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CMBS

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  • The U.S. Department of the Treasury plans to start selling off its $142 billion portfolio of agency residential mortgage-backed securities, with the first batch of $10 billion expected this month.
  • European banks are still in the dark about key aspects of the next round of stress testing, which gets under way this month.
  • The U.K.’s Financial Services Authority has released its guidance for advisers on assessing suitability for funds for clients.
  • Smaller players in the U.K. and European mortgage sector, such as retail banks and building societies, are being tipped to contribute to a healthy flow of residential mortgage-backed securities issuance this year.
  • Insurance firms have been slowly squeezed out of the prime consumer asset-backed securities market as yields on senior auto and credit card senior bonds have shrunk.
  • FIG
    As CMBS market participants confront restructurings in legacy deals, servicers are taking a more active approach — meaning a tougher line with borrowers, and more independence.
  • The situation in Japan and the Middle East should have lead to a greater “flight-to-quality,” with investors moving their investments into the safe havens of the consumer credit market, according to traders.
  • US Bancop has been sued by Woodmen of the World, a Nebraska-based insurer, for $47 million in losses it claims from investments in mortgage-backed securities.
  • Jamie Dimon, ceo of JPMorgan Chase, says the largest lenders in the U.S. would unintentionally benefit the most from an exemption of rule under the Dodd-Frank Act requiring banks to retain 5% of the loans they securitize.