CDOs

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.

Cecile Houlot joined Morgan Stanley as managing director and head of its European securitization effort within the global structured solutions group.

Even as they begin dropping credit ratings as a supervisory source, regulators signaled Tuesday they are worried about abandoning their use altogether, suggesting that potential alternatives are not much of an improvement.

Insurance holding company Ambac Financial Group reported a net loss in the second quarter, despite big gains in the value of its insured derivatives, and warned that it may be unable to pay its debts in a year.

Regulators are poised next week to start moving away from reliance on the tarnished credit rating agencies in the supervisory process, but finding other options likely will be difficult.

An affiliate of Apollo Capital Management has chosen U.S. Bank as trustee, collateral administrator and custodian for its recent ALM Funding 2010-1 deal, according to a press release issued by U.S. Bank.

Assured Guaranty late Thursday posted second-quarter earnings that were the insurer’s best since its initial public offering in 2004.

U.S. Bank Corporate Trust Services hired Joseph Giordano as senior vice president and manager of its CDO business.

The Federal Reserve Bank of New York may require seller/servicers of nonprime mortgages and CDO sponsors to repurchase certain loans out of mortgage trusts that are controlled by the agency.

BNY Mellon Corporate Trust has named Richard Stanley and Debra Baker to oversee its structured finance business lines, the firm announced today.

Jefferies appointed Erez Biala as a managing director and global co-head of CLO and CDO trading.