ABS

Latin American ABS and MBS held on last year thanks to domestic markets. As cross-border demand receded further, local investors remained a major force.

Despite troubles in the auto sector, dealer floorplan ABS have gained ground. Just last week Nissan Motor Acceptance Corp. came to market with its $750 million dealer floorplan offering. And for the January 2010 TALF subscription period, only Ford Motor Credit Co.'s floorplan deal was included. Another floorplan deal came down the pike in January - Morgan Stanley Resecuritization Trust 2010-F. Aside from the obvious rise of deal volume in the sector, rating agencies have also made revisions to their existing criteria to include the manufacturer's risk as it relates to the dealership networks.

Greece's liquidity and growing credit concerns with respect to the Portugal, Ireland, Greece and Spain (PIGS) sovereigns, has stirred rising concern about the potential consequences of a Greek shortfall for the European securitization market as a whole.

Despite troubles in the auto sector, dealer floorplan ABS are gaining ground.

Fitch Ratings has downgraded 1,186 bonds in 871 RMBS transactions that have had principal writedowns.

The Federal Reserve Bank of New York (FRBNY) and the U.S. Treasury Department initially rolled out the Term Asset-Backed Securities Loan Facility (TALF) program to revive the ABS market, but other sectors are also benefitting from the program, particularly CMBS, Standard & Poor’s said.

A Milwaukee County Circuit Court judge ruled yesterday that a lawsuit filed by five southeastern Wisconsin school districts against several financial firms over the safety of an investment involving synthetic CDOs can proceed.

The U.S. Department of Treasury said in a new report on the public private investment program that the nine funds participating in the program drew down a total market value of $3.4 billion of non-agency RMBS and CMBS as of Dec. 31.

Deutsche Bank has appointed Royal Bank of Scotland's (RBS) Paul Gardner as managing director and Asia-Pacific regional head of structured trade and export finance, effective immediately.

The U.S. Treasury announced some new measures aimed at increasing the number of trial home loan modifications becoming permanent.

The court ruling handed down early this week in U.S. Bankruptcy Court in New York on Lehman’s swap termination could have ratings implications for U.S. structured finance transactions that include swap agreements.

Freddie Mac just released its quarterly report on cash-out refinancings for 4Q09. No surprise that the percentage of refinances resulting in a 5% higher loan declined to 27% from 36% in the third quarter. This is the lowest percentage going back to 1Q02.

The Australian government allocated up to A$3.4 billion ($3.1 billion) to five small lenders as part of its effort to boost the country's RMBS market.

Allonhill released a complete securitization solution for RMBS issuers and underwriters.

The domestic securitization markets of Mexico, Brazil and Argentina, which are the biggest in Latin America, should gradually recover in 2010, said Moody's Investors Service in its annual review and outlook report on structured finance in the region.

ABS issuers priced a number of deals that were issued outside the Federal Reserve’s Term Asset-Backed Securities Loan Facility (TALF).

Clayton Holdings hired Raymond A. Redlingshafer as senior managing director.

Mortgage rates recorded further easing in the week ending Jan. 28, according to Freddie Mac.

The Federal Reserve officials continue to take a wait-and-see approach to ending their $1.25 trillion MBS purchase program by the end of this quarter, according to a statement issued by the Federal Open Market Committee (FOMC).

Calyon will change its name to Credit Agricole Corporate and Investment Bank, effective Feb. 6.