Securitization - Article Archive

  • Head Of SIFMA Securitization Group Exits

    The head of the Securities Industry and Financial Markets Association’s Securitization Group Richard Dorfman has left the industry group, according to a memo to members viewed by SI.

    • 31 May 2013
  • ABA Seeks Year Delay Of Mortgage Rule

    The American Bankers Association is asking the Consumer Financial Protection Bureau to delay by a year to January 2015 the effective date of its ability-to-pay rule.

    • 31 May 2013
  • Chase MBS To Include Loans From Many Lenders

    JPMorgan Chase is preparing to offer what is being called a unique mortgage-backed securitization as it will contain originations from 20 small lenders.

    • 31 May 2013
  • B Of A Near Done Selling Servicing Rights

    Bank of America has nearly completed the sale of mortgage-servicing rights, according to CEO Brian Moynihan.

    • 31 May 2013
  • Mounting Evidence Banks Violating Settlement

    New York Attorney General Eric Schneiderman says there is mounting evidence that the five big banks that agreed to a $25 billion mortgage settlement last year are continuing to violate the terms of the agreement.

    • 31 May 2013
  • CLO Managers Caught In Risk Retention Net

    The nascent collateralized loan obligation revival in Europe may be operating on borrowed time as bankers fear new European risk retention rules for securitizations will chase out many managers.

    • 31 May 2013
  • Dealers Work Off Lloyds Bonds, Market Looks Ahead

    The four dealers that took down the $8.7 billion bid list of U.S. residential mortgage-backed securities from Lloyds Banking Group yesterday are still busy selling off its 256 line items to clients, with initial chatter suggesting the market is capable of absorbing most of the supply.

    • 31 May 2013
  • “We look at the services component of our business as business lines that have strong opportunity to grow and actually to expand organically into other asset classes as well.”

    —Jack Remondi, ceo at Sallie Mae, on the company’s plans to expand into other kinds of lending as it splits up into two separate shops over the next year. Remondi will head up the student loan management spinoff, NewCo.

    • 31 May 2013
  • One Year Ago

    European investors were looking at bond buybacks to reduce their exposure in peripheral countries, with European banks launching 16 tender offers by this time last year.

    • 31 May 2013
  • Losses Following Servicing Transfer Shock Mart

    Market players from both sides of the street last week were scratching their heads—and biting their nails—following losses on a handful of legacy residential mortgage-backed securities whose servicing Ocwen Financial acquired from American Home Mortgage in the past eight months.

    • 31 May 2013
  • Sweden Told To Double Banks’ Mortgage-Risk Weights

    The International Monetary Fund has called on Sweden to double risk weights on banks’ mortgages from the current 15% to 35% to help prevent a housing bubble, and to impose minimum amortization rules, which would cut tax deductions for mortgages.

    • 31 May 2013
  • Barclays: Banks Poor At Calculating Risk

    Global banks are poor at predicting whether borrowers will default, causing them to miscalculate risk on their balance sheets by an average of 13%, according to Barclays research.

    • 31 May 2013
  • France, Germany Offer Bank Plan

    France and Germany have unveiled a joint plan for dealing with failed banks in the euro zone that would create a new mechanism for winding down the banks that would involve national authorities and would not require changes in European treaties.

    • 31 May 2013
  • Europeans Worry About U.S.-Type Repos

    The European Mortgage Federation has expressed concern that the European Union is seriously considering introducing a U.S.-style system for repossessing homes as part of the E.U.’s mortgage directive, which takes effect in September.

    • 31 May 2013
  • No Rush To Privatize RBS, Says Cable

    Vince Cable, the U.K.’s business secretary, has told HM Treasury to slow its plans to privatize the Royal Bank of Scotland, saying it was not urgent to do so.

    • 31 May 2013
  • U.K. Lending To Biz Down 4%

    Lending to small and medium-sized enterprises in the U.K. was down 4% in April from a year ago, according to the Bank of England.

    • 31 May 2013
  • RBS Nixes Branch Bid From U.S. P.E. Firms

    The Royal Bank of Scotland has rejected a joint bid from U.S. private equity firms JC Flowers and Apollo Management for its 316 branches unit known as Project Rainbow.

