Securitization - Article Archive

  • One Year Ago in Total Securization

    The Federal Deposit Insurance Corp. issued new proposed rules on Safe Harbor and risk retention, stirring concern among securitization professionals that efforts to rein in the industry may be going too far.

    • 23 Dec 2010
  • “It’s relatively new. Unlike other CMBS where you see splitting in the mezzanine tranches, this has one thick class.”

    —David Brickman, v.p. multifamily capital markets at Freddie Mac, about the novel B mezzanine bond in the agency’s series of K-deals.

    • 23 Dec 2010
  • 2011 Agency RMBS Preview: Everybody Loves Ginnies

    The agency mortgage-backed securities market is bracing for changes in the coming year with uncertainty looming over government guarantees, broad reform measures and the unpredictability of rate swings. But one area where market players seem ready to settle in 2011 is in the land of Ginnie Mae.

    • 23 Dec 2010
  • Investors Keeping Esoteric ABS In Sights

    Investors are scoping out more subordinated pieces and off-the-run asset classes in 2011 as the hunt for value and spread is set to continue well into the New Year, according to market officials.

    • 23 Dec 2010
  • European MBS Hits Q4 Year-End Slowdown

    The fourth quarter of 2010 saw a minor end-of-year issuance slow down, with $15.24 billion in European commercial and residential mortgage-backed securities paper hitting the market, according to data provided to TS by Dealogic

    • 23 Dec 2010
  • GSE Slowed Private-Label MBS Rebound, Says CBO

    The Congressional Budget Office claims that overreach by Fannie Mae and Freddie Mac has slowed the recovery of the private-label mortgage-backed securities market.

    • 23 Dec 2010
  • TARP Repayments Hit 60%

    Six more bank holding companies have repaid a total of $2.7 billion in bailout funds through the Department of Treasury’s Troubled Asset Relief Program.

    • 23 Dec 2010
  • Canadian MBS Sales Fall 16%

    Sales of mortgage-backed securities in Canada declined 16% in 2010, with little change in the market expected next year.

    • 23 Dec 2010
  • Ireland Preps To Nationalize AIB

    The Irish government is preparing to take over Allied Irish Banks as it injects €3.7 billion ($4.84 billion) into the country’s troubled second-largest lender.

    • 23 Dec 2010
  • U.K. Mortgage Approvals Grow At 11-Year Low

    Mortgage approvals in the U.K. grew at their slowest rate in more than 11 years, according to the British Bankers’ Association.

    • 23 Dec 2010
  • U.K. Prime RMBS Remain Stable

    Performance of U.K. prime residential mortgage-backed securities remained stable in October, according to Moody’s Investors Service.

    • 23 Dec 2010
  • Swiss Rush Bank Legislation

    The Swiss government has released for comment draft legislation aimed to reducing the size of banks considered too big to fail.

    • 23 Dec 2010
  • Portuguese ABS, RMBS Face Possible Downgrade

    Moody’s Investors Service has place on review for possible downgrade notes of 25 Portuguese structured finance transactions.

    • 23 Dec 2010
  • Hypo RE’s Bad Bank Repays €38.58 Bln In State Guarantees

    FMS Wertmanagement, the so-called bad bank of Hypo Real Estate, has repaid €38.58 billion ($50.52 billion) in state guarantees.

    • 23 Dec 2010
  • StormHarbour Adds In NY, London

    StormHarbour has made a number of additions to its New York and London teams, about a quarter of which will deal with cash and synthetic securities.

    • 23 Dec 2010
  • No Wrap, No Problem! Royalty ABS Deals Tipped For New Year

    Look for more royalty deals to hit in 2011 -- even without the monoline insurers that gave those bonds AAA ratings in the pre-crisis days, a panel of bankers at Standard & Poor’s Structured Credit Roundtable said this week.

    • 22 Dec 2010
  • Freddie To Double CMBS Issuance in 2011

    Freddie Mac plans to double its multifamily commercial mortgage-backed securities to more than $10 billion in the coming year.

