Securitization

Despite waning demand for U.S. municipal bond insurance, a startup company believes there is value in credit enhancement among the world’s developing markets.

At a press conference following the European Central Bank's (ECB) rate decision last week, its President Jean-Claude Trichet said that the ECB is looking to create disincentives for banks who refinance exclusively through the bank.

Worker remittances to developing countries are projected to total $325 billion for 2010, up 5.9% from $307 billion last year, according to the World Bank’s Migration and Remittances Factbook 2011. The flows to developing countries are expected to continue growing in 2011 and 2012, potentially topping $370 billion within two years.

DBRS hired Mike Babick for its structured finance group as a senior vice president effective Nov. 1.

Italian bank Banca Monte dei Paschi di Siena (Banca MPS), currently marketing a new Italian RMBS, has also brought to market a €1.5 billion ($2.08 billion) sale and lease backed deal, according to published reports.

Markit has created the first electronic link between agent banks and lenders so that they can have real-time sharing of comprehensive agent data on syndicated loans.

Fannie Mae has named investment banker John Nichols chief risk officer for its capital markets division.

Fannie Mae said Friday that it lost $3.46 billion during the third quarter, as it paid a $2.12 billion dividend payment to the government.

The foreclosure document debacle, a huge embarrassment and liability for mortgage servicers, could soon also ensnare the banks that act as trustees for securitizations.

House price appreciation may not be what it used to be, but most participants in the National Association of Realtors' (NAR) annual profile of buyers and sellers still believe home ownership is a sound investment.

ABCP conduit professional Mary Logan has opted to take a package from Barclays Capital the last week of October to take a career break.

Redwood Trust, the only company to securitize jumbo loans during the past two years, has pushed backed its second deal to early 2011 because of a lack of available product.

Structured finance advisory firm Paladin Advisors hired Steve Campo as a managing partner in advisory services. Campo has over 30 years of experience as an accountant, issuer, financial guarantor and advisor in the ABS industry.

Citigroup Inc mortgage bond investors, including Charles Schwab Corp and hedge fund Cambridge Place Investment Management, have filed suit against the bank over its home loan underwriting processes, according to a Reuters report.

House prices look set to remain on a downward trajectory and is likely to keep repayment rates in U.K. RMBS low.

BlackRock is planning to launch a fund that will begin financing U.S. home loans specially made for a new kind of RMBS, according to a Reuters report.

Commercial and multifamily mortgage originations are at their highest level in nearly two years — driven by sequential growth in the health care and multifamily sectors.

Banca Monte dei Paschi di Siena is in the market with a €3.47 billion ($4.9 billion) Italian RMBS deal, a rarity among a primarily U.K. and Dutch dominated European RMBS market.

The 30-year fixed mortgages averaged one basis point higher to 4.24% with an average 0.8 point in the week ending Nov. 4, according to Freddie Mac.

Independent broker-dealer Braver Stern Securities hired Peter Howard as a managing director and head trader of CDOs, CLOs and esoteric ABS.