    • 31 May 2013
  • Banks Urged To Remain On Benchmark Panels

    The European Central Bank is urging banks to remain on or rejoin panels that set the euro interbank offered rate and the euro overnight index average “to ensure an appropriate level of participation, so that the reference rates serve their purpose of adequately reflecting market developments.”

    • 31 May 2013
  • Bonds Tables 1307

    • 30 May 2013
  • CLO risk retention rules to hit levloan dealflow, bankers fear

    Bankers within the European leveraged loan market have greeted the European Banking Authority’s proposed tightening of risk retention rules for securitisations with apprehension.

    • 30 May 2013
  • Dutch and UK deals keep RMBS pipeline humming

    The Dutch arm of BNP Paribas Personal Finance will begin a roadshow next week for its second-ever publicly sold Phedina RMBS. Clydesdale Bank will head to the US next week to market its Lanark 2013-1 RMBS.

    • 30 May 2013
  • BMW reaches new tights, UK and French deals to follow soon

    BMW Bank’s latest securitisation of German auto loans, Bavarian Sky, found plenty of investor interest this week, allowing the ‘A’ tranche to become the tightest auto ABS print since the 2008 crisis. And there is more to come, with Banque PSA preparing a French-backed auto ABS and Santander Consumer UK a dual-currency motor deal backed by UK auto loans.

    • 30 May 2013
  • Bookrunners of all international bonds — 2013 (May 29, 2013)

    • 30 May 2013
  • Santander Consumer UK looks again to US for Motor

    Santander Consumer UK’s latest Motor auto loan securitisation will again offer notes to US investors in 144a format, after the borrower established a foothold in the US market with last year’s Motor deal.

    • 30 May 2013
  • Bookrunners of all global bonds (Americas) — 2013 (May 29, 2013)

    • 30 May 2013
  • Bookrunners of Asia Pacific bonds in $, € and ¥ — 2013 (May 30, 2013)

    • 30 May 2013
  • Bookrunners of Asia Pacific (ex-Japan) bonds in $, € and ¥ — 2013 (May 30, 2013)

    • 30 May 2013
  • UCI brings 2013’s second Spanish ABS buyback

    Spanish mortgage provider Unión de Creditos Inmobiliarios (UCI) has offered to pay slightly above secondary levels for a buyback of up to €300m of bonds across 11 different tranches in seven RMBS deals.

    • 30 May 2013
  • Blow for CLOs as managers caught in risk retention net

    New European risk retention rules for securitisations have delivered a vicious blow to the nascent CLO revival in Europe, writes Joe McDevitt. Bankers fear that a new proposal that brings CLO managers into the scope of the so-called "skin in the game" requirement — which dictates that the sponsor of a deal must retain a 5% vertical slice of the structure — will change the nature of the market forever.

    • 30 May 2013
  • Prime U.S. Auto ABS Prepayments At Pre-Crisis Levels

    Prepayment of prime automobile loans in U.S. asset-backed securities has risen steadily in the past two years to pre-crisis levels, according to Fitch Ratings.

    • 30 May 2013
  • Specially Serviced U.S. CMBS Drop Sharply

    The balance of loans in U.S. commercial mortgage-backed securities in special servicing dropped sharply in the first quarter, falling below $70 billion for the first time since 2009, according to Fitch Ratings.

    • 30 May 2013
  • Short Sales Drop Sharply In Q1

    Short sales dropped sharply in the first quarter, down 18% from the preceding three-month period and 22% from a year earlier, according to RealtyTrac.

    • 30 May 2013
  • HAMP Extended Through 2015

    The Obama administration has extended the Home Affordable Modification Program, which was set to expire at the end of 2013, for another two years, through the end of 2015.

    • 30 May 2013
  • JPM Settles RMBS Suit With Fund Group

    JPMorgan Chase has reached a settlement with Chicago-based AMF Funds in a lawsuit alleging that the bank misled the funds about the underwriting standards it used for the mortgages that were pooled into residential mortgage-backed securities.