    • 22 Dec 2010
  • Used Cars Driving U.S. Auto ABS

    Performance of U.S. asset-backed securities tied to automobile loans continued its positive trend in November, thanks to a strong used-car market, according to Fitch Ratings.

    • 22 Dec 2010
  • Moody’s Eyes Chrysler ABS Upgrades

    Moody’s Investors Service says it has placed on review for possible upgrade 10 tranches from four prime auto loan securitizations and three tranches from three re-securitizations sponsored and serviced by Chrysler Financial Services Americas.

    • 22 Dec 2010
  • Lenders To Defend Foreclosures In N.J.

    Chief Justice Stuart Rabner of the New Jersey Supreme Court has ordered a unit of Bank of America, Ally Financial and other large mortgage lenders to appear next month before the court to defend their foreclosure practices.

    • 22 Dec 2010
  • Defaults On Mortgages Rise, Cars Decline

    Defaults on mortgages rose in November, while those on automobile loans declined, according to Standard & Poor’s and Experian.

    • 22 Dec 2010
  • Twice As Many GSE Foreclosures Than Loan Mods

    There were more than twice as many foreclosures on mortgages from Fannie Mae and Freddie Mac than loan modifications completed, according to the Federal Housing Finance Agency.

    • 22 Dec 2010
  • US ABS - A Month In Review By Markit (December 2010) (Mobile Version)

    The US Agency MBS sector generally benefitted from the Federal Reserve’s quantitative easing (“QE”) programs initiated nearly two years ago.

    • 22 Dec 2010
  • US ABS - A Month In Review By Markit (December 2010)

    The US Agency MBS sector generally benefitted from the Federal Reserve’s quantitative easing (“QE”) programs initiated nearly two years ago.

    • 22 Dec 2010
  • European CLOs To Face Rating Scrutiny

    European collateralized loan obligations that use currency and interest rate hedges may be negatively affected by new rating criteria rolled out by Standard & Poor’s on structured finance transactions, according to JPMorgan analysts.

    • 22 Dec 2010
  • U.K. Banks May Face Higher Levy

    U.K. banks may face an even higher levy if they do not rein in bonuses and increase lending to small and medium-sized companies, warned George Osborne, Chancellor of the Exchequer.

    • 22 Dec 2010
  • U.K. Lending May Fall To 30-Year Low In 2011

    U.K. mortgage lending in 2011 may fall to its lowest level in more than 30 years, according to the Council of Mortgage Lenders.

    • 22 Dec 2010
  • Swiss Propose Tougher Bank Regs

    The Swiss government has released proposals for tougher bank regulations in an effort to prevent future failures requiring taxpayer-funded bailouts.

    • 22 Dec 2010
  • U.K. Buy-To-Let RMBS Remain Stable

    Performance of U.K. buy-to-let residential mortgage-backed securities continued its stabilizing trend in October, according to Moody’s Investors Service.

    • 22 Dec 2010
  • Italian Leasing ABS Continue To Weaken

    Performance of Italian leasing asset-backed securities continued to weaken in October, according to Moody’s Investors Service.

    • 22 Dec 2010
  • Banker Bonuses Expected To Fall 7%

    Bonuses to bankers worldwide are expected to decline 7% from a year ago, according to poll by Reuters/IFR.

    • 22 Dec 2010
  • Maturing CSOs To Stunt CDS Volumes

    A sharp pickup in maturing collateralized synthetic obligations next year is expected to stunt credit default swaps volumes.

    • 22 Dec 2010
  • SEC Pushes Back Risk Retention Rule

    Interagency disputes have pushed off a final version of the Securities and Exchange Commission’s proposed risk retention rule to late January, a move officials say has delayed clarity for the market.

    • 21 Dec 2010
  • Call To Adopt Securitization, Mortgage Standards

    A group of more than 50 senior economists, academics, former regulators and investors is calling on the federal government to adopt national securitization and mortgage standards.

    • 21 Dec 2010
  • U.S. Eyes Tougher Bank Pay Policies

    The Federal Reserve, the Securities and Exchange Commission and other regulators are said to be considering tougher compensation policies for banks as a way to discourage excessive risk taking.

