ABS

Fitch Ratings has created two new portfolio risk officer positions, in which high-level executives will enhance analytical oversight, experience and training to all structured finance groups. Glenn Costello, a managing director who was co-head of the rating agency's U.S. RMBS group, won a promotion as portfolio risk officer of the structured finance group. He reports to group managing director John Bonfiglio, according to Fitch. Managing director Stuart Jennings, formerly head of Fitch’s European RMBS team, is now portfolio risk officer for EMEA structured finance, reporting to group managing director Ian Linnell.

IKB Deutsche Industriebank faced fresh allegations from FGIC. The bond insurer filed a suit against the German bank through a New York City court at the beginning of March.

CIFG Holding, the holding company for CIFG's financial guaranty subsidiaries, announced late today that it has formally requested that Fitch Ratings withdraw the insurer financial strength ratings for the following affiliated companies: CIFG Guaranty, CIFG Assurance North America and CIFG Europe.

Eric Rosensweig has left his post as managing director of FGIC, where he focused on future flow deals from the emerging markets, according to a knowledgeable source. On his watch, the agency wrapped deals backed by diversified payment rights originated by such Turkish banks as Vakifbank, Akbank and HSBC Turkey, and by Kazakhstan's Kazkommertsbank. Rosensweig joined FGIC in June 2005 from MBIA, where he had been instrumental in building up the agency's future flows portfolio. No word yet on whether he has been replaced.

U.S. Housing and Urban Development Secretary Alphonso Jackson announced today he is resigning as the nation's chief housing officer. Jackson will conclude his government service as the nation's 13th HUD Secretary on April 18, said a HUD press release. "During my time here, I have sought to make America a better place to live, work and raise a family," Jackson said. "I take great pride in working alongside some of the most dedicated civil servants in America. The hardworking people at HUD make a difference in the lives of thousands of Americans daily." According to the HUD release, Jackson during his term oversaw HUD's $37 billion budget and 9,200 employees. The former HUD secretary has recently caught the ire of the U.S. Senate after refusing to answer questions regarding accusations that he had in appropriately directed his staff to steer federal housing contracts to Jackson's political allies. Senate Banking Committee Chairman Chris Dodd (D-Conn.) asked for Jackson's resignation earlier in March, stating that Jackson was unfit to lead HUD now that the U.S. is in the midst of a housing crisis.

The real estate industry has become a dirty word over the past nine months or so. However, real estate investment trusts (REITs) are standing their ground despite the mortgage market's liquidity fears, with new companies looking to enter the space, notably on the agency MBS side.

Mortgage-backed volume was running below normal in the first half of the week with flows relatively balanced. MBS spreads widened on Monday as Treasurys gave up more of their flight to quality premium. In general, overseas investors showed interest in 5.5%s and 6%s, while servicers moved into 5% coupons. Other investors such as money managers and hedge funds were better sellers. Supply was burdensome for the limited participation - totaling nearly $3 billion.

The market for mortgage finance might be at a standstill in the U.S. and thawing in Europe, but Australian loan originators have a new source of financing, if indirectly, in the form of the National Australia Bank (NAB).

With the mood in the markets still dour and leading bond insurers declaring structured finance off-limits for either six months or until further notice, it may seem premature to canvass the monolines on where they stand right now in respect to emerging markets.

The season might be changing, but it won't be enough to lighten the heavy mood that has held the European primary market deal flow at a standstill for much of the year.

Lehman Brothers slashed its target price for Mitchells & Butlers to 235 pence from 450, causing an almost 17% drop in the company's value.

The Bank of Spain moved closer to implementing amendments to its existing securitization law of 1981. The changes have been in the works for the last two years and started getting finalized at the end of 2007.

The tenth series of the North American Investment Grade CDX index (CDX.NA.IG.10) launched into a slightly rosier-than-expected market last week.

Bank write-downs are expected to total approximately $37.4 billion for 1Q08, according to a research note from Meredith Whitney at Oppenheimer & Co.

The primary ABS issuance market did not see a ton of issuance last week: An auto ABS and a couple of modestly sized credit card deals were the highlights.

Structured Finance Advisors, a longtime investor in the mortgage- and asset-backed securities industry, is preparing to launch a short-sale fund that will take a different approach to investing in distressed mortgage assets.

After a brutal market downturn of almost unprecedented proportions, the rate of credit deterioration finally slowed in February.

At the outset of 2008, Fitch Ratings analysts enumerated several reasons why the auto industry needed to keep a vigilant watch over unemployment rates. Not much has changed in the unemployment rate, yet Fitch analysts now seem to have a much rosier, it still cautious, outlook on the auto ABS sector.

Thornburg Mortgage, Inc. plans to float up to $1.35 billion in senior subordinated secured notes, as part of a previously announced funding effort designed to keep it out of bankruptcy. The private placement transaction will involve notes with seven-year durations and will carry an interest rate of 18%. The proceeds from the private placement are to satisfy a contingency of the Override Agreement that Thornburg announced on March 19. Under the terms of that agreement, the mortgage lender and investor agreed to raise $948 million in new capital on or before March 27.

Radian Guaranty, the mortgage insurance business of Radian Group, announced that it will no longer insure "stated income" and "stated asset" loans. This is due to the poor performance of these loans, Radian said. This change will take effect on April 30, 2008 for all new mortgage insurance applications.