People
Securitization attorneys John Arnholz, Edward Gainor, Thomas Lyden, Nicholas Singh and John Steele have joined the transaction and securities law practice of D.C.-based McKee Nelson, Ernst & Young LLP as new partners. The lawyers were formerly with the D.C. office of Sidley Austin Brown & Wood.
Jayne B. Somes-Schloesser joined the Mortgage Bankers Association of America (MBA) as senior staff vice president for operations. She will oversee the association's human resources, finance, internal administration, and operations. Somes-Schloesser served for six-and-a-half years as the vice president of operations for the National Multi Housing Council (NMHC), where she planned, organized, and coordinated the organization's human resources, accounting, meetings, information technology, and general office services.
The imminent departure of British financier and securitization pioneer Guy Hands from Nomura Securities' London unit - widely reported in the European press recently - may also mean the departure of up to 60 Nomura staff members, sources say. Hands, the Head of the Principal Finance division at Nomura, is best known for the 5,500 British pubs that he acquired and securitized, but also is credited with applying a venture capital approach to securitization and introducing new asset classes such as pubs, plant and infrastructure assets. Hands is said to be setting up a GBP 2 billion private equity fund, in which Nomura may invest. Sources say that he may entice his entire team to join him when he leaves the company.
News
Citigroup acquired Banco Nacional de Mexico (Banamex) late last week. The effect of this on Banamex's structured finance endeavors has yet to be determined.
Fannie Mae purchased $68.64 billion in mortgages during April, its strongest purchase month since December of 1998 when the last refinancing boom was in full swing. Through the first four months of this year Fannie acquired $210.4 billion in mortgages and is on track to gobble-up at least $600 billion - if not more - by year's end. The GSE is experiencing explosive growth in purchase activity because originations in the primary market are booming, thanks to lower rates and a red hot refi market.
The Malaysian Rating Corporation Bhd (MARC) has signed a technical cooperation agreement with Fitch. The rating agency will assist MARC in the development of rating methodologies and criteria for debt products for the Malaysian market, especially in ABS. Sources also say that the first Malaysian securitization, other than by the agency of Cagamas, is likely to hit the market soon. The RM 1 billion transaction has been proposed by Moccis Trading Sdn Bhd and most likely, this would be the first offering since the introduction of the Securities Commission's new guidelines on debt securities.
The issuer's plan is to issue up to RM 1 billion in Islamic Murabahah papers sometime this year, backed by consumer receivables which currently total about RM 600 million in its books. The company has appointed Amanah Short Deposits Sdn Bhd, a subsidiary of Amanah Capital Group, as its lead manager.
Freddie Mac has announced that due to the IRS' issuance of Final Reopening Regulations effective March 31, 2001, the company may offer new issues instead of re-openings of specific Reference Notes as scheduled in its 2001 Reference Note and Bond annual financing calendar. According to the calendar, re-openings are scheduled for a 10-year Reference Note on June 6th, a five-year Reference Note on October 10th, and a 10-year Reference Note on December 12th. Freddie will continue to honor the announcement dates, issue sizes, and maturities defined in the calendar. Whether the offerings in June, October and December will be re-openings or new issues will be disclosed on the scheduled announcement dates of May 31st, September 28th, and November 30th, respectively.
FleetBoston Financial has reported that it has priced its first home-equity line of credit transaction, a $758 million deal that is scheduled to close May 30. The transaction, Fleet Home Equity Loan Trust Series 2001-1, consists of floating-rate notes with an expected average life of 3.41 years. The coupon rate for the notes will be reset monthly and will equal the one-month Libor plus 21 basis points. Excess interest, overcollateralization and a financial guaranty insurance policy will provide credit enhancement for the notes, which are expected to receive Standard & Poor's AAA rating and Moody's Investors Service's Aaa rating. Lehman Brothers is the lead underwriter for the notes. Credit Suisse First Boston, Fleet Securities Inc., J.P. Morgan and Salomon Smith Barney are co-managers for the transaction.
Tidalwave Holdings Inc., Ft. Lauderdale, Fla., has announced that its investment mortgage banking subsidiary, First American Mortgage Securities Inc., has executed a $30 million master mortgage-backed securities commitment. The securities will be issued under an existing "GSE shelf registration" at a cost of 22 basis points in credit enhancement, which ensures the MBS will receive a AAA rating from the major rating agencies, the company said. FAMS has targeted May 25th for its first issue and will seek to price the deal on May 22nd. FAMs will retain the servicing on the issue. The company recently announced the acquisition of a $2.3 billion loan servicing platform and $100 million plus in loan sub-servicing rights.
Calendar
June 4-5: New York, NY-The Strategic Research Institute will sponsor the Fourth Annual Forum on Collateralized Debt Obligations: CBOs/CLOs on the Go! The forum will take place at the Martinique on Broadway. For more information, visit www.srinstitute.com or call 888-666-8514.
June 11-12: Chicago, IL-The Strategic Research Institute presents the second annual forum on Equiptment Finance and Lease Securitization. For more information, visit www.srinstitute.com/ca262 or call 888-666-8514.
