CMBS

Lawmakers laid out a series of ambitious deadlines in the Dodd-Frank Act, requiring regulators to complete roughly 170 new rules by July.

After waiting ten months, Redwood Trust issued a second Jumbo RMBS, injecting some optimism into the private-label mortgage securitization market.

The Dodd-Frank Act's Section 939A prompts banking regulators to remove any "reference to, or requirements of reliance on, credit ratings" in their regulations and capital requirements. The uncertainty of how regulators will interpret those words has the ABS industry bubbling and proposals emerging.

Borrower behavior changes over time and investors and lenders should constantly adjust the way they utilize the different credit score values to accurately predict loan performance, according to officials from FICO and VantageScore.

Tomorrow the European Central Bank (ECB) is set to extend its minimum two-rating requirement for all existing ABS to remain repo eligible at the central bank’s window. This effectively ends the grandfathering period that started a year ago.

The political unrest that is taking place in the Middle East has trickled over to U.S. CMBS market spreads, Barclays Capital analysts said.

Securitized hospitality loan delinquencies have been the highest in the CMBS market and tend to be the most volatile but one advisor, Mission Capital principal David Tobin, sees a relative improvement in them.

Europe looks set to reopen its CMBS new-issue market as Deutsche Bank preps a new £360 million ($580 million) deal for Blackstone Group, according to a Reuters report.

Royal Bank of Scotland (RBS) and Wells Fargo priced their $1.3 billion CMBS this week. The transaction's triple-A, A4 tranche priced tighter than the first two deals that kick-started CMBS issuance.

Borders Bookstores filed for Chapter 11 bankruptcy on Wednesday. Bank of America Merrill Lynch analysts noted several weeks ago that this was expected and, at the time, they did a preliminary CMBS tenant exposure report. Their initial list used the tenant information available and trustee reports, which are typically limited to the top three tenants.