Asset Securitization Report articles from September 2004

Asset Securitization Report archives from September 2004

Whispers.
September 13, 2004... Susan Hindle Barone was hired by Credit Suisse First Boston to head its London-based European commercial paper origination group, taking over the duties of Louise Mason, who has moved to the ABCP conduit group. Barone previously worked at...

Egg orders sunny-side up for U.S. roadshow.
September 13, 2004... U.K.-based Internet credit card issuer Egg Banking brings the roadshow for its latest credit card deal to the U.S. this week, stepping up the effort to widen its investor base. The deal, called Pillar Funding 2004-2, will spread the equivalent...

Hunger for Turkey rises with rating.
September 13, 2004... A Standard & Poor's upgrade of Turkey and the attendant ratings lift to the country's leading banks are bound to stir the securitization pot, according to sources. Players had been waiting for this, as the agency had yet to rate a...

FASB delays EITF No. 03-1 provisions.(Emerging issues task force)
September 13, 2004... With the implementation of the Emerging issues task force (EITF) 03-1 (The Meaning of Other-Than-Temporary Impairment and its Application to Certain Investments) opening financial institutions to increased earnings volatility, the Financial...

S&P explains PBGC stance for auto lease ABS.(Pension Benefit Guaranty Corp, Asset backed securities )
September 13, 2004... More than one year after placing 32 classes of auto least ABS on watch for a downgrade (see ASR 5/19/03), only to subsequently reverse course and remove the watch on many securities, Standard & Poor's recently addressed its controversial stance...

US Airways EETC investors face another day in court.(enhanced equipment trust certificates )
September 13, 2004... With US Airways seemingly on the brink of its second bankruptcy in as many years, the fate of its enhanced equipment trust certificates (EETC) are once again being called into question. The company, which emerged from its first bankruptcy...

U.S. ABS primary rebounds in post Labor Day trading.(Asset backed securities)
September 13, 2004... The U.S. ABS primary market returned from the Labor Day Holiday in full force, ushering in the new season with roughly $12 billion in new issue supply last week. The resurgence in volume likely signals an end to the market's summer malaise,...

Tobacco related ABS exposed to new lawsuit.
September 13, 2004... In the next chapter of the ongoing tobacco litigation saga, the Department of Justice will seek to reclaim $280 billion in ill-gotten profits from tobacco companies under the Racketeer Influenced and Corrupt Organizations (RICO) Act, a statute...

Asset-backed investments still in the money for private investors: Survey finds appetite for MBS.
September 13, 2004... While traditional institutional investors still purchase the bulk of asset-backed securities, one segment of the investing community has maintained a healthy appetite for privately marketed ABS, according to a recent survey by ASR sister...

Rating ABS Seller/Servicers: Credit Where Credit is Due: The following is an excerpt from Fitch's upcoming criteria report on ABS Seller/Servicers, due out later this week.
September 13, 2004... Fitch Ratings recognizes that the quality, stability, and financial condition of seller/servicer operations have a direct effect on the performance of asset-backed securities (ABS) transactions across all product types. Therefore, Fitch has...

Outlook turns favorable for MBS following employment sell-off.(Mortgage backed securities )
September 13, 2004... Mortgages experienced aggressive buying following the on-target employment report that continued into Wednesday's trading session. Mortgage performance was also helped by a decline in volatility as interest rates rose. Over the...

DBSI: Discount jumbo MBS attractive despite rising rates.(Mortgage backed securities, Deutsche Bank Securities Inc.)
September 13, 2004... With rising interest rates still expected, market participants remain worried about extension risk on discount loans. This is why analysts from Deutsche Bank Securities asked, "Will the turnover levels stay high or will discount mortgages...

Fitch: Hurricanes extend default tenures.(Brief Article)
September 13, 2004... With two hurricanes following in the footsteps of last month's Charley, the uptick of CMBS delinquencies due to the first storm are expected to take longer to cure than previously anticipated, said Fitch Ratings. Florida currently has the...

