Securitization - Article Archive

  • Not All Specially Serviced CMBS Loans On Verge Of Default

    Not all U.S. commercial mortgage-backed securities loans moved to special servicing are there because of imminent default, according to Fitch Ratings.

    • 29 Oct 2010
  • Amherst Forms Distressed-Mortgage Unit

    Amherst Holdings has formed a new distressed-mortgage asset management unit, and has registered a RMBS Strategic Recovery Fund with the U.S. Securities and Exchange Commission.

    • 29 Oct 2010
  • Fitch Downgrades Bear Pass-Through Certificates

    Fitch Ratings has lowered the ratings on 11 classes of Bear Stearns Commercial Mortgage Securities Trust, 2005-PWR7.

    • 29 Oct 2010
  • Dollar Thrifty Completes $450 Mln Asset-Backed Financing

    Dollar Thrifty Automotive Group says its Rental Car Finance Corp. unit has a completed a private placement of Rental Car Asset-Backed Variable Funding Notes.

    • 29 Oct 2010
  • RBMS Trading Back Up And Running (Update)

    A drastic drop in trading of residential mortgage-backed securities that hit the non-agency market for four consecutive days last week has been reversed, according to traders.

    • 29 Oct 2010
  • "None of these avenues are for the faint of heart. Or those with short attention spans. Opposition will be fierce, so one must have fire in the belly at the beginning."

    -- David Grais, partner Grais & Ellsworth, about investor banding together to force bad loans to be repurchased by loan originators.

    • 29 Oct 2010
  • CarMax Markets Sub-Pieces

    Barclays Capital and Wells Fargo are pre-marketing the subordinated pieces of CarMax's upcoming auto asset-backed securities, CarMax 2010-3.

    • 29 Oct 2010
  • Pricing Emerges On New Issue CLO Paper

    Price talk on the senior paper of Oak Hill Advisors' $405 million Morgan Stanley-arranged collateralized loan obligation is expected to hit between 160-170 basis points over LIBOR.

    • 29 Oct 2010
  • Re-Remics Issue Like There’s No Tomorrow

    Re-remics of residential mortgage-backed securities are chugging along, despite upcoming regulatory changes that are expected to kill off the structure forever.

    • 29 Oct 2010
  • Investors Drawing Battle Lines In Servicing Fight

    Investors at an anti-robo-signing conference in New York this week were urged to connect by joining a clearinghouse set up to fight in their corner.

    • 29 Oct 2010
  • Bondholders Green-Light German CDO Restructuring

    Bondholders in three German small-to-medium collateralized debt obligations issued by the Heat Mezzanine program have given the thumbs up to a series of amendments, including a plan to extend the legal maturities by four years.

    • 29 Oct 2010
  • FSB Advises Against Excessive Reliance On CRA Ratings

    The Financial Stability Board today issued principles calling on national regulators to develop “alternative definitions” of creditworthiness and for market participants to boost internal risk management capabilities, with an aim to ensure the industry is not depending solely on credit rating agencies’ ratings.

    • 29 Oct 2010
  • Subprime Returning To U.K. But Without The Name

    Subprime lending is returning to the U.K., though the firms offering such mortgages are avoiding that term, because of its association with the recent financial crisis.

    • 29 Oct 2010
  • Ireland Urged To Create A Second Bad Bank

    Alan Dukes, chairman of Anglo Irish Bank, has called on the Irish government to create a second bad bank for distressed loans that banks are not transferring to the National Asset Management Agency.

    • 29 Oct 2010
  • U.K. Net Lending Slows

    Net residential lending in the U.K. slowed in September, according to the Bank of England.

    • 29 Oct 2010
  • German Lawmakers Approve Stricter Securitization Regs

    The Bundestag, the lower house of Germany’s Parliament, has approved a tougher law that would require banks to hold on to a bigger share of risks in the securitized products they offer—10% beginning in 2015.

    • 29 Oct 2010
  • U.K. Mutuals See 10% Rise In Gross Lending

    U.K. mutuals saw a 10% gain in gross mortgage lending last month, compared with August, according to the Building Societies Association.

