Highland Capital Management claimed in court that Citigroup is trying to remove it as the portfolio manager of a $900 million CLO so the bank can book profits from its discounted purchase of CLO debt from its own clients and investors, according to a report by Courthouse News Service, a nationwide news service for lawyers and the media.

Credit cards and autos are filling up the ABS up the ABS pike this week. GE Capital is in the market with GE Capital Credit Card Master Note Trust Series 2012-. The offered notes on the deal are $457.7 million.

Wells Fargo, the successor to Wachovia Capital Markets, told a federal court in Wichita, Kan. Friday it should dismiss National Credit Union Administration's (NCUA) suit over MBS Wachovia sold via offering prospectuses.

Private-label student-loan ABS seems to be doing better, at least in terms of issuance. Volumes have hit $1.4 billion in the year-to-date, a figure equal to 70% of 2011’s overall number, according to researchers at Barclays Capital. But Sallie Mae has been the only primary-market issuer for twenty months now, and the bar was set low by last year’s number of deals — only three.

The consumer credit rise in February was mostly from auto loans, which is likely to support ABS issuance from the sector in the coming months, Standard & Poor's analysts stated in a report released today.

Thirty Democratic senators are urging the Federal Housing Finance Agency (FHFA) to evaluate the use of principal reduction as a “targeted solution” for assisting underwater borrowers with Fannie Mae and Freddie Mac loans.

There have not been very many weeks yet this year where the markets have not been roiled about something, and the last week was not one of them either.

Mayer Brown has hired Stephen Rooney for its New York office as a partner and co-leader of its insurance finance group.

Prepayment speeds were projected to increase 10%-15% on average in response to a higher number of collection days at 22 from 20; a pickup in refinancing activity in response to record low mortgage rates, and a rush by servicers to close conventional loans before a 10-basis-point increase in the guaranty fee went into effect on April 1.

Even though third-party due diligence has always been performed on whole loans, the providers of these services have more skin-in-the-game now that rating agencies have very stringent requirements.

Auto ABS are gearing up for another busy week with some deals in the pike. A credit card deal is also coming to market.