Banc of America Securities hired Paula Dominick as managing director and global head of debt research, reporting to Tom Berkery, COO of global markets, and is responsible for managing high-yield, investment grade and credit strategy research. Dominick joins BAS from Goldman Sachs where she spent 18 years, most recently as head of global credit research and market strategy, responsible for coverage of investment grade, high yield, CDS and preferred stock. "We remain committed to providing investor clients with superior insight and information, both on a macro and company-
specific level, about a broad suite of debt instruments," said Mark Werner, head of global markets.
Manroop Jhooty took over for Mark Adams last week as head of Dominion Bond Rating Service's structured-finance CDO group. Adams will be leaving the rating agency to pursue "other professional and personal interests," according to DBRS. Huston Loke, assistant group managing director and global head of structured finance at DBRS, declined to elaborate on the reason for Adams's departure. Jhooty, who will report to Loke, was also promoted to senior vice president from vice president. DBRS will be looking to fill Jhooty's position, which involved transaction review.
R.W. Pressprich has hired Georgios Katsaros as a senior quantitative ABS analyst with a focus on modeling. In his new position he reports to Managing Director Arturo Cifuentes. Katsaros joins from RCC Consultants, a New Jersey based telecommunications firm.
Allen & Overy is advising the ISDA in drafting and finalizing the 2005 Delphi CDS Index Protocol, offers market participants an efficient way to settle certain credit derivative index trades that include Delphi Corp. The Protocol enables adhering institutions to amend their credit derivatives documentation for index trades in order to move from physical to cash settlement, and to settle such trades at the price determined pursuant to a specially designed multi-dealer auction, which was scheduled for last Friday.
On Tuesday, sole lead BNP Paribas is slated to launch syndication of a $50 million, six-year revolver and a $150 million, six-year term loan B in connection with a dividend re-capitalization of Clayton Holdings, according to a source. Price talk for both tranches is at Libor plus 300 basis points. The loans are expected to be rated in the mid- to single- B range. Proceeds from the deal will go, in part, to pay a $55 million dividend to the company's private equity sponsor, TA Associates.
U.S. Treasury secretary John Snow said in comments to reporters that both Fannie Mae's and Freddie Mac's mortgage portfolios are larger than needed, according to wire reports. "It looks like these entities have portfolios designed for investment purposes," Snow said, according to a report. Snow also said that the portfolios were "larger than required to carry out their statutory mission."
CapitalSource Inc. announced its intention to elect to be taxed as a REIT, starting next year. On Oct. 31, the CapitalSource board of directors declared a special $2.50 per share dividend, or approximately $350 million in the aggregate, payable to stockholders of record as of Nov. 23, 2005. This amount represents an estimate of its cumulative earnings and profits attributable to tax years ending prior to Jan. 1, 2006, which it is required to pay in connection with our REIT election.
Despite narrowing gain-on-sale margins at mortgage lender IndyMac Bancorp - to 0.97% in the third quarter from 1.22% a year ago - CEO Mike Perry was quite pleased with the company's performance, playing down concerns over a housing bubble and future loan performance. IndyMac anticipates it will rank among the top 10 mortgage originators in terms of mortgage volume this year. "It is amazing that people are struggling in this market," Perry said, adding that the company expects to attract salespeople as competitors bow to market pressures. "As these guys have problems, the salespeople, they are like rats, and they move up one sinking ship onto a more stable ship, so we are able to recruit people, often top producers from our competitors, because our business model is stronger."
DealerTrack Inc. announced that Nissan Motors Acceptance Corp. securitized approximately $80 million of electronic contracts originated and stored on the DealerTrack eContracting system. Additionally, Standard & Poor's has tentatively agreed to a template for legal opinions that it will accept from DealerTrack financing sources along with transaction-specific information to support its ratings of securitized electronic contracts on an ongoing basis.
Nelnet Inc. announced the expansion of its strategic relationship with the Colorado College Access Network, a state-designated guarantor of FFELP student loans providing Federal Stafford, PLUS, and consolidation loans to students and parents through private lenders. The agreement expands the previous loan servicing relationship between the organizations, whereby Nelnet will provide the student loan servicing and guarantee operations of College Access Network and Nelnet will assume the operational expenses and employment of approximately 140 College Access Network employees.
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