ABS

The auction of nonperforming loans will remain strong for six more years, with hedge funds and private investors continuing to drive the market, according to specialty servicer FCI Lender Services, Anaheim Hills, Calif.

The Reserve Bank of India (RBI) placed on its Web site a discussion paper titled Emerging Trends in Regulation and Supervision of Securitization Activities of Banks.

The Mortgage Bankers Association (MBA) promoted Josh Denney to vice president of public policy.

Vesteda, the Netherlands residential property investment fund, launched a EUR 350 million ($470 million) CMBS tap issue from its Vesteda Residential Funding II BV program.

The Committee of European Securities Regulators (CESR) published three consultation papers on its technical advice to the commission in its review of Markets in Financial Instruments Directive (MiFID).

Moody's Investors Service has hired Andrew Jones, who was formerly from DBRS, for a newly created position to help the rating agency boost its efforts in structured finance research.

Alectra Finance is in the market with a €1.197 billion ($1.62 billion) securitization of the 2005 Spanish electricity tariff deficit.

Accusing Moody’s Investors Service of withholding evidence documenting its role in the housing and financial crisis, Attorney General Edmund G. Brown Jr. announced a court action forcing the rating agency to explain why it gave its highest ratings to “risky and toxic” MBS.

Goldman Sachs, its image tarnished by a new subprime-related legal action brought by the government, on Monday made additional comments on the case, including a revelation that it too lost money on the CDO transaction in question.

MBIA Insurance Corp. could run out of capital by 2014 if deterioration of its portfolio continues at average market trends, according to an independent analysis by CreditSights published Friday.

Two Harbors Investment Corp., a real estate investment trust that invests in MBS, on Friday cancelled an additional public offering of 14 million shares of common stock.

The board of governors of the CRE Finance Council has confirmed the leadership teams of the organization's five initial forums.

The Securities Industry and Financial Markets Association (SIFMA) today announced that Richard Dorfman has been appointed managing director and head of the SIFMA Securitization Group (SSG).

The Securities Industry and Financial Markets Association (SIFMA) launched a new advocacy and educational Web site called www.InvestedinAmerica.org, which has real stories and examples about the work the industry does to strengthen America’s economy.

The political pressure to enact financial reform intensified Friday as the government accused Goldman Sachs of defrauding investors and the Senate concluded two days of hearings highlighting the assertedly lax supervision that preceded the largest bank failure in the country's history.

Moody's Investors Service on Friday placed 3,000 pre-2005 Jumbo prime RMBS with an outstanding balance of $43.4 billion on review for possible downgrade.

The CDO at the center of the fraud case against Goldman Sachs is known as ABACUS 2007-AC1, and a class of its debt was cut to 'D' from 'CCC-' by Standard Poor’s in May 2009.

Arch Bay Capital, an active buyer and seller of nonperforming mortgages, is on the verge of jumping into the origination market and is busily gathering lending licenses in several states, according to officials briefed on its plans.

In the first arbitration decided against Banc of America Securities regarding the sale of auction rate securities (ARS) to institutional investors, an independent panel of arbitrators from the Financial Industry Regulatory Authority (FINRA) found the investment bank liable for its actions in the sale to an institutional investor of ARS.

Two weeks after Citigroup priced a $525 million CLO and a week after Orix, Apollo and GSO Blackstone all started arranging their own CLOs, Bank of America Merrill Lynch has begun arranging a $500 million CLO.