Securitization - Article Archive

  • Nelnet Tenders Legacy Student Loan ABS

    Lincoln, Neb.-based Nelnet, a student loan financing firm, is tendering its $1.03 billion auction rate Nelnet Education Loan Funding 2003-1 securitization.

    • 30 Nov 2010
  • Consumer ABS Issuance Down 26.6%

    Issuance of consumer asset-backed securities is down 26.6% so far this year.

    • 30 Nov 2010
  • ABS Losing Investors Seeking Better Returns

    Investors are turning away from asset-backed securities as a lack of new issues has driven up prices and lowered yields.

    • 30 Nov 2010
  • First Drop In Fannie Mae Serious-Delinquency Rate Since 2007

    Fannie Mae recorded its first annual decline in the serious-delinquency rate on single-family mortgages in September for the first time in more than 3-1/2 years. With the seventh consecutive monthly decline,

    • 30 Nov 2010
  • Reforms Needed To Restore Canadian ABS Markets

    Regulatory reform is necessary to revive the Canadian asset-backed securities markets, according to a study by the C.D. Howe Institute.

    • 30 Nov 2010
  • Banks Push Back On GSE Repurchase Requests

    Banks are resisting efforts by Fannie Mae and Freddie Mac to get them to buy back loans that the government sponsored enterprises claim did not meet underwriting standards.

    • 30 Nov 2010
  • Rialto Raises $300 Mln To Invest In Distressed RE

    Rialto Capital has raised roughly $300 million for investing in distressed real estate assets and other related investments.

    • 30 Nov 2010
  • Americold Said To Plan $600 Mln CMBS Offer

    Americold, the warehouse operator owned by billionaire Ron Burkle’s Yucaipa Cos., is said to be planning a $600 million offer of commercial mortgage-backed securities.

    • 30 Nov 2010
  • JPM: GSE’s Can’t Privatize Yet

    Privatizing the government-sponsored enterprises is not possible in their current state, according to Matthew Jozoff, head of mortgage research at JPMorgan.

    • 30 Nov 2010
  • Euro, Japanese Cat Bond Marketed

    A new €60 million ($78.2 million) catastrophe bond to cover windstorm risks in Europe and earthquake threats in Japan has hit the market.

    • 30 Nov 2010
  • Regulators Eye Deal On Basel Liquidity, Capital Rules

    Regulators of the G-20 countries are said to be hoping to make a deal with the Basel Committee on Banking Supervision over liquidity and capital-quality rules.

    • 30 Nov 2010
  • Slow Return To Aussie Securitization Seen

    Australia’s securitization is “slowly returning to life,” but it will be some time before it reaches pre-crisis levels, according to Guy Debelle, assistant governor of the Reserve Bank of Australia.

    • 30 Nov 2010
  • U.K. Bank Levy Could Raise Less Than Expected

    A levy imposed on U.K. banks could raise less cash than earlier projected, according to Mark Hoban, the British financial services minister.

    • 30 Nov 2010
  • Aussie Firm Secures A$300 Mln ABS Facility

    Australia’s Nufarm has secured a one-year A$900 million loan ($866 million), which includes a A$300 million ($288.67 million) asset-backed securitization facility and a A$600 million ($577.34 million) medium-term syndicated bank debt facility through Rabobank.

    • 30 Nov 2010
  • NAMA To Take Balance Of Banks’ Risky Loans

    Ireland’s National Asset Management Agency has agreed to take the balance of “vulnerable land development” loans from the Bank of Ireland and Allied Irish Banks.

    • 30 Nov 2010
  • Distressed-Debt Expert To Head Gramercy’s London Office

    Greenwich, Conn.-based Gramercy has named Doug Krehbiel as managing director and European regional head in the emerging-markets investment manager’s new office in London.

    • 30 Nov 2010
  • BNP Tenders Purchase Offer On Spanish RMBS

    BNP Paribas has pitched a tender offer to purchase the class A notes from its UCI Spanish residential mortgage-backed securitization, series UCI-8 to UCI-17.

