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Securitization People and Markets

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  • Investors in asset-backed securities are battling for allocations and having to look off the run and further down the road to get what they want. A dearth of new issue ABS is pushing investors to esoteric ABS, longer-dated or subordinated paper as the best ways to get their fill, buysiders and bankers said.
  • Securitization veteran Bill King is rumored to be on his way to UBS to take a senior role in the bank’s North American investment banking group. Officials at UBS could not confirm the potential hire. King did not return repeated calls.
  • Yorkshire Building Society, a U.K.-based thrift, is set to launch its first foray into the residential mortgage-backed market with a new deal called Brass No. 1.
  • Investec, the South African bank, says it saw its costs related to bad Irish debt nearly double to £97 million ($157.4 million) in 2010.
  • The European Securities and Markets Authority’s new rating agency endorsement regime—a series of stringency tests to determine if credit ratings made outside the E.U. can be permitted into the region—will give some leeway to ratings that fall short of the E.U. standards. The move comes after industry professionals voiced fears that a wholesale block on non-E.U. ratings would trigger disruption to securitization markets.
  • Redwood Trust expects to issue two more private-label residential mortgage securitization deals this year, Martin Hughes, president and chief executive, told the Senate Banking, Housing & Urban Affairs Subcommittee on Securities in Washington today.
  • Barclays Capital has hired Jonathan Wu from JPMorgan as a v.p. in the securitized products origination group.
  • The U.K. Financial Services Authority is taking its own view on how the E.U.’s financial markets reforms should be implemented, penning a fresh plan to allow “group” compliance on new rules slated to hit the global securitization industry.
  • The Bank of England is expected to unveil a new approach to financial regulation that in effect would abandon the Financial Services Authority’s so-called “traffic light” system of oversight.