Waiting for supply, CMBS spreads steady but poised to cheapen.(Commercial Mortgage Backed Securities )
September 13, 2004... The fixed-rate CMBS pipeline has been on a month-long hiatus, drawing spreads three to four basis points tighter over the last few weeks to settle near their 2004 spread averages. For 10-year triple-As the average is in the 28 to 30 basis point...

First-time issuer Bank of Ireland tries a covered RMBS.
September 13, 2004... The first-ever Irish residential mortgage covered bond went on a marketing blitz in Europe and Asia last week. Analysts said it drew some attention from ABS investors, who seem to be getting more keen on covered bonds as an RMBS alternative....

Unibanco prices, led by Nomura & Barclays.
September 13, 2004... A $100 million wrapped deal originated by Brazil's Unibanco priced at 45 basis points over three-month Libor, according to well-placed sources. Nomura Securities and Barclays Capital jointly led the transaction, which is backed by diversified...

Navistar originates auto-loan deal poised to be Mexico's first.
September 13, 2004... Mexico's Scotiabank Inverlat is poised to inaugurate auto-loan backed deals on the south side of the Rio Grande. Confirming the buzz that circulated last month, the bank has a mandate for originator Servicios Financieros Navistar, a wholly...

Cadwalader readies itself for opportunities in China.
September 13, 2004... In a bid to capitalize on the potential of China's expanding capital markets - including securitization - Cadwalader, Wickersham & Taft LLP has hired Charlie Wang as a partner in its Washington office. Wang, who rejoins the firm after a stint...

Japanese Mortgage Agency marked for overhaul by end of 2006.
September 13, 2004... Japan's Government Housing Loan Corporation (GHLC), the state-run agency that accounts for over 30% of the country's mortgage origination, is to undergo a major overhaul, scheduled to be completed by the end of the 2006 financial year. The...

Whispers.
September 20, 2004... Dan Castro, longtime Merrill Lynch ABS and CDO research analyst, has resigned from his position as head of global structured product strategy. Castro, however, has not left the firm and remains on the payroll while he weighs his options, a...

Russia lumbers towards ABS market: Hopeful players take axe to tough legal obstacles.(Asset backed securities)
September 20, 2004... For securitization devotees, Russia has long been a story of unfulfilled potential. Sounding like the inert characters of a Chekhov play, talk among players was always of things to come. Action finally came in late July, when gas exporter...

Italian government lines up two deals.
September 20, 2004... The Italian government intends to bring at least two deals to the market in coming weeks, but plans for a third remain unsettled, sources reported. A securitization of technology research loans, worth 1.263 billion ($1.53 billion), is...

Two-year old Winter Group hits stride.
September 20, 2004... Integrating experienced team members focused in capital markets, internet technology, mortgage acquisition and portfolio management, with a fully-integrated business model and a servicer built from scratch, The Winter Group (TWG) has managed to...

U.S. ABS primary market stages credit card revival.(Asset backed securities)
September 20, 2004... The U.S. ABS primary market churned out over $13 billion in new supply last week as the credit card sector finally began to show signs of life. Credit card ABS accounted for more than $3 billion of total volume, a promising sign for the...

Reduced enhancement for CNH 2004 offering.(Case/New Holland)
September 20, 2004... The first deal of the year from equipment leaser CNH, which priced last week featuring the highest concentration of agricultural equipment yet seen from the issuer, also saw a surprise reduction in credit enhancement. The $1.5 billion...

UBS adds multi-originator aspect to MASTR.
September 20, 2004... UBS is slated to launch its first multi-seller home equity transaction off of its MASTR dealer shelf this week, sources said. The $650 million transaction marks the onset of its multi-seller program, a program designed to leverage the firm's...

MMT continues improvement.(Metris Master Trust )
September 20, 2004... The Metris Companies reported generally stable data last week for its Metris Master Trust in August, including a jump in excess spread that could free up close to $100 million in cash that has been trapped in trusts. Excess spreads for the...