    • 30 Nov 2010
  • Citadel out to market at wide end

    BNP Paribas, ING and Rabobank sold Eu500m of the ‘A2’ notes of F van Lanschot Bankiers’s Citadel 2010-I yesterday. The leads sold the notes below par to offer a spread of 155bp over three month Euribor, at the wide end of the 150bp-155bp guidance.

    • 30 Nov 2010
  • Chase Renews ABS Credit-Card Trust

    Chase, the retail banking arm of JPMorgan, has renewed the registration for its credit-card securitization vehicle, Chase Issuance Trust, with the U.S. Securities Exchange Commission.

    • 29 Nov 2010
  • Banks’ Projected Cost For Mortgage Buybacks Upped

    U.S. banks may have to shell out more to buy back bad loans than earlier projected, according to Paul Miller of FBR Capital.

    • 29 Nov 2010
  • Increased Hotel Financing Expected As Delinquencies Improve

    Hotel financing has become more attractive as delinquencies and losses on related loans improve.

    • 29 Nov 2010
  • Ginnie Mae Increases Reverse Mortgage MBS

    Ginnie Mae guaranteed more than $854 million of HECM mortgage-backed securities in October, a roughly 7.5% increase from the previous month’s $796 million.

    • 29 Nov 2010
  • Distressed-Debt Ratio At Seven-Month Low

    Standard & Poor’s distressed-debt level dropped to 8.5% Nov. 15, down from 10.6% last month, its lowest level since April, when it fell to 6.7%.

    • 29 Nov 2010
  • Amherst Names Institutional-Sales S.V.P.

    Amherst Securities Group has named Ryan Stroker as s.v.p. in its institutional sales division.

    • 29 Nov 2010
  • Outlook For New Non-Agency RMBS Dims

    Players in the U.S. residential mortgage-backed securities market aren’t optimistic about new private label deals coming out in 2011—despite positive signs earlier this year.

    • 29 Nov 2010
  • Citadel Replay Given Thumbs Up

    Dutch firm Van Lanschot Bankiers NV’s remarketing of Citadel 2010-1’s A2 tranche has been welcomed by industry pros in London who say a successful placing would give a sense of firming investor demand across the market.

    • 29 Nov 2010
  • EU Sets New Rules For Bailouts

    The European Union has developed a new set of rules to govern country bailouts beginning in 2013.

    • 29 Nov 2010
  • Ireland Eyes Higher Tier 1 Capital Ratios

    The Central Bank of Ireland is looking to impose higher Tier 1 capital ratios on the country’s banks than required by the International Monetary Fund and the European Union, which are funding the new bailout.

    • 29 Nov 2010
  • U.K. Bankers May See More Bonus Cash

    British bankers may see more bonus cash upfront in 2011 than earlier expected, if the European Commission agrees to a U.K. request to phase in stricter compensation rules next year.

    • 29 Nov 2010
  • BoE Tries To Calm Fears Over Its Regulatory Role

    The Bank of England has tried to calm fears that it may be as an intrusive regulator as the Financial Services Authority threatened to be last year.

    • 29 Nov 2010
  • U.K. Mortgage Approval Drop Again

    Residential mortgage approvals fell in the U.K. for the sixth consecutive month in October to their lowest level since January, according to the Bank of England.

    • 29 Nov 2010
  • Deutsche Bank Securitization Chief To Launch Credit Fund

    Gregory Park, who left his position last month as Asia head of securitization products at Deutsche Bank, plans to launch a hybrid hedge and private equity credit fund within the next six months.

    • 29 Nov 2010
  • Jefferies Names European Debt Capital Markets Chief

    Jefferies has named James Fadel as managing director and head of European structured debt capital markets.

    • 29 Nov 2010
  • Dexia Plans Return To Aussie Covered-Bond Mart

    Dexia Municipal Agency is planning to return to the Australian covered-bond market in 2011.

    • 29 Nov 2010
  • Secondary Euro ABS Sees BWIC Spike

    The secondary European asset-backed securities market has seen a “tremendous amount” of bids wanted in competition (BWIC) in the last 10 days, according to ABS traders in London.

    • 29 Nov 2010
  • Lloyds Follows Card ABS Overhaul With New Issue

    Lloyds Banking Group is shopping a new issue from its Penarth Master Trust credit card securitization vehicle after it made a collateral tweak in the program earlier this month.