    • 29 Oct 2010
  • Talisman 4 loan nears LTV breach

    The DT-12 loan in German CMBS Talisman 4 is on the verge of breaching its loan to value covenant after a revaluation of the underlying properties.

    • 28 Oct 2010
  • Investec proves flexibility in non-con return

    Investec last Friday completed the first successful placement of a UK non-conforming RMBS since the credit crisis — though the lender had to pay up to achieve the feat.

    • 28 Oct 2010
  • Nationwide goes abroad for second Silverstone RMBS

    Nationwide Building Society placed its first foreign currency securitisation last Friday (October 22), increasing the size of Silverstone 2010-1 from £1bn equivalent to £1.62bn.

    • 28 Oct 2010
  • Germany passes 10% retention law, but may change its mind

    Germany is to go ahead with its gold plating of European risk retention rules for securitisation after the controversial measure was approved by parliament.

    • 28 Oct 2010
  • Achmea brings well seasoned Dutch RMBS

    Achmea Hypotheekbank is marketing a Eu750m securitisation of Dutch residential mortgages.

    • 28 Oct 2010
  • CRE CDOs See Signs Of Life In Secondary Trading

    Yield chasing investors are tiptoeing back into commercial real estate collateralized debt obligations, with market players pointing to an increase in public and private bid lists as a sign of renewed interest in the battered structure.

    • 28 Oct 2010
  • Avis Completes $700 Mln ABS

    Avis Budget Car Rental Funding has completed a $700 million offer of asset-backed securities with a weighted average interest rate of 3.2%.

    • 28 Oct 2010
  • Metro Foreclosures Surge 65%

    Foreclosure filings in metropolitan statistical areas surged 65% in the third quarter, according RealtyTrac.

    • 28 Oct 2010
  • Crimson Hires Head For Fixed-Income Fund

    Crimson Capital Trading has appointed Michael Kraft to head its new fixed-income hedge fund. Kraft formerly was a managing director at PB Capital.

    • 28 Oct 2010
  • Debate Continues Over Cost Of Bank Buybacks

    The debate over how much buybacks of bad mortgages will cost banks continues.

    • 28 Oct 2010
  • NCUA Offers Another $2.82 Bln In CMBS

    The National Credit Union Administration is offering another $2.82 billion in commercial mortgage-backed securities.

    • 28 Oct 2010
  • UBS, Jefferies Assembling J.G. Wentworth Deal

    UBS and Jefferies are in the process of putting together a structured settlement-backed securitization for J.G. Wentworth.

    • 28 Oct 2010
  • Wells-B of A Aim Tight On CMBS Price (Update)

    Price talk on the $735.87 million commercial mortgage-backed securities deal from a Wells Fargo-Bank of America (TS, 10/25) partnership is coming in slightly tighter than an $856.6 million securitization from Deutsche Bank that was completed last week.

    • 28 Oct 2010
  • Private Media Deals Make An Appearance

    A handful of media backed deals have been circulating in the market. Dick Clark Productions last month closed a private, unrated media-backed deal and Goldman Sachs was recently showing bonds backed with syndication rights from hit Hollywood television show “Crime Scene Investigation."

    • 28 Oct 2010
  • CMBS Litigation Expected To Hit Europe

    A spike in litigation is anticipated for Europe’s commercial mortgage-backed securitizations as investors increasingly take hits on troubled transactions.

    • 28 Oct 2010
  • Bad-Loan Provisions Hurt Santander’s Profits

    Banco Santander says the Spanish government’s new capital provisions for bad loans will make it fall short of reaching its profit target for 2010.

    • 28 Oct 2010
  • Spanish Tariff Securitization On Track

    Favorable market conditions have made it possible for the Spanish government to keep to its schedule and launch the first part of its power tariff deficit securitization in coming weeks, according to Elena Salgado, the nation’s economy minister.