    • 30 May 2013
  • S&P Moves To Shift Suits To N.Y.

    Standard & Poor’s and parent McGraw Hill Financial have asked a federal court to move the 15 state lawsuits against it for allegedly inflating ratings of mortgage-backed securities to a federal court in New York, where the companies are based.

    • 30 May 2013
  • Servicers Get More Time To Adopt Default Measures

    Freddie Mac has extended by two months the effective date by which mortgage servicers must adopt new requirements dealing with default-related legal services to Aug. 1.

    • 30 May 2013
  • N.Y. Court Greenlights Mortgage-Buy Suit Against B Of A

    New York Supreme Court Justice Eileen Bransten has ruled that U.S. Bank as mortgage-bond trustee may proceed with its lawsuit against Bank of America to force it to buy back defective loans sold by its Countrywide Financial unit.

    • 30 May 2013
  • Nationstar Preps Servicing Deal

    Nationstar Mortgage is marketing a $1 billion residential mortgage servicing advance trade.

    • 30 May 2013
  • BNP Paribas Makes Dutch Return With New Phedina RMBS

    The Dutch arm of BNP Paribas Personal Finance will begin a roadshow next week for its second ever publicly sold Phedina RMBS.

    • 30 May 2013
  • BNP Paribas Makes Dutch Return With New Phedina RMBS

    The Dutch arm of BNP Paribas Personal Finance will begin a roadshow next week for its second ever publicly sold Phedina RMBS.

    • 30 May 2013
  • European Bank Failure Risk On The Rise

    The risk of European banks failing is rising as a result of the slumping eurozone economy and soaring problem loans, according to the European Central Bank.

    • 30 May 2013
  • Greek RMBS Show Signs Of Stabilizing

    Performance of Greek residential mortgage-backed securities is showing signs of stabilizing with mortgage arrears flat and new defaults occurring at a slower rate in the first quarter, according to Fitch.

    • 30 May 2013
  • ECB’s ABS Plan Downplayed

    Vitor Constancio, v.p. of the European Central Bank, is downplaying expectations that the ECB would use asset-backed securities to stimulate the market.

    • 30 May 2013
  • Europe To Revise FTT Proposals

    European countries are Those countries that have announced the tax are expected to redesign it so it would generate about one-tenth of the revenue originally projected.

    • 30 May 2013
  • Two More Lenders Leaving EURIBOR Panel

    German regional lenders Landesbank Baden-Wuerttemberg and Landesbank Hessen-Thueringen are exiting the panel that sets the euro interbank offered rate after May 31, according to the European Banking Federation, which sets EURIBOR.

    • 30 May 2013
  • Lloyds Selling Int’l Private Banking Biz

    Lloyds Banking Group says it is selling a large part of its international private banking business to the Swiss Union Bancaire Privée in a sale valued at around EUR116 million ($151.27 million).

    • 30 May 2013
  • Cyprus Bailout Led To Small E.U. Run On Banks

    The bailout of Cyprus’ banks, which included terms that imposed losses on depositors, caused a small run on banks in the European Union, according to the European Central Bank.

    • 30 May 2013
  • Outlook Still Negative for Ukraine’s Banks

    The outlook for Ukraine’s banking system remains negative, as it has been since October 2009 as the banks continue to operate in a challenging economic environment, according to Moody’s Investors Service.

    • 30 May 2013
  • Four Banks Tackle $8.7 Bln MBS List; Market Awaits Color

    Credit Suisse, Morgan Stanley, Goldman Sachs and Bank of America Merrill Lynch took down entire chunks of the largest offering of U.S. residential mortgage-backed securities in years, and now industry players are waiting to see how well the market absorbed the supply.

    • 30 May 2013
  • Head RBS CDO Trader Exits

    Matt Katke, head of Royal Bank of Scotland’s global head of collateralized debt and loan obligation trading, left the bank to take a role at Nomura.

    • 30 May 2013
  • Barclays Expands Role For Syndicate Head

    The head of U.S. securitized products syndicate at Barclays will be taking on a more global role as part of larger changes to its fixed income syndicate group, according to two people familiar with the matter.

