CDOs

Although the Basel Committee on Banking Supervision provided clarity on new international capital standards this weekend, the panel left some crucial questions unanswered, including how it plans to calculate certain requirements for the most systemically risky institutions.

Citigroup has arranged a $600 million CLO that will be managed by Guggenheim Investment Management, according to sources.

The U.K. Financial Services Authority (FSA) will apply banking book risk weights to securitization trading positions following the position adopted under the capital requirements directive (CRD 3) passed by the European Parliament at the end of July.

Federal Deposit Insurance Corp. (FDIC) Chairman Sheila Bair said Tuesday the agency would soon publish an interim rule on its new resolution authority over systemically important banking companies and certain nonbanks.

Fitch Ratings stated that as of July 20 defaults on U.S. bank Trust Preferred Security (TruPS) CDOs eclipsed the 14% mark on 11 new bank defaults.

The securitization market just can't seem to get a break. From tougher regulations to a battered economy, our industry seems at times to be facing an all-out assault.

While it's clear that tighter rules for securitization are on their way, varying approaches to the issue by different agencies are making bankers and issuers uneasy.

Citigroup has arranged a $600 million CLO that will be managed by Guggenheim Investment Management, according to sources.

DBRS is requesting comments on the proposed legal criteria for European structured finance deals.

Three years after the onset of the financial crisis, securitization market players are now focusing more on finding different restructuring options for ABS deals, according to the Henderson Global Investors' structured products team.

Fitch Ratings said today that it has made changes to its global rating methodology for CDOs backed by trust preferred securities (TruPS).

Fitch Ratings stated that defaults on U.S. bank TruPS CDOs eclipsed the 14% mark on 11 new bank defaults.

While the call for the creation of a catastrophic insurance fund for MBS has been gaining ground in recent weeks, two leading Federal Reserve Board economists are poised to push the concept one step further, suggesting a backstop for all ABS.

In 2Q10, CLO obligor concentration risk decreased slightly in outstanding Standard & Poor's-rated U.S. cash flow deals, the agency said in a recent report.

Mayer Brown appointed Dominic Griffiths as the new head of the banking and finance group in London.

The Royal Bank of Scotland has reportedly sold a €1.4 billion ($1.8 billion) portfolio of leveraged loans to Intermediate Capital Group.

Moody's Investors Service reiterated Monday that the possible bankruptcy of Ambac Financial Group is unlikely to affect policyholders of its bond insurer subsidiary.

While the Basel II process dragged on for years, international and domestic regulators appear intent on delivering a new set of capital and liquidity standards on time by yearend.

Defunct bond insurer Syncora Guarantee last week reported positive net income for the second quarter, reflecting the broad success of the major restructuring it initiated in July 2009 and completed in April.

The New York Supreme Court on Monday denied Credit Suisse’s motion to dismiss MBIA Insurance Corp.’s claims of mortgage-related fraud and breach of contract.