Asset Securitization Report articles from October 2008

Asset Securitization Report archives from October 2008

Whispers.(Whispers)
October 6, 2008... Byline: Editorial Staff Lloyds TSB Corporate Markets appointed Patrick Cogan as a director in its securitized products group headed by Kate Grant. He will be working on the bank's ABCP conduit, Cancara, and reporting to Chris Rigby, head...

Lehman's Domino Effect: EuropeanBank Failures keep coming.(Cover Story)
October 6, 2008... Byline: Nora Colomer Lehman Brothers' overnight collapse has left a heap of trouble in Europe, setting off an alarming domino effect. It all happened over a span of three weeks: what began with the U.S. subprime problem has evolved...

Peru, Mexico and Brazil Show There's Life in LatAm.(Column)
October 6, 2008... Byline: Felipe Ossa The credit crisis rippling from the U.S. was pressuring liquidity in Latin American markets well before the bailout plan's "will they or won't they" moments last week sent stocks in the region gyrating. Players in...

ABS Market Awaits Congressional Approval: SIV downgrades and liquidation rumors made the wait more excruciating.(ABS)
October 6, 2008... Byline: Gabrielle Stein The ABS market was especially quiet last week as participants waited anxiously to see if Congress would pass its second attempt at an Emergency Economic Stabilization Act. This, in addition to the Rosh Hashanah...

Mortgage Powerhouses Result From Recent Mergers.(ABS)
October 6, 2008... Byline: Karen Sibayan The acquisition of Washington Mutual by JPMorgan Chase and Wachovia by Citigroup has created mortgage and credit card powerhouses. Experts said that the acquisitions would not solve the problems with the...

Consumer ABS Hobble Toward 2009.(ABS)
October 6, 2008... Byline: Gabrielle Stein With the year 2008 in its home stretch, consumer ABS has managed to hold up relatively well, despite increasingly deteriorating economic conditions. However, market pundits are cautiously optimistic, citing...

BofA Tops RMBS Managers.(ABS)
October 6, 2008... Byline: Karen Sibayan The dramatic fall in RMBS activity is clearly demonstrated by the numbers. According to Thomson Reuters, industry totals for the period covering the first quarter to the third quarter of 2008 only reached $176.3...

Morgan Stanley is First in CDO Business.(ABS)
October 6, 2008... Byline: Karen Sibayan Prospects for CDO issuance is slim. As JPMorgan Securities analysts said in a recent report, "supply has yet to come into the market, with many prospective sellers waiting for market stability." This sentiment is...

MBS Players Focused on Govt. Rescue Bill: Mortgage market waited with baited breath on Monday for the House to approve bailout plan.(MBS)
October 6, 2008... Byline: Sally A. Runyan/Thomson Reuters The markets were set for positive news on Monday with the expected passage of the government's Emergency Economic Stabilization Act of 2008, which includes the Troubled Asset Relief Program (TARP)....

Disclosure in the European ABS Market.(Global)(Industry overview)
October 6, 2008... Byline: Kate Lamburn, partner, securitization and structured finance practice group, London, McDermott Will & Emery The far-reaching effects of the U.S. subprime crisis have brought into focus the efficacy of information flows in the...

Whispers.(Whispers)
October 13, 2008... Byline: Editorial Staff Laurie Goodman, who is head of mortgage strategy at UBS, is leaving the firm, according to sources familiar with the situation. Goodman headed Mortgage Strategist, a weekly research report from UBS's investment...

Still No CLO Triple-A Buyers, But Appetite in Secondary Seen.(Global)
October 13, 2008... Byline: Nora Colomer Speakers on the opening panel at Information Management Network's second annual European CLOs, Structured Credit Products, and Credit Derivatives Summit said that the medium- to long-term outlook for the securitization...

Monolines Still Looking to Get Back into the Game.(Global)(Brief article)
October 13, 2008... Byline: Nora Colomer Monolines said they are still hopeful that they can find a niche in Europe via the municipal bond market, said speakers at the monoline panel at Information Management Network's second annual European CLOs, Structured...

Last SIV Standing Gives Up Fight.(Global)
October 13, 2008... Byline: Nora Colomer Gordian Knot has put up a good fight, weathering blow after blow amid the financial crisis. Its SIV, however, has finally had to call it a day, thus becoming the last independent SIV to go into receivership. The...

HRE's New Start Does Little to Support Covered Bonds.(Global)
October 13, 2008... Byline: Nora Colomer Despite getting an increase in the liquidity support originally pledged toward saving Hypo Real Estate (HRE), Pfandbriefe tied to the bank continue to suffer from disruptive pricing, Dresdner Kleinwort analysts said....

All Quiet on the Eastern Front Russian RMBS.(Cover story)
October 13, 2008... Byline: Felipe Ossa Recent events in Russia are putting its RMBS under tighter scrutiny. While Russian mortgage originators had been basically shut out of the market since mid last year, they had nonetheless remained aloof from the...