Goodman outlines hits in "no home run" MBS market.(Mortgage Backed Securities: Laurie Goodman)
September 20, 2004... New York - While there are admittedly "no home runs in this market," according to UBS managing director and head of the fixed-income rates and currency Laurie Goodman, "You can get a lot of singles." Speaking before investors at the recent Fall...

Liu talks subprime IO loan threat.(interest-only )
September 20, 2004... New York - As the most rapidly growing loan type within the home equity ABS sector, interest-only (IO) loans represent an X-factor for most in the market and only time will tell if the subprime borrower will be able to manage higher monthly...

Zimmerman outlines risks in HELs.(Tom Zimmerman :Home equity loans)
September 20, 2004... New York - As lenders strive to maintain the torrid pace of new loan originations experienced over recent years, the home equity sector of the ABS market has seen growth in alternative loans. Some of these trends, such as the rise in...

Beyond Credit Ratings, a Revolution in Risk Modeling.
September 20, 2004... By Joanne W. Rose, executive managing director, structured finance ratings, Standard & Poor's The evolution of risk analysis in the structured finance market The domestic growth in homeownership in the 1970s in the U.S. fuelled the...

Investors move down in coupon as risks increase in premiums.(mortgage backed securities)
September 20, 2004... The trend last week was moving down-in-coupon as yields remained low and risks increased in premium coupons. In comments last week from Countrywide Securities, analysts noted "higher coupons are currently at risk - not because they're...

Fast GNMA speeds incorporated into prepayment modeling.
September 20, 2004... With discount GNMAs continuing to prepay faster than conventionals, analysts are starting to incorporate the different factors driving the accelerated speeds into their models. Bear Stearns, for instance, has included the impact of higher...

GNMA buyout announcement a "nonevent" in terms of prepays.(Government National Mortgage Association)
September 20, 2004... Last week Ginnie Mae issued a clarification of its buyout authorization for issuers of Ginnie pools that contain loans affected by severe storms and hurricanes. This is in response to investors having questions and concerns about the impact of...

U.K. Port Aims to Stay Busy.(Brief Article)
September 20, 2004... Investors in the THPA Finance Ltd. whole business securitization got wind of some good news recently, Deutsche Bank Securities researchers noted in a report. Corus, a major customer of PD Portco plc, is reportedly in talks to sell its Teesside...

Korea First Bank draws a dozen players for $500m MBS.
September 20, 2004... News has emerged from Seoul that Korea First Bank (KFB), in which private equity fund Newbridge Holdings owns 50.9%, has requested proposals for its third cross-border MBS of 2004. According to bankers familiar with the RFP, 12 banks were asked...

First Taiwanese auto loan ABS launched at $118m.
September 20, 2004... Jih Sun International Bank (JSIB), the commercial banking arm of Taiwan's Jih Sun Financial Holding Company with assets of NT245.7 billion ($7.3 billion), has launched its long-awaited $118 million auto loans transaction. The deal, arranged by...

Banespa/Santander debut in DPRs via Merrill.
September 20, 2004... Debuting in a market long tapped by its peers, Brazil's Banco Santander and related entity Banco do Estado de Sao Paulo (Banespa) issued a $400 million, seven-year deal last week backed by current and future diversified payment rights (DPRs)....

Whispers.
September 27, 2004... The American Securitization Forum has named George Miller as its new executive director, the trade group announced last week. In his new position, Miller will serve as the ASF's senior staff executive, overseeing the ASF's staff and...

ASF Seminar: EITF 03-1 still under construction, but coming fast.
September 27, 2004... The hairsplitting points of Emerging Issues Task Force (EITF) 03-1 remain murky, and market participants gathered at the American Securitization Forum Sunset Seminar in New York were hoping for a brief reprieve. The rule, as originally...

Taiwan auto deal sets new benchmark.(Jih Sun International Bank)
September 27, 2004... Jih Sun International Bank, the commercial banking unit of Taiwan's Jih Sun Financial Holding Company, last week completed its debut cross-border deal. HypoVereinsbank (HVB) arranged the $118 million auto loan-backed transaction - only the...