    • 21 Dec 2010
  • Colony-Led Group To Buy CRE Mortgages From FDIC

    A consortium of investors led by Colony Capital has agreed to purchase $137 million of commercial real estate mortgages from the Federal Deposit Insurance Corp.

    • 21 Dec 2010
  • BlackBox, Thetica Team Up To Improve RMBS Forecasting

    BlackBox Logic has teamed up with Thetica Systems to improve forecasting of residential mortgage-backed securities.

    • 21 Dec 2010
  • TIAA-CREFF Forms Distressed-Debt Fund

    TIAA-CREFF is said to be raising an estimated $400 million for a fund of funds that will invest in distressed debt and equity funds.

    • 21 Dec 2010
  • CMBS Finding Favor Again

    Commercial mortgage-backed securities are finding favor again as low rates are prompting investors to turn to riskier assets.

    • 21 Dec 2010
  • Hatfield Extends Talisman Loan

    Hatfield Philips, the special servicer of the €1.08 billion ($1.42 billion) Talisman 6 commercial mortgage securitization, said yesterday it had agreed to an extension of the Mango loan until Jan. 31, 2011.

    • 21 Dec 2010
  • NAMA To Sue Over Transfers To Avoid Seizure

    Ireland’s National Asset Management Agency plans to sue property developers who transferred toxic assets to spouses to avoid seizure by NAMA.

    • 21 Dec 2010
  • Lloyds, RBS Received Break To Tap Toxic-Asset Scheme

    Lloyds Banking Group and Royal Bank of Scotland were charged less for using the U.K.’s Asset Protection Scheme than Treasury could have demanded, according to the National Audit Office.

    • 21 Dec 2010
  • Banks Overhauling Pay Structures

    International investment banks are overhauling their pay structured to distinguish between staffers who work in Europe and those who work elsewhere to comply with remuneration standards adopted by the Committee of European Banking Supervisors.

    • 21 Dec 2010
  • Spanish Banks Eyed For Possible Downgrade

    Moody’s Investors Service has placed all rated government-backed debt issuances, as well as the deposit and senior-debt ratings from all of Spain’s 30 banks, on review for possible downgrades.

    • 21 Dec 2010
  • U.K. Secured Loans Business Plummets 29%

    The U.K. secured-loan business dropped 29% drop in the 12 months from October 2009, according to the Finance & Leasing Association.

    • 21 Dec 2010
  • Outstanding Euro ABS Continues To Shrink

    The total outstanding market in European asset-backed securities is continuing to shrink due to stunted volumes of new issuance along with scheduled redemptions, according to analysts at Citigroup in London.

    • 21 Dec 2010
  • Fortress Fund Scoops Up Pangaea CLO Contracts

    Fortress Investment Group has acquired management contracts on three middle-market collateralized loan obligations from Chicago-based Pangaea Asset Management through its Drawbridge Special Opportunities Fund, according to officials close to the deal.

    • 21 Dec 2010
  • Reindeer revalued and extended in Talisman 5 restructuring

    The Reindeer whole loan, one of several assets backing the ABN Amro-originated Talisman 5 CMBS, has been revalued in a general revision to the credit agreement on the loan.

    • 21 Dec 2010
  • Bail-ins to boost secured funding, says Moody’s

    ABS and covered bonds will grow in importance in 2011, as bail-in laws and constrained demand for senior unsecured bank debt push banks into secured funding, according to Moody’s.

    • 21 Dec 2010
  • Legacy Covenants Present Challenges For Air Lease ABS

    Servicing on legacy long-dated aircraft financing asset-backed securities is presenting a unique problem as issuers look to amend covenants to take greater advantage of the global economy.

    • 20 Dec 2010
  • AEGON, BoA Merrill Team Up For Securitization

    AEGON USA Realty Advisors and Bank of America Merrill Lynch have teamed up to give the investment bank a new source of lending opportunities for its securitization program.

