ABS

Six months into his tenure as MF Global's chief executive, Jon Corzine wants the futures broker to expand geographically, and he wants it to build a beachhead in investment banking.

After nine months of struggle, the Senate finally succeeded Thursday in passing 61 to 38 a bill to create a $30 billion small business lending fund for community banks.

Flagstar Bancorp — which continues to rank among the top 10 mortgage wholesalers in the U.S. — declined to confirm or deny that it is considering a $600 million offering of new equity.

Thanks to a pick-up in cash flows, an $100 million 2006-A tranche backed by diversified payment rights (DPRs) from Kazakhstan's Alliance Bank fully paid down this week, said a source at the Asian Development Bank (ADB), which wrapped the piece.

Federal Deposit Insurance Corp. (FDIC) Chairman Sheila Bair said Wednesday that the Basel Committee on Banking Supervision's new capital plan should have been tougher.

Moody's Investors Service has assigned provisional ratings for the Class I-A-1 and Class II-A-1 Tax Lien Asset-Backed Passthrough Certificates, Series 2010-1, which is issued by Tax Liens Securitization Trust 2010-1.

Fitch Ratings released its global rating methodology for rental fleet ABS. Its criteria addresses and mitigates key risks present in rental fleet ABS deals, which include counterparty risks such as the bankruptcy of the rental fleet firm and of any major manufacturer supplying vehicles to a securitized vehicle fleet.

Markit will be providing liquidity metrics and composite liquidity scores for European ABS and leveraged loans that are covered by its pricing services, according to a release from the firm.

Mexico’s Federal District is eyeing early October for a re-opening of a Ps2 billion ($154 million) deal closed June 25, according to a prospectus filed with the Mexican Stock Exchange. The transaction adheres to a formula the originator established with its first issue in December 2003 — the securitization of a loan from the central government, with payments backed by federal participation revenue which the central government doles out to the District. The loan is a necessary step as the District isn’t allowed to take on debt directly. The re-opening is for both a 10 and 10-2 series. The former is a fixed-rate tranche with a 5-year tenor and the latter is a floater with a 10-year tenor. The total volume of the re-opening is capped at Ps3.3 billion, given that total program has a ceiling of Ps5.3 billion. Deutsche Bank is the sole lead.

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

Fannie Mae wants out of its defaulted residential mortgage holdings as quickly as possible and is warning loan servicers not to stand in its way.

America First Tax Exempt Investors said Thursday that it has financed approximately $95.8 million through a new long-term secured debt financing facility with Freddie Mac.

The U.K. Financial Services Authority (FSA) will apply banking book risk weights to securitization trading positions following the position adopted under the capital requirements directive (CRD 3) passed by the European Parliament at the end of July.

Federal Deposit Insurance Corp. (FDIC) Chairman Sheila Bair said Tuesday the agency would soon publish an interim rule on its new resolution authority over systemically important banking companies and certain nonbanks.

Fitch Ratings stated that as of July 20 defaults on U.S. bank Trust Preferred Security (TruPS) CDOs eclipsed the 14% mark on 11 new bank defaults.

In late August, an entity of the State of Mexico known as IFREM originated a roughly Ps4 billion ($306 million), 20-year deal backed by flows from property registration fees. Structured by MBIA unit LatAm Capital Advisors (LCA), the transaction was novel on a number of fronts.

In May, a water project vital to the Peruvian capital of Lima issued a securitization in the domestic market.

The securitization market just can't seem to get a break. From tougher regulations to a battered economy, our industry seems at times to be facing an all-out assault.

Loan modifications are being credited with playing a key role in the improving delinquency picture for home mortgages, but housing economists and analysts caution that the industry isn't out of the woods quite yet.

While it's clear that tighter rules for securitization are on their way, varying approaches to the issue by different agencies are making bankers and issuers uneasy.