    • 28 Oct 2010
  • BIS Questions Basel Requirements

    A committee commissioned by the Bank for International Settlement is looking at whether banks will be able to stay in business while meeting the higher capital requirements adopted by the Basel Committee on Banking Supervision.

    • 28 Oct 2010
  • CS To Raise £510 Mln For Capital Fund

    Credit Suisse is raising £510 million ($800 million) for a fund to help banks meet increased capital requirements.

    • 28 Oct 2010
  • Major Italian Banks’ Profit Under Pressure Into 2011

    Fitch Ratings reports the profitability of major Italian banks will remain under pressure into next year.

    • 28 Oct 2010
  • U.K. Arrears Figures May Be Skewed, Says FSA

    The U.K.’s Financial Services Authority says the true number of borrowers in arrears may be skewed by the way a growing number of lenders account for them.

    • 28 Oct 2010
  • GSW Noteholders Alerted To Loan Amendments

    Noteholders in the large GSW Immobilien loan securitized in two commercial mortgage-backed securitizations, the €1.3 billion ($1.8 billion) Windermere IX and the €1.11 billion ($1.5 billion) Fleet Street Finance 3, were alerted yesterday by the deals’ servicers to potential impacts of any loan modification scenario initiated by the borrower.

    • 28 Oct 2010
  • Dunkin’ Drops Securitization For High-Yield Mart

    Dunkin’ Brands, the parent firm of Dunkin’ Donuts and Baskin-Robbins, plans to buyback the notes from its outstanding $1.7 billion whole business securitization, according to market officials.

    • 27 Oct 2010
  • CMBS Expert Forms CRE Advisory Firm

    Dan Smith, a commercial mortgage-backed securities expert, has formed Four Point Alliance, an Addison, Texas-based commercial real estate advisory firm.

    • 27 Oct 2010
  • Foreclosure Woes Not Securitization’s Fault

    Securitization has little to do with recent problems involving faulty foreclosures, according to speakers at the Mortgage Bankers Association convention.

    • 27 Oct 2010
  • Ford To Continue To Rely On Securitization

    Ford Motors will continue to rely on securitizations for a “big piece” of its financing, according to Neil Schloss, v.p. and treasurer for the automaker.

    • 27 Oct 2010
  • Siguler Guff Names Distressed-Debt Head

    Siguler Guff has appointed James Gereghty as head of its four distressed opportunities funds.

    • 27 Oct 2010
  • CMBS Seen Unaffected By Foreclosure Crisis

    Issues associated with the foreclosure crisis are not likely to pose risks to commercial mortgage-backed securities, according to Royal Bank of Scotland analysts.

    • 27 Oct 2010
  • KBW Adds To RE I-Banking

    Keefe, Bruyette & Woods has expanded its real estate investment-banking team with the hiring of Andrew Dietz and Simon Leopold as managing directors.

    • 27 Oct 2010
  • Gulf Coast Bank To Unload $180 Mln In Nonperforming Loans

    Whitney Holding is planning to sell an estimated $180 million of nonperforming loans and has a second sale of $100 million of troubled mortgages on tap for the next quarter.

    • 27 Oct 2010
  • Investors Band Together Against Illegal Servicing

    Investors should take a stance against fraudulent servicing procedures such as robo-signing, lawyers speaking at a conference in New York said today.

    • 27 Oct 2010
  • Junior Noteholders Dodge Hit From Latest Windermere Sale

    Junior noteholders in the £707.76 million ($1.088 billion) U.K. commercial mortgage securitization Windermere XI are not expected to take an immediate hit from the recent sale of a property underpinning the trade, according to CMBS specialists in London.

    • 27 Oct 2010
  • JPM Touts Ginnie IIs As Hedge Against QE

    JPMorgan analysts are touting Ginnie Mae IIs as a good hedge against swap spread volatility as the market works to price in the risk of quantitative easing by the Federal Reserve should its plans include the purchase of mortgage-backed securities.

    • 27 Oct 2010
  • Fitch Predicts Resurgence Of EMEA Structured Finance Market

    European structured finance asset performance is showing widespread signs of stabilizing, lending strong support to the resurgence of the structured finance market, according to Fitch Ratings.