    • 20 Dec 2010
  • C-BASS To Form Company To Securitize Jumbos

    Credit-Based Asset Servicing and Securitization plans to form a new company that will purchase securitized jumbo residential loans.

    • 20 Dec 2010
  • S&P Downgrades $5.46 Bln Of Subprime CDO

    Standard & Poor’s has lowered the ratings on $5.46 billion of U.S. collateralized debt obligations backed by subprime residential mortgage-backed securities.

    • 20 Dec 2010
  • Moody’s Lowers $979.1 Mln Of Bear RMBS Ratings

    Moody’s Investors Service has downgraded $979.1 million of residential mortgage-backed securities issued by Bear Stearns.

    • 20 Dec 2010
  • SEC Names Enforcement Associate Director

    The U.S. Securities and Exchange Commission has named Stephen Cohen as associate director of its Division of Enforcement.

    • 20 Dec 2010
  • BoA Sued Over Loan Mods

    Bank of America has been sued by the attorneys general of Arizona and Nevada over its practices associated with home loan modifications.

    • 20 Dec 2010
  • Could Rate Swings Drive Fed To Agency MBS?

    Volatility in the rates market is making participants wonder if the Federal Reserve will build out quantitative easing purchases into agency mortgage-backed securities.

    • 20 Dec 2010
  • Tranche Talk: Lloyds' Plehn Eyes Overseas Money

    Robert Plehn, head of structured securitization at Lloyds Banking Group in London, says offering asset backed-securities in currencies other than sterling, dollars and euros is one way to attract new investors back to the European market over the next 12 months.

    • 20 Dec 2010
  • Banque Populaire Prices French SME CLO

    Banque Populaire has priced a €880 million ($1.16 billion) collateralized loan obligation that references a book of French corporate and small-to-medium enterprise loans.

    • 20 Dec 2010
  • ECB Questions Irish Banking Law

    The European Central Bank has expressed concern over the legality of Ireland’s new, tougher banking law.

    • 20 Dec 2010
  • AIB Transfers Bad Assets At Deep Discount

    Allied Irish Banks said it has transferred an additional €9.3 billion ($12.33 billion) in troubled property loans to the National Asset Management Agency at a 59% discount.

    • 20 Dec 2010
  • Spanish RMBS Continue To Stabilize

    Moody’s Investors Service reports that the performance of Spanish residential mortgage-backed securities continued its stabilizing trend in October.

    • 20 Dec 2010
  • Lloyds, RBS On Track To Reach Lending Targets

    Lloyds Banking Group and Royal Bank of Scotland say they are on track to reach the new-lending targets for 2010 set by the U.K. government as part of their rescue agreement.

    • 20 Dec 2010
  • Australia To Create Liquidity Facility

    The Reserve Bank of Australia and the Australian Prudential Regulation Authority have announced plans to create a liquidity facility to help domestic financial institutions comply with the higher liquidity requirements of the Basel Committee on Banking Supervision.

    • 20 Dec 2010
  • EMEA Consumer Loan ABS Worsen In Q3

    Performance of consumer loan asset-backed securities in the Europe, Middle East and Africa region worsened in the third quarter, according to Moody’s Investors Service.

    • 20 Dec 2010
  • U.K. Bank Tax Now Only A Possibility

    The proposed levy on U.K. banks to force restraint in compensation may now be only a “possibility,” according to Vince Cable, the kingdom’s business secretary.

    • 20 Dec 2010
  • Hoare advises bondholders to root up Plantation proposals

    The firm advising an ad hoc committee of bondholders in the Plantation Place REC 5 CMBS, which has breached loan-to-value covenants, on Friday suggested that they reject the issuer’s restructuring plans and instead proposed another scheme.

    • 20 Dec 2010
  • Credit Suisse, Nomura Eye Return To CMBS

    Credit Suisse is close to re-launching its commercial mortgage-backed securities origination business while Nomura Securities is considering a similar move.

    • 17 Dec 2010
  • "Although the implementation deadlines for many of the new capital rules have been delayed, look for other large banks to ramp up their sale of assets in 2011 as rising prices make it more economical to do so."

