.png){kind=logo}
GC Asia
Securitization - Article Archive
-
Arch Bay Closes Novel RMBS
Arch Bay Capital has closed its long-rumored private label residential mortgage-backed securitization.
-
Two CLOs Hit The Market; Subs Rally
About $800 million in two new collateralized loan obligations have rolled out to investors, with AAAs from the $402 million Ares Management CLO closing on Friday at a spread of three-month LIBOR plus 160 bps, five basis points wider than initial guidance.
-
Prime Non-Agency RMBS Loan Prepayments Accelerate
Prepayment of loans in prime non-agency residential mortgage-backed agencies has accelerated faster than other types of loans in January, according to Royal Bank of Scotland.
-
Citi May Retain Some Of CitiFi’s Toxic Assets
Citigroup is said to be considering not including all of CitiFinancial’s toxic assets as part of a sale of the consumer finance business.
-
CRE Lending Inches Up In Q4
Major banks increased business property lending in the fourth quarter as they now are making inroads into a sector that previously was dominated by smaller, community financial institutions.
-
The Higher The Yield, The Better The Loan Payoff
There is a “tight correlation” between the debt yield on a loan and the likelihood the loan would pay off, accord to Trepp.
-
Republican Lawmakers Pitch To Ditch HAMP
A trio of Republican members of the House of Representatives have introduced a bill to end the Department of Treasury’s Home Affordable Mortgage Program.
-
GMAC Put Option On Dutch Bonds Doubtful
GMAC ResCap, an Amsterdam-based lending arm of U.S. firm Ally Financial, warned investors in one of its sponsored residential mortgage securitizations that bond redemption on the next optional put-date may not be possible.
-
U.S. Investors To Drive Euro Mart In 2011
U.S. accounts are still taking interest in European primary securitizations, from residential mortgage-backed securities to the latest auto transactions to come out of the U.K.
-
Barclays Said To Eye CMBS Servicer Sale
Barclays Capital is said to be looking to sell Barclays Capital Mortgage Servicing,
-
RBS Could Begin Privatizing In 2012
Royal Bank of Scotland could begin selling off its government-held stakes as early as next year, if market conditions are right, according to unnamed RBS officials.
-
AIB Seeks To Lower Loans Transferred To NAMA
Allied Irish Banks has asked Ireland’s Department of Finance to allow it to reduce the number of loans it needs to transfer to the National Asset Management Agency.
-
U.K. I-Bankers Expect Small Bonus Deferral
Investment bankers working in the U.K. are expecting only 13% of their bonuses to be deferred three to five years—sharply lower than the 40% to 60% recommended by the Financial Services Authority, according to a survey by Astbury Marsden, the recruiting firm. “
-
EMEA RMBS Stable In November
Performance of prime residential mortgage-backed securities in Europe, the Middle East and Africa continued to stabilize in November with at least three exceptions, according to Moody’s Investors Service.
-
S&P Enhances European Structured Finance Analytics
Standard & Poor’s has enhanced its ABSXchange, the structured finance analytics platform.
-
Holmes releases guidance
Guidance is out on Holmes 2011-1, the first UK RMBS of the new year. Leads BNP Paribas, Deutsche Bank, JP Morgan and Santander GBM are offering the 2.9 year average life dollar tranche at around 135bp over three month Libor, the 4.9 year average life euro tranche at 145bp-150bp over three month Euribor, and the 4.9 year average life sterling tranche at around 145bp over three month Libor. The $500m 0.9 year average life dollar tranche has been preplaced.
-
Agencies reassure on Spanish foreclosure
A provincial Spanish court decision allowing borrowers to walk away from their mortgage obligations will have no effect on Spanish RMBS, as other courts are expected overrule the decision, say Fitch and Moody’s.
-
Trio Aims CMBS Deal At ASF Confab
Deutsche Bank, UBS and Ladder Capital are planning to make a splash with their roughly $2.4 billion new commercial mortgage-backed securitization at the upcoming ASF 2011 conference in Orlando, Fla.
-
Cleveland Bank Returns To CMBS
Cleveland-based KeyBank is returning to the commercial mortgage-backed securities market for the first time since 2008.
-
NCUA Resecuritized Nearly Two-Thirds Of RMBS
The National Credit Union Administration has resecuritized nearly two-thirds of the distressed assets from 27 failed credit unions.
