Crisis Inquiry Commission criticized credit rating agencies for ignoring data that indicates many loans in mortgage-backed securities were too risky.

    • 27 Sep 2010
  • Jefferies Names Distressed-Trading Chief

    Jefferies has named Peter Santry as managing director and head of distressed trading in the firm’s leveraged finance sales and trading division.

    • 27 Sep 2010
  • Two New Spanish CLOs Rolled Out

    Two Spanish issuers, Foncaixa Empresas and Banco de Sabadell, have recently rolled out new collateralized loan obligations, both backed by corporate loans to small and medium-sized borrowers.

    • 27 Sep 2010
  • Greece RMBS Still Struggling To Trade

    Greece’s residential mortgage-backed securities market is still trading wider than any other in Europe, months after the sovereign debt crisis hit the region and nearly sank its economy.

    • 27 Sep 2010
  • Basel May Spike Banks Risk-Weighted Assets 24%

    The new capital requirements adopted by the Basel Committee on Banking Supervision may spike the risk-weighted assets of European banks by an average of 24%, according to Morgan Stanley analysts.

    • 27 Sep 2010
  • KBC To Sell ABS Lending Unit to PNC

    Belgium’s KBC Group is selling KBC Business Capital, its asset-backed lending unit in the U.K., to PNC Financial Services Group.

    • 27 Sep 2010
  • Commerzbank Reduces ABS Activities

    Commerzbank has reduced its asset-backed securities and structured finance activities, while expanding its equity capital markets and debt capital markets, according to Roman Schmidt, head of corporate finance.

    • 27 Sep 2010
  • U.K. Banking Sector Making Speedy Recovery

    The U.K.’s banking sector has shown signs of recovery at its fastest pace in more than three years, according to a survey by CBI and PriceWaterhouseCoopers.

    • 27 Sep 2010
  • Investec RMBS Will Be Subprime-Free

    Investec’s recently announced £200 million ($314.3 million) Kensington residential mortgage-backed securities will not contain any subprime loans, according to a bank spokesman.

    • 27 Sep 2010
  • Basel May Spike Banks Risk-Weighted Assets 24%

    The new capital requirements adopted by the Basel Committee on Banking Supervision may spike the risk-weighted assets of European banks by an average of 24%, according to Morgan Stanley analysts.

    • 27 Sep 2010
  • FX Loans Seen Hurting System

    Foreign-currency loans could have a negative impact on the entire European financial system, according to Ewald Nowotny, a member of the European Central Bank’s governing council.

    • 27 Sep 2010
  • KBC To Sell ABS Lending Unit to PNC

    Belgium’s KBC Group is selling KBC Business Capital, its asset-backed lending unit in the U.K., to PNC Financial Services Group.

    • 27 Sep 2010
  • Barclays Looks To Boost CRE Market Share

    Barclays is looking to gain market share in commercial real estate by teaming up its lending professionals with its investment bankers.

    • 27 Sep 2010
  • Commerzbank Reduces ABS Activities

    Commerzbank has reduced its asset-backed securities and structured finance activities, while expanding its equity capital markets and debt capital markets, according to Roman Schmidt, head of corporate finance.

    • 27 Sep 2010
  • U.K. Banking Sector Making Speedy Recovery

    The U.K.’s banking sector has shown signs of recovery at its fastest pace in more than three years, according to a survey by CBI and PriceWaterhouseCoopers.

    • 27 Sep 2010
  • Investec RMBS Will Be Subprime-Free

    Investec’s recently announced £200 million ($314.3 million) Kensington residential mortgage-backed securities will not contain any subprime loans, according to a bank spokesman.

    • 27 Sep 2010
  • FX Loans Seen Hurting System

    Foreign-currency loans could have a negative impact on the entire European financial system, according to Ewald Nowotny, a member of the European Central Bank’s governing council.

    • 27 Sep 2010
  • Barclays Looks To Boost CRE Market Share

    Barclays is looking to gain market share in commercial real estate by teaming up its lending professionals with its investment bankers.

    • 27 Sep 2010
  • Asian demand helps ME Bank to A$1bn RMBS

    Members Equity raised A$1bn ($959.3m) in the RMBS market late last week, getting demand from two Asian accounts and fuelling confidence that recent efforts to attract more investors from the region are paying off.

    • 25 Sep 2010
  • Regs A Minor Hurdle For Credit Card ABS, Issuers Say

    Issuers of credit card asset-backed securities deals say new regulation in the U.S. so far is not proving to be stifling, especially after the foundation of a first deal has been laid.

    • 24 Sep 2010
  • Ally Hires JVB V.P. For ABS Sales Role

    Ally Financial has scooped up Robert Clark, a New York-based senior v.p. at JVB Financial, to head its fixed income sales business.

    • 24 Sep 2010
  • Derivatives Pundits Upset Over Securitization Mix-Up

    Derivatives officials say market commentators are confused over the difference between structured finance products and credit default swaps.

    • 24 Sep 2010
  • GMAC Foreclosures May Have Been Faulty

    Titan Capital has hired industry veteran Keith Danko, the former chief executive of U.S. operations at London-based alternative investment firm CQS.

    • 24 Sep 2010
  • New York Hedge Fund Taps London ABS Chief

    Titan Capital has hired industry veteran Keith Danko, the former chief executive of U.S. operations at London-based alternative investment firm CQS.

    • 24 Sep 2010
  • Student Loan ABS Prices Wide

    The $458 million student loan asset-backed deal for Access To Loans For Learning Student Loan Corporation 2010-I priced wider than expected today.

    • 24 Sep 2010
  • Basel II Implementation ‘Widespread’, FSI Survey Finds

    A new survey by the Financial Stability Institute indicates widespread implementation of Basel II, with 112 countries having implemented or planning implementation of the framework, compared with 106 in 2008.

    • 24 Sep 2010
  • Finnish Finance Minister Urges Regular Stress Tests

    Europe’s largest banks should face frequent stress tests in order to bolster confidence in financial markets, according to Jyrki Katainen, Finland’s finance minster.

    • 24 Sep 2010
  • Malaysian Card Provider Completes Credit Card ABS Renewal

    Diners Club, a Singapore-based charge card and credit card services provider, has completed a S$223 million multi-tranche credit card securitization renewal program.

    • 24 Sep 2010
  • France To Effect 5% Securitization Rule Dec. 31.

    French regulators will require banks and other financial institutions to hold at least 5% of loan securitizations on their own books from Dec. 31.

    • 24 Sep 2010
  • AFME Appoints Former PM Spokesman As Chief

    Simon Lewis, one time spokesman for former U.K. Prime Minister Gordon Brown, has been appointed chief executive at the Association for Financial Markets in Europe.

    • 24 Sep 2010
  • EU Rulemakers Urge Curbs On ‘Excessive’ Securitization

    Industry officials in London fear securitization structures could face tougher treatment from lawmakers after the European Parliament’s influential Committee on Economic and Monetary Affairs issued a paper earlier this week calling on the Commission’s planned Capital Requirements Directive IV amendments to further push banks to keep credit on their books and stop “excessive use” of securitization.

    • 24 Sep 2010
  • SG settles with Lehman over CDO priority claim

    Société Générale and Lehman Brothers have agreed a $445m settlement in a dispute over swap termination payments, the first such settlement since a US court ruled that so-called flip clauses were not enforceable.

    • 23 Sep 2010
  • Dignity taps whole business securitisation

    Royal Bank of Scotland priced a £72m tap of funeral home operator Dignity’s 2003 whole business securitisation, the first non-utility whole business issuance since the credit crisis.

    • 23 Sep 2010