    --Scott Buchta, head of investment strategy at Braver Stern, on State Street's massive sale of assets motivated by Basel III requirements and the possibility of similar sales in 2011.

    • 17 Dec 2010
  • My Trading-Room Floor Is Bigger Than Yours

    Investment banking's a macho business.

    • 17 Dec 2010
  • Capital Alternatives To Trust Preferred Securities

    Trust preferred securities ("TruPS") are issued by bank holding companies ("Holdcos").

    • 17 Dec 2010
  • RBS Duo Traces Expected Trading Trends

    Issuance of National Credit Union Administration notes will continue to depress spreads on agency residential mortgage-backed securities, but collateralized loan obligations and commercial mortgage-backed securities provide bright spots for traders, Scott Eichel and David Cannon, global co-heads of mortgage and asset-backed trading at the Royal Bank of Scotland, said in a recent interview with TS Senior Reporter Daniel O'Leary.

    • 17 Dec 2010
  • DoubleLine Banks OnRMBS Woes

    Philip Barach, president of DoubleLine Capital and senior portfolio manager for its $3.8 billion Total Return Bond Fund (DBLTX), which invests in mortgage bonds, told TS he sees hurdles facing the residential mortgage-backed securities market as "unique tools" for shops like his to deliver big returns.

    • 17 Dec 2010
  • Delinquencies Down, Foreclosure Inventories Up

    The delinquency rate for loans 30 days or more past due dipped to 9.02% in November, about 15% lower than a year earlier, according to Lender Processing Services.

    • 17 Dec 2010
  • SEC Said To Expand Mortgage Investigation

    The U.S. Securities and Exchange Commission is said to have expanded its investigation of mortgage foreclosures and has sought details on securitization procedures from major Wall Street banks.

    • 17 Dec 2010
  • CREL CDO Delinquencies Fall Again

    Fitch Ratings reports delinquencies on U.S. commercial real estate loans in collateralized debt obligations fell for the second month in a row to 12.8% in November.

    • 17 Dec 2010
  • Judge Greenlights MBIA Suit Against GMAC

    A New York state judge has ruled that bond insurer MBIA can proceed with its lawsuit against GMAC Mortgage charging the mortgage lender with misrepresented the quality of tens of thousands of loans when it applied for insurance on billions of mortgage-backed securities.

    • 17 Dec 2010
  • Grubb & Ellis Hires Debt & Equity MD

    Grubb & Ellis has hired Richard Jarocki as managing director of its debt and equity finance group in New York.

    • 17 Dec 2010
  • Swiss Central Bank Seeks More Authority

    The Swiss National Bank is seeking to increase its supervisory power that goes beyond its warning-issue capability.

    • 17 Dec 2010
  • Australia Expands Allowable Assets To Comply With Basel

    The Reserve Bank of Australia and the Australian Prudential Regulation Authority have reached an agreement to expand the type of assets banks can use to comply with the higher capital and liquidity requirements adopted by the Basel Committee for Banking Supervision.

    • 17 Dec 2010
  • BoE Warns Banks To Retain Earnings

    The Bank of England has warned U.K. banks to hold on to their earnings rather pay dividends and other compensation to help them build up a cushion against future financial system problems.

    • 17 Dec 2010
  • Attorney Reacts: No Quick Cure in ECB Plans

    Proposals issued Thursday by the European Central Bank to introduce loan-by-loan information requirements for securitizations will be welcomed by investors.

    • 17 Dec 2010
  • Madoff Ponzi Settlements Spark ABS Investor Interest

    Distressed structured finance investors are looking at buying liability claims from the Bernie Madoff Ponzi scheme cases playing out in American courts, according to officials at Vesper Capital Markets.

    • 17 Dec 2010
  • Barclays To Launch Young Vintage CMBS Index

    Barclays Capital is preparing the first commercial mortgage-backed securities index to launch since the market’s reboot.

    • 17 Dec 2010
  • European ABS - Two Weeks In Review By Markit (Mobile Version)

    The ABS market is seeing out the year, which will be remembered for the sovereign debt travails, in a predictably muted fashion.

