Mizuho Securities said it is done hiring people on the structuring side and will begin to bulk up its sales team. The firm said it might make additions in structured credit products sales, which includes CLOs and SIVs. The hires will be based in New York, though no expected time frame was given on when the additions would be made. "Whenever we find the right ones," Mizuho said.
SunTrust Robinson Humphrey hired several prominent senior-level executives for its debt capital markets team. These new additions include Jeff Hare as managing director in asset securitization origination and Jeff Barnes as managing director and part of the total return swap team. Both Hare and Barnes join from Banc of America Securities' global structured finance unit in Charlotte, N.C.
Brad Ellis joins as a director in asset securitization origination from Dresdner Kleinwort, where he was a vice president in the debt principal finance and securitization unit.
Bart Scott and Josh Pruitt join the firm as director and vice president in the total return swap group.
Bruce Goldstein joins as a director and head of CMBS underwriting. He joins from PNC Financial Services Group in Kansas City, where he served as vice president and director of CMBS underwriting.
Patrick Githuku joins as a director in CDO asset management from Standard Bank Group in Nairobi, Kenya, and Kwan Jeon joins as vice president in CDO Asset Management from ING Investment Management in Atlanta, where he was an assistant portfolio manager in its structured finance group.
Bayview Financial hired James Glockner as an acquisition specialist for the Western Region. Prior to joining Bayview, Glockner founded San Francisco-based Structured Funding, which capitalized on existing inefficiencies in certain areas of mortgage banking. He was also a senior manager at San Francisco-based MBS Financial, a mortgage acquisition company and before that was a director of Whole Loan Acquisitions at San Francisco-based Mortgage Acquisition Company. Glockner holds a B.S. in real estate and urban development and finance from American University in Washington, D.C.
Glockner brings industry experience that will help benefit the company's loan acquisition clients, said Brian Lawson, senior vice president and national sales manager of Bayview.
Peach Holdings hired Hasham J. Malik as senior vice president and chief capital markets officer. He joins from Bear Stearns, where he was managing director and co-head of life settlements trading business.
During Malik's 14-year career in structured finance investment banking, he held positions in Deutsche Bank Securities and State Capital Corporation. He has a bachelor's degree in finance from Boston College and an MBA from Yale University School of Management.
The Olin Corp., a leading manufacturer of small-caliber ammunition, copper alloys and chlorine and caustic soda, is planning to issue up to $250 million in ABS, secured by its accounts receivables.
Under the program, the company said, Olin Funding and some of its subsidiaries will sell or contribute certain accounts to an SPV called Olin Funding Co. LLC, which will then sell undivided percentage interests in those accounts to investors.
Moody's Economy.com released a study last week announcing that the 2.5 million mortgage loans it expects to default over the next two years are most highly concentrated in California's Central Valley, Florida, and the metropolitan areas of Las Vegas, Phoenix, Washington and New York.
Subprime adjustable-rate mortgages' in-foreclosure rate is expected to hit 10% by mid-2008, up from the current 4%. Its previous peak of 6% took place after the September 11, 2001, terrorist attacks, which sent rates as low as 2.5% in the summer of 2005, the survey said.
Subprime ARM loans originated in the fourth quarter of 2006 are expected to have their foreclosure rate peak at just under 20% in the fall of 2011, more than three times the peak foreclosure rate forecast for loans originated in 2004.
The study was based on consumer credit files from the credit bureau Equifax, covering 200 U.S. metropolitan areas.
NewStar Financial has completed sale of securities and loan assets totaling approximately $188 million, including $114 million of RMBS holdings to a third-party investor, through a newly formed subsidiary and amended its existing nonrecourse financing arrangement to complete the transaction.
The sale resulted in a net increase to book value of approximately $11.6 million, or $0.32 per share, on a pretax basis, mainly due to the reversal of unrealized losses previously recorded as a temporary impairment. This gain was partially offset by a $4.4 million loss on the sale.
The company also retained a 14.3% residual interest in the assets sold, which was worth approximately $29.7 million as of June 30, 2007.
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