Securitization - Article Archive

  • Arch Bay Closes Novel RMBS

    Arch Bay Capital has closed its long-rumored private label residential mortgage-backed securitization.

    • 31 Jan 2011
  • 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.

    • 31 Jan 2011
  • 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.

    • 31 Jan 2011
  • 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.

    • 31 Jan 2011
  • 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.

    • 31 Jan 2011
  • 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.

    • 31 Jan 2011
  • 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.

    • 31 Jan 2011
  • 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.

    • 31 Jan 2011
  • 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.

    • 31 Jan 2011
  • Barclays Said To Eye CMBS Servicer Sale

    Barclays Capital is said to be looking to sell Barclays Capital Mortgage Servicing,

    • 31 Jan 2011
  • 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.

    • 31 Jan 2011
  • 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.

    • 31 Jan 2011
  • 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. “

    • 31 Jan 2011
  • 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.

    • 31 Jan 2011
  • S&P Enhances European Structured Finance Analytics

    Standard & Poor’s has enhanced its ABSXchange, the structured finance analytics platform.

    • 31 Jan 2011
  • 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.

    • 31 Jan 2011
  • 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.

    • 31 Jan 2011
  • 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.

    • 28 Jan 2011
  • Cleveland Bank Returns To CMBS

    Cleveland-based KeyBank is returning to the commercial mortgage-backed securities market for the first time since 2008.

    • 28 Jan 2011
  • 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.

    • 28 Jan 2011
  • 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.

    • 28 Jan 2011
  • 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.

    • 28 Jan 2011
  • 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.

    • 28 Jan 2011
  • 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.

    • 28 Jan 2011
  • 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.

    • 28 Jan 2011
  • 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.

    • 28 Jan 2011
  • 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.

    • 28 Jan 2011
  • 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.

    • 28 Jan 2011
  • 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.

    • 28 Jan 2011
  • 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.”

    • 28 Jan 2011
  • 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.

    • 28 Jan 2011
  • 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.

    • 28 Jan 2011
  • 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.

    • 28 Jan 2011
  • 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.

    • 28 Jan 2011
  • 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.

    • 28 Jan 2011
  • 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.

    • 28 Jan 2011
  • 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.

    • 28 Jan 2011
  • 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).

    • 28 Jan 2011
  • 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.

    • 28 Jan 2011
  • 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.

    • 27 Jan 2011
  • 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.

    • 27 Jan 2011
  • Fed Criticized For Role In Crisis

    The Financial Crisis Inquiry Commission has laid blame for the financial crisis on the Federal Reserve.

    • 27 Jan 2011
  • 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.

    • 27 Jan 2011
  • 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.

    • 27 Jan 2011
  • 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.

    • 27 Jan 2011
  • 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.

    • 27 Jan 2011
  • 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.

    • 27 Jan 2011
  • 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.

    • 27 Jan 2011
  • 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.

    • 27 Jan 2011
  • 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.

    • 27 Jan 2011
  • 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).

    • 27 Jan 2011
  • 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.

    • 27 Jan 2011
  • 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.

    • 27 Jan 2011
  • 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.

    • 27 Jan 2011
  • 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.

    • 27 Jan 2011
  • 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.

    • 27 Jan 2011
  • 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.

    • 27 Jan 2011
  • 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.

    • 27 Jan 2011
  • 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.

    • 26 Jan 2011
  • 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.

    • 26 Jan 2011
  • 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.

    • 26 Jan 2011
  • Cantor Preps First CMBS Offer

    Cantor Fitzgerald is preparing to offer its first commercial mortgage-backed securitization deal.

    • 26 Jan 2011
  • 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).

    • 26 Jan 2011
  • 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.

    • 26 Jan 2011
  • 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.

    • 26 Jan 2011
  • 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.

    • 26 Jan 2011
  • 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.

    • 26 Jan 2011
  • 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.

    • 26 Jan 2011
  • 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.

    • 26 Jan 2011
  • 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.

    • 26 Jan 2011
  • 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.

    • 26 Jan 2011
  • 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.

    • 26 Jan 2011
  • 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).

    • 26 Jan 2011
  • 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.

    • 26 Jan 2011
  • 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.

    • 26 Jan 2011
  • 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.

    • 25 Jan 2011
  • 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.

    • 25 Jan 2011
  • 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.

    • 25 Jan 2011
  • Moody’s Sees CMBS Stable

    Moody’s Investors Service predicts 2011 will see greater ratings stability for outstanding commercial mortgage-backed securities.

    • 25 Jan 2011
  • 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.

    • 25 Jan 2011
  • 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.

    • 25 Jan 2011
  • Countrywide Sued Again Over MBS

    Countrywide Financial has been sued again over mortgage-backed securities issued by its subsidiaries.

    • 25 Jan 2011
  • 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.

    • 25 Jan 2011
  • 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.

    • 25 Jan 2011
  • 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.

    • 25 Jan 2011
  • 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.

    • 25 Jan 2011
  • 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.

    • 25 Jan 2011
  • 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.

    • 25 Jan 2011
  • 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.

    • 25 Jan 2011
  • Global ABCP Outlook For 2011 Stable

    The credit outlook for global asset-backed commercial paper remains stable for 2011, according to Fitch Ratings.

    • 25 Jan 2011
  • 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.

    • 25 Jan 2011
  • 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.

    • 25 Jan 2011
  • 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.

    • 24 Jan 2011
  • 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.

    • 24 Jan 2011
  • 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.

    • 24 Jan 2011
  • 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.

    • 24 Jan 2011
  • Third Covered Bond Issued In Canada

    Canadian Imperial Bank of Commerce has become the third institution to issue a covered bond in a week.

    • 24 Jan 2011
  • 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.

    • 24 Jan 2011
  • 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.

    • 24 Jan 2011
  • 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.

    • 24 Jan 2011