CDOs/CLOs

As with their counterparts in other areas of structured finance, emerging market players have been mulling over the question of where exactly their deals fit in the new regulatory landscapes of Western Europe and the U.S.

The financial crisis reached its apex in fall 2008 when major Wall Street firms collapsed. But for the big three rating agencies - Moody's Investors Service, Standard & Poor's and Fitch Ratings - the crisis began at least a year before, when they started issuing massive downgrades of RMBS.

Standard & Poor's, along with Moody's Investors Service and Fitch Ratings, downgraded billions of dollars structured transactions in the summer of 2007, resulting in a wave of criticism. So when Deven Sharma was named S&P president on Sept. 1 of that year, he kicked off a reform program that continues today.

The Securities and Exchange Commission (SEC) today voted unanimously to propose amendments that would remove references to credit ratings in several rules under the Exchange Act.

When global regulators last year announced final international capital and liquidity standards, bankers for the first time in months breathed a sigh of relief, appearing even to welcome the agreement.

Bram Smith, the executive director of the Loan Syndications and Trading Association (LSTA), yesterday testified before a congressional subcommittee, arguing against proposed rules that would require CLO managers to retain a 5% interest in their funds.

Deerfield Capital Corp. and CIFC have closed their merger. The new firm will now be called CIFC Deerfield Corp.

Investors have proven slow to return to the European securitization market. The limited appetite has been matched by a lackluster amount of securitization supply that market analysts said has created an imbalance in secondary and primary securitization pricing.

Moody's Investors Service will be extending the comment period on proposed changes to its modeling framework for cash-flow CLOs.

The Federal Deposit Insurance Corp. (FDIC) is expected Tuesday to propose new capital requirements for certain swap participants, as well as guidelines for adjusting the premiums of large banks.