Securitization

Despite mortgage rates moving back to a record low of 4.78% early in the week, according to Freddie Mac's survey, mortgage application activity was not very responsive.

GSC Group, a Florham Park, N.J.-based investment shop overseeing more than $18 billion in assets, has defaulted on its bank loan, according to Moody’s Investors Service.

The three-month London interbank offered rate or Libor has fallen below 1% for the first time since its 1984 creation.

The Whistlejacket bid list traded at tighter levels than prevailing secondary market spreads for structured finance securities. This might be a sign that liquidity and investor interest in the sector is improving, Fitch Ratings said today.

Sallie Mae said it extended the term of its $21.8 billion ABCP facility that provides funding for the company's federally guaranteed student loans from April 28, 2009 to April 23, 2010.

New proposals for the regulation of securitization and the credit default swaps (CDS)

CI Financial Corp. has combined some of the resources acquired in its merger with KBSH Capital Management in a new division focused exclusively on the institutional investment marketplace.

Energizer Holdings renewed of its asset securitization program at the $200 million level.

The Senate on Tuesday moved closer to passing a housing bill after defeating two amendments that would weaken legal protections for residential servicers engaged in loan modifications and potentially handcuff the Federal Housing Administration's (FHA) single-family program.

Negating criticism that the response to the government's Term ABS Loan Facility (TALF) has been lackluster thus far, over $10 billion worth of deals just priced under the program's third round.

The Federal Deposit Insurance Corp. (FDIC) is preparing for a "test sale" of troubled real estate loans under its new 'Legacy Loan Program' and wants to send the mortgage package to investors by next month.

GMAC Financial Services said first quarter residential loan production rose 61% to $13.2 billion on a sequential basis at its mortgage units but declined 29% compared to the same period last year.

TCW Asset Management has been selected to manage an opportunistic MBS portfolio for the Pennsylvania Public School Employees' Retirement System (PSERS), confirmed Evelyn Tatkovski, spokeswoman for the $45.4 billion plan.

Fitch Ratings placed 132 subordinate FFELP student loan ABS tranches on Rating Watch Negative.

The last chance for bankers to voluntarily modify mortgages may be at hand.

Chase priced a $5 billion credit card transaction with JPMorgan Securities as sole lead.

Thornburg Mortgage of Santa Fe, N.M., filed for bankruptcy protection late last week, listing debts of more than $1 billion.

Senate Democratic leaders want to pass an Federal Deposit Insurance Corp. (FDIC)/housing bill on Tuesday but first they have to wade through a number of amendments including one that would require a temporary shutdown of the Federal Housing Administration (FHA) single-family program if it is headed toward insolvency.

Investors are facing both increased extension and call risk at the moment. For these buyers, Barclays Capital suggested stripped down 10/20 IOs because they allow the creation of lower priced bonds, which helps fight premium erosion. Meanwhile, the higher WAC protects against extension risk.

Amherst Securities Group hired a team of MBS and ABS salespeople at its Chicago office.