    • 30 May 2013
  • Barclays unites regional loan, bond syndicates as Kiso moves to Asia

    Barclays has reorganised its debt syndicate desks, aiming to make management more streamlined and unified.

    • 29 May 2013
  • BNP Paribas makes Dutch return with new Phedina RMBS

    The Dutch arm of BNP Paribas Personal Finance will begin a roadshow next week for its second ever publicly sold Phedina RMBS.

    • 29 May 2013
  • Majority Of 2012 CLOs Will Be Called—RBS

    More than $42 billion in collateralized loan obligations issued in 2011 and 2012 will exit their non-call periods next year, and most of them are likely to be called, according to Royal Bank of Scotland.

    • 29 May 2013
  • Sallie Looks Beyond Student Loans Amid Spinoff

    Sallie Mae is considering widening its focus beyond education lending amid plans to split its businesses into separate education loan management and consumer banking companies over the next year.

    • 29 May 2013
  • Split Loans Included In New CMBS

    A $1.4 billion commercial mortgage-backed securitization known as COMM 2013-CCRE8 will include big split loans that are or will be part of other CMBS, according to a presale report from Kroll Bond Rating Agency.

    • 29 May 2013
  • CFPB Finalizes Ability-To-Repay Amendments

    The U.S. Consumer Financial Protection Bureau has finalized amendments to its ability-to-repay rule for small creditors, community development lenders and housing stabilization programs.

    • 29 May 2013
  • Allstate Drops RMBS Suit Against Citi

    Allstate has dropped its lawsuit against Citigroup, claiming the bank allegedly misrepresented some $200 million in residential mortgage-backed securities the bank sold it.

    • 29 May 2013
  • Foreclosure Inventory Plunges By 24%

    The U.S. inventory of foreclosed residential property dropped 24% nationally in April from a year ago, while the number of completed foreclosures fell 16% during that period, according to CoreLogic.

    • 29 May 2013
  • Smaller Loan Losses Help Boost Bank Profits

    Fewer losses from loans and higher fee income helped propel U.S. banks’ earnings to record profits in the first quarter, according to the Federal Deposit Insurance Corporation.

    • 29 May 2013
  • U.S. CMBS Loan Prices Up Again

    Loan prices in U.S. commercial mortgage-backed securities rose again in April, remaining at or above their historical highs, according to DebtX.

    • 29 May 2013
  • Citi Settles MBS Lawsuit With FHA

    Citigroup has settled a $3.5 billion lawsuit brought by the U.S. Federal Housing Finance Agency, which claimed the bank mis-sold mortgage-backed securities to Fannie Mae and Freddie Mac, which the FHA regulates.

    • 29 May 2013
  • UCI Brings This Year’s Second Spanish ABS Buyback

    Spanish mortgage provider Unión de Creditos Inmobiliarios (UCI) has offered to pay slightly above secondary levels for a buyback of up to EUR300 million ($387.73 million) of bonds across 11 different tranches in seven residential mortgage-backed securities deals.

    • 29 May 2013
  • BMW Goes Even Tighter For Bavarian Sky Auto Loan ABS

    BMW Bank’s latest securitization of German auto loans, Bavarian Sky, found plenty of investor interest, allowing both tranches to be priced at the tight end of guidance.

    • 29 May 2013
  • U.K. RMBS Untouched By Self-Employed Borrowers

    The creditworthiness of U.K. residential mortgage-backed securities is not expected to be affected by self-employed borrowers’ exposure to the current economic weakness in the U.K., according to Moody’s Investors Service.

    • 29 May 2013
  • EMEA RE Investment Up 15.7% In Q1

    Property investment in Europe, the Middle East and Africa rose 15.7% in the first quarter from a year ago to EUR32.7 billion ($42.32 billion), according to Cushman & Wakefield.

    • 29 May 2013
  • Most London Banks Streamlining RE Portfolios

    More than seven out of 10 banks located in central London are planning to streamline their real estate portfolios with 34% expecting consolidation of real estate assets as a result of an expected increase in mergers and acquisition activity, according to CBRE, the global property adviser.

