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RMBS

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  • FIG
    Leads HSBC and Bank of America Merrill Lynch have gone out with guidance for Allied Irish Bank UK’s first public RMBS, Tenterden Funding, giving investors a spread pick-up over recent UK prime deals.
  • Hedge fund D.E. Shaw is launching the Alkali Fund in July, which will invest in residential mortgage-backed securities, consumer asset-backed debt, toxic loans, including European loans, among other instruments. .
  • The Federal Reserve Bank of Boston had praise for mortgage-backed securities during the financial crisis, saying, compared with most investments, they were “highly transparent and their issuers willingly provided a great deal of information to potential purchasers.”
  • David Stevens, president and ceo, of the Mortgage Bankers Association, has called on Fannie Mae and Freddie Mae to develop mortgage-backed securities common to both as a way of increasing liquidity.
  • Broker-dealer firm The PrinceRidge Group has added five directors to sales and trading positions to its mortgage-backed securities division; part of a recent expansion of the group led by senior managing director and head of U.S. residential mortgage-backed securities Barry Berkeley, who joined the firm from Sterne Agee & Leach in January.
  • Rising default rates on automobile loans are driving Brazilian banks to cut back on lending.
  • Ginnie Mae has ordered issuers of its mortgage-backed securities to make four additional pieces of data available to investors beginning in September.
  • A lack of confidence in the models credit ratings agencies use to assess residential mortgage-backed securities and in the agencies themselves is stifling the U.S. housing recovery, according to Reason Foundation.
  • American International Group invested $7.4 billion in the first quarter, including a 15% allocation to non-agency residential mortgage-backed securities.