Securitization - Article Archive

  • JPM: Banks’ RMBS Holdings Drop By $26B

    Banks dumped $26 billion in mortgage-backed securities holdings in the last week, a significant drop over a short period, according to analysts at JPMorgan during a client call on Tuesday.

    • 31 Jan 2012
  • CMBS Loan Prices At Two-Year High

    The prices of commercial real estate loans collateralizing commercial mortgage-backed securities rose in December to their highest levels in two years, according to DebtX ceo Kingsley Greenland

    • 31 Jan 2012
  • JPM Slapped With Another MBS Suit

    German cooperative lender DZ Bank has been the latest to file against JPMorgan Chase for alleged misrepresentations in the offering materials of mortgage-backed securities it sold.

    • 31 Jan 2012
  • Denver Firm Forms Structured-Finance Group

    Denver-based CoBiz Financial has announced the formation of CoBiz Structured Finance, which it says will provide asset-based loans to middle-market businesses.

    • 31 Jan 2012
  • FHFA Defends Freddie Mac’s CMO Investments

    The Federal Housing Finance Agency has responded to media reports that Freddie Mac profited by pouring money into collateralized mortgage investments in which the government-sponsored enterprise benefited from homeowners are unable to refinance.

    • 31 Jan 2012
  • CMBS Rally Seen Ending

    The rally in commercial mortgage-backed securities that dominated activity in the first half of January appears to be coming to an end, according to Citigroup analysts.

    • 31 Jan 2012
  • Bank Failures To Double Over Two Years

    At least 758 banks are expected to fail over the next two years—nearly double the 389 that collapsed between 2009 and 2011, according to Invictus Consulting Group.

    • 31 Jan 2012
  • Deutsche Bank Said To Prep for $1 Bln CMBS

    Deutsche Bank is said to be preparing to launch a $1billion issue of commercial mortgage-backed securities in February.

    • 31 Jan 2012
  • Williams Adds Structured Finance

    The Williams Group has formed Eland Capital, a new unit that will explore structured finance opportunities for corporate, federal, state and local government clients.

    • 31 Jan 2012
  • AmeriCredit Subprime Deal Takes Off

    AmeriCredit Financial Services, a subsidiary of General Motors Financial, priced its first securitization of 2012, a $1 billion asset-backed deal backed by subprime auto loan receivables, this afternoon.

    • 31 Jan 2012
  • Natixis Announces Pfandbrief Platform

    French bank Natixis formally announced its plans to set up a branch to tap the German Pfandbrief market—the most liquid covered bond market in the world—to finance commercial real estate investments, primarily in Germany and France.

    • 31 Jan 2012
  • Reliance On ECB May Bode Poorly In Longer Term

    Eurozone bank reliance on the European Central Bank’s emergency-funding facility may be a positive in the short term but could have negative implications in the medium and longer term in terms of regaining access to the public bond market, according to Barclays Capital analysts.

    • 31 Jan 2012
  • European Banks May Triple ECB Funding

    Eurozone banks may double or triple the amount they borrow from the European Central Bank’s three-year emergency funding facility when the next auction is held Feb. 29.

    • 31 Jan 2012
  • Intesa Eyes Sale Of Senior Unsecured Bonds

    Intesa Sanpaolo says it is planning a sale of senior unsecured bonds to raise at least EUR500 million ($655.5 million), which would make it the first such debt deal of its kind in months.

    • 31 Jan 2012
  • Gross Lending By U.K. Mutuals Up 16%

    Gross lending by U.K. building societies and mutuals rose 16% in 2011 to £23.6 billion ($37.1 billion), according to the Building Societies Association.

    • 31 Jan 2012
  • BarCap Launches Covered-Bond Indices

    Barclays Capital has launched its Fiscal Strength Weighted Covered Bond Indices.

    • 31 Jan 2012
  • Austrian Bank To Launch Euro-Denominated Covered Bond

    Austria’s Erste Group Bank is expected to launch a benchmark-size euro-denominated covered bond in the near future, market conditions permitted.

    • 31 Jan 2012
  • Banks, Traders To Face Fine For Settling Failures

    The U.S. Securities and Exchange Commission will begin slapping large banks and trading firms that fail to properly complete certain mortgage-security trades.

