RMBS

The Securities Industry and Financial Markets Association’s (SIFMA) U.S. Covered Bond Council criticized the Federal Deposit Insurance Corp.'s (FDIC) stance on covered bonds.

Ambac Financial Group, parent of the junk-rated bond insurer Ambac Assurance Corp., said in a regulatory filing Monday morning that it may be forced to file for bankruptcy by yearend because it has been unable to raise fresh capital.

The National Credit Union Association (NCUA) and the Federal Deposit Insurance Corp. (FDIC) each priced sizable CMOs in mid-September that are unlikely to be the last because of their incremental yield and issuer financing benefits, and because more banks are destined to fail.

The Securities and Exchange Commission's (SEC) proposal of Oct. 13 to require issuers to review the underlying assets in their ABS should create a much more uniform set of review standards - to the benefit of investors. However, it could significantly alter, perhaps to the ABS market's detriment, how the reviews are performed.

The so-called foreclosure scandal has grabbed headlines over the past month. ASR's November issue looks beyond the mainstream coverage to its effect on bondholders.

The Federal Deposit Insurance Corp. (FDIC) recently finalized its Safe Harbor that protects the assets that are transferred to bank-sponsored securitization vehicles from a financial institution's FDIC receivership.

The recent news coverage has returned many mortgage and MBS-related issues, both real and illusory, to prominence. The initial headlines that stemmed from the announcement of problems with GMAC's foreclosure filings have morphed into questions about the foreclosure process, the extent and potential cost of loan buyouts, and the legal standing of the securitized mortgage market itself. This article addresses some of the issues currently roiling the financial markets.

Capacity constraints at mortgage lenders have dampened the number of refinancings that are able to get through the system. Current origination capacity at these firms can handle a refinancing index at only the 5000 level, Barclays Capital analysts said in a recent report.

The foreclosure crisis has brought the issue of buybacks to the forefront of discussions once again. Jaded investors are looking to get some compensation from the mortgage market fiasco that has seen RMBS delinquency rates soar.

Europe continued to see its primary securitization pipeline move toward recovery with strong issuance dominating the market in October.