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RMBS

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  • American International Group has increased its investments in non-agency commercial mortgage-backed securities and residential mortgage-backed securities by more than 64%, or $11.1 billion, since the end of 2010 to $28.4 billion at the end of the first quarter.
  • The FBI has launched a preliminary inquiry into the USD2.3 billion trading losses at JPMorgan Chase following similar moves by the U.S. Securities and Exchange Commission and the Federal Reserve.
  • European securitization market officials aren’t sweating the potential impact that JPMorgan’s recent losses may have on the still-recovering sector, though the bank’s chief investment office, which was the source of the losses, has also been a major investor in the region’s post-crisis securitization issuance.
  • European securitization market officials aren’t sweating the potential impact that JPMorgan’s recent losses may have on the still-recovering sector, though the bank’s chief investment office, which was the source of the losses, has also been a major investor in the region’s post-crisis securitization issuance.
  • FIG
    Strong demand for Santander UK’s Fosse 2012-1 RMBS allowed leads to tighten pricing in three out of nine tranches. The UK originator has also added a pre-placed Yen tranche, bringing the number of currencies on offer to five.
  • Long-term ratings of U.S. residential mortgage-backed securities are likely to be little affected by the settlement between states attorneys general and mortgage lenders that includes reducing principal balances for troubled borrowers, according to Fitch Ratings.
  • IKB Deutsche Industriebank has filed a lawsuit against Bank of America over losses it claims from investments in mortgage-backed securities it bought.
  • The Federal Reserve, Office of the Comptroller of the Currency and the Federal Deposit Insurance Corp., have finalized their guidance related to stress-testing practices at banks with total consolidated assets of more than $10 billion.
  • U.S. District Judge Denise Cole of Manhattan has proposed a trial schedule for 17 lawsuits brought by the U.S. Federal Housing Finance Agency against banks over mortgage-backed securities, with the first case—with UBS as defendant—to be tried in 2013 and the rest to continue in 2014.