Securitization

Thanks to the national foreclosure mess, it could take up to 40 months to clear a 1.5 million unit "shadow inventory" tied to non-agency delinquent mortgages, foreclosures and REOs, according to a new report from Fitch Ratings.

Distressed loan investors in particular need to keep an eye on potential legal developments arising from recent foreclosure concerns because they could affect their rights one way or another.

The commercial real estate (CRE) markets are in for a long, slow recovery in the face of persistently high unemployment, ongoing concern over government policy, uneven availability of capital for refinancing, and other factors dampening market activity, according to The Real Estate Roundtable's fourth quarter survey of over 110 senior CRE executives.

Guy Carpenter & Co. and GC Securities said they have completed a deal worth €275 million ($385 million) Class A principal at-risk variable rate notes due January 10, 2014 from a newly created 144A catastrophe bond program called Calypso Capital.

American Home Mortgage Servicing (AHMSI) is in the market with a four-tranche deal totaling $1.3 billion called AH Mortgage Advance Trust 2010-ADV2.

Misleading MBS investments offered by Bear Stearns allegedly “directly smacked” the Oregon Public Employees’ Retirement Fund (OPERF) with more than $17 million in losses following the 2008 economic collapse, state officials said today in a suit.

Landon Parsons joined Moelis & Co. as senior advisor in the firm’s risk advisory group.

U.S.-dollar denominated covered bond volume stands at $28.9 billion representing 25 deals year-to-date — the highest year-to-date volume on record.

AmeriCredit Financial Services filed an S-3 with the Securities and Exchange Commission (SEC) to issue six classes of notes backed by auto receivables.

Santander U.K. has announced the capital structure for its new U.K. RMBS securitization deal, Holmes 2010-1 .

The Securities and Exchange Commission (SEC) wants publicly traded depositories to provide "clear and transparent" disclosures on the impact mortgage buyback and foreclosure reviews will have on their bottom line in future quarters.

The Securities Industry and Financial Markets Association’s (SIFMA) U.S. Covered Bond Council criticized the Federal Deposit Insurance Corp.'s (FDIC) stance on covered bonds.

Ambac Financial Group, parent of the junk-rated bond insurer Ambac Assurance Corp., said in a regulatory filing Monday morning that it may be forced to file for bankruptcy by yearend because it has been unable to raise fresh capital.

The National Credit Union Association (NCUA) and the Federal Deposit Insurance Corp. (FDIC) each priced sizable CMOs in mid-September that are unlikely to be the last because of their incremental yield and issuer financing benefits, and because more banks are destined to fail.

Petroleos de Brasil has a hold on high finance players that at times seems to border on the hypnotic. ABS players have also been loath to look away as the company waves its epic $224-billion investment plan in their faces.

The Securities and Exchange Commission's (SEC) proposal of Oct. 13 to require issuers to review the underlying assets in their ABS should create a much more uniform set of review standards - to the benefit of investors. However, it could significantly alter, perhaps to the ABS market's detriment, how the reviews are performed.

The so-called foreclosure scandal has grabbed headlines over the past month. ASR's November issue looks beyond the mainstream coverage to its effect on bondholders.

The Federal Deposit Insurance Corp. (FDIC) recently finalized its Safe Harbor that protects the assets that are transferred to bank-sponsored securitization vehicles from a financial institution's FDIC receivership.

The recent news coverage has returned many mortgage and MBS-related issues, both real and illusory, to prominence. The initial headlines that stemmed from the announcement of problems with GMAC's foreclosure filings have morphed into questions about the foreclosure process, the extent and potential cost of loan buyouts, and the legal standing of the securitized mortgage market itself. This article addresses some of the issues currently roiling the financial markets.

Capacity constraints at mortgage lenders have dampened the number of refinancings that are able to get through the system. Current origination capacity at these firms can handle a refinancing index at only the 5000 level, Barclays Capital analysts said in a recent report.