Asset Securitization Report articles from September 2007

Asset Securitization Report archives from September 2007

Whispers.
September 10, 2007... Further Lane Securities recruited Stephen Obinna as a vice president for fixed-income trading in its whole-loan group. Obinna previously worked in the whole-loan group at Deutsche Bank Securities. Obinna's hire is part of Further Lane's plan to...

Summer Slowdown in ABS Persists: One of each: RMBS, credit card and auto ABS deals sustain a trickle of productivity.
September 10, 2007... A small handful of home equity loan deals, a credit card transaction and a pending auto deal kept the ABS market from coming to a complete standstill in the last couple of weeks. On Aug. 29, the GSAMP Trust, series 007-HSBC1, priced its...

Is CDO Affinity Haunting SIVs?
September 10, 2007... About this time last year, all signs indicated that the market for structured investment vehicles (SIVs) was up and coming. In the second half of 2006, the sector had about $250 billion in debt under management. According to Moody's Investors...

CDO Market Begins To Shed Jobs: Firms look to shrink CDO teams in stagnant market.
September 10, 2007... After a tumultuous summer in the subprime mortgage market sapped CDO liquidity, market participants are now faced with the challenge of salvaging earnings, which includes trimming down the payroll. Real Estate Investment Trust Luminent...

Mexican Covered Bonds: Issuers to Pick a New Fruit from Funding Tree.
September 10, 2007... In their quest for new funding options, Mexican originators are looking to Europe. Covered bonds, which are old hat in the old world, have never been done in Mexico, but players anticipate their arrival. Bankers, particularly those at European...

Market Players Await Effect of Fed Cuts on Jumbos.(mortage market trend)
September 10, 2007... The subprime mortgage meltdown has had a much deeper impact on the jumbo loan market than many thought it would, leaving analysts to wonder what the best solution is for galvanizing the slumping sector. While many economists believe help will...

CPDO Risks Evident As Market Volatility Rises.
September 10, 2007... When the CPDO structure was first introduced, with the launch of ABN Amro's SURF deal in August 2006, there was concern that the structures might not hold up in a volatile market, given that they are highly levered and market sensitive. ...

Mortgage Outlook Remains Discouraging.
September 10, 2007... MBS continue to see mostly below-normal volume as a result of the ongoing deterioration in housing, subprime and funding. Many market players also remained out on late summer vacations, which contributed to the limited activity. Flows last...

Quiet August Leaves September Up in the Air: Primary pipeline remains uncertain as buyers wait on the sidelines.
September 10, 2007... Although August is typically a quiet month for European primary issuance, the period leading up to this summer's lull means that September and the rush to year-end issuance are both still uncertain. Players are standing at the sidelines...

FHASecure Helps Better Borrowers.(Federal Housing Administration)
September 10, 2007... President George Bush's proposal to allow a certain segment of subprime borrowers to refinance into loans insured by the Federal Housing Administration is being seen as a measured first step to help troubled borrowers, although one that will...

Eric Rasmussen.
September 10, 2007... The flight to quality in the credit markets has made pricing in the area a difficult issue, and has brought buyers and sellers of risk instruments to an impasse as to the value of structured products, according to a report by Moody's Investors...

Jupiter Amends ABCP Structure.(Asset-Based Commercial Paper)(J.P. Morgan Chase and Co.)
September 10, 2007... JPMorgan Chase restructured its 17-year-old ABCP program, called Jupiter Securitization Co., not - say sources familiar with the situation - as a defensive move against the currently volatile ABCP market, but so its sellers could avail itself...

MBA Reports Higher Delinquencies and Foreclosures.
September 10, 2007... The Mortgage Bankers Association (MBA) released its quarterly National Delinquency Survey for the second quarter last week. The MBA reported that delinquencies on a seasonally adjusted basis increased 28 basis points to 5.12% from 4.84%....

Whispers.
September 17, 2007... Mortgage-related departures are underway at major banks. Brett Ackerman left his post as an Alt-A ARM trader at Barclays Capital last Tuesday. Ackerman, 28, was part of a six-member group that specialized in those mortgages. He was recently...

Accepting Wider Spreads, Issuers Re-Enter the Fray: Slowly, consumer and commercial ABS issuers get back into play, ABCP and SIVs continue to flounder.
September 17, 2007... The securitization market's mood remains palpably apprehensive, but last week several issuers resigned themselves to the reality of having to accept wider spreads. So, they completed a handful of student loan, credit card, equipment and...

No Rest for the Weary.
September 17, 2007... You might think hosting a conference in a building that's a throwback to the quiet elegance of Belle Epoque New York would give beleaguered finance types respite from the hostile markets outside. Think again. Last week, the Strategic...

Market Waits for Second Round of Downgrades.
September 17, 2007... The breadth of downgrades - and the resulting liquidations and margin calls - upended the U.S. subprime RMBS market in July. But the downgrades are far from over, market participants say, and many expect a repeat of the July experience. ...

MRU Holdings: Making Inroads to SLABS.
September 17, 2007... Don't let the plainness fool you. Although MRU Holdings, known as MyRichUncle, made its securitization debut with a deal that had no innovations or special features outside of up-to-the-minute SLABS techniques, the student loan firm is making a...

Mortgage Brokers Speak Out Against Harsh Criticism.
September 17, 2007... As bad as the subprime mortgage meltdown has been, market analysts don't question that there will be a recovery. The concern is really about how soon the bounce-back will happen. The toll the mess has taken on the reputation of mortgage...

Servicers Listen to Federal Reserve Call For Loan Mods.
September 17, 2007... The Federal Reserve has urged the use of loan modifications to stem the tide of defaults that could result from the current subprime mortgage troubles, and servicers appear to be responding. But while the use of loan mods are on the rise,...

