Securitization

Without a home on the domestic side, European commercial paper (ECP) investors have increasingly found shelter in the U.S.

Fitch Ratings' recent moves on a handful of Russian ABS and MBS - most of which were decidedly negative - have raised the spotlight on Transfer & Convertibility (T&C) risk in the country.

By any measure, RMBS issuance slowed dramatically in Mexico in 2008. In a recent report, Moody's Investors Service estimated volumes hit Ps35.4 billion ($2.4 billion) in 2008, from Ps30.0 billion the previous year. While 18% growth is hardly something to sneeze at, it's a sharp drop in velocity from 2006-2007. Issuance in that more ebullient period rose 61%, according to a report from IXE.

Moody's Investors Service predicts in a report that overall issuance in Latin America will slip this year from the $19.5 billion the agency estimated for 2008. Propped by growth in the region's domestic market, last year's figure marked a slight 2% growth from 2007. Domestic market volumes made up 85% of the total from Latin America.

With the securitization markets currently broken, market participants are trying to find their way through the crisis and pick up the pieces. This was evident in last week's American Securitization Forum (ASF) gathering held in Las Vegas.

MBS volume was average into midweek with hearings in Washington, the announcement of a new financial aid plan, a Senate Stimulus Bill vote and the American Securitization Forum conference held in Las Vegas providing distractions.

Chapman and Cutler hired Kenneth Marin to be part of its recently opened New York City office. Marin is a partner in the firm's asset securitization practice. Marin has represented issuers, underwriters, investors and credit enhancers in securitization deals involving a diverse array of performing and distressed assets. He also has a substantial derivatives practice and helped pioneer the use of covered bonds in the U.S. Marin was previously at McKee Nelson, where he was a partner in the corporate finance department and co-head of the firm's covered bonds team.

For three weeks now, better sentiment has prevailed in European ABS secondary market trading, where spread widening has stopped and triple-A spreads have tightened at a rapid pace.

Treasury Secretary Timothy Geithner's announcement of his Financial Stability Plan created a buzz at last week's American Securitization Forum conference - ASF 2009 - held in Las Vegas.

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

Obscure clauses in securitization documents could spell big losses for banks if Congress passes mortgage bankruptcy legislation.

Ginnie Mae's MBS program reached $27.3 billion in January. For the full-year 2009, Ginnie Mae MBS issuance stands at $108.95 billion, compared with $43.3 for the first four months of full-year 2008.

Sens. Chris Dodd, D-Conn., and Carl Levin, D-Mich., introduced a credit card reform bill Wednesday that would rein in a slew of common practices in advance of hearing the Senate Banking Committee is holding on card consumer protection.

Lehman Brothers Holdings' Structured Asset Securities Corp. and LB Rose Ranch filed for bankruptcy, both entities want to wind down along with their parent firm, according to published reports.

Mission Capital Advisors is now accepting bids for a commercial real estate mortgage loan and REO portfolio with an outstanding balance of $221,355,915 million.

Chuo Mitsui Trust International, the global arm of Chuo Mitsui Trust and Banking, Japan’s second largest trust bank, is expanding its business to London.

The Austin, Texas-based Amherst Securities Group, a broker-dealer specializing in RMBS, said it has hired executives to expand its reach in securitized products.

The official number of attendees at the American Securitization Forum's (ASF) just concluded conference was higher than expected.

Encore Bank, a subsidiary of Encore Bancshares, appointed Robert W. Brown as senior vice president of Encore Bank.

Moody's/Economy.com is forecasting the housing market will hit bottom by the end of this year and house prices will remain flat in 2010.