Securitization

Moody’s Investor Service called for increased disclosure of both the type and volume of U.K. loan modifications and arrears capitalization.

Barclays Capital economists have revised their projections for the European Central Bank (ECB) base rate and now expect a 25 basis point rate increase in July, taking the policy rate to 1.50%. The ECB also said that another 25 basis point rate hike is likely in December.

Recent Fitch Ratings’ “unsolicited assessment” of the DECO 2011-CSPK CMBS deal is an example of the harsh penalties sponsors face for ‘rating shopping’, Royal Bank of Scotland (RBS) analysts said in a recent report.

The second half of 2011 will bring a very active RMBS issuance pipeline for public and private placement, although this will focus on existing markets, according to Neil Shah, managing director and head of Moody’s Investors Service RMBS business in Europe, the Middle East and Africa (EMEA).

The rating performance of European small and medium-sized enterprise (SME) securitizations during the economic crisis are congruent with the macroeconomic environment, said a Moody's Investor Service report.

Lender Processing Services, Inc. has appointed Joe Jacquot as senior vice president of Government Affairs.

U.K. care home operator Southern Cross is in the middle of a financial restructuring that could affect several U.K. CMBS structures, according to a Barclays Capital report.

Global agribusiness and food company Bunge Limited recently closed a program for the securitization of its trade receivables to the tune of $700 million, according to a press release from Finacity Corporation, which was the program structurer and administrator.

DRBS has assigned provisional ratings to the DBUBS Series 2001-LC2 Commercial Pass-Through Certificates, which will be issued by DBUBS 2011-LC2 Mortgage Trust.

U.S. Subprime CDS prices more than doubled their increase from the previous month, rising 1.7% overall. According to the latest Fitch Solutions report, this brings the subprime rally to its unprecedented seventh consecutive month.

Goldman Sachs has launched a $301.5 million CLO to be managed by PineBridge Investments, according to sources.

VW Finance priced its €628.90 million ($916 million) auto loan ABS called Driver Espana. It's the issuer's first securitization of auto loan receivables originated by VW Finance within Spain.

The Consumer Financial Protection Bureau (CFPB) has received more than 14,500 individual comments on its model mortgage disclosure forms.

Federal Reserve chairman Ben Bernanke expects hiring and economic growth to "pick up" in the second half of this year, but the nation’s central banker did not provide any encouraging words for the housing industry.

GE Capital Corporation is issuing a deal worth approximately $619 million of ABS.

General Growth Properties (GGP) issued a press release yesterday announcing the refinancing of five shopping malls, totaling $743 million in new mortgages. The deal also provided a cash-out of $180 million that allowed a total of $563 million in existing mortgages to be refinanced.

Yesterday, regulators voted to lengthen the comment period on the proposed risk retention requirement from June 10th to August 1st. This will provide crucial time for many institutions to formulate and organize comments to be taken into consideration by the regulators.

Porsche Financial Services (PFS) is marketing a $518.60 million auto loan securitization.

The Argentine province of Misiones is making unwelcome noise in the securitization market, as it seeks to expand the application of a stamp tax on trust agreements and securitization trusts regardless of where the documents are processed, according to Moody’s Investors Service.

The six regulatory agencies working on the risk retention rule are considering a proposal to extend the comment period until August 1, according to industry officials.