Finance

SMART Servicing, an affiliate of Steel Mountain Capital Management, is offering new software that provides the residential mortgage loan market with loan level information designed to help users control loss severity.

In 1H10, the trend of strong returns for insurance-linked securities (ILS) continued, according to the first edition of Swiss Re's update on the ILS market for August 2010.

The Federal Reserve purchased around $2.5 billion of Treasurys in its first outright purchase of U.S. government debt since October, according to published reports. The Fed's aim was to prevent money from leaving the financial system.

Sallie Mae is in the market with a FFELP-backed student loan ABS with Bank of America Merrill Lynch serving as lead manager. RBS Securities is co-manager on the $760.4 million offering.

Even with reports of JPMorgan Chase planning to sell $1 billion of CMBS — the biggest deal this year — issuance in the sector is still far below 2007 levels.

Although there were sharp disagreements at a Treasury Department conference Tuesday about what kind of role the government should take in the future of housing finance, one idea in particular seems to be gaining momentum: creating an insurance fund to back MBS.

Refinancing activity jumped in the week ending Aug. 13 in response to historically attractive mortgage rate levels.

The auto sector remains the most active part of the ABS market with three transactions boosting the pike. Hyundai Capital America (HCA) and Ally Bank are both in the market with their respective deals.

The Airport Authority for Sydney, Australia is looking to raise funding and will likely turn to the 144A Regulation S market, sources said.

Nonprofit HOPE NOW is estimating so far in 2010 the industry has completed about 975,000 permanent loan modifications, both government and private, getting close to the one million mark.

The U.S. Treasury Department held its conference on the future of housing finance this morning. Among the speakers at the gathering were U.S. Treasury Secretary Timothy Geithner and PIMCO founder Bill Gross.

The Royal Bank of Scotland has reportedly sold a €1.4 billion ($1.8 billion) portfolio of leveraged loans to Intermediate Capital Group.

Moody's Investors Service reiterated Monday that the possible bankruptcy of Ambac Financial Group is unlikely to affect policyholders of its bond insurer subsidiary.

The credit outlook at the top six card issuers is getting brighter, with both chargeoffs and delinquencies falling again in July.

The U.S. Treasury Department held its conference on the future of housing finance this morning. Among the speakers at the gathering were U.S. Treasury Secretary Timothy Geithner and PIMCO founder Bill Gross.

With more clarity on the Federal Reserve's mortgage portfolio, JPMorgan Securities turned to how the market's composition will shift.

Santander is in the market with an auto ABS deal worth $700.5 million. The five-tranche offering is lead managed by JPMorgan Securities, Credit Suisse, and Wells Fargo.

Today the Federal Financial Institutions Examination Council (FFIEC) released guidance on reverse mortgages.

Financial institutions are continuing to show limited signs of a greater willingness to lend to businesses, according to a survey released Monday by the Federal Reserve Board.

CoreLogic, Santa Ana, Calif., reports that — albeit modestly at 1.4% compared to 2009 — in June, year-over-year U.S. home prices (including distressed sale prices) increased for the fifth consecutive month.