Securitization

A new rule in Europe—Article 122a of the Capital Requirements Directive, which calls for originators, sponsors or original lenders in an arbitrage CLO to retain at least 5% of the vehicle’s equity on their balance sheet—has European loan market participants worried about the future of these funds, and places a kink in a market that, after two years of inactivity, is just starting up again.

Ally Credit Canada issued its first public retail loan issuance in 2011, a $745 million auto ABS transaction.

Global financial information services firm Markit will be rolling out its Markit MBX, Markit IOS and Markit PO agency mortgage index series, according to a release from the firm.

Royal Bank of Scotland (RBS) appointed Scott Eichel has been appointed global head of securitized products and head of U.S. credit for its markets franchise within its global banking and markets unit.

A rising number of secondary assets are achieving lower loss severities upon dispositions of troubled loans, which could lead to a decline in overall REO loss severity by the end of 2011, a Barclays Capital report said.

The Royal Bank of Scotland and Wells Fargo have begun marketing a $1.3 billion CMBS expected to be placed via the 144A market.

While Republicans and Democrats largely agree that the government's Home Affordable Modification Program (HAMP) is a failure, the two sides disagree sharply on what to do about it.

Panelists at ASF 2011 looked at the business implications of securitization policy reforms given that there are supposedly over 200 rulemakings and over 19 provisions associated with securitization in the Dodd-Frank Act.

CMBS can make a relative comeback this year, although issuance will likely still be a far cry from what it was at the height of this market.

With the administration supposedly set to come out with its GSE reform package on Friday, panelists at ASF 2011 held in Orlando this week were hopeful that the government will offer at least some short-term alternatives to reduce its involvement in the MBS sector, even if an actual proposal is not forthcoming.

Data presented in the student loan panel at this week’s ASF 2011 held in Orlando showed that enrollment rates remain steady and exhibit continues growth. Simultaneous with this, however, is the increase in education costs.

A panel at ASF 2011, which is being held in Orlando this week, discussed the implications of the legislative mandate under 939A of the Dodd-Frank Act to reduce reliance on credit ratings. Panelists also explored potential alternatives to credit ratings.

ABS issuance will be slightly north of last year’s, according to panelists in today’s 2011 market outlook panel at ASF 2011. The conference is being held in Orlando this week.

There have been shifts in consumer behavior seen through credit scores, according to panelists at an ASF 2011 panel yesterday called Consumer Credit Metrics and Evaluation. The conference is being held this week in Orlando.

NPL buyer Kondaur Capital Corp. introduced its new subsidiary called DKR Collateral Dynamics (DCD), a third-party service that offers a full-range of collateral review ensuring that in "analyzing a note or security instrument all the missing links in the chain of ownership are filled," according to Kondaur Chairman Jon Daurio.

Bank of America Corp. has established a new unit to deal with its mortgage-related headaches.

They've been called "braindead," "negligent," and "otiose." But some trustees of mortgage-backed securities are proving useful to investors after all in repurchase fights.

Barclays Capital is currently marketing the first whole business securitization since the financial crisis.

Commercial property values have fallen 42% from their peak in 2007 and there are roughly $1 trillion in underwater commercial real estate (CRE) loans maturing the next few years that could be difficult to refinance, according to a new report from Trepp.

The Federal Deposit Insurance Corp. (FDIC) Friday named Michael Krimminger, a close aide to Chairman Sheila Bair, as the agency's new general counsel.