Europe Responds in Fragments.(Column)
October 13, 2008... Byline: Nora Colomer Europe has for months stood unified in its public position that it will be able to withstand the developing financial maelstrom because its banks are healthier than U.S. banks. Over the past few days, however, that...

NewOak Capital Plants Roots in Troubled Assets: The new firm offers an integrated and granular approach to volatile market.(ABS)
October 13, 2008... Byline: Gabrielle Stein As deteriorating economic conditions continue to pound the structured finance markets, financial institutions across the board are looking to either shed assets from their deflated portfolios or take advantage of...

Bank Deals Combining PE and SF on the Rise.(ABS)
October 13, 2008... Byline: Karen Sibayan CIBC recently considerably reduced its remaining exposure to U.S. residential mortgages through a fund arranged by Cerberus Capital Management. Cerberus agreed to invest $1.05 billion in cash in CIBC's U.S....

CPFF Welcomed By ABCP Players.(ABS)(Commercial Paper Funding Facility )
October 13, 2008... Byline: Karen Sibayan and Matthew Sheahan The Federal Reserve Board's creation of the Commercial Paper Funding Facility (CPFF), announced last Tuesday, was welcomed by ABCP market participants. According to a release from the Fed, the...

AmeriCredit Drives Deal to Market.(ABS)
October 13, 2008... Byline: Gabrielle Stein Amidst uncertainty in the broader market, rising unemployment rates and weakening consumer credit positions, AmeriCredit boldly priced a $500 million offering of automobile receivables-backed securities last Monday,...

Government Actions Impact Mortgage Flows: News of the Fed's commercial paper facility perks up mortgage market.(MBS)
October 13, 2008... Byline: Sally A. Runyan/Thomson Reuters Last week brought another round of actions from global central banks and governments, including the U.S., as the financial crisis continued to spread despite government actions already taken,...

GNMA Prepays Up More Than Expected, While GSEs Stay In Line.(MBS)
October 13, 2008... Byline: Sally A. Runyan/ThomsonReuters The more interesting story about September prepayments came in GNMAs, where speeds increased more than expected: 8% versus 1%. 2007 vintages were sharply higher in 5.5s, 6s and 6.5s; these surged a...

Euro Industry Needs to Make a Case for ABS: The market has to establish price stability before it can come back.(Global)
October 13, 2008... Byline: Nora Colomer Given the way the securitization market has dissolved over the past 14 months, the industry needs to make a case for why securitization is needed, said a senior official of Britain's Financial Services Authority (FSA)...

Dole-Outs from GSEs A Big No-No.(Column)
October 20, 2008... Byline: Karen Sibayan Fannie Mae announced two weeks ago that it would cancel the planned increase in its adverse market delivery fee. The hike would have taken effect Nov. 1. The GSE's move is in line with Treasury Secretary Henry...

Collateral Manager Acquisitions: Strategic Partnerships or Shotgun Weddings?(ABS)
October 20, 2008... Byline: John Timperio, partner, and Mary Bear, associate at Dechert LLP For collateral managers who focus on CDOs, the most recent stream of troubling news in the financial sector has further shaken up an industry already reeling from more...

3RD Quarter 2008 GUARANTOR; Demand For Monolines to Rebound With ABS Market.(Guarantoar Supplement)
October 20, 2008... Byline: Gabrielle Stein The third quarter of 2008 brought a dramatic reorganization of the global banking system and a virtual shutdown in the credit markets. Financial guarantors, which have been battling downgrades for months now, have...

Life on the Other Side; How can we know the dancer from the dance? W.B. Yeats, Among School Children.(ABS)
October 20, 2008... Let us acknowledge the end of securitization as we have known it. As what began as a "subprime" problem metastasized into, first, a credit market collapse and, ultimately, a worldwide economic crisis, those of us who lived and worked and...

Govt. Rescue Calms U.K. Market.(Global)
October 20, 2008... Byline: Nora Colomer The U.K. government's move to backstop bank debt liabilities is expected to have a positive spillover effect on ABS pricing. However, there is one key negative for securitization stemming from the pan-European bank...

Cross-Border Securitization of Canadian and U.S. Receivables.(Global)
October 20, 2008... Byline: Martin Fingerhut, partner, Blake, Cassels & Graydon LLP In these challenging times for domestic securitization in both the U.S. and Canada, two recent developments will serve to ease the burden of cross-border ABS transactions. A...

Changes Loom for Basel II.(Global)
October 20, 2008... Byline: Nora Colomer Regulators said they envisage new specific treatment for resecuritizations, and expect an interim treatment until banks are fully integrated to the new Basel accord. These changes in the Basel II landscape will see...

Brazil Banks: Lending Down, Deals O.K.(Global)
October 20, 2008... Byline: Felipe Ossa Over the past few weeks, Brazil has experienced its own version of the flight-to-quality that's torn through the U.S. and Western European money markets. Small and medium banks are seeing depositors defect to larger...

