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RMBS

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  • The Federal Reserve Bank of New York has put off a $1.67 billion sale of collateralized debt obligation holdings from its Maiden Lane III portfolio that was scheduled for today.
  • FIG
    Moody’s imminent downgrade of European banks’ long-term and short-term ratings will see more than half of all UK RMBS counterparties breach their first rating trigger. Royal Bank of Scotland and Lloyds TSB face the highest exposures, but all affected banks will need to post collateral, find a third party guarantee or appoint a replacement.
  • American International Group has increased its investments in non-agency commercial mortgage-backed securities and residential mortgage-backed securities by more than 64%, or $11.1 billion, since the end of 2010 to $28.4 billion at the end of the first quarter.
  • The FBI has launched a preliminary inquiry into the USD2.3 billion trading losses at JPMorgan Chase following similar moves by the U.S. Securities and Exchange Commission and the Federal Reserve.
  • European securitization market officials aren’t sweating the potential impact that JPMorgan’s recent losses may have on the still-recovering sector, though the bank’s chief investment office, which was the source of the losses, has also been a major investor in the region’s post-crisis securitization issuance.
  • European securitization market officials aren’t sweating the potential impact that JPMorgan’s recent losses may have on the still-recovering sector, though the bank’s chief investment office, which was the source of the losses, has also been a major investor in the region’s post-crisis securitization issuance.
  • FIG
    Strong demand for Santander UK’s Fosse 2012-1 RMBS allowed leads to tighten pricing in three out of nine tranches. The UK originator has also added a pre-placed Yen tranche, bringing the number of currencies on offer to five.
  • Long-term ratings of U.S. residential mortgage-backed securities are likely to be little affected by the settlement between states attorneys general and mortgage lenders that includes reducing principal balances for troubled borrowers, according to Fitch Ratings.
  • IKB Deutsche Industriebank has filed a lawsuit against Bank of America over losses it claims from investments in mortgage-backed securities it bought.