Asset Securitization Report articles from April 2005

Asset Securitization Report archives from April 2005

Whispers.(briefs)
April 4, 2005... JPMorgan Securities poached David Duzyk from RBS Greenwich Capital for a senior position within the ABS origination group, reporting directly to U.S. structured finance co-head Christine Cole. Managing Director Andrew Dym, who had run the U.S....

State of Texas financing order appeal delays CenterPoint RRB.(rate reduction bonds)
April 4, 2005... The State of Texas filed an administrative appeal last week against the Public Utility Commission of Texas' decision to give CenterPoint Energy the green light to issue $1.8 billion in rate reduction bonds, delaying the issue that CenterPoint...

ASF concerns: disclosure, discovery.(American Securitization Forum )
April 4, 2005... NEW YORK - The American Securitization Forum announced the results of its Survey of Securitization Market Investors' in a Sunset Seminar it hosted here last week, in which more than half of the investors surveyed defined price discovery and...

Record spreads set in Korea.(securitization)
April 4, 2005... The week leading up to Easter marked something of a watershed for the Asian securitization business, with several deals smashing previous price benchmarks and attracting huge investor interest from inside the region and beyond. While much...

Equipment lease sector to make comeback after perfect storm'.
April 4, 2005... After a shaky three-year period characterized by low issuance, corporate bankruptcies and consolidation, dubbed the perfect storm,' the equipment-least sector is ripe for a comeback, say market observers. Buoyed by strong demand for...

U.S. market slows to $5 billion.
April 4, 2005... Volume in the primary U.S. ABS market was relatively light last week, coming in just under $5 billion as of Thursday's market close. Real estate ABS accounted for $1.6 billion in total new issues, and was comprised of several smaller deals with...

Merrill examines GMAC's need for secured funding.(Merrill Lynch and Company Inc.)(General Motors Acceptance Corp.)
April 4, 2005... In a 45-page report on General Motors and General Motors Acceptance Corp., a team of Merrill Lynch analysts from the unsecured debt and ABS groups highlighted the benefits and drawbacks of GMAC's increased reliance on securitization as its...

Collateral and manager experience hot topics at gathering.(Information Management Network's Collateralized Debt Obligations and Credit Derivatives conference)
April 4, 2005... NEW YORK - The CDO market is embroiled in an ongoing battle for collateral, and to the consternation of investors, the food fight has forced some managers to seek out alternative solutions, according to delegates at Information Management...

How valuable are third party CDO data providers?(collateralized debt obligations)(Brief Article)
April 4, 2005... NEW YORK - Few deny that the advent of non-proprietary analytical software programs during the past several years has paved the way for smaller participants in the CDO market by hastening the bid process with faster analytical turnaround....

The following is a fictional scene submitted to ASR by Gary Barnett, a partner in Linkletters' U.S. structured finance and derivatives practice debating certain aspects of Regulation AB.(Fictional Work)
April 4, 2005... The scene opens with John Smith, a partner with a major New York law firm representing clients in exotic asset securitizations, and David Jones, a partner with another major New York law firm representing clients in more mainline...

Cadwalader Wickersham & Taft hires U.K. capital markets partners.(Brief Article)
April 4, 2005... Law firm Cadwalader Wickersham & Taft LLP hired two partners for its London capital markets practice last week to respond to the expansion of securitization and capital market techniques across the European Union, the firm said. Christian...

Active two-way flows as market responds to cheapness and month-end.
April 4, 2005... Mortgage activity picked up around midweek as a wide range of investors took advantage of the recent cheapening and generally benign economic news. Support strengthened further Thursday on month-end index buying, and squaring of positions ahead...

HUD allows FHA to insure higher capped 5/1s.(Department of Housing and Urban Development)(Federal Housing Administration )
April 4, 2005... The Department of Housing and Urban Development published a regulation on the Federal Register last week increasing the initial or periodic interest rate cap as well as the life reset on FHA-insured 5/1 ARM loans. The new rule, effective April...