    • 31 Jan 2012
  • Arkle returns to yen

    The provisional capital structure for Lloyds Banking Group’s Arkle 2012-1 RMBS includes a three year yen tranche, following the example of Santander UK’s Holmes 2012-1. Before this year, the only UK deal to offer yen had been Arkle 2010-2.

    • 31 Jan 2012
  • Barclays creates €7bn collateral from Italian mortgage book

    Barclays has structured a €7bn securitisation of Italian mortgages, using the Mercurio Mortgage Finance programme. The deal will be retained, giving Barclays an extra slug of eligible collateral for the ECB’s LTRO facility, ahead of the second tender at the end of February 28.

    • 31 Jan 2012
  • Freddie Mac Said To Use Inverse Floaters To Make Money

    ProPublica and NPR say their joint investigation has found that Freddie Mac was making money from so-called “inverse floaters” at the same time that it was supposed to be making it easier for struggling borrowers to refinance.

    • 30 Jan 2012
  • Dutch Pension Fund Sues GS Over MBS

    Dutch pension fund Stichting Pensioenfonds ABP has filed suit in New York state Supreme Court against Goldman Sachs for allegedly providing misleading information about the credit quality of residential mortgage-backed securities.

    • 30 Jan 2012
  • Banks Remain Tight On Credit Despite Rising Demand

    U.S. bank continued to maintain tight lending standards in the fourth quarter despite rising demand, according to the Federal Reserve.

    • 30 Jan 2012
  • RMBS Group To Focus On Disclosure

    The newly formed Residential Mortgage-Backed Securities Group is expected to focus on insufficient or misleading disclosure in selling the securities relating to credit quality, conforming to underwriting guidelines and underlying property valuations, among other factors, according to Robert Khuzami, director of the U.S. Securities and Exchange Commission’s Division of Enforcement.

    • 30 Jan 2012
  • Citi Snubs High-Risk Mortgages

    Citigroup has adopted a strategy to avoid purchasing medium or high-risk mortgages that could eventually result in requests from Fannie Mae and Freddie Mac to buy them back.

    • 30 Jan 2012
  • Outlook Stable For LatAm Structured Finance

    The outlook is stable this year for the credit quality of new and outstanding structured-finance transactions in Latin America, according to Moody’s Investors Service.

    • 30 Jan 2012
  • SEC Eyes Paulson’s Role In Deutsche Bank CDO

    The U.S. Securities and Exchange Commission is said to be investigating the role hedge fund Paulson & Co. played in selecting mortgage-backed securities for a collateralized debt obligation sold by Deutsche Bank.

    • 30 Jan 2012
  • Banks May Not Escape Criminal Liability From Settlement

    The proposed settlement between state attorneys general and mortgage servicers will not likely allow financial institutions to escape criminal liability.

    • 30 Jan 2012
  • Cat Bonds On The Prowl

    The asset-backed securities sector is starting to see the uptick many said to expect post-ASF2012, with some market players turning their attention to catastrophe bonds (aka event- or insurance-linked securities).

    • 30 Jan 2012
  • B of A: Mod Rates Could Surge Under New HAMP

    The expansion of the Home Affordable Modification Program’s guidelines to include a wider array of borrowers could cause modification rates to pick up by as much as 36%, according to researchers at Bank of America Merrill Lynch.

    • 30 Jan 2012
  • RBS Hires Hybrid Capital Head

    The Royal Bank of Scotland has scooped up A.J. Davidson as managing director and head of hybrid capital in the investment bank’s London office.

    • 30 Jan 2012
  • Banks Confused By E.U.’s ABS Position

    The European Union has confused banks regarding its position on asset-backed securities with contradictory clauses in the latest draft of its Capital Requirements Directive.

    • 30 Jan 2012
  • Italian RMBS Stable, Outlook Negative

    Performance of Italian residential-mortgage-backed securities was stable in November, according to Moody’s Investors Service, with delinquencies at the same level as a year earlier.

    • 30 Jan 2012
  • UBS May Face Fine Over Unauthorized Trades

    The U.K.’s Financial Services Authority and the Swiss Financial Market Supervisory Authority may impose a penalty on UBS for oversight failures that led to costly unauthorized trades and some $2.3 billion in losses last year.