    • 26 Nov 2010
  • Investors Spurn Microfinance Securitization In India

    Investors in India shying away from securitizations backed by loans made to micro-finance institutions, after new rules affecting the repayments of loans passed in the Indian state of Andhra Pradesh has slowed recoveries and created uncertainty in portfolios.

    • 26 Nov 2010
  • U.K. Pol Advises Dual Approach Pay Transparency

    U.K. business secretary Vince Cable has said transparency rules on bankers’ pay will come only through a mixture of international regulation and domestic legislation.

    • 26 Nov 2010
  • MEPs Eye Regulation For ‘Lit’ Trades

    Kay Swinburne, a U.K. member of the European parliament’s influential Economic and Monetary Affairs committee, says the parliament is working on regulation that would ultimately encourage all trades to be executed on ‘lit’ markets.

    • 26 Nov 2010
  • Toyota Preps Euro Auto ABS Splash

    Toyota is preparing to launch a €800 million ($1.1 billion) asset-backed securities deal backed by German auto loans.

    • 26 Nov 2010
  • U.K. Auto Lease Deal Steers Into Market

    Carlyle Finance, a subsidiary of FirstRand Bank in the U.K., has rolled out a new auto asset-backed deal that securitizes the monthly payments on hire purchase car leases made to individuals and companies across the U.K.

    • 26 Nov 2010
  • FirstRand on the road

    BNP Paribas and UBS are marketing a UK auto loans ABS and will be meeting investors until December 1. The deal is a £393m securitisation through Turbo Finance plc, an arm of FirstRand Bank

    • 26 Nov 2010
  • Asian ABS waking up as StanChart follows auto ABS deal with ¥40bn Korean Air issue

    Korean Air Lines sold a rare Asian asset-backed securitisation last week, raising ¥40bn ($478.45m) from a deal that was sold more than 50bp inside where it was underwritten — showing the returning demand for ABS and leading to hopes that Asia’s long sleeping securitisation market is about to reawaken.

    • 26 Nov 2010
  • Demand calls synthetic CDOs back to life

    The asset that George Soros said "creates imaginary value out of thin air" is back. Axa Investment Managers and UBS are re-opening the public synthetic CDO market with a deal that capitalises on strong investor demand for corporate credit exposure.

    • 26 Nov 2010
  • ASF weighs in on "skin-in-the-game"

    The American Securitization Forum is adding its voice to the debate on risk retention rules as US regulators grapple for clarity on the Dodd-Frank Act.

    • 26 Nov 2010
  • Echoes of summer in Storm private placement

    Obvion has privately placed a Eu2bn securitisation of prime Dutch RMBS through Storm 2010-IV, in a deal reminiscent of the ABS market this June. Rabobank International had a leading role in arranging the deal and priced the notes at 125bp over three month Euribor.

    • 26 Nov 2010
  • Italian RMBS at risk as payment holiday decree hits home

    Fitch has flagged up concerns about Italian ministerial decree 132/10, which introduced a payment holiday for distressed borrowers. The agency said the scheme would weaken existing RMBS structures, and obscure the underlying performance of portfolios.

    • 26 Nov 2010
  • Lloyds launches refreshed Penarth

    Lloyds Banking Group will price a new credit card ABS from its Penarth master trust, after adding new Lloyds TSB-originated receivables to the trust earlier this month.

    • 26 Nov 2010
  • Titan Europe 2006-2 escapes Windermere and Alburn acrimony

    Special servicer Hatfield Phillips has managed the restructuring of loans in the Titan Europe 2006-2 CMBS, extending the maturity of the Eu273.39m Margaux and the Eu208m Petrus portfolio loans until July and April 2012 respectively, with options to extend further into 2013.

    • 26 Nov 2010
  • Abu Dhabi Bank Sues CS, S&P Over SIV

    Abu Dhabi Commercial Bank has filed a lawsuit in New York against Credit Suisse and Standard Poor’s, alleging it was misled over a structured investment vehicle entered into in 2007.

