Securitization

Insurance holding company Ambac Financial Group reported a net loss in the second quarter, despite big gains in the value of its insured derivatives, and warned that it may be unable to pay its debts in a year.

One blueprint for turning Fannie Mae and Freddie Mac into privately run enterprises that is getting some play at Treasury comes from Redwood Trust — the firm that made headlines this spring when it pulled off the first private-label jumbo securitization in almost two years.

Although still rising, the slowing rate of U.S. prime RMBS serious delinquencies might mean they are nearing a peak, according to Fitch Ratings' latest Performance Metrics results.

Bank of America, in a new public filing, said it had $11.2 billion of "unresolved" mortgage buyback requests at June, a 50% spike since the beginning of the year.

The Federal Deposit Insurance Corp. (FDIC) said Tuesday it would create two new divisions – one to handle systemic resolutions and the other devoted to consumer protection – in response to the enactment of the regulatory reform law.

The aggregate value of commercial real estate (CRE) loans priced by DebtX that back CMBS rose to 77.4% as of June 30 from 76.6% as of May 28, according to a release from the firm. Loan values were 76% as of June 30, 2009.

The conversation about what to do with Fannie Mae and Freddie Mac may soon get a little more interesting.

Though the majority of the MBS/ABS group was formed in 2008 and 2009, Jefferies continues to expand in this area.

Knight Capital Group expanded its ABS/MBS capabilities in commercial real estate (CRE) finance with the hiring of Barry Funt and Winston van Buitenen as managing directors.

Regulators are poised next week to start moving away from reliance on the tarnished credit rating agencies in the supervisory process, but finding other options likely will be difficult.

An affiliate of Apollo Capital Management has chosen U.S. Bank as trustee, collateral administrator and custodian for its recent ALM Funding 2010-1 deal, according to a press release issued by U.S. Bank.

Private REIT The Carson Companies hired Fred McIntosh as senior vice president in capital markets. McIntosh will be leading the firm’s newly formed Carson Advisors.

A recent Bank of America securitization that appears to be the first of its type raises the question of the value of investing in "scratch and dent" reverse mortgages, a specialized part of this government product-dominated market that a select investor base is said to have an appetite for.

The subordinate bonds in some Saxon-sponsored securitization deals still have value.

Entergy Arkansas is in the market with a $124.1 million deal lead managed by Morgan Stanley.

Ally Financial, formerly known as GMAC, plans to sell as much as $1 billion in junk bonds in a benchmark deal, according to a filing with the Securities and Exchange Commission. Sources indicate the bonds could price Monday.

Freddie Mac lost $4.7 billion in the second quarter, an improvement from the prior period, but bad enough that the GSE is asking the Treasury for $1.8 billion in assistance to keep its net worth position in the black.

The Federal Reserve could easily purchase MBS or other assets with the cash it gets when existing MBS holdings roll off the government's books, but late Friday questions about whether this would be an effective means of economic stimulus persisted.

Loan modifications are still hurting borrowers'credit scores, but regulators and legislators said people's participation in such programs should end their delinquent status.

As the week got underway, up-in-coupon mortgage trades were beginning to feel the love again as investors began to discount the risks of a government-induced refinancing event.