    • 30 Jan 2012
  • FSB Threatens To Name Basel Laggards

    The Financial Stability Board has threatened to “name and shame” those countries that don’t properly implement new capital and liquidity requirements adopted by the Basel Committee on Banking Supervision.

    • 30 Jan 2012
  • Lloyds CEO Said To Eye Management Changes

    Antonio Horta-Osorio, ceo of Lloyds Banking Group, is said to be planning management changes that would result in his relinquishing some responsibilities in the hopes of avoiding another bout of exhaustion, which led to his recent two-month medical leave.

    • 30 Jan 2012
  • RBS CEO Waives Bonus Under Pressure

    Stephen Hester, ceo of Royal Bank of Scotland, has waived his bonus of nearly £1 million ($1.6 billion) after the U.K.’s Liberal Democrat party threatened to force the government, which holds a 83% stake in RBS, to cancel the compensation.

    • 30 Jan 2012
  • Goldman-Citi Prices, CMBS Mezz Market Rallies (Update)

    Goldman Sachs and Citigroup this week priced the sixth commercial mortgage-backed securities deal from their joint shelf, the $1.15 billion GSMS 2012 GS6. Most of the offered classes hit guidance levels, despite what some market players presumed would be a brief lull in demand caused by focus on the American Securitization Forum’s 2012 conference in Las Vegas.

    • 27 Jan 2012
  • Specially Serviced U.S. CMBS Increase

    The number of loans in U.S. commercial mortgage-backed securities in special servicing has been on the rise since the fourth quarter and are likely to continue to increase, according to Fitch Ratings.

    • 27 Jan 2012
  • RMBS Task Force Formed, Banks Subpoenaed

    U.S. Attorney General Eric Holder has announced the formation of the Residential Mortgage-Backed Securities Working Group, made up of members of the Department of Justice, state attorneys general and officials of other federal agencies.

    • 27 Jan 2012
  • Credit Suisse CEO Won’t Get Derivatives-Linked Bonus

    Brady Dougan, ceo of Credit Suisse, is said not to be in line to receive bonds made from derivatives as a bonus, as other bankers are poised to be awarded, to avoid a conflict of interest.

    • 27 Jan 2012
  • Securitization Seen A Viable Option For Solar Developers

    Securitization Seen A Viable Option For Solar Developers Securitization for solar photovoltaic developers may be a viable option for monetizing cash flows from future lease or power purchase agreement payments, according to Andrew Guidici, a credit analyst at Standard & Poor’s.

    • 27 Jan 2012
  • BofA Said To Cut Cash Comp

    Bank of America is said to have told investment bankers that their compensation would on average be 25% less than a year ago.

    • 27 Jan 2012
  • Mortgage Originations Down, But Quality Up

    Mortgage originations continued to decline in December after peaking in September, falling more than 10% than the preceding month, according to Lender Processing Services.

    • 27 Jan 2012
  • “You ask the question, how relevant is the asset class going to be three or four years down the road? But it’s not an issue now. The technicals of the sector are strong.”

    —Steven Juszczyszyn, v.p. at Delaware Investments, at ASF2012’s Credit Card ABS Sector Review panel on his being unfazed by the sector’s shrinking size.

    • 27 Jan 2012
  • One Year Ago In Total Securitization

    Analysts from Citigroup reported that equity slices in collateralized loan obligations were performing well, with almost 85% of equity portions kicking off full payments to investors.

    • 27 Jan 2012
  • CLO Pipeline Starts To Produce

    Collateral manager Symphony Asset Management has closed its Symphony CLO VIII, a $349 million cash flow arbitrage CLO comprising a revolving pool of broadly syndicated senior secured loans.

    • 27 Jan 2012
  • European Lending Tightens To A Record

    European banks cut lending to the private sector by 0.7% in November, the most since the European Central Bank began keeping records in 1991.

    • 27 Jan 2012
  • Portuguese Bank Eyes Covered Bond Buyback

    Portugal’s Banco BPI is planning to raise its capital ratio with a discounted buyback offer for a covered-bond issue, the second European bank to do so this year following National Bank of Greece.

    • 27 Jan 2012
  • E.U. Creditor Write-Downs On Hold

    Michel Barnier, the European Union’s commissioner of financial services, says he will delay proposals for writing down creditors at failing banks until the worst of the region’s crisis passes.