Hard Money Lending No Longer an Easy Solution.
September 17, 2007... Hard money lending has traditionally been used as a short-term funding option for borrowers who have been seriously delinquent on a prior loan and are unable to refinance into a new, conventional loan. However, with the slowdown in home...

Mortgage Market Waits on the Federal Reserve.
September 17, 2007... Mortgage flows in the early part of the week were below average and mixed. The rally in Treasurys last Monday, to even lower yields following the previous Friday's shocking employment report, brought additional convexity buying from servicers....

Quiet Euro Market is Not So Quiet for Some: Rate hikes to improve market sentiment, but prolonged crisis still expected.
September 17, 2007... The European Central Bank's announcement last week that it would hold off on any further rate hikes in the current market led market players to suspect that the Bank of England will follow suit. And while a slowdown on rate hikes is expected to...

ABCP, SIV Rescue Proposed.
September 17, 2007... Saying that securitization and its benefits require functioning capital markets, two industry groups last week outlined measures designed to improve market conditions for the ABCP and structured investment vehicle (SIV) sectors. Such...

In One Week, Two European SIVs Face Liquidations.
September 17, 2007... The volatility continuing to grip the structured investment vehicle (SIV) sector has forced at least one program to liquidate assets, while others brace for a similar fate. IKB Credit Asset Management (manager of IKB's Rhinebridge SIV)...

CLOs Face Tough Time in Latter Half of Year.
September 17, 2007... While even a couple of weeks ago European loan market participants were hoping for their market (which has barely seen a drop in the way of primary issuance over the past month) to get going in September, the word is now that it will take...

Whispers.
September 24, 2007... Kevin Jenks has left his post at HBK Investments, the firm announced last week. Jenks was formerly a senior portfolio manager for the firm in ABS, MBS and CMBS. Jamiel Akhtar, a managing director who has been with HBK since 1993, will continue...

Pair of Auto Deals Helps Sustain ABS Issuance.
September 24, 2007... A lot of talk centered around the securitization market this week, from former Federal Reserve chairman Alan Greenspan's gloomy remarks about the sector, to a midweek summit that attracted more than 900 industry delegates. What spoke volumes,...

Cleaner, Long-Awaited HART Auto ABS Prices.(Hyundai Auto Receivables Trust)
September 24, 2007... The Hyundai Auto Receivables Trust finally came to market last week, with key changes that boosted its ratings and lowered initial and target credit enhancement for its class A notes. The changes garnered the deal strong pricing, even as...

Opportunity Funds Swoop In.
September 24, 2007... With an MBS market painfully parched from a lack of liquidity, and expected to stay that way well into next year, several large, well-known asset management firms and smaller alternative investment shops are planning to launch distressed-debt...

CLOs ETA: Early 2008, According To Market Optimists.
September 24, 2007... Leveraged loan market players made the optimistic prediction last week that CLOs would return to the loan market stage by January or February of 2008. The topic was one of many discussed by market participants at the 13th annual Reuters Loan...

Market Ushers in CDX Roll with High Expectations.
September 24, 2007... Market participants welcomed the ninth series of the North American Investment Grade CDX index (CDX.IG.NA series 9) last Thursday with high expectations, specifically with the addition of better quality and retail-heavy names. "We have...

MBS Rally on Surprise Federal Reserve Action: Trading in MBS surged after the good news from the FOMC.
September 24, 2007... The Federal Open Market Committee provided the biggest surprise last week by cutting the Fed Funds rate 50 basis points, instead of the expected 25 basis points. It was a unanimous decision related to concerns about the economy's growth. Odds...

Servicers Shift Focus in Declining MBS Market.(Conference notes)
September 24, 2007... With a growing number of both mortgage originators and MBS issuers crumbling amid subprime market distress, loan servicers are seeing very little new volume come their way. The lack of new issues has caused servicers to shift both manpower...

Panelists Stress Appraiser Independence.(Discussion)(Conference notes)
September 24, 2007... Home value inflation by appraisers as a result of employment pressures from mortgage originators has long been a problematic issue for the mortgage market. However, with home price appreciation declining and mortgage fraud on the rise, the...

More Bad News for Subprime Market.
September 24, 2007... If one thought that a conference addressing the prospects of the subprime mortgage market would be mostly doom and gloom, one would be right. The good news is that some attendees at Information Management Network's third annual Subprime...

Panelists Predict Subprime Expansion Ahead.
September 24, 2007... Even as the global financial markets try to stem the bleeding and lick their wounds, some in the securitization industry are predicting not only that the subprime mortgage industry will recover, but also that it will actually grow. In a...

ABS Report.(Report)
September 24, 2007... Just what are former Federal Reserve chairman Alan Greenspan's views on the securitization market? Asset Securitization Report took a look back, to see how his public comments on this sector - and perhaps his attitudes - have evolved throughout...

Urgency in ABCP Grips Europe: Will the European ABS market learn from Northern Rock?(Industry overview)
September 24, 2007... The Information Management Network couldn't have picked a more opportune time to host its inaugural Global ABCP and SIV's Summit, which was held last week. Against the backdrop of beautiful Paris, a roomful of industry players had some ugly...

LatAm RMBS Set Apart from Subprime: But global credit crunch shows it's a small world after all.
September 24, 2007... As the subprime debacle keeps picking off victims in the U.S. and, more recently, the U.K., the question of Latin America's vulnerability won't go away. But for the region's domestic RMBS, the prevailing view hasn't changed much in a few...

Deutsche Bank Launches Microfinance Credit ABS.
September 24, 2007... Deutsche Bank launched and placed what it deemed the "first securitization of subordinated microfinance credits" last week. The firm said that these subordinated loans will help 21 microfinance institutions to make a contribution to the...