ABS

In Brazil, talk of a more substantial RMBS market might be a step closer to reality, as banks will be able to use a portion of their securitized portfolios to meet a regulatory requirement that has been an impediment to RMBS issuance in the country, said Fitch Ratings in a report today. Under the rule, banks must keep 65% of savings deposits in real estate-related financings. With the change, “Fitch expects some large retail banks to debut new RMBS securitization platforms in 2011.”

Panelists at ASF 2011 looked at the business implications of securitization policy reforms given that there are supposedly over 200 rulemakings and over 19 provisions associated with securitization in the Dodd-Frank Act.

A panel at ASF 2011, which is being held in Orlando this week, discussed the implications of the legislative mandate under 939A of the Dodd-Frank Act to reduce reliance on credit ratings. Panelists also explored potential alternatives to credit ratings.

ABS issuance will be slightly north of last year’s, according to panelists in today’s 2011 market outlook panel at ASF 2011. The conference is being held in Orlando this week.

Barclays Capital is currently marketing the first whole business securitization since the financial crisis.

The Federal Deposit Insurance Corp. (FDIC) Friday named Michael Krimminger, a close aide to Chairman Sheila Bair, as the agency's new general counsel.

Intex Solutions introduced INTEXcalc, a new end-user application offering transparency, ease of use, and speed in analyzing structured finance securities.

Credit Suisse hired Dale Westhoff as the global head of structured products research. Westhoff. who will be based in New York, will focus on MBS, ABS and other structured products.

Leaf Financial has completed a small-ticket mixed equipment issue.

All the rating agencies have recently issued warnings about or downgraded re-securitizations, known as re-REMICs, and while those deals issued over the last few years appear hardy enough to withstand another housing downturn, their resemblance to infamous CDOs raises concerns.

The Obama administration in January postponed announcing its GSE reform proposals. Experts said that the root cause of the delay is the fear of further disrupting the already fragile housing market, as Nora Colomer points out in this month's cover story.

After the near collapse of the Canadian securitization market in August 2007, 2010 saw a strong resurgence in term ABS issuance in Canada. Among other things, there were 16 public deals with combined total issuance of more than CAD$11 billion. There were also signs of renewed activity in the ABCP market with conduits taking on new deals with originators who had been largely frozen out of this market over the last few years. Overall, there is a general sense of optimism about the market and, as a result of both market forces and government action, it's fair to say that the Canadian securitization market is, if not perfectly well, at least comfortably on the road to recovery.

U.S. auto loan ABS collateral performance has turned the corner over the past two years, despite ongoing economic stress and persistent pressure on U.S. consumers overall. Losses among 2009 deals have reverted to pre-recession levels, with losses in the 2010 vintage likely to follow suit.

The percentage of outstanding balances that credit cardholders pay off each month surged last year - a favorable sign for loan performance that mirrored plummeting chargeoffs but that now stands as an obstacle to portfolio growth.

Kroll Bond Ratings is set to publish its initial rating criteria and research for structured finance at the end of February, according to James Nadler, president and chief operating officer at the company.

In late December, the European Bank of Reconstruction and Development (EBRD) launched the Mid-size Sustainable Energy Financing Facility (MidSEFF), designed to support renewable energy and industrial energy efficiency investments.

Ford Motor Credit Co. filed a form S-3 with the Securities and Exchange Commission to issue under its Ford Credit Floorplan Master Owner Trust A.

Manager Activity: Autos Book Runner Amount (US$ Mil) Rank Mkt.

There has been much discussion around the future of the GSEs. There are three models being floated around: a hybrid market with some GSE involvement; the GSEs becoming full federal agencies; or the privatization of the markets without any GSE involvement. However, there has been little focus on how a new infrastructure for housing finance will be built.

Chapman and Cutler hired James Croke and Peter Manbeck, previously from Orrick, Herrington & Sutcliffe, as partners in the asset securitization group in its New York office.