Securitization

Slammed by Moody’s Investors Service’s sharp downgrade in the corporate rating, the DPR bonds of Kazakhstan’s BTA Bank have likewise fallen hard, again.

The European parliament's Economic and Monetary Affairs Committee adopted a series of amendments to enhance the transparency and good governance of credit rating agencies (CRAs).

German insurer Allianz is planning a new $150 million catastrophe bond, the fourth such transaction this year, according to market reports.

Advisory, asset management and capital markets firm NewOak Capital has boosted its staff with two more hires.

NewOak Capital appointed Samuel Warren as director of the firm’s RMBS structuring solutions team and to complement its RMBS and residential loans credit management capabilities.

Manager Activity: AutosFull Credit to Book (Equal if Joint) U.S. Public ABS Market/144A Market

The release of the Treasury's plan for public-private investment funds (PPIFs) has received substantial attention and triggered a huge rally in financial stocks. However, the proposed changes in accounting rules by the Financial Accounting Standards Board (FASB) may have a more significant and lasting impact on the financial system. While they risk making financial statements even more opaque, the accounting changes, if approved, should serve to limit the debilitating cycles of write-downs and capital depletions that continue to plague the financial sector.

Although refinancing risk for European CMBS deals is expected in another couple of years, market sources said that a more immediate concern for bondholders is the alarming rate of tenant defaults.

The U.K. pub sector faces further constraints as turnover and profit margins are expected to drive the declining industry trend. Market analysts said it is likely that whole business deals tied to this sector will see performance suffer as a result.

On March 23, Kazkommertsbank (KKB) launched a tender offer of up to $175 million for seven tranches of the originator's paper backed by diversified payment rights (see table).

As deteriorating economic conditions continue to weigh heavily on the U.S., no sector of the real estate market remains intact, including the formerly healthy commercial mortgage-backed market.

The European covered bond market has taken some steps forward despite the economic environment. The pipeline has seen fresh issuance while new markets have opened supported by new legislation.

When the European Central Bank (ECB) upped its threshold for repo-eligible ABS to triple-A beginning in March, this funding alternative shut down for emerging market securitizations, which could hit that rating only with a level of enhancement that is unavailable in today's environment.

The U.K. government plans to implement its Asset Protection Scheme by April 2009. However, it has yet to unveil the scheme's full details.

Barclays Capital analysts have found that structural "surprises" in securitized deals found over the past several years have highlighted inefficiencies within transactions.

The month of March started with President Barack Obama's Homeowner Affordability and Stability Plan underway.

Recent proposals by the Financial Accounting Standards Board (FASB) give holders of illiquid assets more flexibility in disclosing their fair values but also establish stricter guidelines for how to achieve those values, likely resulting in greater operational burdens and a step back on the road toward fair value accounting.

The month of March saw ABS activity spurred by the Federal Reserve's Term Asset-Backed Securities Loan Facility (TALF).

Last week, the U.S. Department of the Treasury released the details regarding its Public-Private Investment Program (PPIP).

Accredited Mortgage Loan REIT Trust of San Diego said it would suspend first quarter dividends on its 9.75% Series cumulative preferred shares.