The Sprint for Independence; Alternative energy takes on new meaning as the U.S. tries to wean itself off of carbon. Can Wall Street help finance it all with securitization?(Cover Story)(Company overview)
October 20, 2008... Byline: Editorial Staff Alternative energy has permanently entered mainstream discourse and there is little disagreement that the United States needs to reduce its dependence on foreign oil and develop clean, dependable energy sources. ...

Whispers.(Whispers)
October 27, 2008... Byline: Editorial Staff Prudential Financial's Prudential Fixed Income Management appointed Sara Bonesteel to head up its efforts in identifying new opportunities in the structured asset management space. Bonesteel will also be responsible...

Credit Cards Top Dismal Third Quarter.(New Issues Guide)
October 27, 2008... Byline: Gabrielle Stein Though paltry in comparison to previous quarters, credit cards continued to dominate new issuance in the consumer ABS market, as it has for the past year. However, the numbers don't show a bright future for the...

Lower Funding Costs Cause Strong Start: Fed Chairman Bernanke's testimony spurred down-in-coupon mortgage trades.
October 27, 2008... Byline: Sally A. Runyan/Thomson Reuters Mortgages saw improved funding and strengthening dollar rolls at the beginning of last week. This was because the world government programs were starting to get a foothold. U.S. one-month Libor...

Accounting Option May Ease Secondary Widening: The reclassification should limit asset fire sales and bring secondary pricing stability.(Global)
October 27, 2008... Byline: Nora Colomer The European securitization market could see some stabilization in pricing as the European Commission (EC) moves to adopt amendments to mark-to-market regulation. The reclassification would help reduce asset fire...

Still No Market for European ABS.(Global)
October 27, 2008... Byline: Nora Colomer The face of European securitization changes on an almost daily basis. Solutions drafted to solve the lack of market liquidity have been done on a country-by-country basis. With these as a backdrop, the...

Repos Cause U.K. Charities to Call on Govt.(Global)
October 27, 2008... Byline: Nora Colomer U.K charities have called on the Treasury to put pressure on Northern Rock to change its approach to property repossession. The charities said that the nationalized bank has been aggressive toward repossessions when...

For Metrofinanciera, it's an Uphill Battle to Win Back Trust.(Global)
October 27, 2008... Byline: Felipe Ossa It's going to take some effort for Mexican nonbank company Metrofinanciera to win back the confidence of the market. Shoddy servicing and poor controls on ABS played a part in steep downgrades from Moody's Investors...

Making TARP Work.(United States. Department of the Treasury. Troubled Asset Relief Program)(Column)
October 27, 2008... Byline: Bill Berliner The Treasury clearly has a lot riding on the success of the TARP program, as it may be its last shot at restoring some semblance of normality to the markets. There are concerns that TARP's immediate impact may be...

Loan Mods Pose Conflict of Interest For Investors.(ABS)
October 27, 2008... Byline: Gabrielle Stein Spirits were as low as the turnout on the first day of the 14th annual Information Management Network ABS East conference in Hollywood, Florida last week. Instead of the usual wheeling and dealing, conference...

CLO Spreads Take Cues From Macroeconomic Concerns.(ABS)
October 27, 2008... Byline: Gabrielle Stein CLO market participants at the Information Management Network's 14th annual ABS East conference in Hollywood, Florida last week expressed confidence in the sector's long-term performance, despite the currently...

Consumer ABS Still a Bright Spot, Relatively Speaking.(ABS)
October 27, 2008... Byline: Gabrielle Stein At the Information Management Network's 14th annual ABS East conference in Hollywood, Florida last week, it was easy to see that times are tough. However, it is still a pretty good time to be a credit card issuer,...

ABCP Market Participants Return to Basics.(ABS)
October 27, 2008... Byline: Karen Sibayan Government intervention and a move toward safer structures and collateral are making the current ABCP market a better place to be for issuers and investors alike. Clearly, with ABCP participants still suffering...

TARP Implementation Remains A Conundrum.(ABS)
October 27, 2008... Byline: Karen sSbayan The Troubled Asset Relief Program (TARP), which forms part of the Economic Stabilization Act of 2008, was a major focus at the Information Management Network's 14th Annual ABS East conference held in Hollywood,...

Creating a Niche for Covered Bonds.(ABS)
October 27, 2008... Byline: Karen Sibayan Although covered bonds are seen as a safer funding alternative for mortgages, there are still some hindrances to the growth of the sector in the U.S, according to participants at last week's Information Management...

Players Seek Funding for Student Loans.(ABS)
October 27, 2008... Byline: Karen Sibayan The Department of Education (DOE) on Oct. 10 made amendments to its Loan Purchase Commitment Program and its Loan Participation Program. Under these programs, the DOE could purchase eligible FFELP loans that were made...