Finance

The delinquency rate for commercial real estate loans increased for the fourth consecutive month and reached a new all-time high in June, according to Trepp LLC.

CoreLogic's May Home Price Index (HPI) marked the third consecutive nationwide increase in home prices on both a year-over-year and month-over-month basis and and the Pending HPI Forecast shows gains to continue through June.

The American Securitization Forum (ASF) said in a white paper it released today that the single securitization platform for the GSEs outlined by the Federal Housing Finance Agency (FHFA) in its strategic plan could eliminate the pricing disparity that exists among the two agencies.

Although ratings agencies have imposed tougher standards for the top-rated tranches of commercial mortgage-backed securities, it hasn't led to greater issuance of subordinated tranches.

The European Bank for Reconstruction and Development (EBRD)said today in a press release that it has invested $50 million in the first securitization made by a Russian private bank since the beginning of the financial crisis.

In a last-minute reversal, David H. Stevens, the president and chief executive of the Mortgage Bankers Association (MBA), will remain at the trade group rather than departing to run SunTrust Mortgage, as he announced plans to do a month ago.

Congress on Friday approved an omnibus transportation bill that also included a five-year extension of the National Flood Insurance Program and a one-year extension of the low rates on federally guaranteed student loans.

In their recent Consumer ABS Weekly, Citigroup Global Market analysts said that the eight to 10 basis point concession for two– to three-year equipment lease ABS is attractive versus auto ABS. They also expect more spread differential compression between these sectors.

Issuance of European CLOs may be stalled, but 3i Debt Management believes that once the macro-economic picture improves, these structured finance vehicles will resume their role as important players in the region's loan market. That was part of the rationale for the London-based firm's recent acquisition of seven European CLOs from U.S. money manager Invesco.

The Consumer Finance Protection Bureau (CFPB) doesn't have a direct mandate over the securitization industry, yet it is one of the biggest regulatory wildcards, particularly for deals backed by residential mortgages in the foreseeable future.

Securitization market executives may want to reconsider their summer vacation plans. Not only are significant rules stemming from the Dodd-Frank Wall Street Reform and Consumer Protection Act likely to be issued soon, but an earlier proposal amending Regulation AB, which had been put on the backburner, may be finalized over the next few months.

The TBA market is widely viewed as an essential element of a functioning mortgage market, serving as both the ultimate source of liquidity and a crucial pricing benchmark for housing finance. However, the market has evolved significantly over the last few years; a major change has been the growth of the specified pool sector. This column will examine this development and its implications for the MBS and mortgage markets.

The asset-backed commercial paper market, which is still less than a third of the size it was before the financial crisis, may be set to shrink even further.

ABCP looms large among the victims of Moody's bank downgrades on June 21. Some of these banks support ABCP conduits, which, in turn, saw their ratings drop. And in ABCP land, that single grade difference can make or break a conduit. It's because money market funds - ABCP's biggest investors - can only buy 'P-1' paper.

The handful of future flow securitizations, particularly diversified payment rights (DPR) securitizations, originated in Russia over the years have all been done as secured loan structures, typically by an offshore SPV issuing notes backed by a secured loan made to the originator.

In the ASR Scorecards database's preliminary public lead manager rankings for 2Q12, JPMorgan Securities grabbed the top slot with $14.5 billion sold and an 18.9% market share. It climbed one spot from 2Q11 with a 16.0% market share and $5.2 billion sold. ASR's 2Q12 numbers are as of June 26, while its 2Q11 numbers are as of June 30, 2011.

>Officially launched during the Global ABS confrence in mid-June, the initiative of prime collateralized securities (PCS) could provide the stimulus to issuance for which European players have been waiting.

Manager Activity: Autos Book Runner Amount (US$ Mil) Rank Mkt.

Prudential Investment Management has priced a $423 million collateralized loan obligation.