Freddie announces new REMIC program.(Freddie Mac)
April 4, 2005... Last week Freddie Mac announced the launch of its Reference REMIC securities program. This program is aimed at enhancing CMO market liquidity and offering the regular issuance of generic structures with more pricing transparency. Mark...

Analysts explore the link between the rise in ARM share and housing affordability.(adjustable rate mortgages)
April 4, 2005... The Mortgage Bankers Association reported last week a significant jump in purchase applications, rising 5.5% and making it comparable to levels seen in 1Q04, while also reporting that the ARM share of mortgage activity increased to an all-time...

ABS taking off in Singapore.(Suntec Real Estate Investment Trusts)(asset backed securities)
April 4, 2005... Suntec REIT, managed by ARA Asset Management, completed a 327 million ($437.9 million) CMBS via JPMorgan Securities last week, backed by the cashflows generated on the Suntec City Development, located in Singapore's central business district....

A review of global structured securities rating performance 1978 to 2004.
April 4, 2005... By Erkan Erturk, Ph.D., director, and Tom Gillis, managing director, Standard & Poor's Executive Summary This report provides a review of global structured securities during the period of 1978 to 2004, and combines certain elements of...

Whispers.(briefs)
April 11, 2005... Managing Director Dan McGarvey will take over the non-mortgage origination at RBS Greenwich Capital, following the departure of his colleague David Duzyk to JPMorgan Securities the week before last. McGarvey joined RBS Greenwich last year,...

Lehman 1Q05 U.S. ABS leader: Citigroup slips to eighth...(Lehman Brothers Holdings Inc.)
April 11, 2005... Lehman Brothers, which finished as the third-leading underwriter last year, is the leading U.S. ABS underwriter through the first quarter of 2005, according to data maintained by Thomson Financial. With $23.3 billion of domestic ABS supply sold...

Feds debate GSE legislation.(Government Sponsored Enterprise )
April 11, 2005... Last Tuesday, Rep. Richard Baker (R-La.) introduced legislation creating a new regulator for the GSEs and the Federal Home Loan Banks. The bill - The Federal Housing Finance Reform Act of 2005 - abolishes GSE regulator Office of Federal Housing...

Three for Thai government ABS.(asset backed securities)
April 11, 2005... After receiving initial interest from 25 banks, the Government of Thailand has short-listed three bidding consortiums for its proposed THB24 billion ($626 million) securitization program (see ASR 3/14/05). The project will fund the construction...

UBS is tops in MBS once again in 1Q05.(mortgage backed securities)(Union Bank of Switzerland)
April 11, 2005... After playing second fiddle to 2004 leader Bear Stearns, UBS regains its former spot as the top manager in the first quarter league table rankings for agency and non-agency, according to MBS data maintained by Thomson Financial. UBS regained...

Merrill tops 20% of CDO market.(collateralized debt obligation)(Brief Article)
April 11, 2005... Merrill Lynch leads the race among CDO underwriters through the first quarter, with nearly $6 billion of product placed, according to data maintained by Thomson Financial. Merrill's hold in the sectors is one of the more dominating in a market...

Countrywide still leading ABS issuer.(asset backed securities)(Countrywide Home Loans Inc.)(Brief Article)
April 11, 2005... Countrywide Home Loans Inc., last year's leading U.S. ABS issuer, maintained its pace throughout the first quarter, bringing more than $21 billion of new-issue ABS to the market, according to data maintained by Thomson Financial. The Calabasas,...

U.S. ABS market slow early but picks up.(asset backed securities)
April 11, 2005... The U.S. primary ABS market had another sluggish week, pricing just over $4 billion in new issues as of Thursday's deadline, but was anticipating a mammoth auto deal to price last Friday. Real estate ABS accounted for the bulk of issuance with...

Texas seeks advisor for stranded cost deal as appeal looms.
April 11, 2005... The Public Utility Commission of Texas is moving ahead with its search for an advisor for CenterPoint Energy's pending $1.8 billion stranded electricity cost bond offering, in spite of the fact that the financing order for the deal is under...

