CDOs/CLOs

Three banks suing MBIA accused the bond insurer of deliberately withholding damaging financial projections from insurance regulators who were evaluating its transformation.

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.

The potential sale of the Maiden Lane III (ML III) assets might signal that the Federal Reserve is making its move to take liquidity out of the system, securitization experts said today.

Bank of America Merrill Lynch has priced a $526.8 million CLO to be managed by GoldenTree Asset Management, according to a person with knowledge of the deal.

Global structured finance issuance's modest pace in 1Q12 is credit positive for new-issuance in these products that include ABS, RMBS, CMBS and CLOs, according to an emailed note from Standard & Poor's this morning.

Barclays said today it named John Langley and Joe McGrath co-heads of the global finance and risk solutions business within the firm’s investment banking division.

The latest wave of proposed European regulations on rating agencies, known as CRA3, contains a rule that has unsettled players from every corner of the financial market: enforced ratings rotation.

A federal magistrate has ordered Space Coast Credit Union to a non-binding mediation session with lawyers from five Wall Street banks and two rating agencies regarding the credit union’s $100-million claim related to a failed investment the banks sold Eastern Financial Florida Credit Union, a failed Miami credit union acquired by Space Coast in 2009.

Nomura added a leveraged finance banker to its investment banking group in the Americas, the firm said.

Last month a lawsuit brought by holders of TruPS resulted in a ruling that stopped the sale of BankAtlantic to BB&T Corp. under the original terms. Following the ruling, BB&T amended the terms and proposed to assume the TruPS obligations.