ABS

As deteriorating economic conditions continue to weigh heavily on the U.S., no sector of the real estate market remains intact, including the formerly healthy commercial mortgage-backed market.

The European covered bond market has taken some steps forward despite the economic environment. The pipeline has seen fresh issuance while new markets have opened supported by new legislation.

When the European Central Bank (ECB) upped its threshold for repo-eligible ABS to triple-A beginning in March, this funding alternative shut down for emerging market securitizations, which could hit that rating only with a level of enhancement that is unavailable in today's environment.

The U.K. government plans to implement its Asset Protection Scheme by April 2009. However, it has yet to unveil the scheme's full details.

Barclays Capital analysts have found that structural "surprises" in securitized deals found over the past several years have highlighted inefficiencies within transactions.

The month of March started with President Barack Obama's Homeowner Affordability and Stability Plan underway.

Recent proposals by the Financial Accounting Standards Board (FASB) give holders of illiquid assets more flexibility in disclosing their fair values but also establish stricter guidelines for how to achieve those values, likely resulting in greater operational burdens and a step back on the road toward fair value accounting.

The month of March saw ABS activity spurred by the Federal Reserve's Term Asset-Backed Securities Loan Facility (TALF).

Last week, the U.S. Department of the Treasury released the details regarding its Public-Private Investment Program (PPIP).

Accredited Mortgage Loan REIT Trust of San Diego said it would suspend first quarter dividends on its 9.75% Series cumulative preferred shares.

The Federal Deposit Insurance Corp. (FDIC) on Thursday released for comment its plan to auction and sell toxic assets, asking questions on everything from which assets should be eligible to how fees for government-guaranteed debt should be assessed.

Tom Donatacci, who recently left Residential Capital Corp., has joined The Clayton Group, a loan advisory firm based in Shelton, Conn.

Canary Wharf Finance II, one of the highest profile CMBS deals in Europe reported results yesterday and showed that debt-service-coverage ratio (DSCR) went up to 1.30 from 1.18, mostly due to an increase in rents.

Lending through the Federal Reserve Board's discount window grew less than 1% during the past week, to $136.2 billion.

Industry veteran Tom Donatacci, senior vice president of business development and subservicing for Residential Capital Corp. (ResCap), Horsham, Pa., has left the company.

Freddie Mac's reverse REMIC Giant PC securities program, which aims to improve liquidity for remaining real estate mortgage investment conduit securities, has gotten underway.

Credit card issuers are taking unusual steps to protect their securitization vehicles as surging unemployment continues to hurt credit performance and a government program has reopened the ABS market to new issuance.

Freddie Mac reported in its weekly survey that the 30-year fixed mortgage rate averaged 4.85%, down 13 basis points from last week.

The Norwegian finance ministry announced guidelines for the government bond fund, the launch of which, together with a government finance fund, was announced on Feb. 8.

Moody's Investors Service on Wednesday cut Wells Fargo's senior debt rating to 'A1' from 'Aa3', its senior subordinated debt rating to 'A2' from 'A1', and the banking giant's junior subordinated debt rating to 'A3' from 'A1'.