News
Deutsche Bank Securities is said to have reds out on an approximately $750 million ARG Funding ABS for ANC Rental Corp., parent company of Alamo Rent-A-Car and National Car Rental. Significantly, ANC is still in Chapter 11 bankruptcy, having filed for protection November 2001. General Motors is the largest supplier of program vehicles for ANC and 85% of its $3.6 billion in 2001 revenue came from airport rentals. ANC has issued $2.5 billion in term ABS, typically employing an MBIA wrap.
The Housing Market Index of The National Association of Home Builders fell to 57 from 61 in July and all three of the Index's components softened - the current sales index went down to 61 from 65 - the outlook for sales in the next six months dropped to 67 from 69; the traffic index dipped to 43 from 48. The August NAHB index readings means a slower pace of new construction, which is somewhat surprising given the continued decline in mortgage rates.
On Sept. 30, the Financial Accounting Standards Board will hold a public roundtable discussion on the views of interested individuals and organizations about its Exposure Draft of a proposed Interpretation, Consolidation of Certain Special-Purpose Entities.
The Mortgage Bankers Association (MBA) recently announced the formation of a task force on the use of environmental insurance on commercial real estate loans. According to a press release, the association's commercial loan origination committee formed this task force to educate its members on the types of environmental insurance policies that are widely used in the commercial real estate sector today. Environmental insurance protects financial institutions from liability in cases of loan defaults and collateral contamination. Many lenders are currently using this product in tandem with or in place of Phase I due diligence.
Fitch Ratings downgraded Merrill Lynch Mortgage Investors Inc. commercial mortgage pass-through certificates, series 1998-C1-CTL $4.8 million class H and $1.6 million class J. The classes were downgraded to C' from CC' and were removed from Rating Watch Negative. Fitch also affirmed the $58.1 million class F and $3.2 million class G at CCC'. The rating agency said the rating action reflects the revised loss estimates on seven real estate owned (REO) Heilig-Meyers loans in the pool, exposing class H and class J. Both classes have been experiencing full interest shortfalls due to appraisal reductions on the seven remaining Heilig-Meyers loans. The H and J classes had also been placed on Rating Watch Negative because of the increased number of loans of concern as well as the exposure to Kmart.
People
Luis Araneda is no longer at Banc of America Securities. Araneda had been head of the credit card and student loan origination efforts at BofA. There's no word where he has gone.
Chris Allen and Michele Kearns have joined Radian Asset Assurance's London affiliate, Radian Representatives. Both are starting as vice presidents and directors in global structured products. Allen moved over from the London office of Chubb Financial Solutions, and Kearns moved over from Ambac's New York office.
Calendar
September 5-6: London, England: The Strategic Research Institute will present The Premier European Forum on ABCP. For more information visit www.srinstitute.com/ca273
September 10: Annual Moody's Structured Finance Alumni Reception. If you are Moody's Alumni, and have not been contacted, call Lourdes Alma at 212-553-3619 or e-mail lourdes.alma@moodys.com
September 10-11: Berlin, Germany: The Information Management Network will host the fourth annual summit on German and Northern European Securitization. For more information, visit www.imn.org/a397/m/
September 12-13: Berlin, Germany: The Information Management Network will sponsor the fifth annual CDOs 2002: Brave New World conference. For more information, visit www.imn.org/a398/m/
September 30-October 2: Washington, DC: The Latin America Investor Summit will be held during the annual meetings of the World Bank and the International Monetary Fund. For more information, visit www.latin-summit.com
October 1-4: Paradise Island, Bahamas: The Information Management Network will host ABS East 2002. For more information, visit www.imn.org
October 6-9: Miami, FL: The Strategic Research Institute will host the The ABS South Beach Industry Summit. For more information visit www.srinstitute.com/ca280
October 9: New York, NY - The Bond Market Association presents the Annual Awards Dinner. For more information, call 212-440-9429 or email mgarcia@bondmarkets.com.
November 7-9: Palm Beach Gardens, FL - The Bond Market Association's Fixed-Income Securities Operations Conference will be held at the PGA National Resort & Spa. For more information, call 212-440-9429 or email mgarcia@bondmarkets.com.
November 21: New York, NY - The Bond Market Association's Fixed-Income Summit & Expo on E-Commerce and Technology will be held at the Marriott Marquis Hotel. For more information, call 212-440-9429 or email to mgarcia@bondmarkets.com.