    • 27 Jan 2012
  • International Banks Snub France and Italy

    International banks have reduced lending to banks and government in Italy, France and Spain, while favoring Germany, Japan and the U.S., according to Bank for International Settlements data.

    • 27 Jan 2012
  • Trade Group To Lobby Against Bank Regs

    The Global Financial Markets Association is planning to reshape itself and become a lobbying group representing the interests of the world’s largest banks as regulators begin imposing tough restrictions.

    • 27 Jan 2012
  • BofE, FSA Outline Regulatory Framework

    The Bank of England and the U.K.’s Financial Services Authority have released a draft Memorandum of Understanding, detailing how they expect the new Financial Conduct Authority and the Prudential Regulation Authority to operate amid different mandates.

    • 27 Jan 2012
  • Lloyds Preps New Arkle Offering

    Lloyds Banking Group is preparing a new issue of U.K. residential mortgage-backed securities from its Arkle master trust.

    • 27 Jan 2012
  • Obvion Sees Strong Demand As Storm Prices Tight (Update)

    Dutch lender Obvion has priced its Storm 2012-I Dutch residential mortgage-backed securitization, upsizing the original deal and pricing the A1 bond 10 basis points tighter than initial guidance.

    • 27 Jan 2012
  • Pipeline heats up as risk rally takes hold

    Three new ABS mandates hit the market in the second half of the week — auto deals from Socram Banque and Société Générale, and a new Arkle RMBS from Lloyds Banking Group. A constructive market backdrop, along with a blowout deal from Obvion’s Storm (see separate stories) flushed issuers out.

    • 27 Jan 2012
  • Commerz turns to synthetic securitisation to plug capital hole

    Commerzbank has launched a synthetic securitisation of its Mittelstand loan portfolio, aiming to sell €160m of equity risk and €30m of mezzanine risk as part of frantic efforts by the bank to fill its €2.3bn capital hole.

    • 27 Jan 2012
  • KBC risks Fitch wrath in tweaking deal docs

    KBC Bank has amended deal documents in Irish RMBS deals Phoenix Funding 2 and 3, to avoid triggering counterparty replacement provisions — exactly what Fitch warned issuers to avoid at the beginning of the year.

    • 27 Jan 2012
  • FIG markets back to pre-crisis days as Lloyds TSB triumphs

    With investors scrabbling for bank paper after a powerful secondary rally and a slowdown in new issues since the year’s initial rush, bankers are urging financial issuers to seize a compelling opportunity to raise new debt. A €1.5bn Lloyds TSB senior deal that attracted almost €4.5bn of orders in just 90 minutes on Thursday morning underlined the point.

    • 27 Jan 2012
  • S&P upgrade sends Granite triple-Bs flying

    Granite triple-Bs have been bid over 60 cash price this week — a rise of at least four points on the week, coming on the back of a 10 point rally since the beginning of the year. Part of the action has been driven by Standard & Poor’s, which upgraded the bonds from BB with negative watch to BBB-.

    • 27 Jan 2012
  • Analysts dash ABS liquidity hopes

    Hopes that ABS might be deemed eligible for inclusion into bank liquidity buffers may be misplaced, according to notes by analysts from JP Morgan and Bank of America Merrill Lynch published this week.

    • 27 Jan 2012
  • Obvion rides rally to Storm success

    Obvion managed to almost double the size of its Storm 2012-1 RMBS, while tightening pricing on the short tranche by 10bp. The success of the trade surpassed expectations of market participants, whether involved in the deal or not, and sets a strong tone for the clutch of ABS mandates announced this week (see separate story).

    • 27 Jan 2012
  • Tesco shrugs off rating risk to fifth CMBS

    Tesco sold a £450.5m sale-and-leaseback commercial mortgage backed security on Wednesday, shrugging off a downgrade warning from Moody’s, but paying a 30bp new issue premium that repriced its other bonds.

    • 27 Jan 2012
  • No Fed Agency MBS Sales Expected Until 2015

    Ben Bernanke, chairman of the Federal Reserve, said the central bank is not planning to sell any of $847.4 billion in agency mortgage-backed securities or $101.5 billion of agency debt before 2015.

    • 26 Jan 2012
  • Fed’s Interest Move Puts Margin Pressure On Banks

    The Federal Reserve’s announcement that it plans to keep interest rates low at least until late 2014 is expected to make it harder for big banks to increase profits and raise capital.

