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  • Planned regulatory changes in the U.S. could make it tougher for European issuers to sell securitizations to U.S.-based investors, according to Kenneth Kohler, partner at Morrison & Foerster.
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    Fitch said on Wednesday that proposed UK ringfencing rules would push banks to rely more on secured funding — and that senior unsecured would comprise a permanently lowered proportion of bank funding.
  • Some investors stayed away from the newest residential mortgage-backed securitization from Redwood Trust, the $368 million Sequoia Mortgage Trust 2011-2, because it carried credit ratings from just one agency, Fitch Ratings.
  • The expected news of U.S. Federal Reserve’s so-called Operation Twist has strategists at the Royal Bank of Scotland urging clients to buy longer-dated agency pass-throughs and collateralized mortgage obligations, a move Jeana Curro’s team said could be smart even if the Fed’s third round of economic stimulus fails to materialize.
  • The Independent Community Bankers of America has called for a moratorium on mergers and acquisitions involving financial institutions $100 billion or more in assets.
  • The Obama administration again is considering imposing a fee on the nation’s largest banks to pay for losses from the government’s Troubled Asset Relief Program.
  • Investors in residential mortgage-backed securities will not feel the impact of rising foreclosures until 2013, predicts DBRS.
  • Redwood Trust is said to have raised the interest rate on the senior class of its $375 million residential mortgage-backed securities deal from 3.6% to 3.9%.
  • Senior bondholders in the legacy Stichting Holland Homes Oranje I and II Dutch residential mortgage-backed securitization are said to have green-lighted plans to restructure the transactions in order to stave off a ratings downgrade.