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Securitization People and Markets

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  • The Australian government has proposed legislation that will allow domestic banks to issue covered bonds of up to 8% of if their assets in the country.
  • FMS Wertmanagement, the so-called bad bank set up in a restructuring of Germany’s troubled Hypo Real Estate, has made its final repayment on guarantees offered by the German government.
  • An “appropriately sized” liquidity facility is important to mitigate cash-flow disruption as a result of servicing transfer in Australian securitizations, according to Moody’s Investors Service.
  • The U.K.’s Financial Services Authority has scaled back its proposed mortgage-lending regulations.
  • An independent assessment of MBIA has found that the bond insurer may have underestimated future losses from subprime residential mortgage-backed securities by about $10 billion.
  • OneWest is getting out of the reverse-mortgage business.
  • The Federal Reserve Board may have found problems with Bank of America’s capital as a reason why FRB turned down the bank’s request to increase dividends, according to KBW analysts.
  • The Federal Reserve Board will release data on emergency lending to banks during the financial crisis after the U.S. Supreme Court rejected efforts by banks to keep the information secret.
  • StormHarbour Securities has opened an office in Copenhagen as part of its plan to expand its product offering to institutional investors in the Nordic region.