    • 25 Nov 2010
  • ABS Uptick On Horizon, But Sector Health Still Fragile

    Securitization volumes are forecast to rise in 2011, but the overall health of the sector will remain precarious, Standard & Poor’s analysts say.

    • 25 Nov 2010
  • EU Commission Said To Be Mulling Bank Liquidity Tests

    The European Commission is said to be planning liquidity exams for banks in next year’s round of European stress tests, according to market participants familiar with the situation.

    • 25 Nov 2010
  • U.K. Chancellor Seeking EU-Wide Pact On Bankers’ Pay

    U.K. chancellor George Osborne is to write to Michel Barnier, commissioner for financial services within the European Union, this week calling for EU finance ministers’ support for plans to disclose the pay of high-earning bankers.

    • 25 Nov 2010
  • FINMA To Implement Securitization Reforms In January

    The Swiss Financial Market Supervisory Authority is to put revisions on credit risks, disclosure and risk diversification for bank exposures in, among other things, proprietary trading and securitization, into effect Jan. 1.

    • 25 Nov 2010
  • Obvion Storms Back To Mart With RMBS Trade

    Dutch bank Obvion Hypotheken this week launched a €2 billion ($2.6 billion) issue of residential mortgage-backed securities, the fourth trade this year from its Storm program, as RMBS issuance from the Netherlands continues to tick along towards year-end.

    • 25 Nov 2010
  • Lloyds launches refreshed Penarth

    Lloyds Banking Group has launched a new credit card ABS from its Penarth master trust, after adding new Lloyds TSB-originated receivables to the trust earlier this month.

    • 25 Nov 2010
  • Storm 2010-IV looks back to summer with Eu2bn private placement

    Obvion has privately placed a Eu2bn securitisation of prime Dutch RMBS through Storm 2010-IV, in a deal reminiscent of the ABS market in June this year. Rabobank International had a leading role in arranging the deal, and priced the notes at 125bp over three month Euribor.

    • 25 Nov 2010
  • “The super-normal returns of the first fund are hard to replicate. But we still think the relative value of CLOs is attractive.”

    —Mark Hale, cio at Prytania Investment Advisors, about crafting a second Athena fund that expects returns in the 15-20% range.

    • 24 Nov 2010
  • U.S. Prime Auto Loan ABS Stable In October

    Performance of U.S. prime auto loan asset-backed securitized was stable in October, according to Fitch Ratings, which said it is unusual for this time of the year, when losses typically rise.

    • 24 Nov 2010
  • Banks’ Loan-Loss Provisions Drop To Pre-Crisis Levels

    Banks’ loan-loss provisions dropped to their lowest level since before the financial crisis began in 2007 in the third quarter, according to the Federal Deposit Insurance Corp.

    • 24 Nov 2010
  • MBS Investors Press For Quick End To Foreclosure Probe

    Investors in mortgage-backed securities are looking for a speedy resolution to the 50-state investigation of lenders’ foreclosure practices.

    • 24 Nov 2010
  • Moody’s Downgrades Countrywide RMBS

    Moody’s Investors Service has downgraded the ratings on 272 tranches of residential mortgage-backed securities backed by option ARM loans issued by Countrywide Financial as a result of “rapid deteriorating performance” of the option ARM pools.

    • 24 Nov 2010
  • Bank Sales Of Bad Assets Double

    Banks have sold more than $16 billion in nonperforming assets so far this year, double the figure for all 2009, according to a study by investment bank KBW.

    • 24 Nov 2010
  • Starwood Adds To Commercial Mortgage Loan Biz

    Starwood Property Trust has expanded its commercial mortgage loan business with the hiring of Boyd Fellows, Stew Ward, Chris Tokarski and Warren de Haan.

    • 24 Nov 2010
  • Freddie, Fannie Gum Up Renewable ABS Issuance

    Freddie Mac and Fannie Mae have put the brakes on market plans for asset-backed securities backed by government tax liens for solar and energy saving loans, according to market officials.

    • 24 Nov 2010
  • SEC Adds To New Structured Product Unit

    Two industry veterans have jointed the U.S. Securities and Exchange Commission as structured finance and new product specialists in the New and Structured Products Unit within the Division of Enforcement, as first reported by sister publication Derivatives Week.