    • 26 Jan 2012
  • Bailed-Out Firms Still Owe $133 Bln

    Firms bailed out during the financial crisis still owe the government $133 billion, including 371 banks.

    • 26 Jan 2012
  • Morgan Hit By Two RMBS Suits

    Morgan Stanley has been hit with lawsuits by two foreign banks over residential mortgage-backed securities.

    • 26 Jan 2012
  • Servicer Settlement Approval Uncertain

    Approval of a proposed $25 billion settlement between large banks and state attorneys general over mortgage practices appears uncertain as Kamala Harris, the attorney general of California, called the draft inadequate, saying it does not include meaningful relief or enforcement.

    • 26 Jan 2012
  • Freddie Mac Mortgage Delinquencies At Nine-Month High

    Delinquencies in mortgages held by Freddie Mac climbed to 3.58% in December, its highest level in nine months.

    • 26 Jan 2012
  • Lagging HAMP Servicers Stand To Lose Millions

    Major mortgage servicers stand to lose more than $131 million in fees for failing to improve their performance in the Department of Treasury’s Home Affordable Modification Program.

    • 26 Jan 2012
  • Refi Pitch Could Yield HARP Expansion

    Changes to the Home Affordable Refinance Program could be around the corner, even if plans for a large-scale refinancing President Barack Obama laid out in his State of the Union speech are unlikely to clear Congress, market players say.

    • 26 Jan 2012
  • Goldman-Citi Prices, CMBS Mezz Market Rallies

    Goldman Sachs and Citigroup this week priced the sixth commercial mortgage-backed securities deal from their joint shelf, the $1.15 billion GSMS 2012 GS6.

    • 26 Jan 2012
  • ABN Amro CMBS Loan Given Standstill Extension

    The troubled Apple whole loan, securitized in ABN Amro’s EUR1.08 billion ($1.42 billion) Talisman 6 German commercial mortgage-backed deal, has been given a further standstill period to run until Jan. 15, 2013.

    • 26 Jan 2012
  • FSB Praises Swiss ‘Too Big To Fail’ Law

    The Financial Stability Board’s peer review has approved Switzerland’s “too big to fail” law for systemically important banks, which goes into effect March 1.

    • 26 Jan 2012
  • Basel Mulls Use Of Credit Ratings For Ratio

    The Basel Committee on Banking Supervision is said to be considering the use of credit ratings to dateline which sovereign bonds qualify for its liquidity coverage ratio.

    • 26 Jan 2012
  • Big European Banks To Snub Sovereign Debt

    Large European banks are unlikely to use loans they secured from the European Central Bank’s three-year lending facility to purchase sovereign debt because of its volatility, according to Standard & Poor’s.

    • 26 Jan 2012
  • U.K. RMBS Performance Remain Stable

    Performance of non-conforming and prime residential-mortgage backed securities remained stable in the three months ended in November, according to Moody’s Investors Service.

    • 26 Jan 2012
  • German Bank-Rescue Fund To Reopen

    German lawmakers have voted to reopen SoFFin, the government’s bank-rescue fund, as a last resort to help avert failures of financial institutions during the European debt crisis.

    • 26 Jan 2012
  • UniCredit To Boost Capital With EUR3 Bln Buyback

    UniCredit is looking to boost its capital with an offer to buy back up to EUR3 billion ($3.9 billion) of Tier 1 and Tier 2 bonds.

    • 26 Jan 2012
  • Covered Bonds Losing Their Luster

    Europe’s bleak economy may hurt covered bond prospects in 2012, especially in countries such as Greece, Italy, Portugal and Spain, according to Standard & Poor’s.

    • 26 Jan 2012
  • RBS’ Top-Paid Banker Urged To Forgo Bonus

    John Hourican, head of Royal Bank of Scotland’s investment bank and its highest-paid staffer, is under pressure to forgo £5.6 million ($8.8 million) of long-term bonuses that he is due according to his contract.

    • 26 Jan 2012
  • Issuers Scope Japanese Appetite As VW Prices ABS

    Issuers in the U.K. and Europe now sounding out Japanese demand for future deals after Volkswagen Financial Services’ Driver Japan One auto loan securitization closed 3.5 times oversubscribed.

