Securitization

A coalition of nearly 25 non-bank investors in student-loan backed auction rate securities released a whitepaper regarding a potential, immediate economic stimulus from a solution to the illiquid Student Loan-Backed Auction Rate Securities (SLARS) market.

Fitch Ratings said it has affirmed the ratings on the majority of tranches in its review of 78 fixed-rate U.S. commercial mortgage-backed securities transactions from 2006-2008.

For the past few months, the CLO market has been quietly improving, with prices and performance tests looking up. However, the serenity ended late last week, when Texas Pacific Group said it would try to by assets in several collateralized vehicles for pennies on the dollar.

Fitch Ratings said today that deteriorating macro-economic conditions in Spain are continuing weigh on the performance of structured finance assets across different sectors.

A new report from the National Consumer Law Center (NCLC) describes how little noticed incentives prompt banks to deny relief to homeowners, which is why have several recent programs designed to encourage loan modifications have failed to slow America’s still-worsening home mortgage foreclosure crisis.

Rite Aid announced plans yesterday to offer $250 million in senior secured notes saw its shares fall 1.9 percent to $1.55.

According to market reports, Standard and Poor’s (S&P) plans to add American Mortgage Consultants (AMC) to the list of firms that will provide third party due diligence reviews of U.S. residential mortgage-backed securitizations (RMBS).

Jules Kroll, the founder of global intelligence and security firm Kroll Inc, is reportedly planning to launch a credit rating agency.

CIT Group amended its restructuring plan in order to gain support from bondholders, the troubled lender announced late Friday. The changes include increased equity shares for bondholders and a shortening of maturities for all new junior debt.

According to market reports a new stimulus program for mortgages is underway that mirrors the recently closed Cash for Clunker Cars program.

Fitch Ratings said that the new Basel II guidelines will impact providers of liquidity support and credit enhancement to asset-backed commercial paper (ABCP) conduits; but it shouldn’t have any rating impact on these conduits.

Allonhill, a Denver-based national mortgage due diligence and credit risk management firm, announced it hired Mike Hartman to serve as director of sales.

BTIG LLC announced four new hires to its New York fixed income sales team, which expands its coverage in credit, ABS/MBS and emerging markets.

Global financial institutions will have to hold much more capital behind trading books — up to three times as much — when a market risk rule adopted by the Basel Committee on Banking Supervision takes effect by yearend 2010.

The Connecticut Retirement Plans and Trust Funds (CRPTF) selected four firms yesterday as public-private investment program (PPIP) managers.

According to market reports, Nationwide Building Society has mandated Barclays Capital, Citi and JP Morgan as joint lead managers for its inaugural public U.K RMBS benchmark transaction from the Silverstone Master Trust..

According to market reports, the Center for Economic Justice (CEJ) and the Consumer Federation of America (CFA) are opposing an effort to change the way residential mortgage-backed securities are graded.

DTZ has appointed CMBS research veteran Hans Vrensen as global head of research.

As of today Fitch Ratings will also be considered as one of the eligible rating agencies in connection with the Canadian Secured Credit Facility.

Federal Regulators are preparing workout guidance on commercial real estate loans that encourages banks to refinance these mortgages despite declines in property values.