Securitization

The Treasury Department just released added guidance for potential investors in the securities portion of the Public Private Investment Program (PPIP).

Fitch Ratings said today that workouts of defaulted commercial mortgage loans are likely to be protracted as servicers contend with balloon risk.

Guggenheim Capital Markets (GCM), a subsidiary of Guggenheim Partners, hired James

Bankers lobbied hard for relief they won from fair-value accounting rules, but few may capitalize on changes that let them mark up the value of distressed loans and securities.

SecondMarket launched markets for MBS, whole loans, and CDOs yesterday.

Fannie Mae has warned its servicers that they face a new wave of mortgage buyback requests — this time for defects on unsecured loans that were extended to delinquent mortgage borrowers.

The more exotic the securities, the better?

The CLO market has had dark clouds overhead since the credit storm began, and occasionally there have been downpours of liquidations and forced selling. As the storm lingers, market participants differ on their view of the forecast — some believe there will be another wave of liquidations, others believe the market will remain calm.

The Financial Accounting Standards Board approved major changes to its mark-to-market rules that could allow banks to reverse some of the writedowns they have taken on MBS and report an increase in earnings and capital for the first quarter.

CarMax is in the market with an auto ABS, CarMax Auto Owner Trust 2009-1.

Obama administration officials believe they have designed a loan modification program that will fit a wide range of struggling homeowners and they want to ensure that these borrowers are guided quickly to the right servicer. "

The Federal Home Loan Bank of Boston may have to take a larger impairment charge on its investments in private-label mortgage-backed securities and it has delayed the issuance of the 2008 combined financial report of the 12 FHLBanks.

President Barack Obama took hold of the automotive industry on Monday by saying no to restructuring proposals from General Motors Corp. and Chrysler.

Some observers expect issuance of credit card-backed bonds to pick up substantially in the coming months, though lenders are weighing the costs of alternative sources of funding.

A slight pickup in non-agency RMBS prices has been seen in response to the government's latest Public-Private Investment Plan (PPIP) and Term Asset-Backed Securities Loan Facility (TALF) initiatives, but a fair amount of pessimism linked to other issues persists in the market.

Home values will continue to suffer through year-end 2010 with most metropolitan statistical areas facing an increased risk of lower prices, according to a new report issued by PMI Mortgage Insurance, Walnut Creek, Calif.

Over the past week, two student loan offerings have come to market from Sallie Mae and Nelnet.

Guggenheim Capital Markets (GCM), a subsidiary of Guggenheim Partners, expanded its U.S. fixed-income rates trading group and appointedThomas L. di Galoma and three members of his team from Jefferies. The group will be based in GCM’s New York office.

Sen. Jon Kyl, R-Ariz., is urging bankers to stand firm and not compromise on cramdown legislation because Senate Democratic leaders don't have the votes to pass it.

Irwin Financial Corp. said Wednesday it will be able to remove $690 million in home equity loan assets from its balance sheet in the first quarter and improve its capital ratios as a result of an asset sale that closed Tuesday.