Luminent Mortgage Capital sold off the assets financed by its ABCP program, eliminating all of its outstanding commercial paper liabilities. The firm has also repaid all of its warehouse lines of credit that were used to finance whole-loan purchases and has similarly eliminated all balances outstanding under its warehouse lines of credit. Luminent has also entered into an amended and restated definitive credit agreement with Arco Capital Corp., providing Luminent with a revolving liquidity line of credit of up to $60 million. As reported in the Sept. 10 issue of ASR, the firm has reduced expenses by laying off personnel. It expects to close its San Francisco office by year's end.
AmBank, a subsidiary of AMMB Holdings, is expected to securitize two tranches of nonperforming loans (NPLs), according to published reports. The company plans to sell a tranche of corporate NPLs to Neptune ABS One and a tranche of retail NPLs to Neptune ABS Two, which are the special purpose vehicles (SPVs) formed exclusively for the proposed securitization of corporate and retail NPLs. Bank Negara Malaysia approved the proposed deal, which will allow AmBank to reduce its NPL ratio to be in line with the industry average.