Deutsche Bank integrated its global asset securitization group, consisting of asset-backed, commercial and residential securitization, into its global credit products group. Thomas Gahan, head of global credit products, will manage the integrated effort. The global credit products group is comprised of the high yield, investment grade, CDO and syndicated loan businesses, according to a statement from the bank.
Barclays Capital has made William Lloyd as global head of asset-backed securities research. Lloyd previously headed Barclays asset-backed securities research group for Europe alone. In addition to his new responsibilities, Lloyd will continue to lead Barclays Capital's index product group from London.
The American Bankers Association does not believe that the Federal Home Loan Banks should be able to pay higher dividends on subclasses of stock that are issued to fund specific activities, such as a mortgage purchase program. In submitting an early comment letter on the proposed risk-based capital rules, the ABA told the Federal Housing Finance Board that the benefits of a specific activity or product should be distributed to all members of the FHLBank.
The housing market should remain strong through the end of the year, according to the National Association of Realtors. David Lereah NAR chief economist, noted that home sales and construction have recovered from higher interest rates in the spring and the economy is still fundamentally healthy and should sustain the housing market through the end of the year.
NAR is projecting resales of about 4.98 million for the year, down 4.3% from the record volume of 5.20 million in 1999. The association is also forecasting new home sales of 879,000 units for the year, off 3.1%, and housing starts of 1.59 million, down 5.0%.
Host Marriott LP, a general partner of Host Marriott Corp., a Bethesda, Md., real estate investment trust that owns 122 full-service hotel properties, has closed a $250 million senior notes offering. The notes carry a 9.25% coupon rate, with a maturity date of Oct. 1, 2007.
The company plans to use the money raised to repay approximately $25 million of debt outstanding under its revolving credit facility and for general corporate purposes, including the settlement of partnership litigation and the purchase, as part of the settlement, of interests in limited partnerships owning Courtyard hotels.
The Commercial Mortgage Securities Association has formed a Canadian chapter. The chapter will be chaired by Ross A. Brennan, president and chief executive of the Commercial Mortgage Origination Company of Canada, and John Ho, director of Merrill Lynch & Co. CMSA will host a hospitality suite at the CMBS Insight Information Conference on Oct. 31 in Toronto to launch the chapter and to provide information on CMSA to interested professionals.
The CMSA established its first international chapter earlier this year in Europe; the group plans to form an Asian chapter by the end of the year. The international chapters will be highlighted in a panel discussion to be held during CMSA's Investors Conference, scheduled for Jan. 7 to Jan. 9, 2001, at the Doral Golf Resort & Spa in Miami.
Fannie Mae has reported record earnings of $1.124 billion ($1.09 per share) for the third quarter, compared with $991.0 million ($0.94 per share) a year earlier. Taxable-equivalent revenues totaled $1.98 billion, up 13% from a year earlier. Timothy Howard, Fannie Mae's executive vice president and chief financial officer, said the growth in taxable-equivalent revenues was due mainly to a $187.1 million increase in net interest income from the third quarter of 1999, which he attributed to a 15.2% increase in the company's average net mortgage balance. Mr. Howard pointed to a total of $45.7 billion in retained commitments for Fannie Mae's mortgage portfolio in the third quarter, which he said was the highest since the second quarter of 1999. Fannie Mae said its portfolio grew at an annual rate of 15.6% in the third quarter, and its total book of business (including net mortgage-backed securities outstanding) increased 8.3%.