    • 27 Oct 2010
  • Kiwi Lenders May Tap Europeans For Covered Bond

    Bank of New Zealand may tap into European investors for its first international covered-bond issue.

    • 27 Oct 2010
  • Postbank Purchase Weighs On Deutsche Bank Profits

    Deutsche Bank reported a third quarter loss of €1.2 billion ($1.67 billion) as a result of acquiring a stake in Postbank and a related mandatory exchangeable bond.

    • 27 Oct 2010
  • Jones Day Adds Finance Partner In Dubai

    The international law firm Jones Day has hired Eric Milne as a banking and finance partner in its Dubai office.

    • 27 Oct 2010
  • Russian Banks Show Signs Of Recovery

    The Russian banking sector has shown signs of recovering from the recent crisis as asset quality and capital pressures have eased significantly, according to Fitch Ratings.

    • 27 Oct 2010
  • Northern CEO Said To Be Eyed For Asset-Buying Venture

    Gary Hoffman, ceo of Northern Rock, reportedly is among the candidates being considered to run NBNK Investments, a new entity formed to buy government-owned bank assets.

    • 27 Oct 2010
  • Swiss Re Closes Global Life Risk Securitization

    Swiss Re has closed a $175 million securitization of extreme mortality risk exposures located in Germany, the U.S., Canada and Japan.

    • 27 Oct 2010
  • RBMS Slowdown Begins To Hit Trading

    A drastic drop in trading of residential mortgage-backed securities has continued for a fourth consecutive day, according to traders.

    • 26 Oct 2010
  • Permanent HAMP Loan Mods Sink 16.5%

    The number of permanent loan modifications completed through the government’s Home Affordable Modification Program sank 16.5% in September, compared with the preceding month, according to the Department of the Treasury.

    • 26 Oct 2010
  • Deutsche Bank Affiliates Sued For MBS Fraud

    Assured Guaranty has filed suit against affiliates of Deutsche Bank charging fraud in connection with mortgage-backed securities guaranteed by the bond insurer.

    • 26 Oct 2010
  • Mortgage Originations Expected To Drop 30%

    Mortgage originations are expected to decline by around 30% next year as a result of subdued economic growth, rising interest rates and continued unemployment woes, according to the Mortgage Bankers Association.

    • 26 Oct 2010
  • Collingwood Adds Mortgage Banking Practice

    The Collingwood Group has launched a mortgage banking practice that will focus on business operation strategies, regulatory compliance, capital planning and risk management.

    • 26 Oct 2010
  • Morgan Stanley Hit With CDO Fraud Suit

    Morgan Stanley has been slapped with a lawsuit charging it with fraud in connection with a bond sale related to collateralized debt obligations.

    • 26 Oct 2010
  • Two Hotel-Backed CMBS Issues Hit The Market

    The issuance of two large commercial mortgage-backed securities backed by hotels is being hailed as a sign that more may be on the way.

    • 26 Oct 2010
  • Structured Settlement Bond Deals Taking Shape

    Structured Asset Funding and 123 Lumpsum plan to issue notes backed with structured settlements from a newly established special purpose vehicle, Grayson Receivables Fund, in the first quarter of 2011.

    • 26 Oct 2010
  • CESR Pitches Phased Implementation For EU Transparency Regime

    The Committee of European Securities Regulators is calling for planned post-trade transparency rules on European asset-backed securities and collateralized debt obligations to be implemented gradually over two phases.

    • 26 Oct 2010
  • Calyon Charged With CDO-Related Fraud

    Loreley Financing, a European-based investment fund, has charged Calyon with fraud in connection with two collateralized debt obligations created at the request of hedge fund Magnetar Capital.

    • 26 Oct 2010
  • Aussie Lender Plans Two RMBS Issues

    Bendigo and Adelaide Bank is planning two residential mortgage backed securities issue before its fiscal year ends in June, according to Richard Fennell, the lenders CFO.