-
BoA Merrill Top Asset-Based Lender
Bank of America Merrill Lynch ranked first among U.S. asset-based lenders in 2010, according to Thomson Reuters.
-
JPM Alone Escaped Failure Risk
JPMorgan Chase appears to be the only one of the 13 largest financial institutions in the U.S. that was not at risk of failure during the financial crisis, according to a report by the Financial Crisis Inquiry Commission.
-
BNY Mellon Sued By S.C. Over MBS
The state of South Carolina has filed suit against Bank of New York Mellon for losses from investments as a result of the bank not sticking to conservative guidelines according to their contract.
-
Lawmakers Pitch Bigger Role For Planned Euro CRA
Structured finance deals in Europe should carry a minimum of two ratings, including one mandatory rating made by the proposed European Credit Rating Foundation, members of the European Parliament's influential Economic and Monetary Affairs Committee (ECON) are proposing.
-
New Regs Slowing Down Ratings, Deals
Credit rating agencies are feeling the weight of new regulations, causing delays in primary new issuance by up to two weeks, according to bankers.
-
Taurus CMBS Loan Granted Extension
A loan securitized in Merrill Lynch’s Taurus (Germany) 2006-1 commercial mortgage-backed deal has had its standstill period extended to Feb. 25 after the borrower failed to repay it on the Oct. 18 maturity date.
-
Toxic Assets Could Send Europe Into Recession, Warns Economist
European banks need to remove toxic assets from their balance sheets or risk sending the region into a recession, warns Carl Weinberg, chief economist at High Frequency Economics.
-
Call To Make Northern Rock A Building Society Again
More than a dozen members of Parliament are calling for making Northern Rock a building society again.
-
Taxpayers Could Lose From RBS, Lloyds Breakup
Breaking up Royal Bank of Scotland and Lloyds Banking Group could be costly for taxpayers, according to Robin Budenberg, ceo of UK Financial Investments, which was created to sell government stakes in banks.
-
Spanish Bank To Shift Bad RE Loans
La Caixa, Spain’s largest savings bank, is preparing to move its troubled real estate loans to a newly created “bad bank.”
-
Lloyds Preps Distressed-Asset Package
Lloyds Banking Group is preparing its first package of distressed property assets as it looks to reduce its exposure to U.K. commercial real estate.
-
Basel Capital Requirements Should Double, Says BoE
The higher capital requirements for banks adopted by the Basel Committee on Banking Supervision are not enough to provide the highest level of protection against future crises and should be more than doubled, according to Bank of England researchers.
-
REC 6 Servicer Issues Bondholder Committee Call
NM Rothschild, the servicer in the Alburn Real Estate Capital 6 securitization, has called on investors in the £188 million ($305.5 million) U.K. commercial mortgage-backed deal to set up a bondholder steering committee in order to thrash out all available options after the issuer’s tender offer to buy back notes expired Jan. 21.
-
CLO Equity Seen Making Good On Promises
The equity portion of collateralized loan obligations marketed to investors has performed “just as it was meant to” per the majority of deal materials, according to a new report from Citigroup.
-
Eurosail appeal decision — RMBS market holds its breath
The UK Court of Appeal heard BNY Corporate Trustee Services Ltd v Eurosail-UK 2007-3BL on Wednesday, a precedent-setting case which could render other RMBS transactions with broken swaps insolvent.
-
VW’s Driver Eight hauls auto ABS tighter
VW’s Driver Eight German auto loan ABS pulled secondary market prices tighter this week, as lead managers Commerzbank and Société Générale priced the Eu690m class ‘A’ tranche at 70bp — up to 5bp inside secondaries at the time, though auto spreads were already coming in.
-
Punchy Penarth preplaced
Deutsche Bank and Lloyds Bank Corporate Markets have placed a £500m three year average life UK credit card ABS, the A1 tranche of Lloyds Banking Group’s Penarth 2010-2. The notes carry a coupon of 95bp over one month Libor.
-
Holmes, Dolphin roadshows swell prime pipeline
European RMBS investors were treated to roadshows from Santander’s Holmes and ABN Amro’s Dolphin master trusts this week, following a well covered market-opening print from Delta Lloyd’s Arena 2011-1 last Friday (January 22).