    • 29 May 2013
  • Local Law Raises Concern For Spanish RMBS

    New legislation introduced by Spain’s Andalucia autonomous community that allows a delinquent borrower in a repossessed property to remain in the home is among the concerns that have prompted Fitch Ratings to place all tranches of Spanish residential mortgage-backed securities on negative outlook.

    • 29 May 2013
  • German Banks Need Another EUR14 Bln

    German banks need another EUR14 billion ($18.12 billion) to meet their capital requirements, according to BaFin, the German regulator.

    • 29 May 2013
  • Cypriot Banks Forced To Sell Greek Branches For Aid

    Cypriot banks were required to sell their branches in Greece to Piraeus Bank as a precondition for approval of a bail-out package, according to Panicos Demetriades, governor of the Central Bank of Cyprus.

    • 29 May 2013
  • ECB Official Questions Value Of FTT

    Christian Noyer, a member of the European Central Bank’s governing council, says the proposed financial transaction tax may not be worth it as it will not generate any revenue because the immediate effect will be “either to destroy financial sectors” or make it so “the cost of borrowing in the real economy will increase for everyone."

    • 29 May 2013
  • Accountants Pressed To Quiz U.K. Banks Better

    Accountants need to do a better job in questioning banks about how they determine provisions on their books for expected loan losses, according to the U.K. Financial Reporting Council.

    • 29 May 2013
  • European Lending Slips For 12th Straight Month

    The European Central Bank reported that lending to businesses and households in the eurozone fell for the 12th consecutive month in April, slipping 0.9% from a year ago after dropping an annual 0.7% in March.

    • 29 May 2013
  • BMW goes even tighter for Bavarian Sky auto loan ABS

    BMW Bank’s latest securitisation of German auto loans, Bavarian Sky, found plenty of investor interest, allowing both tranches to be priced at the tight end of guidance.

    • 28 May 2013
  • UCI brings this year’s second Spanish ABS buyback

    Spanish mortgage provider Unión de Creditos Inmobiliarios (UCI) has offered to pay slightly above secondary levels for a buyback of up to €300m of bonds across 11 different tranches in seven RMBS deals.

    • 28 May 2013
  • Byrider Jumps On Prefunding Bandwagon

    Deep subprime shop J.D. Byrider is taking a different approach to prefunding with its upcoming sophomore securitization, the $121.4 million CarNow Auto Receivables Trust 2013-1.

    • 28 May 2013
  • ICBA Calls For End To Too Big To Fail

    Independent Community Bankers of America has called for an immediate end to bailouts for banks deemed too big to fail.

    • 28 May 2013
  • Servicers Now Prefer Short Sales Over Loan Mods

    U.S. servicers of residential mortgage-backed securities now prefer short sales over loan modifications as a remedy for underperforming residential mortgages, according to Fitch Ratings.

    • 28 May 2013
  • Freddie Mac Preps For Ninth Multifamily Offering

    Freddie Mac has announced its ninth offering of 2013 of structured pass-through certificates backed by fixed-rate multifamily mortgages.

    • 28 May 2013
  • U.S. Banks’ MBS Holdings Decline In Q1

    Mortgage-backed holdings by U.S. banks and thrifts declined 1.1% in the first quarter following a 4.4% decline from a record $1.634 trillion in the preceding three-month period.

    • 28 May 2013
  • Bill Would Wind Down GSEs

    A bipartisan group of senators is drafting a house financing reform bill that would include a plan to wind down Fannie Mae and Freddie Mac.

    • 28 May 2013
  • U.S. Regional Banks Boost CLOs

    Regional U.S. banks boosted their holdings in collateralized loan obligations in the first quarter and are expected to continue the trend as CLO investors seek alternatives to the low yields offered by Treasurys and mortgage-backed securities, according to Fitch Ratings.

    • 28 May 2013
  • U.S. Mortgage Rates May Rise On MBS Sell-Off

    U.S. mortgage rates may rise as the sell-off in mortgage-backed securities accelerates further. In addition, MBS prices have dropped to levels not seen for more than a year.