    • 26 Jan 2012
  • ASF 2012 Daily Issue PDFs

    • 26 Jan 2012
  • ASF 2012 Daily Photos

    • 26 Jan 2012
  • SocGen on the road with German autos

    Société Générale is roadshowing a German auto ABS from one of its subsidiaries, Bank Deutsches Kraftfahrzeuggewerbe (BDK) — the French bank’s first public ABS since before the crisis.

    • 26 Jan 2012
  • Storm boosts size in booming market

    Lead managers Rabobank and Société Générale are aiming to increase the size of Storm 2012-1, a Dutch RMBS from Rabo subsidiary Obvion. The leads set the spread on Wednesday, fixing a level of 110bp for the ‘A1’s and 155bp for the ‘A2’s. This is already 10bp tighter than initial guidance on the ‘A1’ tranche.

    • 26 Jan 2012
  • Leaving Las Vegas: ASF Wraps Up

    Wednesday’s first panels at the ASF2012 conference were well attended, even as many of the conference goers packed and queued for taxis to the airport.

    • 25 Jan 2012
  • Another $300 Bln In RMBS Losses Projected

    Losses on residential mortgage-backed securities may total an additional $300 billion, according to R&R Consulting.

    • 25 Jan 2012
  • Task Force To Probe MBS, Loan Fraud

    President Barack Obama has announced the establishment of task force devoted to investigating alleged fraud involving mortgages and mortgage-backed securities.

    • 25 Jan 2012
  • Obama Proposes Refi Plan

    President Barack Obama in his State of the Union message Tuesday night asked Congress to approve a mortgage-refinance plan that would allow borrowers current on their loan payments to secure a new mortgage at record-low rates.

    • 25 Jan 2012
  • Regulators Urged To Break Up BofA

    Public Citizen along with a group of nearly two dozen other consumer advocates, academics and economists are planning to file a petition with the Federal Reserve and other regulators to break up Bank of America into smaller, safer units.

    • 25 Jan 2012
  • Fannie Mae Multifamily RMBS Issuance Soars 45%

    Issuance of residential mortgage-backed securities linked to multifamily dwellings by Fannie Mae surged 45% in 2011 to $23.8 billion.

    • 25 Jan 2012
  • S&P Sued In Ill. Over MBS Ratings

    Lisa Madigan, the Illinois attorney general, has filed suit against Standard & Poor’s for its role in assigning its highest ratings to “unworthy” mortgage-backed securities in the years leading up to the housing market collapse.

    • 25 Jan 2012
  • Fitch Downgrades Distressed U.S. RMBS

    Fitch Ratings has downgraded 489 distressed bonds in 291 U.S. residential mortgage-backed securities from Csf and CCsf to Dsf, indicates the bonds have incurred a principal write-down.

    • 25 Jan 2012
  • Economists Expect Fed To Buy More MBS

    Nearly half of economists say the Federal Reserve will likely launch a new round of bond buying of only mortgage-backed securities purchases, if it determines the U.S. economy needs it.

    • 25 Jan 2012
  • Citi Eyes More Cuts In Securities Unit

    Citigroup may cut back further in spending on its securities unit if revenue doesn’t improve this year, says John Gerspach, the bank’s cfo.

    • 25 Jan 2012
  • Industry Players Shrug Off Obama’s Refi Proposal

    Market players at the ASF2012 conference in Las Vegas this morning expressed little concern over President Obama’s State of the Union speech last night, in which he called on Congress to pass legislation allowing homeowners current on their mortgages to refinance.

    • 25 Jan 2012
  • Tesco Rolls Out Asset Finance ABS

    U.K. supermarket chain Tesco has priced a £450.5 million ($701.6 million) securitization from its Tesco Property Finance program, which is backed by supermarket assets and leases.

    • 25 Jan 2012
  • CS Bonus Plan Seen As A Basel Strategy

    Credit Suisse’s plan to award annual bonuses in part with structured notes is seen as a strategy that will allow the bank to remove toxic assets from its balance sheet that, if they remained, would mean higher capital charges as imposed by the Basel Committee on Banking Supervision.

    • 25 Jan 2012
  • European Banks, Regulators Differ Over Capital Raising

    European banks and regulators have different approaches on how financial institutions should raise capital to boost their core Tier 1 ratios.

    • 25 Jan 2012