-
Noteholders vote against Gatak’s REC 6 CMBS tender
Gatak Real Estate’s tender offer in the REC 6 CMBS has been rejected, after failing to secure 75% of noteholder votes in each class. The collapse of the tender leaves noteholders with few options, as the transaction is expected to default on its April payment date.
-
GM To Grow AmeriCredit Issuance In 2011
General Motors Financial, the financing arm of General Motors and the sponsor of the AmeriCredit Auto Receivables Trust, plans to grow its issuance this year.
-
U.S. Mortgage Woes Continue With Nevada Ruling
A recent court ruling in Nevada against mortgage servicer ReconTrust, halting the firm’s non-judicial foreclosures in that state, is the latest in a developing threat facing the country’s home loan market, according to a mortgage strategist.
-
Fed Criticized For Role In Crisis
The Financial Crisis Inquiry Commission has laid blame for the financial crisis on the Federal Reserve.
-
Investors Losing Interest In Distressed Debt
Investors have suddenly lost interest in distressed debt, according to a survey commissioned by Macquarie Capital, Bingham McCutchen and Debtwire.
-
GSE Subprime ABS Outperform Private Issuers’
Subprime asset-backed securities issued by Fannie Mae and Freddie Mac “performed significantly better” than those by their private counterparts, according to the Financial Crisis Inquiry Commission.
-
Capital Requirements May Rise For Insurers With CMBS
Some life insurers with commercial mortgage-backed securities in their portfolios may need more capital as a result of changes in risk-based capital requirements by the National Association of Insurance Commissioners, according to Moody’s Investors Service.
-
Fed To Continue Bond Buying
The Federal Reserve’s Federal Open Market Committee voted unanimously to continue its program to purchase up to $600 billion in long-term treasuries in the face of a slower-than-expected economic recovery.
-
Auto Sector Continues To Drive ABS Market
The automobile sector continues to drive the asset-backed securities market, continuing a trend that began last year.
-
RiverOak Lines Up First CMBS Loan
RiverOak Investment Corp. has obtained its first commercial mortgage-backed securities loan, tapping Ladder Capital for a $20.7 million mortgage on a portfolio of six medical office properties.
-
Driver 8 Auto ABS Priced
Volkswagen Bank’s Driver 8, the first publicly-sold German auto loan securitization of the year, was priced this week with tranches of the deal enjoying strong investor demand.
-
Eurozone Bank Credit Standards Ease Slightly
Banks in the Eurozone have slightly eased credit standards in all loan categories in the first quarter, according to the European Central Bank.
-
NAMA To Take On 20,000 More Loans
Ireland’s National Asset Management Agency is poised to take on an additional 20,000 loans from Bank of Ireland and Allied Irish Banks after amendments to legislation lowered the threshold of transfer to NAMA from €20 million ($27.37 million) to €5 million ($6.84 million).
-
FSA Opposes EU-Wide Mortgage Regs
Shiela Nicoll, director of conduct policy at the U.K.’s Financial Services Authority, opposes a single set of mortgage regulations for the European Union.
-
U.K. Banks Seem To Favor Break-Ups
Many U.K. banks appear to favor breaking up big financial institutions, such as Lloyds Banking Group, according to the Independent Commission on Banking.
-
P.E Firm Plans Mezzanine Debt Fund
Duet Private Equity plans to roll out Duet Real Estate Finance, a quoted mezzanine debt fund for later this year.
-
Ukrainian Banks Improving
The Ukrainian banking industry shows signs of improved asset quality as financial institutions continue to reduce the bad loans of the past two years, according to Phoenix Capital.
-
Santander To Kick Off U.K. RMBS With Holmes Issue
Santander U.K. is preparing the first U.K. residential mortgage-backed securities deal of the year with a new issuance from its Holmes master trust.
-
Lotte sells securitisation to BNP Paribas conduit
Lotte Card, a Korean credit card company, has privately sold a $300m securitisation to a European asset-backed commercial paper conduit managed by BNP Paribas. Bankers expect more securitisations to follow, but investors may lose out as issuers shun the public market in favour of private deals.
-
Holmes structure comes into focus
Santander’s Holmes 2011-1 issue will feature a hard bullet 0.9 year ‘A1’ dollar tranche, as well as a 2.9 year ‘A2’ dollar tranche, and 4.9 year ‘A3’ euro and ‘A4’ sterling tranches. The issuer has preplaced the $500m A1 notes. All the tranches will be floating rate, with the ‘A1’ notes benchmarked to one month Libor, and the other tranches to three month Libor or Euribor.