Fannie's case not as bad as rival Freddie.(Federal National Mortgage Association)(Federal Home Loan Mortgage Corp.)(Office of the Federal Housing Enterprise Oversight's)
September 27, 2004... Last week Fannie Mae's board of directors released a statement responding to the findings of the Office of the Federal Housing Enterprise Oversight's (OFHEO) ongoing review of its accounting practices - putting Fannie in a bad light. Analysts...

FIN 46: Future of ABCP vehicles hangs in balance.(Asset-Backed Commercial Paper )
September 27, 2004... As the end of the month nears, the ABCP market awaits the introduction of new eligibility requirements for liquidity facilities under the FIN 46 capital relief provisions, which are also set to take effect on Sept. 30. Speaking at the American...

U.S. ABS stays strong as $13 billion-plus prices.
September 27, 2004... The U.S. ABS primary market had another strong week, pricing upwards of $13 billion in new issue for the second week running, with nearly $6 billion more set to price either late last or early this week. The real estate sector continued to...

Corporate fraud unraveled: The guide NCFE never wanted you to have...
September 27, 2004... As has been discussed at industry gatherings over the past two years, navigating the challenges of corporate fraud in the asset-backed market have proven particularly difficult, thanks in part to the industry's nature - it's the route less...

Surveillance - the truth...told by investors.(Brief Article)
September 27, 2004... There has been a lack of consistent reporting standards in structured finance and according to investors it is time the problems were addressed. At last week's Surveillance and Investor Reporting Conference held by the Strategic Research...

Fitch: U.S. Term ABS Likely To Stay The Stable Course Into 2005, Though Rising Rates & Reload Risk Will Be Watched Closely.(dsset backed securities)
September 27, 2004... By Chris Mrazek, Managing Director, ABS, Fitch Ratings and Kevin D'Albert, Director, ABS, Fitch Ratings Slowly improving economic fundamentals continue to exert a stabilizing influence on rating actions and collateral performance for...

30-year MBS holds steady as Treasury drops below 4%.(Mortgage backed securities)
September 27, 2004... Last week saw moderate two-way flows as the 10-year Treasury yield slipped below 4%. Early week flows consisted of up-in-coupon when the yield held above 4 %, but down-in-coupon picked up later on some convexity buying when the yield held below...

Analysts revisit the media effect with the lack of refi reactivity.
September 27, 2004... With the lack of refinancing response considering current level of rates, analysts are weighing whether its burnout or the lack of media effect that is causing the lackluster borrower reaction. JPMorgan Securities analysts report that...

Two French deals spur more prospects.
September 27, 2004... Although the French securitization market has been slow this year, observers say two particularly interesting deals are giving ideas to other potential issuers. Additionally, a long-anticipated amendment to French securitization law - which...

European ABS investor base grows.
September 27, 2004... A significant number of fund managers in Europe are starting to buy asset-backed securities, and researchers at BNP Paribas predict the increasing demand will keep spreads tight. To help quantify the impact of new investors, BNP Paribas...

Mexico's Fenix finds profit from the ashes of scorched assets.
September 27, 2004... Fenix Capital Group, a company specializing in acquiring and managing distressed debt in Mexico, has its eyes set on a pool of troubled assets that could end up backing the country's first domestic securitization of non-performing loans (NPLs),...

Moody's Latin America powwow centers on Mexico.
September 27, 2004... NEW YORK - Moody's Investors Service positioned Mexican real estate assets at center stage for its fifth annual Latin American Securitization Briefing in an echo of last year's conference. But there was no mistaking that things were different...

Mexico's Metrofinanciera edges closer to $100m cross-border deal.
September 27, 2004... Mexican housing finance company Metrofinanciera is one step closer to tapping U.S. investors in an inaugural deal. Sized at $100 million, the transaction is being touted as the first cross-border securitization of Mexican real estate...