Limited widening in MBIA wrapped ABS.(asset backed securities)
April 11, 2005... ABS transactions wrapped by bond insurer MBIA saw only mild spread widening in the secondary market last week, according to sources. The Armonk, N.Y.-based bond insurer received a second round of subpoenas last week from the Securities and...

Discover expected to increase issuance, be acquired if spun off.(Discover Financial Services)
April 11, 2005... ABS analysts are saying Discover Financial Services would likely increase its ABS issuance and become an acquisition target if spun off from parent company Morgan Stanley. The unit, championed by Morgan Stanley CEO Phillip Purcell, has come...

Tideline Capital closes software receivables facility.
April 11, 2005... Software finance company Tideline Capital recently closed a $100 million conduit facility with Wachovia Securities backed exclusively by software receivables. The vehicle is designed to finance enterprise software purchases averaging...

S&P: Managers cornerstone of CDO market.(Brief Article)
April 11, 2005... With the profusion of new CDO managers entering the market, there has been some buzz surrounding the relative inexperience of some managers, and whether or not this will impact the future performance of these deals. A recent report from...

Athlete's Foot bankruptcy spurs downgrade.(Athlete's Foot Group Inc.)
April 11, 2005... Following the liquidation of 114 corporate-owned Athlete's Foot stores, Moody's Investors Service recently downgraded the shoe retailer's $30 million franchise fee securitization two notches to Baa3' from Ba2'. The single-tranche 4.2-year...

CSC Introduces New Securitization Services Subsidiary.(CSC Securitization Services)(Corporation Services Co.)
April 11, 2005... Corporation Services Co. entered the securitization services playing field last week, when it launched a new subsidiary, CSC Securitization Services. Richard Taiano is set to head the operations for the team. Coming into what industry...

MBS trading activity picks up after March prepayment report.(mortgage backed securities)
April 11, 2005... Through mid-week, MBS trading was lackluster given the GSE headlines and the lack of economic data. Flows were two-way, but favored better selling on the lack of direction. Activity, however, came from a wide range of domestic investors - real...

Bank MBS holdings not yet affected by C&I loan growth.(mortgage backed securities)
April 11, 2005... Even with the 10-year Treasury rate backing up considerably in the past few weeks, and with market participants expecting the Federal Open Market Committee to tighten by 50 basis point increments going forward, bank MBS holdings are still not...

Market participants react to new Freddie Mac REMIC program.
April 11, 2005... Freddie Mac last week announced the lead underwriters for its inaugural Reference REMIC security offering (see ASR 4/4/05). Lehman Brothers, Morgan Stanley and UBS are the lead underwriters for Reference REMIC series R001, which is expected to...

RMBS fills European ABS pipeline.(residential mortgage backed securities)(asset backed securities)
April 11, 2005... Variety continues to dominate the building European RMBS pipeline with a number of jurisdictions lining up deals to be launched in the coming weeks. Volumes continue to fall short of 2005 business, however, as analysts at Morgan Stanley...

China pilot programs readied.(Brief Article)
April 11, 2005... Positive news has emerged on the two pilot securitization schemes being developed by China Construction Bank and China Development Bank (see ASR 3/7/04)). At the end of March, after a consensus was reached among 10 separate regulatory bodies,...

Pair of Malaysian deals lining up.(Karambunai Corp.)
April 11, 2005... In Malaysia, Time Engineering recently completed an M$566.6 million ($149 million) Islamic securitization via Commerce International Merchant Bankers. The deal is the first issued from an M$2.5 billion ABS facility, established last month. ...

Mizuho and Morgan Stanley lend hand to struggling Japanese firms.(Mizuho Corporate Bank)(Brief Article)
April 11, 2005... In Japan, Mizuho Corporate Bank, a unit of Mizuho Financial Group, is joining forces with Morgan Stanley on a securitization of loans deemed as "requiring attention" under the country's Financial Reconstruction Law. Mizuho Securities will act...

Whispers.
April 18, 2005... Dan Castro has landed at hedge fund GSC Partners, where he will be a managing director and chief credit officer, reporting to Fred Horton, who started at GSC earlier this month. Castro, the longtime Merrill Lynch research strategist had been...

