CDOs

The Basel Committee on Banking Supervision finalized its review of the Basel III standard for capital treatment for counterparty credit risk in bilateral trades and plans to modify the risk weighting of credit valuation adjustment (CVA), which is the risk of loss caused by changes in the credit spread of a counterparty due to changes in its credit quality.

The government is a month into selling its AIG holdings. Despite the bids for the auctions being pre-announced, the sales are causing a commotion in the RMBS secondary market, and the reaction from securitization players is not entirely positive.

The Securities and Exchange Commission's (SEC) proposal issued May 18 to implement rules mandated by the Dodd-Frank Act tasks rating agencies with measures most have sought to address, but the proposal's detailed requirements could instead overwhelm smaller agencies.

Vendors anticipated hearing May 27, the Friday after ASR's deadline, whether they could bid on the contract to build and operate a repository to collect and make available data for loans backing European RMBS, a project several steps ahead of a similar effort in the U.S.

ING closed a CLO for more than $400 million, according to sources. Almost $2 billion in new CLOs have priced in May.

Babson Capital has joined a growing list of money management firms starting closed-end loan funds. In Babson’s case, the fund will invest in leverage loans and high yield bonds in both North America and Western Europe.

The American Securitization Forum (ASF) will have Securities and Exchange Commission (SEC) Chairman Mary Schapiro as keynote speaker at its 2011 annual meeting in Washington, D.C. on June 22.

Principia Partners released the latest version of its structured finance platform called Principia SFP.

Despite assertions they got off relatively lightly in the Dodd-Frank Act, foreign banks operating in the U.S. are increasingly worried they will be targeted by some of the regulatory reform law's toughest provisions.

It’s official: Leveraged loans are back in Europe and they are here to stay.

The market for CMBS has staged a comeback this year, and now it appears that there is some interest in restarting the market for CDOs backed by commercial real estate (CRE) as well.

Pricing on a CLO managed by Symphony Asset Management has been set by Morgan Stanley, according to sources.

The Securities and Exchange Commission (SEC) voted unanimously to propose new rules and amendments for increasing credit rating transparency and improving their integrity.

Syncora Guarantee reported positive net income for the first quarter but said it faces liquidity problems that threaten its future long-term obligations.

The Financial Accounting Standards Board (FASB) issued new rules last week to update how companies account for repurchase agreements like the kind Lehman Brothers used to temporarily move billion of dollars of assets temporarily off its books and hide how much debt it had just before reporting its quarterly results.

Citigroup on Tuesday priced a $408 million CLO managed by BlackRock, according to sources.

Fitch Ratings has set up a page of performance markers for structured finance deals across the globe on its web site, the agency said today. The page will link to over 40 performance-based products, and in part is a response to investor demands for more transparency. Among its features are U.S. RMBS performance and loss metrics, Australia’s RMBS Dinkum Index, and the Mexican RMBS Performance Update.

The Financial Industry Regulatory Authority (FINRA) issued a trade reporting notice today regarding when to report ABS to the Trade Reporting and Compliance Engine (TRACE).

Assured Guaranty’s recent settlement with Bank of America allowed it to post much higher operating earnings in the first quarter compared with 2010, but actual business production fell about a third.

A CLO managed by BlackRock Financial Management, BMI CLO I, is expected to price this week, according to sources.