-
GE Capital Readies $717 Mln Equipment ABS Deal
GE Capital is expected to start the marketing process for a $717 million equipment-backed transaction Thursday.
-
CMBS Issuers See Return In Confidence
A return to confidence in the debt markets was the theme of the first day of panels at the Commercial Real Estate Finance Council semi-annual conference in Washington, D.C.
-
Mortgage Originations Seen Slipping Below $1 Trn
Mortgage originations are expected to fall below $1 trillion in 2011 for the first time in nearly 15 years, according to iEmergent.
-
Cantor Preps First CMBS Offer
Cantor Fitzgerald is preparing to offer its first commercial mortgage-backed securitization deal.
-
Foreclosure-Prevention Efforts Hurting Market
Government efforts to prevent foreclosures are failing and are actually hurting the housing market, says Rep. Randy Neugebauer (R-Texas).
-
Mortgage Lending Seen Plunging 36%
Mortgage lending in the U.S. may plunge 36% in 2011 to its lowest level since 1997, according to Mortgage Bankers Association.
-
Moody’s Backs Private/Public GSE Model
Moody’s Investors Service supports replacing the current model for Fannie Mae and Freddie Mac with one that combines private-sector and public components.
-
Conn. Lawmaker Appeals Securitization Ruling
State Sen. Joe Markley of Connecticut has filed appeal of a ruling that dismissed his suit against the state to block it from offering an estimated $700 million securitization of utility charges.
-
Healthy Euro ABS Pipeline Expected
Europe’s asset-backed securities issuance pipeline is swelling, with deals from across a range of asset classes said to be at an advanced stage, according to a U.K.-based securitization lawyer.
-
Net U.K. Major-Bank Mortgage Lending Plunges 43.5%
Net lending by major U.K. banks last year plunged 43.5% to its lowest level since June 1999, according to the British Bankers’ Association.
-
Outlook Negative For U.K. Non-Conforming RMBS
Moody’s Investors Service says the outlook for U.K. non-conforming residential mortgage-backed securities remains negative for 2011 despite improved performance last year.
-
Secured-Loan Regulation Shifting To FSA
Regulation of secured loans in the U.K. is shifting from the Office of Fair Trading to the Financial Services Authority, according to Hark Hoban, HM Treasury’s financial secretary.
-
Aussie Business Lending Expected To Grow
Business lending by Australia’s four largest lenders is expected to grow 3.5% over the next three quarters as a result of growing demand, according to Morgan Stanley analysts.
-
U.K. Banks Said To Press For Retention-Rule Changes
The U.K.’s largest banks are said to be pressing the Financial Services Authority to change new rules relating to paying retention bonuses to keep talent.
-
NAMA Loan-Transfer Threshold Lowered
The Irish government is set to publish amendments to legislation that would lower the threshold for toxic loans that may be transferred the National Asset Management Agency from €20 million ($27.28 million) to €5 million ($6.82 million).
-
Driver Eight ‘A’ notes come tight
Lead managers Commerzbank and Société Générale priced the Eu690m 1.83 year average life class ‘A’ tranche of VW’s Driver Eight German auto securitisation at 70bp over one month Euribor. This price was the tight end of guidance, which was low 70s, and the deal was 1.6 times covered.
-
Eurosail appeal due — RMBS market holds its breath
The UK Court of Appeal should rule on Wednesday on BNY Corporate Trustee Services Ltd v Eurosail-UK 2007-3BL, a precedent-setting case which could render other RMBS transactions with broken swaps insolvent.
-
BWIC Volume Spotty After Big January Start
Trading of non-agency residential mortgage-backed securities has tapered off this week with only a few bids-wanted-in-competition being offered daily, according to traders.
-
First Investors Planning More, Bigger ABS Deals
First Investors plans to become a more systematic issuer of larger auto asset-backed securities following its first successful placement Monday since 2006, according to Bennie Duck, the firm’s cfo.
-
CMBS Sales Set To Soar
Sales of commercial mortgage-backed securities are set to soar this year to four times the level of 2010, according to JPMorgan Chase.
-
Moody’s Sees CMBS Stable
Moody’s Investors Service predicts 2011 will see greater ratings stability for outstanding commercial mortgage-backed securities.
