Legacy last-cash-flow CMBS spreads rallied following the Federal Reserve’s Maiden Lane III auction on Thursday last week to finish the week unchanged on average, according to a report released today from FTN Financial.This happened after spreads widened by about ten basis points earlier in the week.Last Thursday the Federal Reserve Bank of New York held an auction and sold the entirety of the MAX CDO holdings from its ML III portfolio to Barclays Capital and Deutsche Bank Securities. For the full story on the bidding process, please click here.With senior-subordinate or “AJ” tranches comprising almost half of the CDOs' underlying assets, the market's ability to absorb the roughly $7.9 billion in CMBS without considerable market disruption was "an impressive show of strength for the sector in general," according to FTN.The firm's daily regression showed that legacy CMBS spreads are close to two standard deviations cheap at current levels with an R-Square of 89%. This analysis predicts legacy CMBS spreads by using measures that track the ABX and Standard & Poor's REIT indices as well as the spread on 'A'-rated financials.At current levels, FTN's analysis showed the last-cash-flow legacy CMBS to be 50 basis points “cheap” on average.
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NewStar Financial said it added Mark Denomme as a managing director for its leveraged finance group.
June 20 -
Mortgage application activity eased 0.8% in the week ending June 15 from the prior week due to a 9% drop in purchase activity.
June 20 -
The Consumer Financial Protection Bureau (CFPB) Tuesday promoted Steven Antonakes to head its bank supervision division and placed Paul Sanford in charge of large bank supervision.
June 20 -
The Consumer Financial Protection Bureau (CFPB) has fielded more than 19,000 consumer complaints about mortgage lenders and servicers with roughly 600 participants receiving some type of monetary relief.
June 20 -
This week’s Amherst Mortgage Insight argued that loan modifications are as important as bulk sales in solving the housing crisis.
June 20
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An upcoming sukuk backed by properties in the Gulf region is the first RMBS from the region since 2007, according to a source close to the deal.
June 19 -
Credit card ABS issuer Discover Financial Services (DFS) is finally getting its feet wet in the mortgage origination business, but the lender isn't jumping into the deep end anytime soon.
June 19 -
A funny thing is happening to the market value of mortgage servicing rights: as this volatile asset class continues to wane in price, there’s now less of it out there in the world—a lot less compared to the peak of two years ago.
June 19 -
Redwood Trust is issuing another RMBS called Sequoia Mortgage Trust 2012-3 (SEMT 2012-3). Moody's Investors Service, Fitch Ratings and Kroll Bond Rating Agency are rating the deal.
June 19 -
Given the economic uncertainty in Greece, many investors were interested in the results of the Greek election last weekend that resulted in New Democracy (ND) leader Antonio Samaras winning.
June 19 -
The Consumer Financial Protection Bureau (CFPB) will begin publishing credit card complaints today in a searchable database, allowing the public for the first time to scrutinize the way individual banks handle complaints.
June 19 -
The Federal Reserve Bank of New York is selling assets from 11 CDOs forming part of its Maiden Lane III (ML III) portfolio. Offering circulars were released yesterday.
June 19