ABS

The beach was looking a lot better than the office last week for many ABS traders, who noted that the summer slowdown has sapped deal flow, removing any hope of liquidity picking up.

The Financial Accounting Standards Board (FASB) said on July 30 that it was delaying for one year or until January 1, 2010, the adoption of amendments to FIN 46(R) (consolidation of variable interest entities) and FAS 140 (accounting for transfers and servicing of financial assets and extinguishments of liabilities).

WLJ Partners, a Coral Gables, Fla., investment fund, announced its formation Thursday and said it has raised $200 million to buy nonperforming commercial real estate loans.

Fannie Mae swung to a second-quarter loss as the largest buyer of home loans booked $5.35 billion in credit-costs from boosting loss provisions and charge-offs.

Fitch Ratings is reviewing its market value decline (MVD) assumptions for German residential properties.

Thirteen countries including Germany, Italy, Spain, Portugal, Ireland and France called on the European Commission to delay or change the plan for further regulations of ABS investments, according to market reports.

Moody’s Investors Service last night said it will review for possible upgrade the 'B2' ratings of Syncora Guarantee and Syncora Guarantee Re following the recent announcement that Syncora Holdings had closed on its deals with former parent XL Capital and Merrill Lynch.

American International Group, New York, has reported a net loss of $5.86 billion ($2.06 per share) for the second quarter, compared with net income of $4.28 billion (1.64 per share) a year earlier.

Connecticut Attorney General Richard Blumenthal is the latest state AG to file suit against Countrywide Financial Corp. for allegedly pushing consumers into deceptive, unaffordable loans and workouts, and allegedly charging homeowners in default unjustified and excessive legal fees.

Federal and state securities regulators today announced a preliminary settlement with Citigroup Global Markets over their sale to investors of auction-rate securities that became illiquid when that market collapsed.

Moody's Analytics said that the next generation of Moody's Mortgage Metrics model for U.S. subprime mortgage loans will be available to market participants on Aug. 15.

Irwin Financial Corp. today announced transactions that, when completed in the third quarter, will accomplish a strategic restructuring of Irwin and Irwin Union Bank.

CompuCredit Corp. said the cost of defending itself against federal lawsuits over its marketing practices and a related dispute with a debt buyer helped its second-quarter loss quadruple from a year earlier.

Morgan Stanley told thousands of clients this week that they will not be allowed to withdraw money on their home equity credit lines, a person familiar with the situation said.

Fitch Ratings has placed on all the notes of Eurohome Mortgages 2007-1 plc, a pan-European RMBS backed by German and Italian loans, on Rating Watch Negative.

After announcing net losses of $330.5 million for the second quarter of 2008 and $752.1 million for the first half, Financial Security Assurance (FSA) announced that it is exiting the ABS business and will focus primarily on public finance.

Stung by rising loan delinquencies, Freddie Mac has reported an $821 million loss for the second quarter, compared with a $729 million profit for the same period a year ago.

Ambac Financial Group posted second quarter earnings of $823.1 million, thanks in large part to mark-to-market gains on credit derivatives, the company announced this morning. Ambac Financial, the parent of bond insurer Ambac Assurance Corp., said it had mark-to-market gains of $961.6 million in the second quarter, helping it record a net income equivalent of $2.80 per diluted share. Net income in the second quarter last year was $173 million, or $1.67 per share.

Ginnie Mae today announced recent enhancements to its risk management strategy.

The U.S. Treasury Department has hired Morgan Stanley to provide market analysis and financial expertise in connection with a government rescue of mortgage giants Fannie Mae and Freddie Mac.