ABS

Italy's more conservative approach to lending has resulted in the country's housing market withstanding the current economic environment, unlike neighboring European countries. This has also preserved the fundamentals of securitization structures.

Recent bank failures have cast doubt on whether existing structural mechanisms are sufficient to protect securitization transactions from the credit risk of the counterparties on which they rely. In cases where Lehman Brothers and certain Icelandic banks were a crucial counterparty, for example, existing mechanisms did not protect structured finance bondholders from downgrades and in some cases defaults.

The Term Asset-Backed Securities Loan Facility (TALF) has kick-started U.S. primary market issuance, but the flurry of activity won't tempt European governments to follow with a European version of TALF. Market analysts said that governments, in particular the U.K., have worked on several initiatives that separately touch upon many similar points housed under TALF.

The Lehman Brothers bankruptcy was a turning point for the securitization market as counterparty risk assumed a role more important than any investor could have ever imagined.

Refinancing response has been relatively muted relative to the historically low mortgage rate levels that the market has been seeing lately.

This past month, credit card reform has been in the spotlight.

The effectiveness of the Term Asset-Backed Securities Loan Facility (TALF) is being questioned because of the so-called anemic interest in the program.

Long gone are the glory days of ABCP. These days, the muted activity in the market is mostly limited to government-supported programs or restructurings. Market sources said that with things the way they are, investors can at least count on betting on a sure deal.

Market participants remain optimistic that new deal flow will hold, despite bankruptcy fears from the Detroit Big Three and a slowdown in sales volume.

CNH Capital America is prepping a $784 million equipment-backed loan via Barclays Capital and Credit Suisse under the TALF program.

Three Term ABS Loan Facility (TALF)-eligible ABS deals are in the works right now — two auto deals from Volkswagen and Honda Motor Co. as well as a Harley Davidson transaction backed by motorcycle loans.

GMAC revealed Thursday that it would not inherit Chrysler Financial's book of auto loans and leases. It is taking over being the lender for new financing to Chrysler dealers and consumers, according to a report from Dow Jones

Keefe, Bruyette & Woods and State Street Global Advisors have launched what they said is the first exchange traded fund to offer 100% exposure to the U.S. mortgage finance industry.

Bankers received mixed news Thursday from Capitol Hill, as the House voted 357 to 70 to approve a sweeping credit card reform bill, while the Senate rejected a measure that would have let judges modify mortgages in bankruptcy.

The increasing speed and magnitude of defaults along with rising special servicing volume is placing considerable pressure on the resources of CMBS special and master servicers, a

Fitch Ratings said today that mortgage support measures announced earlier this week by the Greek government may have a positive impact on the revival of the domestic housing market.

Yesterday Treasury Secretary Tim Geithner along with Congresswoman Carolyn Maloney (D-NY) met with consumer groups, civil rights leaders and the credit card consumers to discuss the national need for credit card reform.

Moody's Investors Service downgraded the long-term ratings of Advanta Corp. The rating agency lowered the credit card issuer's senior unsecured rating to 'Caa3' from Caa1.

The Treasury Department announced the receipt of more than 100 unique applications from potential fund managers interested in participating in the Legacy Securities portion of the Public Private Investment Program (PPIP).

Research from 12th Street Capital pointed out that the new program for homeowner affordability ensures that first and second lien holders are treated fairly and consistent with priority of liens.