Earnings news causes Ford to hold auto deal over weekend, spreads widen.(Ford Motor Co.)
April 18, 2005... On Friday, April 8, as many in the financial world were fixated on the second round of The Master's, Ford Motor Co. was lowering its earnings outlook for the year and pulling in the reins on the $3 billion auto ABS deal it introduced to the...

Lehman launches floating-rate index.(Lehman Brothers Holdings Inc.)(Brief Article)
April 18, 2005... In response to the bulging proportion of floating-rate issues in the ABS market, Lehman Brothers plans to launch its first ever U.S. ABS Floating Rate Index. The index, initially covering $253 billion worth of transactions, is scheduled to go...

Singapore SPRINGs into ABS market.(asset backed securities)(Brief Article)
April 18, 2005... After a hectic Easter period on the ex-Japan Asian securitization scene, activity slowed last week. Behind the scenes, however, bankers continue to finalize details on upcoming deals as well as hunt new business. In Singapore, the first...

PNC gears up to issue equipment lease ABS.(PNC Financial Services Group Inc.)(asset backed securities)(Brief Article)
April 18, 2005... PNC Financial Services Group is positioning itself to issue equipment lease ABS. Steve Geis, managing director at PNC, said the bank is attempting to increase the size of its equipment-lease warehousing facilities through talks with a number of...

U.S. primary springs into life.
April 18, 2005... The U.S. primary ABS market was in bloom last week, pricing roughly $9.6 billion as of Thursday evening. The home equity sector accounted for over $6 billion in new issues, including two deals well over the $2 billion mark. New Century...

Unique legal structure built into GMAC's first auto lease deal.(General Motors Acceptance Corp.)
April 18, 2005... As its parent's corporate debt rating teeters on the brink of junk status, General Motors Acceptance Corp. will tap the ABS market with a $1.5 billion auto lease offering, marking GMAC's first foray into the auto lease sector. The deal is...

Morgan Stanley stacks up major auto issuer, individual deal performance.
April 18, 2005... As auto ABS spreads widen and corporate concerns about industry giants like General Motors Corp. and Ford Motor Co. pervade the market, researchers at Morgan Stanley have jumped into the fray to compare the performance of ABS deals from all...

Analysts paint bleak picture for auto sector.
April 18, 2005... Automobile industry analysts with Morgan Stanley put forth a bearish outlook for the auto sector on a conference call held last week, forecasting weak cash flows for the first quarter and sluggish global demand. "It's a challenging time...

GICs reach new high issuance levels.(funding agreement-backed notes)(guaranteed investment contracts)
April 18, 2005... Funding agreement-backed note issuance levels reached a record $11.8 billion in the first quarter of 2005 according to a Standard & Poor's Ratings Services' research report. The numbers reflected a 70% increase from volume reported in 4Q04 and...

Improved global Q105 performance a definite trend.(structured securities )
April 18, 2005... By Erkan Erturk, Phd, director and Tom Gillis managing director in the S&P structured finance group Standard & Poor's rated global structured securities continued to perform well during the first quarter of 2005. The upgrade rate for...

Ginnie Mae to securitize higher-capped 5/1 ARMs.
April 18, 2005... After the Department of Housing and Urban Development recently allowed the Federal Housing Administration to insure 5/1 hybrid ARM loans with a 2% initial and periodic cap and a 6% lifetime cap (see ASR 4/4/05), Ginnie Mae followed up with an...

Tainted Freddie loans a reflection of post refi environment, analysts said.(Freddie Mac)(refinancing )(Brief Article)
April 18, 2005... Freddie Mac announced last week that it had unknowingly purchased mortgages with "unacceptable refinance practices." National City Mortgage, a customer of the GSE, discovered the tainted loans that were made through a California-based mortgage...

Strong MBS buying emerges following FOMC minutes release.(Federal Open Market Committee)(mortgage backed securities)
April 18, 2005... After a lackluster start to April on the limited economic news, activity finally picked up last week - primarily after the release of the Federal Open Market Committee minutes from the March 22 meeting. Investor reaction was positive after...