    • 26 Oct 2010
  • Basel III Won’t Prevent Crisis, Says BoE Chief

    Mervyn King, governor of the Bank of England, says the tough capital requirements adopted by the Basel Committee on Banking Supervision are not strong enough to prevent another financial crisis.

    • 26 Oct 2010
  • Rising Concern Over Aussie RMBS Purchase Program

    There is growing concern among Australian investors that the government’s program to buy residential mortgage-backed securities to boost the securitization market may have pushed pricing too high. “

    • 26 Oct 2010
  • RBS Urges Aussie Banks To Offer Bullet RMBS

    Royal Bank of Scotland analysts are urging Australian banks to offer so-called bullet residential mortgage-backed securities as a way of attracting investors to the securitization market as the government’s RMBS purchase program winds down.

    • 26 Oct 2010
  • Spanish Mortgage Lending Grows 4.9% In August

    The volume of mortgage loans approved in Spain grew 4.9% in August compared with a year earlier, while still hovering 10.3% below July’s level, according to Instituto Nacional de Estadística, the country’s statistical agency.

    • 26 Oct 2010
  • NAMA Profits Big From Anglo Irish Loan

    Ireland’s National Asset Management Agency made a profit of €140 million ($196.4 million) on a loan it purchased from Anglo Irish bank for €40 million ($56.12 million).

    • 26 Oct 2010
  • Servicers To Get Tough On Loan Extensions

    Servicers in Europe’s troubled commercial mortgage-backed securities sector are expected to take a tougher line on loan extensions as the market faces a wave of maturities over the next couple of years, according to industry professionals in London.

    • 26 Oct 2010
  • Achmea brings well seasoned Dutch RMBS

    Achmea Hypotheekbank is marketing a Eu750m securitisation of Dutch residential mortgages.

    • 25 Oct 2010
  • CMBS Trader Blasucci Hops To KGS Alpha

    Commercial mortgage-backed securities trader Leonard Blasucci has joined broker-dealer KGS Alpha.

    • 25 Oct 2010
  • Wells, B of A Launch $780 Mln CMBS Deal

    Wells Fargo and Bank of America-Merrill Lynch are marketing a $780 million private, 144a commercial mortgage securitization.

    • 25 Oct 2010
  • Ally Hires New Non-Agency Head

    Dariush Pouraghabagher joined Ally Financial last week as a managing director running the New York broker-dealer’s non-agency residential mortgage-backed platform.

    • 25 Oct 2010
  • Volkswagen Out With $750 Mln ABS

    Barclays Capital and Deutsche Bank are marketing Volkswagen of America’s latest asset-backed securities deal, the public $750 million Volkswagen Auto Lease Trust 2010-A.

    • 25 Oct 2010
  • Braver Stern Taps Two RMBS Vets For Boston, Richmond Offices

    Broker-dealer Braver Stern rolled out two new offices today: one in Boston headed by John Keller, a former portfolio manager for Cambridge Place Investment Management, and one in Richmond, Va., headed by BB&T mortgage trading veteran David Cuttino.

    • 25 Oct 2010
  • Mortgage Servicers Under Review

    The operations of the largest U.S. mortgage servicers are under review by the Federal Reserve and other banking agencies, according to Ben Bernanke, the Fed chairman.

    • 25 Oct 2010
  • BofA Now Admits Foreclosure Errors

    Bank of America now admits that it has uncovered errors in foreclosure documents after having denied there were any.

    • 25 Oct 2010
  • U.S. CMBS Losses Near Record

    Losses from defaults on U.S. commercial mortgage-backed securities are approaching record highs, according to Standard & Poor’s.

    • 25 Oct 2010
  • Bank Buybacks To Cost Under $110 Bln, Says Moody’s

    Moody’s Investors Service estimates that repurchases of bad residential mortgage-backed securities would cost banks less than $110 billion, a figure it says is “manageable.”

