Securitization

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.

U.S. student loan issuance is expected to remain around the same levels observed in both 2009 and 2010 according to report by Henderson Global Investors.

Argentina’s provinces are re-enacting the past. In the last year, three have publicly issued deals backed in part by revenue from a federal government institution, recalling a time when securitizing co-participation revenue from the central government was all the rage. That was before the crisis of 2001-2002.

New issuance for collateralized loan obligations (CLOs) continues to play a meaningful role in reducing the debt wall of existing CLOs nearing the end of their reinvestment periods, according to a Moody's Investors Report.

Figures released yesterday by the U.S. Treasury show that taxpayers collected a total of $12.9 billion in May from the investment and sales of the agency’s mortgage-backed securities (MBS) portfolio.

The largest U.S. banks are quietly preparing to push back against proposed Basel III liquidity requirements that they argue could wreak havoc in the market by artificially deflating the value of certain assets.

After a strong recent performance, the CLO new issuance market now faces potential challenges posed by risk retention rules under the Dodd-Frank Act.

The U.S. delinquency rate for commercial real estate loans in CMBS experienced its biggest decrease in two years, falling by 5 basis points to 9.60% in May, according to figures reported by Trepp LLC.

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.

Paragon published its half-year results for the year ended March 31 and said it plans to return the securitization market again.

Nearly 40 senators have now signed onto a measure urging federal regulators to modify a risk retention proposal and adopt changes that would pave the way for a broad exemption for securitized mortgages that have a low risk of default.

Lloyds TSB and Bank of Scotland are marketing a GBP615 Million ($1bn) credit card securitization deal dubbed Penarth Master Issuer Plc (2011-1 A1 and A2).

Despite lower mortgage rates in the week ending May 27, mortgage application activity slipped 4% with both refinancing and purchase activity lower.

Morgan Stanley and Bank of America have begun marketing a $1.2 billion CMBS deal.

Commercial real estate mortgage banking firm CW Financial Services (CW), has enhanced its commercial real estate (CRE) debt platform.

Figures released by Lender Processing Services (LPS) in its April Mortgage Monitor reported the largest monthly increase in delinquencies in recent years at 2.4%. This rise is considerable even though April usually has the biggest rise in new delinquencies.

The Canadian mortgage originator First National Financial Corp. (FNFC) released financial results for 1Q11 and said it increased its mortgage originations by 26% to $2.4 billion from 2010 first quarter results.