Securitization

Fitch Ratings said that the Greek draft law addressing household debt restructuring is likely to reduce recoveries and increase defaults in pools of Greek residential mortgages and consumer credits, potentially leading to negative rating action.

Finacity Corp., together with Norddeutsche Landesbank (NORD/LB), has facilitated the size increase to $55 million of a European trade receivables securitization for CHC Helicopter.

In a sure sign that covered bonds are coming into favor, the session devoted to the subject at ASF 2010 was standing room only. There was broad agreement among the panelists that for the market to take off there would have to be a legal framework, something that Rep. Scott Garrett (R-NJ) has been advocating for some time.

Comptroller of the Currency John C. Dugan said today that a robust securitization market is vital to funding the needs of consumers and businesses. He urged policy makers to focus reform efforts on improving underwriting standards rather than "skin-in-the game" risk retention proposals.

Government programs such as the Term ABS Loan Facility (TALF) have restored basic investor confidence in the ABS product, said panelists at the American Securitization Forum’s conference in Washington, D.C. this week.

The Federal Deposit Insurance Corp.’s (FDIC) Deputy to the Chariman for Policy Michael Krimminger said that the interim rule to extend the securitization safe harbor announced in November last year will most likely be extended beyond the March 31 end date.

Bad loans stopped soaring at large and mid-size banks last quarter, but whether the credit cycle has bottomed out or is just taking a breather might depend on the success rate for loan modifications.

George Miller, former executive director of the American Securitization Forum (ASF), has established his own consultancy and advisory firm, Auspex LLC.

Credit Suisse is arranging a $250 million deal securitizing diversified payment rights (DPRs) originated by Scotiabank Peru, the issuer’s debut in this asset class.

Setting the stage for the American Securitization Forum’s (ASF) 2010 securitization conference, the opening panel discussed the impact of government support and preparing for its withdrawal.

Haynes and Boone, LLP announced the addition of six partners to its East Coast real estate, finance and real estate restructuring practices

At the ongoing American Securitzation Forum (ASF) conference being held in Washington, D.C., Equifax Capital Markets announced the addition of the FICO score and other enhancements to its ABS Credit Risk Insight.

1010data announced today it is now hosting MBSData, which provides accurate and timely deal and loan level information on public non-agency MBS.

Ally Bank is in the market with a $929.5 million TALF-eligible autofloor plan ABS, Ally Master Owner Trust 2010-1. The deal is led by Barclays Capital, Deutsche Bank Securities and Morgan Stanley.

Manager Activity: Autos Book Runner Amount (US$ Mil) Rank Mkt.

Lloyds Banking Group sold £2.5 billion ($3.9 billion) of mortgage-backed bonds denominated in euros, sterling and dollars.

One of the positive outcomes of the recent credit crisis is that it has changed the commonly accepted standards for transparency. Structured finance marketplace participants are recognizing the need for fundamental changes. These changes will improve asset-level transparency and allow for proper assessment of the risk versus return tradeoff of investing in mortgage pools or credit-enhanced mortgage securities.

The major contributors to prepayments in 2010 are expected to be involuntary.

The scheduled completion of the Federal Reserve's MBS purchase program this March has created fears that rising mortgage rates will exert renewed pressure on home prices. While the program has been successful in keeping primary rates low, it has had some unanticipated effects that will impact the housing and capital markets even after outright purchases have ended.

The student loan ABS (SLABS) market's biggest challenges today are bubbling on Capitol Hill, where legislation that would shrink it has been thrown into limbo along with the healthcare bill, threatening the availability of student loans unless an emergency funding program is extended.