XLCA Managing Director David Czerniecki will move internally to XL Capital Investment Partners and serve as a member of the XLCIP investment committee that determines investments in XLCA's overall portfolio allocation to hedge funds and other alternative assets. Czerniecki will lead a business unit tasked with building a significant presence in the structured market for hedge fund clients and focus on developing and underwriting structured products for hedge funds. He had run XLCA's CDO platform for five and a half years. XL Capital Assurance (UK) Managing Director Sohail Rasul will relocate to New York and take over the firm's global CDO business.
Deutsche Bank Securities hired Dennis Knitowski as a director in its asset finance group within the global markets division, reporting to Global Head of Asset Finance Frank Byrne. Knitowski, based in New York, is responsible for originating and structuring consumer, commercial and CDO financings into Deutsche Bank's ABS conduits. Knitowski joins from JPMorgan Securities, where he was a vice president in the principal investment management group.
Thomas Cassidy has joined Brown Rudnick's Bankruptcy & Finance Department in New York where he will focus on a wide array of financial transactions, including securities, banking and private equity. Cassidy had been a partner at Morrison & Foerster, where he focused on asset-backed and mortgage-backed finance. Cassidy specializes including intellectual property, consumer finance, trade receivables, equipment leases, healthcare receivables, commercial and residential mortgages, manufactured housing, ESOP loans, mutual fund fees and unsecured corporate debt.
General Electric Co. last week bought $1 billion in loans and leases on corporate aircraft from New York-based commercial finance company The CIT Group Inc. The sale consisted of roughly $700 million in loans and $200 million in leases on 380 aircraft including business jets, turbo props and helicopters. Though the sale cleaned out most of CIT's aircraft loan portfolio, the company apparently is not pulling out of the aircraft finance sector completely. "[CIT] will continue to finance fractional aircraft shares and select corporate aircraft utilizing its aircraft manufacturer relationships," according to a company statement.
Deloitte & Touche LLP released last week the seventh edition of its securitization accounting handbook, Accounting for Securitizations...the Ins and Outs of FASB 140, FIN 46R, IAS 39 and more' including a section on what to expect in 2006. The handbook contains reference material for all the relevant, but separate, guidance issued by the Financial Accounting Standards Board, the Emerging Issues Task Force, the Securities & Exchange Commission, the American Institute of Certified Public Accountants and the International Accounting Standards Board.
Commerzbank announced last week that it will be launching a new SME platform designed to allow small and medium sized German companies access to Schuldschein, or borrower notes. Borrower notes have traditionally been a funding source for larger corporations, which can amount the required sums in excess of 20 million ($23.8 billion), but Commerzbank hopes to address the smaller funding needs of Germany's SMEs by pooling various two-to-five year Schuldschein funding needs of SMEs across all industries into one portfolio, making them suitable for securitization in terms of size and risk concentration.
Irwin Financial Corp. announced last week that it expects to report a pre-tax net impairment of approximately $27 million against its mortgage servicing rights for the second quarter. Additionally, the firm sold about $3.2 billion of servicing rights in the second quarter for a pre-tax gain on sale of roughly $7 million, a company release said.
IndyMac Mortgage reported that its 2Q05 earnings would beat analysts expectations by more than $0.01 per share last week. Additionally, IndyMac's Alt-A originations increased 22% from 1Q05, the company reported. Average expectations for IndyMac's earnings are at $1.09 per share.
CapitaCommercial Trust, a Singaporean REIT, has invited bids for its next CMBS deal. The office REIT, established by property developer CapitaLand last year, completed a $341 million offering in March 2004 via HVB at 45 basis points over Libor. A decision on the mandate is expected shortly, sources reported.
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