People
William Young has left as head of European securitization at Citigroup and joined Mark Kogan as co-head of European structured and principal finance at Goldman Sachs. Market participants commented that Young will probably concentrate on growing the principal finance business.
Young built a successful securitization team at Citigroup, responsible for many of the landmark transactions in 2000, and the Citigroup team continued in 2001, to develop innovative structures most recently seen in Welsh water deal, Glas Cymru. This is a stark contrast to Goldman Sachs whose securitization franchise in Europe has not been large until now.
Moody's Investors Service has added Chris Marcus and Sergey Pekarsky to its asset-backed commercial paper group, both will report to the group head, Sam Pilcer. Marcus, a three-year associate, joined Moody's from Rutgers University where he graduated with a BA in finance in May of this year. Pekarsky joins as an analyst, most recently a lecturer in Applied Dynamics at Cal Tech, where he earned his Ph.D. in control and dynamical systems. Sergey will be devoting time to arbitrage programs as well as other types of ABCP programs.
Also, Moody's hired Konstantina Drakouli and Julia Tung. Konstantina joins as an associate in the asset-backed finance group, and will work with Steve Macy and Denise Person. Tung joins as an analyst, and was previously an associate in risk finance at Barclay's Capital.
Meanwhile, Moody's lost two residential mortgage analysts to Bear Stearns. Josephine Balistreri, formerly an assistant vice president, and Kyriacos Kyriaocou, formerly a vice president, both were analysts on Residential Funding Corp. transactions. The two are expected to continue working with RFC at Bear.
XL Capital Assurance Inc. (XLCA) announced that Peggy Wallace has joined the company as a managing director, in consumer asset-backed finance. Wallace will be responsible for XLCA's consumer asset securitization effort. She will report to Steve Czark and Cassie Lau, co-managers of the structured finance group. Wallace was most recently at JPMorgan, from the J.P. Morgan side, since 1998.
News
Moody's is considering a downgrade of the P-2 short term rating of the units issued by the Telecommunications Compartment of the Fonds Commun de Creances Factoplus. Investor exposure to the recently downgraded French telecom corporates prompted the recent action. Approximately $8 million of debt securities are affected.
The class-A and class-B notes of the NPL Trevi Finance No.3 were repackaged to obtain more liquidity and transform the unrated zero coupon notes into floating rate notes. Banca di Roma, the originator, sold both tranches to an SPV called Entasi. The notes have been assigned an A2 rating by Moody's.
SAMCO Capital Markets is shopping around a $45.6 million offering of fixed-rate MBS notes for issuer Double Diamond Funding-III LP. Wells Fargo Bank of Minnesota is the trustee.
The transaction is a two-tranche offering: $27.6 million in Standard & Poor's double-A-rated senior paper with a 34-month average life and price talk in the 175 to 190 basis points over Treasurys range; and $18 million in triple-B-rated subordinated notes with a 91-month average life and pricing in the neighborhood of 250 to 275 basis points over Treasurys. The notes are backed by $59.2 million in timeshare and second home properties in Texas and Pennsylvania, for an advance rate of approximately 77%.
The collateral pool of first-mortgage and interval-ownership loans was originated by regional resort development and finance company Double Diamond Companies. Proceeds from the notes will be used to pay down a warehouse line of credit with Heller Financial Corporation and to pay the costs of issuance. This is the company's third privately-placed securitization.
Correction
In last week's ASR the coupons for the $900 million three-year credit card deal from World Financial Network were incorrectly reported. The actual coupons are 24 and 67 basis points over one-month Libor.
Calendar 2001
Sept. 11-12: Berlin Germany Information Management Network will present Securitization in Deutschland. For more information, see www.imn.org.
Sept. 12-13: Berlin, Germany 2001: A CDO Event will be hosted by Information Management Network. For more information, e-mail mail@imn.org or call 212-768-2800 ext. 1.
Sept. 30-Oct.3: Southhampton Princess, Bermuda- The Strategic Research Institute presents The Bermuda ABS 2001 Symposium. For more information, visit www.srinstitute.com or call 888-666-8514.
Oct.1-3: Washington, D.C.-International Venture Partners, LLC will host the Latin Summit and Expo Americas, the premier conference for investing in the Americas. For more information, visit www.latin-summit.com
Oct. 2-5: Paradise Island, Bahamas - ABS East 2001 will be sponsored by Information Management Network. For more information call Scott Brody at (212) 768-2800 ext 210.
Oct. 23-24: Rome, Italy Information Management Network presents the Italian and Southern European Securitization Conference. For more information, visit www.IMN.org.
