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Securitization People and Markets

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  • There are advantages and disadvantages of using collateralized loan obligations and leveraged loan closed-end funds as investment vehicles for leveraged loan managers, as well as senior and junior investors, according to Fitch Ratings.
  • Countrywide Financial Corp and GMAC Mortgage have been charged with “massive frauds” in connection with mortgage-backed securities sold to Thrivent Financial for Lutherans.
  • Deteriorating performance has prompted Moody’s Investors Service to downgrade most of $1.55 billion of prime jumbo residential mortgage-backed securities.
  • Standard & Poor’s has approved LenderLive Network as a third-party due diligence provider of results in the agency’s process of rating residential mortgage-backed securities.
  • Barclays Capital has added Mahesh Rajagopalan and Kahif Gilani as director and v.p. to its securitized products origination group.
  • The Federal Housing Finance Agency has ordered Fannie Mae and Freddie Mac to align procedures and incentives for mortgage servicers handling delinquent mortgages.
  • More than 500 banks owe an estimated $146 billion in repayments to the Department of the Treasury for bail-out funds they received through the Troubled Asset Relief Program, according to the Special Inspector General of TARP.
  • Mortgage servicers saw a 23% decline in income in the first quarter as the result of longer foreclosure timelines and regulatory crackdown on fees they charge, according to Lender Processing Services.
  • The aggregate value of commercial real estate loans that collateralize mortgage-backed securities remained flat in March to 79.8%, down from 79.9% in the preceding month, according to DebtX.