Securitization

Some European CLO transactions may be susceptible to undercollateralization event of default triggers (EoD triggers) if leveraged loan prices continue at depressed levels and cumulative defaults reach 25% over the next two years, according to Fitch Ratings.

Mortgage applications were mixed again this week. According to the Mortgage Bankers Association (MBA), the Refinance Index rose a modest 4.5% to 4794.4 for the week ending May 15, while the Purchase Index fell 4.4% to 254.

The Federal Reserve Board said that starting in July, certain high-quality CMBS issued before Jan. 1 or legacy CMBS will become eligible collateral under the Term Asset-Backed Securities Loan Facility (TALF).

Wyndham Worldwide Corp. is in the market with a $100 million timeshare ABS transaction.

Two main business units that used to make up Friedman Billings Ramsey Group, Arlington, Va., are going for the full divorce.

After more than a week of debate, the Senate approved legislation on Tuesday that would enact sweeping credit card reform.

Treasury Secretary Timothy Geithner rejected calls Monday to cap executive compensation for bankers whose institutions got Troubled Asset Relief Program (TARP) funds, instead saying the government should focus on curbing incentives for high-risk activity.

Commercial real estate prices fell 1.7% in March and they are down 20.8% from year-ago levels, according to a measure of property prices published by Moody’s Investors Service on Tuesday.

Private label MBS — in particular subprime and alt-A loans — continue to be a "significant issue" for all the housing GSEs and have caused $26 billion of losses and impairments at these firms, according to a new report issued by the Federal Housing Finance Agency (FHFA).

Reducing and/or eliminating risk is increasingly on the agenda for both trustees and sponsors of pension schemes.

The Bank of Cyprus has completed the securitization of €1 billion ($1.34 billion) in mortgage debt, according to market reports.

State Street said it has consolidated onto its balance sheet the ABCP conduits it administers following the analysis under the Federal Reserve’s Supervisory Capital Assessment Program (SCAP).

Mitsubishi UFJ Securities International expanded its credit trading and sales business with the hire of a team of former Merrill Lynch professionals in London, the Japanese banking giant said on Monday.

NewOak Capital hired Malay Bansal, the former head of CRE CDOs at Merrill Lynch, as a managing director in CMBS.

The Financial Accounting Standards Board (FASB) concluded its deliberations of two proposals earlier today which will soon be finalized as standards.

After engaging in a five-year scheme to inflate the value of mortgage loans to increase his commission compensation, Steven Gordon, a former mortgage securitizer from Miami, has been sentenced to serve 36 months in prison.

Key weekly market data for commercial paper reported by the Federal Reserve shows a market contraction for the week.

Education Investment Group (EIG) and Byte Consulting have teamed up to create a library of student loan ABS deal models and a portfolio monitoring tool.

Investors considering the purchase of toxic loan portfolios have been stymied by the low amount of data about the underlying assets.

Moody's Investors Service said that the future performance of EMEA CMBS pub securitizations will depend on the successful repositioning of pub portfolios to increase free cash flow generation.