Surge in March prepayments explained.
April 18, 2005... Prepayment speeds for March came in faster than consensus estimates, with some people attributing the accelerations to higher day count for the month, while others point to the significant increase in January and February application activity....

AIG, MBIA woes have uncertain effect on European deals.(American International Group Inc.)(MBIA Insurance Corp.)
April 18, 2005... The American International Group downgrade, coupled with the recent troubles at MBIA, has raised concerns over the possible ramifications for the European markets if a monoline insurer were to take a ratings hit. "On our count, monolines...

More healthcare receivables securitized on regional level in Italy.
April 18, 2005... Italian regional governments continue to explore the securitization potential of their debt portfolios and currently, the most securitizable asset is healthcare debt. The latest issue comes from the region of Abruzzo, which earlier this month...

Heavy European MBS calendar building.(mortgage backed securities)
April 18, 2005... After a short lull in pricing, guidance issued on several European MBS deals last week promises to add depth to volumes. About 20 billion ($26 billion) of notes were actively marketing at the week's start. Year-to-date supply continues to...

Legal hurdles cleared in Taiwanese market.(Brief Article)
April 18, 2005... The Taiwanese market, currently experiencing something of a lull after a promising 2004, could receive a welcome boost if the government pushes through proposed amendments to the Real Estate Securitization Act. As it stands, the current...

Malaysian SME deal prepped.(Small and Medium-sized Enterprise )(Brief Article)
April 18, 2005... Having spent four months deliberating over an advisor for its first Islamic MBS deal - eventually choosing HSBC (see ASR 3/21/05) - Cagamas, Malaysia's state-owned secondary mortgage agency, continues to keep potential arrangers guessing for a...

Calyon lands Hyundai lead mandate.(Hyundai Capital)(Calyon Securities)
April 18, 2005... Calyon Securities has secured the mandate for Hyundai Capital's return to the ABS market in what was said to be a fierce bidding war. The consumer finance company invited bids in January for a private-placement auto-loan deal from a select...

Positive supply outlook for Japan ABS.(asset backed securities)(Brief Article)
April 18, 2005... Merrill Lynch's Japanese ABS research unit released its estimates of issuance for the 2004/2005 fiscal year ending March 31 last week. With many issuers and arrangers choosing not to disclose details of private placement offerings, making an...

First Quarter 2005 Guarantor Autos lead wrapped collateral in 1Q05.
April 25, 2005... With its strong presence in the auto sector, MBIA was the leading financial guarantor in the first quarter, having wrapped roughly $5.9 billion of primary ABS supply in the first three months of the year. Overall wrapped volume was up from the...

Whispers.(briefs)
April 25, 2005... The American Securitization Forum announced that its 2006 conference will be held from Jan. 29 through Jan. 1 at the Wynn Hotel and Conference Center in Las Vegas. The Wynn, which officially opens Monday, has 2,700 rooms, a conference facility...

Doubters pour scorn over Taiwanese mega deal.(securitization)
April 25, 2005... In a possible effort to emulate its peers in Hong Kong, Malaysia and Singapore, the Government of Taiwan wants to establish its own securitization program. Bankers familiar with the Taiwanese scene say the Financial Supervisory Commission -...

Long Beach auto now nearprime.(Long Beach Acceptance Corp.)
April 25, 2005... ABS analysts at Citigroup Global Markets are reclassifying all 2004 and later vintage deals from Paramus, N.J.-based auto lender Long Beach Acceptance Corp. into the bank's Near Prime index. Those vintages had previously resided in Citigroup's...

New REMIC sees strong demand.(Real Estate Mortgage Investment Conduit)
April 25, 2005... Freddie Mac priced its inaugural $1.25 billion Reference REMIC transaction to great fanfare last week, achieving a 50% oversubscription rate for the 15-year Gold 5% backed deal. Reference REMIC R-001, class AE, a guaranteed maturity class with...