    • 25 Oct 2010
  • Subprime MBS Investors Sue Credit Agricole Units

    Four Jersey-based investors in subprime asset-backed securities have sued Crédit Agricole Corporate and Investment Bank (Calyon) and Crédit Agricole Securities, charging them with setting up collateralized debt obligations that were expected to fail.

    • 25 Oct 2010
  • GSEs Prepare To Resume Foreclosures

    Fannie Mae and Freddie Mac reportedly are preparing to resume foreclosures by developing a model agreement designed to indemnify insurers against losses that result from bank errors during the foreclosure process.

    • 25 Oct 2010
  • G2 In Joint Venture To Form Distressed-Debt Firm

    G2 Investment Group has teamed up with Maria Boyazny to form MB Global Partners, a woman-owned firm that plans to capitalize on credit dislocations and distressed opportunities.

    • 25 Oct 2010
  • Achmea Preps Dutch RMBS Issue

    Achmea Hypotheekbank is preparing to come to market with its eighth securitization of Dutch residential mortgages from its €10 billion ($13.9 billion) Dutch Mortgage Portfolio Loans program.

    • 25 Oct 2010
  • Tap Issues May Stumble At ECB Repo Hurdle

    European issuers using a loophole to submit single-rated tap issue deals to the European Central Bank’s repurchase facility will now have that opportunity closed.

    • 25 Oct 2010
  • FSB To Propose To-Big-To-Fail Standards

    The Financial Stability Board is planning to propose next month standards for determining when a financial institution is deemed to big to fail, according to Mario Draghi, the FSB chairman.

    • 25 Oct 2010
  • European Investors Cool On Sharing In Bail Out

    More than 25% of European bond investors say they would avoid senior bank bonds if rules to convert bonds of failing banks into equity are adopted, according to JPMorgan.

    • 25 Oct 2010
  • U.K. To Sell Bank Stakes To Boost Competition

    The U.K. government is planning to sell its stakes in Royal Bank of Scotland and Lloyds Banking Group to boost competition and increase lending to small businesses, according David Cameron, the U.K. prime minister.

    • 25 Oct 2010
  • U.K. Lending Down In September

    Gross net lending in the U.K. was down in September, compared with a year ago while net lending improved but at a slower rate, according to the British Bankers’ Association.

    • 25 Oct 2010
  • Flowers Eyes ‘Supermutual’ Lender

    J.C. Flowers, the U.S. private equity firm, reportedly is looking to buy four U.K. building societies for the purpose of creating a supermutual lender along the lines of the French bank Crédit Agricole.

    • 25 Oct 2010
  • French Banks Improve, But Not Retail Overseas

    Major French banks post improved results domestically in the first half of 2010, but not their international retail banking divisions, with the exception of BNP Paribas, according to Fitch Ratings.

    • 25 Oct 2010
  • Investec proves flexible in first post-crisis non-conforming RMBS

    Investec completed the first successful placement of a UK non-conforming RMBS since the credit crisis on Friday — though the lender had to pay up to achieve the feat.

    • 24 Oct 2010
  • “If you want to invest in these sorts of deals, you have to have a sound knowledge of the media industry and securitization—not an easy combination.”

    --Paul Colonna, Stamford, Conn.-based president and cio fixed-income at GE Asset Management, about hype surrounding possible media-backed deals

    • 22 Oct 2010
  • Go After Servicer, Not Originator?

    Bondholders pressing The Bank of New York Mellon, the trustee in a soured pool of Countrywide Financial home loans, for complete access to files on disputed residential mortgage-backed securities have some market players scratching their heads (see related story, page 1).

    • 22 Oct 2010
  • Putback Play Seen As Longshot

    Market participants say threats of a lawsuit against Bank of America-Merrill Lynch and its Countrywide Financial will likely have other investors looking to initiate similar actions, but they don’t expect such efforts to meet with much success.

    • 22 Oct 2010
  • Industry Spying Renewable Energy Push

    Stricter bank regulatory requirements and more attention from rating agencies are expected to spur new lines of collaboration between the U.S. renewable energy sector and the securitization industry, officials said.

    • 22 Oct 2010