    • 24 Nov 2010
  • Wells Pumping Up CMBS Play

    Wells Fargo Bank is said to be positioning itself to be a major player in the retrenched commercial mortgage-backed securitization market, with lenders in the sector tipping the San Francisco, Calif.-based bank to lead a new offering in the early part of the New Year.

    • 24 Nov 2010
  • Spanish SME CLO Readied

    A €1.85 billion ($2.48 billion) Spanish collateralized loan obligation originated by La Caixa is in the works.

    • 24 Nov 2010
  • Lawmakers Pitch Greater ESMA Powers Over CRAs

    European Union lawmakers want to hand to a pan-European securities regulator power to directly fine credit rating agencies for breaches of operating and reporting rules, as well as the ability to carry out random checks on ratings and conduct deeper assessments of their methodologies.

    • 24 Nov 2010
  • Payment Holiday Could Harm Italian RMBS Ratings

    A payment holiday for Italian distressed borrowers could have a negative impact on the ratings of Italian residential mortgage-backed securities, according to Fitch Ratings.

    • 24 Nov 2010
  • Hopes Fade For European CMBS Revival

    Hope is fading for a revival of the European commercial mortgage-backed securities market.

    • 24 Nov 2010
  • Spain Said To Delay Tariff Bond Launch

    Market instability has prompted Spain to delay the launch of the first tranche of its power tariff bond issue.

    • 24 Nov 2010
  • Aussie Ban On Covered Bonds Could Spike Interest Rates

    The continued ban on covered bonds in Australia could result in higher interest rates for borrowers, according to analysts.

    • 24 Nov 2010
  • OECD Downplays Basel’s Impact

    The Organization for Economic Cooperation and Development has downplayed the economic impact of new higher capital requirements adopted by the Basel Committee on Banking Supervision.

    • 24 Nov 2010
  • Irish Bank Woes Reveals Basel Flaws

    The current woes Irish banks are experiencing reveal some of the weaknesses of Basel capital rules. The Bank of Ireland, for example,

    • 24 Nov 2010
  • Two German Titan CMBS Loans Restructured

    Two loans securitized in the German commercial mortgage-backed deal Titan Europe 2006-2 have been restructured.

    • 24 Nov 2010
  • Sell Subprime, Buy Option ARM, Says Amherst

    Amherst Securities Group is advising investors to sell subprime bonds and buy adjustable rate mortgages as the excess spread between them is shrinking, since the prepayment reduction on the former is likely greater than on the latter.

    • 23 Nov 2010
  • Mortgage Delinquencies Fall In Q3

    The national mortgage delinquency rate fell by its largest percentage in the third quarter since the end of 2006, according to TransUnion.

    • 23 Nov 2010
  • U.S. Credit-Card Charge-Offs Drop 12%

    Charge-offs on U.S. credit cards slipped 11 basis points to finish October at 8.79%--a 12% decline from a year ago, according to Moody’s Investors Service.

    • 23 Nov 2010
  • Bigwig To Start Distressed Hedge Fund

    Daniel Posner, a distressed-debt specialist, is said to be leaving DE Shaw to launch a hedge fund that will invest in distressed companies.

    • 23 Nov 2010
  • Lehman Sues Over Repurchase Agreement

    Lehman Brothers Holdings has filed suit against Fairway Independent Mortgage, charging the Wisconsin company misrepresented borrowers’ debt in loans Lehman acquired and has allegedly refused to repurchase them.

    • 23 Nov 2010
  • FHFA Maintains Conforming Loan Limits

    The Federal Housing Finance Agency has announced that it will maintain the maximum confirming loans limits for mortgages originated in 2010 through the first nine months of next year, which is the end of the federal government’s fiscal 2011.

    • 23 Nov 2010
  • 1st Financial Inches Closer To Issuance With Collateral Addition

    1st Financial Bank is preparing a credit card asset-backed securities deal for December, according to an official close to the deal.

    • 23 Nov 2010
  • S&P Still Eyeing De-linked Ratings

    Standard & Poor’s says it may still issue ratings for securitizations based solely on the assets and not the issuer’s credit rating, even if the deal doesn’t comply with the Federal Deposit Insurance Corporation’s new Safe Harbor provisions.

