Securitization

As the credit rating agencies (CRAs) begin to rebuild their brand, market experts are questioning whether the changes these firms are implementing are tackling the key problems that have caused rating inaccuracies.

Credit rating agencies (CRAs) are still scrutinized and blamed for their failure to capture the true risk in rated ABS transactions.

Although the economic fallout from the "great recession" would have been much higher without the steadying hand of government, its activity also has other consequences, including a potential downside for the commercial real estate sector.

In keeping with the Term ABS Loan Facility's (TALF) and thePublic-Private Investment Program's (PPIP) prominent roles in the current securitization market, the Information Management Network (IMN) has aptly made these programs the focus of its upcoming 15th AnnualABS Eastgathering.

Notwithstanding the anaemic state of securitization generally, cross-border securitization of Canadian receivables has remained fairly steady, and in some sectors has actually picked up.

The eighth TALF round closed last week. Of the $7.9 billion of new issuance in 12 transactions, $6.5 billion was TALF-eligible.

Interactive Data Corp announced an exclusive agreement with Prism Valuation to offer pricing and reference data for loans made available by the Federal Reserve Bank of New York in connection with the Term Asset-Backed Securities Loan Facility (TALF).

URDANG, the real estate investment subsidiary for BNY Mellon Asset Management, has created a new real estate debt strategy group by hiring eight team members from Capmark Investments LP.

Detecting a change in attitude among both buyers and sellers — not to mention what is now a three-month increase in the benchmark price indices that bear his name — economist Karl Case believes the housing market has hit bottom.

A new modification bill (Preserving Homes and Communities Act of 2009) was introduced in the U.S. Senate to expand loan-modification programs and place new restrictions on lenders before they can initiate foreclosure proceedings.

CIT Group, the New York finance company, said it is planning an exchange offer for some of its unsecured notes in an effort to shore up its liquidity, but if it does not complete the offer the company may file for a Chapter 11 bankruptcy filing.

Robert Williams joined Allen & Overy as partner in its London-based U.S. corporate finance group.

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

The Mortgage Bankers Association (MBA) will update its origination forecast for 2010 at next week's annual convention but isn't giving any hints on whether the forecast will change much.

Steve Abreu is the new president of GMAC's mortgage operations, working out of the company's Fort Washington, Pa., office.

The Securities Industry and Financial Markets Association (SIFMA) hired Carter McDowell as managing director and associate general counsel.

First American CoreLogic, Santa Ana, Calif., is offering current and potential clients a "2X mortgage fraud guarantee."

Strategem Capital Corp. sold 100% of its Canadian ABCP for proceeds of CDN$1,884,993 and bought units in a managed fund that will provide similar exposure to the ABCP market, according to a release from the company.

Lending through the Federal Reserve Board's discount window budged up less than 1% during the past week, to $110.3 billion.

It was a meeting nobody expected to happen, least of all the participants.