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Securitization People and Markets

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  • The European Bank for Reconstruction and Development has announced that it has committed up to US$50 million through a structured debt instrument to ZAO Raiffeisenbank, the Russian subsidiary of Austria’s Raiffeisen Bank International.
  • The European Securities and Markets Authority has launched an investigation of Standard & Poor’s, Fitch Ratings and Moody’s Investors Service to determine whether the process they use for evaluating banks is sufficiently rigorous and transparent.
  • The Royal Bank of Scotland will likely face a £150 million ($234 million) fine for its alleged involvement in manipulating the London Interbank Offered Rate, about half the size of penalty imposed on Barclays last week.
  • Marcus Agius has resigned as chairman of Barclays over the bank’s involvement in the alleged manipulation of the London interbank offered rate.
  • Nationstar Mortgage has acquired $63.7 billion in residential mortgage servicing rights from Aurora Bank, with three-quarters of the portfolio consisting of non-conforming loans in private label securitizations.
  • The Office of the Comptroller of the Currency is said to have been requesting review of JPMorgan Chase’s risk models ranging from trading losses to interest-rate moves to determine whether they are designed and working properly.
  • Home builder Lennar has launched it second distressed-property fund, looking to raise $950 million, about 35% larger than its first such fund, which attracted $700 million last November.
  • Marriott Vacations Worldwide has completed its first securitization linked to vacation loans.
  • Nebraska-based recreational retailer Cabela’s has completed the sale of $500 million in asset-backed notes.