Rental fleet ABS stable as agencies cast eye on repurchase agreements.(asset backed securities)
April 25, 2005... As the aftershock from this spring's auto-sector implosion continues to roil the market, questions are starting to swirl about the stability of rental-fleet securitizations. The deals most in question are those in which General Motors and Ford...

Honda signals auto sector rebound in $10 billion week for U.S. ABS primary.(American Honda Finance Corp.)(asset backed securities)
April 25, 2005... The U.S. ABS primary market saw a solid amount of issuance last week with over $10 billion priced, including a $1 billion auto loan deal from American Honda Finance Corp. that sources say stabilized the sector and eased fears with its pricing....

JPMorgan winds down $4.3 billion conduit.(J.P. Morgan Chase and Co.)(asset backed commercial paper)(Brief Article)
April 25, 2005... JPMorganChase announced last week its intention to wind down its $4.3 billion dollar Delaware Funding ABCP conduit. The firm will transfer the assets from Delaware Funding to its Park Avenue Funding, or Parko, conduit, according to Deborah...

Strong buying in MBS as market rallies.
April 25, 2005... Mortgages experienced active two-ways flows last week by fast-money, servicers, and real-money investors as yields continued rallying in the early part of the week. There was increased convexity buying, particularly from servicers. The mortgage...

Wachovia launches CTL for auto parts maker.(credit tenant lease)(Wachovia Securities Inc.)
April 25, 2005... General Parts Inc., one of the largest automotive wholesale distributors in the U.S., launched a credit tenant lease via Wachovia Securities last week, sources said. The Raleigh, N.C.-based company is seeking $40 million in a 20-year...

Morphing MBS market still a hot topic at the BMA conference.(mortgage backed securities)(Bond Market Association)(Panel Discussion)
April 25, 2005... NEW YORK - With the ARM sector and Asian investor interest increasing significantly, the MBS landscape is changing compared to how it was just a few years back. MBS market participants at the Bond Market Association's annual meeting held here...

Rating agencies seek ways to model new affordability products.
April 25, 2005... NEW YORK - At the Bond Market Association's annual meeting held here last week, rating agency representatives discussed how both prime and subprime borrowers are increasingly moving into alternative mortgage products that have a future payment...

500 billion in untapped mortgage potential seen across Europe.
April 25, 2005... A report sponsored by Europe's Mortgage Insurance Trade Association reveals that there is over 500 billion ($639.3 billion) in untapped mortgage potential across Europe. The report, conducted by consulting firm Mercer Oliver Wyman concludes...

More MBS paper from across the pond.(mortgage backed securities)
April 25, 2005... German real estate lender Eurohypo was marketing a 1 billion ($1.32 billion) Dutch CMBS under its Opera series vehicle last week. The deal offers investors exposure to 318 Dutch properties. It's the lender's fourth CMBS deal announced in less...

Delinquent loan ABS from Korea's Woori Bank in works.(asset backed securities)(Brief Article)
April 25, 2005... South Korea's Woori Bank confirmed last week that it is working with Merrill Lynch on a securitization of distressed loans. The two parties have established a joint venture SPV to dispose of around W45 billion ($44.2 million) of "precautionary"...

Singapore water plant deal in works.(Brief Article)
April 25, 2005... Some positive news emerged last week on the proposed future flow transaction from water treatment company, Hyflux (see ASR, 10/11/04). Last August, Deutsche Bank Securities was appointed to evaluate the securitization of SingSpring, a wholly...

Singapore Flyer future flows to be securitized.(Brief Article)
April 25, 2005... HypoVereinsbank is believed to be advising on a planned future-flow ABS of the Singapore Flyer, word surfaced last week. The Flyer, currently under construction, will be the world's highest observation wheel at 170 meters over the ground....

Hot Singapore preps CMBS.(commercial mortgage backed securities)
April 25, 2005... Singapore will likely provide plenty of ABS opportunities in the coming months, according to market sources, as Ascendas Real Estate Investment Trust, established by Ascendas MGM Funds in 2002, last week launched the second deal from its S$1...