-
BoA Putback Tab Could Hit $8.5 Bln
Bank of America may shell out $8.5 billion to buy back faulty loans, according to Oppenheimer & Co.
-
Treasury Delays GSE Restructuring Report
The U.S. Department of Treasury has delayed release of its report on restructuring Fannie Mae and Freddie Mac until the middle of February.
-
Countrywide Sued Again Over MBS
Countrywide Financial has been sued again over mortgage-backed securities issued by its subsidiaries.
-
EU 5% Rule May Spark Bank CLO Selloffs
European investment banks are expected to begin slowly offloading their existing collateralized loan obligations over the next four years to meet new E.U. risk retention regulations, Wells Fargo Securities analysts say.
-
FSA Proposes Tough Complex-Product Measures
The U.K.’s Financial Services Authority has proposed several measures relating to complex products including a ban on non-advised sales and raising the qualification requirements for advisers who deal in the products.
-
Floods’ Impact On Aussie RMBS Seen As Minimal
The impact of floods in the Queensland region of Australia on the country’s residential mortgage-backed securities is expected to minimal, according to Moody’s Investors Service.
-
U.K. Bank Bonus Talks Stall
Talks between the U.K. government and the country’s banks over limiting the size of bonus have stalled over concerns that the conditions in the Project Merlin deal were not strict enough.
-
Ireland Scratches Proposed 90% Bank Bonus Tax
A plan by the Irish finance minister to include a proposal for a 90% tax on bank bonus has been scratched from the Finance Bill 2011 as time to debate the complex measure is limited.
-
Too-Big-To-Fail Regs May Backfire
Regulations requiring banks deemed systemically important to hold more capital may backfire, according to Frederic Oudea, ceo of Société Générale.
-
Higher Irish Loan Losses Forecast
Irish banks will likely suffer greater losses from loans than earlier projected, following a second capital review of the sector, according to Patrick Honohan, governor of the Central Bank of Ireland.
-
Global ABCP Outlook For 2011 Stable
The credit outlook for global asset-backed commercial paper remains stable for 2011, according to Fitch Ratings.
-
Sterling-Denominated Deals Pique Investor Interest
More investors are expected to head to the U.K. covered bond market after Nationwide last week sold a £750 million ($1.18 billion) 15-year sterling covered bond.
-
Auto rush gears up as Driver and Turbo hit market
FirstRand’s Turbo Finance, priced on Monday, was the first auto deal to hit the European ABS market this year, but it should be followed quickly by VW’s Driver Eight, which lead managers Commerzbank and Société Générale are due to be price on Wednesday. Lloyd Banking Group’s Cars 2011-1 is on a roadshow this week, with pricing expected next week.
-
Specially Serviced Loans Drop $2B
The total balance of commercial mortgage-backed securities loans in special servicing dropped almost $2 billion to $90.1 billion from the second to third quarter of 2010.
-
Ford Rolls Out $1.14 Bln Auto ABS
Ford Motor Credit, the financing arm of U.S. auto manufacturer Ford Motor, has opened its 2011 issuance program with a $1.14 billion bond offering, Ford Credit Auto Owner Trust 2011-A.
-
SEC Proposes Tougher Standard For Broker-Dealers
The U.S. Securities and Exchange Commission has proposed broker-dealers meet the same fiduciary standard as registered investment advisers.
-
Rating Outlook Positive For Auto ABS
The rating outlook this year for U.S. auto loan asset-backed securities is positive, while performance for the auto ABS assets is stable, according to Fitch Ratings.
-
Third Covered Bond Issued In Canada
Canadian Imperial Bank of Commerce has become the third institution to issue a covered bond in a week.
-
SEC Mandate On ABS Called Worthless
The U.S. Securities and Exchange Commission’s regulation that issuers of asset-backed securities conduct review of loans and leased packaged into the ABS is “worthless,” according Sue Allon, founder of Allonhill, a mortgage-review firm.
-
Pace Of CMBS Loan Mods Accelerate
The pace of modifications for loans in commercial mortgage-backed securities appears to be accelerating, according to Fitch Ratings.
-
Toxic-Asset Funds Grow 27%
The eight toxic funds managed by firms selected by the U.S. Department of Treasury have grown by 27% since they were created in 2009.
