Securitization

The recent property acquisitions reported over the last two weeks are signs that the U.K. commercial property investment market may be headed towards revitalization. However, while these tentative signs are a credit positive for CMBS, the individual credits may be affected differently if “share deal” structures are used, Moody’s Investors Service analysts said.

Chase closed its credit card deal Chase Issuance Trust Class A (2009-8), which was upsized to $410 million from $375 million.

The serious delinquency rate on Freddie Mac guaranteed single-family loans broke the 3% mark in August, the highest reading ever posted by the mortgage giant.

Permanent Master Issuer Trust‘s final placement was tighter than spread guidance and demand was higher than expected. The positive reception is likely to lead to other U.K. master trusts tapping the market in the near future, market analysts said.

Two additional mortgage vulture funds went public this week — both as REITs — but their IPOs failed to catch fire with investors.

The housing reports released over the week showed some encouraging signs, but also raised concerns about further stabilization if the government does not extend and expand the homebuyers tax credit.

Citifinancial Auto is in the market with a $1.408.8 billion auto ABS deal. The offering, which is eligible under the Term ABS Loan Facility, is lead managed by Citigroup Global Markets.

The Securities and Exchange Commission’s (SEC) proposed rules for rating agencies received a mix review from market participants this week.

Like chameleons, American Express and Discover changed their skins to survive the financial crisis. They may actually be getting used to the camouflage.

Autos are not the only ones in the market. Aside from the AESOP, Mercedes Benz and Ford Motor Credit Co. transactions, two credit card offerings are currently in the market.

Loans are entering delinquency and/or foreclosure at a rapid rate, but are exiting at a very slow rate and this will delay a recovery in the housing market, according to analysts at Amherst Securities Group (ASG).

The government accepted all the collateral offered for the September legacy CMBS Term ABS Loan Facility (TALF) subscription period.

Bank of America Merrill Lynch announced the addition of three senior hires to its Americas fixed-income sales team. The executives, Michael Hokin, Doug Horlick and Robert Grillo, will be based in New York and will report to Bryan Weadock, who is head of Americas fixed-income sales.

Citadel Investment Group will launch a leveraged finance group in October, the Chicago-based hedge fund confirmed. The new unit will be part of its Citadel Securities division and will be based in New York.

Mercedes Benz is in the market with a $1.081 billion auto-loan backed ABS that is Term ABS Loan Facility (TALF)-eligible.

The Federal Open Market Committee (FOMC) announced yesterday it would slow the pace of its plan to purchase $1.25 trillion in MBS, and extend the program through the end of 1Q10. The FOMC is doing this to, "promote a smooth transition in markets."

Large-scale downgrades in CLO ratings, resulting from changes in rating methodology by Standard & Poor’s, will not likely result in a wide-spread sell-off of CLOs, according to a report published Wednesday by Wells Fargo Securities.

The American Securitization Forum (ASF) and Standard & Poor's Fixed Income Risk Management Services (S&P FIRMS) launched a new standardized universal code for identifying critical information about individual loans that are securitized in the MBS and ABS markets.

Mortgage rates remained almost the same for the week ending Sept. 24, according to Freddie Mac.

A heated debate on the potentially destabilizing impact of introducing a European prime RMBS index has been taking place behind closed doors, Henderson Global Investors analysts said.