    • 17 Dec 2010
  • European ABS - Two Weeks In Review By Markit

    The ABS market is seeing out the year, which will be remembered for the sovereign debt travails, in a predictably muted fashion

    • 17 Dec 2010
  • S&P error puts 1,196 ratings on negative watch

    Standard & Poor’s admitted that it did not take pro rata interest allocation into account when rating 129 US RMBS re-REMIC transactions. The agency has placed 1,196 ratings on CreditWatch with negative implications as a result.

    • 17 Dec 2010
  • Swiss Re’s Vega cat bond caps third-strongest issuance year

    Swiss Re has sold a $106.5m catastrophe bond through its Vega Capital programme. The cat bond gives three years’ protection against North Atlantic hurricanes, European windstorms, Californian earthquakes, Japanese earthquakes and Japanese typhoons.

    • 17 Dec 2010
  • ECB launches loan-level template

    The European Central Bank has issued its loan level reporting template for RMBS, the first step in the 18 month move to require loan-level reporting on all ABS collateral.

    • 17 Dec 2010
  • Bondholders face enforcement as Fleet Street 1 fights for refi

    The Fleet Street Finance One CMBS could be enforced in the new year, as scarce real estate credit means the sole asset in the transaction is struggling to refinance, despite healthy cashflows and a low leverage.

    • 17 Dec 2010
  • Renewed Penarth back as US investors look to UK cards

    Lloyds TSB Bank has launched its first public credit card ABS since revamping the collateral in its Penarth master trust, tapping into US demand for UK card ABS by including a $600m dollar tranche.

    • 17 Dec 2010
  • ‘Fireworks’ in REC 6 meeting

    Noel Smyth, the property developer behind troubled CMBS REC 6, caused "fireworks" in a bondholder meeting this week. Smyth disputed figures provided by independent real estate advisor CB Richard Ellis, which said that £41m of capital expenditure would be required by the properties backing the REC 6 CMBS. He claimed a lower figure, including a rent-free period to deal with some leases on the properties which are due to run off.

    • 17 Dec 2010
  • Goldman-Citi CMBS Prices

    GS Mortgage Securities Trust 2010-C2, the $876.5 million commercial mortgage-backed securities deal launched last week by Goldman Sachs and Citigroup, has priced, with the senior bonds coming in slightly wider than initial guidance.

    • 16 Dec 2010
  • RMBS Loss Severities May Climb10%

    Fitch Ratings loss severities on distressed U.S. residential mortgage loans may grow an additional 5% to 10% from current levels as a result of higher loss mitigation and foreclosure expenses as well as weakening home values.

    • 16 Dec 2010
  • Texans Turn To ABS To Unload Auction-Rate Securities

    Texas’ Brazos Higher Education Authority has turned to asset-backed securitization to unload what have become unsalable auction-rate securities.

    • 16 Dec 2010
  • S&P Admits Error In Re-Remic Analysis

    Standard & Poor’s has admitted that it “incorrectly analyzed” some $30 billion in 129 transactions of re-remic securities.

    • 16 Dec 2010
  • Foreclosures Timelines To Stretch After Robo-Signing Fiasco

    Moody’s Investors Services predicts that additional scrutiny of mortgage servicers following the disclosure of foreclosure deficiencies could extend foreclosure timelines by three months or longer.

    • 16 Dec 2010
  • FDIC Names Complex Financial Institutions Director

    The Federal Deposit Insurance Corporation has named Jim Wigand as director of the new Office of Complex Financial Institutions.

    • 16 Dec 2010
  • Ginnie Mae To Grab One-Third Of MBS Issuance

    Ginnie Mae is expected to account for 32% of mortgage-backed securities issuance in 2011, according to Deutsche Bank analysts.

    • 16 Dec 2010
  • Foreclosures Plunge In November As Servicers Slow Process

    Foreclosure filings tumbled 21% last month compared with October, as mortgage servicers reviewed their procedures in light of discovered deficiencies, according to RealtyTrac.

    • 16 Dec 2010