    • 28 May 2013
  • U.S. Banking System Outlook Upgraded To Stable

    Moody’s Investors Service has upgraded its outlook for the U.S. banking system from negative to stable as the operating environment improves and downside risks to banks subside.

    • 28 May 2013
  • Street Capital OK’d As Canadian MBS Issuer

    Canada Mortgage and Housing Corp. has approved Street Capital Financial as an issuer of National Housing Act mortgage-backed securities.

    • 28 May 2013
  • Ellington Hires Originations Chief

    Connecticut-based investment and advisory firm Ellington Management has hired Steven Abreu for the new position of head of mortgage originations.

    • 28 May 2013
  • CarFinance Prices First Rated ABS

    CarFinance Capital has priced its CarFinance Capital Auto Trust 2013-1, its first rated asset-backed securities.

    • 28 May 2013
  • Bank Lobbyists Helped Draft Legislation

    Bank lobbyists participated in drafting financial legislation, with observers saying the lobbyists succeeded in weakening some of the measures.

    • 28 May 2013
  • Flagstar Mulls Servicing Rights Sale

    Michigan-based Flagstar Bancorp is said to be considering a sale of more than $70 billion in mortgage servicing rights.

    • 28 May 2013
  • Freddie Mac Delinquency Rate Below 3%

    The overall delinquency rate of Freddie Mac’s mortgage portfolio dropped to 2.91% in April, the first time it fell below 3% since the beginning of the housing crisis.

    • 28 May 2013
  • Barclays Taps U.S. Securitized Trading Head

    Barclays has named Adam Yarnold as head of U.S. securitized products trading.

    • 28 May 2013
  • Rally Makes Post-Crisis Tights Possible For BMW Auto ABS

    A slight rally in outstanding Volkswagen auto asset-backed securities paper over the past week has allowed BMW to begin pricing for its Bavarian Sky 2013-1, which is backed by German auto loans, at the tightest levels since the 2008 crisis.

    • 28 May 2013
  • Concerns Grow Over Euro CLO Risk Retention

    The European Banking Association’s latest tweak to risk retention rules, which now requires collateralized loan obligation managers to retain deals on their own balance sheets, could slow the flow of new euro CLO issuance — until greater clarity is provided, according to market participants.

    • 28 May 2013
  • Ally Pools Better Borrowers Into Lease ABS

    Ally Bank is spinning its second-ever public auto lease securitization, backed by a pool of mostly General Motors and Chrysler vehicles leased to stronger credit quality borrowers than those included in deals from comparable issuers over the last year, data from Moody’s Investors Service and Fitch Ratings show.

    • 28 May 2013
  • Banks Urged To Improve Risk Appraisal

    The Bank for International Settlements has called on banks to help investors better gauge risk by disclosing the assets they use for collateral for loans.

    • 28 May 2013
  • ECB Offers E.U. Help On FTT

    The European Central Bank has offered to help the European Union in revising the proposed financial transaction tax so that it does not have a negative impact on market stability, as feared.

    • 28 May 2013
  • European Banks Get Boost From U.S. Subprime MBS

    European banks are boosting their capital to meet new regulatory requirements by selling U.S. subprime mortgage-backed securities that they purchased during the financial crisis, as investors are attracted to the growing value of the MBS.

    • 28 May 2013
  • Spanish Bank Tests Covered-Bond Interest

    Spanish lender Caja Rural de Navarra is said to be testing the market for interest in a five-year euro-denominated covered bond.

    • 28 May 2013
  • LIBOR Still Can Be Manipulated, Says BaFin

    German regulator BaFin said the process for setting the London Interbank Offered Rate and its euro counterpart, EURIBOR, can still be manipulated despite security standards introduced to prevent it.

    • 28 May 2013
  • Cov Lite Loans Soar

    Covenant lite loans now account for more than half of all leveraged loans issued globally this year, twice the proportion as during the credit boom in 2007, as investors continue to hunt for higher yields.

    • 28 May 2013