    • 23 Nov 2010
  • SEC Extends No-Action Rule On 436g Indefinitely

    The Securities and Exchange Commission said today it will extend its no-action letter on the repeal of 436g indefinitely.

    • 23 Nov 2010
  • Lawmakers Pitch Greater ESMA Powers Over CRAs

    European Union lawmakers want to hand power to a pan-European securities regulator to directly fine credit rating agencies for breaches of operating and reporting rules, as well as the ability to carry out random checks on ratings and conduct deeper assessments of their methodologies.

    • 23 Nov 2010
  • Ireland Looks To Sell Its Banks

    The Central Bank of Ireland is looking to break up the troubled banks that forced the country to seek a bailout from the European Union and the International Monetary Fund. “

    • 23 Nov 2010
  • No Need To Break Up U.K. Banks, Says FSA Chair

    Sir Adair Turner, chairman of the U.K.’s Financial Services Authority, told Parliament that there was no need to break up British banks to deal with systemic risks.

    • 23 Nov 2010
  • Moving Mortgages To NAMA Mulled

    The Irish government is considering an expansion of the kind of loans moved to the National Asset Management Agency to include home mortgages.

    • 23 Nov 2010
  • ANZ Said To Eye Sale Of A$495 Mln Of Shopping-Mall Debt

    Australia & New Zealand Banking Group is said to be looking to sell A$495 million ($483 million) in loans that shopping-mall owner Centro Properties Group owes.

    • 23 Nov 2010
  • U.K. Gross Lending Near 10-Year Low

    Gross lending in the U.K. reached its lowest level since February 2001 last month, according to the British Bankers’ Association.

    • 23 Nov 2010
  • Aussie Mortgage Market Stable In Q3

    The Australian mortgage market was stable in the third quarter, according to both Fitch Ratings and Moody’s Investors Service.

    • 23 Nov 2010
  • U.K. Card ABS Reworks Get Thumbs Up

    Two recent U.K. credit card restructurings have been welcomed by London-based securitization pros, who say the actions will stabilize the trusts’ ratings and could help spark new issuance in the future.

    • 23 Nov 2010
  • Citadel ‘A2s’ show primary still has punch

    Despite a soft market in secondary trading, and discouraging news from Ireland and Korea, there is still strong demand for Dutch prime RMBS, as shown by F Van Lanschot Bankiers’s Citadel 2010-I. The bank has decided to sell Eu500m of the retained ‘A2’ tranche into market, and aims to launch and price the deal next week or earlier. BNP Paribas, ING, and Rabobank are managing the deal.

    • 23 Nov 2010
  • Fail Penalty Seen Coming Soon To TBA

    There is chatter in the agency mortgage-backed securities market this week that a fail penalty is coming soon to the government wrapped asset class.

    • 22 Nov 2010
  • Market Wrestles With Adams Deal Credit Work

    Some Investors and traders doing the credit work on Barclays Capital’s $355 million whole business securitization for Adams Outdoor Advertising say they are having trouble coming to grips with the cash flows backing the transaction.

    • 22 Nov 2010
  • U.S. Banks May Come Up Short $150 Bln From Basel

    U.S. banks may come up short between $100 billion and $150 billion for complying with higher capital requirements adopted by the Basel Committee on Banking Supervision, according to a study by Barclays Capital.

    • 22 Nov 2010
  • CMBS Sales Could Top $41 Bln In 2011

    Sales of commercial mortgage-backed securities could top $41 billion in 2011—up from $25 billion in this year--thanks to looming loan maturities, says Citigroup.

    • 22 Nov 2010
  • Faulty Files Plaguing Banks’ Asset Sales

    Incomplete loan files have contributed to problems banks have had trying to rid their balance sheets of U.S. mortgages originated during the lending boom, according to Cantor Fitzgerald.

    • 22 Nov 2010
  • Berkadia Expands CMBS With Fixed-Rate Loans

    Berkadia Commercial Mortgage has added fixed-rate loans to its commercial mortgage-backed securities.

    • 22 Nov 2010