Securitization

Kondaur Capital Corp.completed 18 months of operation last December with the purchase of close to 2,000 distressed loans that month, reaching $378 million in unpaid balances.

The performance outlooks for ABS and RMBS in Europe, the Middle East and Africa (EMEA) are Negative, said Moody's Investors Service in its review of 2008 and outlook for 2009 report.

Defaults on larger loans were again chiefly responsible for another increase in CMBS loan delinquencies, to 0.88%, according to Fitch Ratings.

MGIC Investment Corp. (MGIC) is not going to be profitable in 2009, the top executive at the Milwaukee-based mortgage insurer declared, even though its fourth quarter and full year results were improved over the previous year.

The Federal Home Loan Bank of Pittsburgh expects to take additional writedowns on its $2.73 billion portfolio of private label mortgage-backed securities in the fourth quarter, a move that could make the GSE undercapitalized and endanger its shareholders — banks and thrifts primarily. In a new filing with the Securities and Exchange Commission, the government sponsored enterprise admits that it will not complete an analysis of its private label holdings until late in the first quarter.

A National Association of Home Builder (NAHB) task force on housing finance has recommended that the politically powerful organization adopt a policy blueprint that calls for a sharing of the interest rate and credit risk by the private sector institutions which benefit from the government's secondary market support.

Intensifying troubles at Bank of America Corp. and Citigroup are spawning new questions about a possible need for further government support, even for the likes of Wells Fargo & Co., which is perceived by many on Wall Street to be in relatively sound shape.

Barclays Capital said that the U.K. property group Mapeley could be facing insolvency as early as April 2009 if current efforts to raise capital are unsuccessful.

Fannie Mae and Freddie Mac have been directed by their regulator to record — beginning in 2010 — identification numbers for loan officers, appraisers and others involved in originating mortgages they purchase in the secondary market.

The $825 billion economic stimulus package drafted by House Democratic leaders will restore the $729,750 GSE loan limit in high cost areas until year-end 2009.

The Federal Reserve purchased $23.4 billion of GSE MBS for the week ending Jan. 14 — nearly double the previous week's amount.

Mexico's domestic bond market stumbled during stretches of the year but still fared better than fixed income in many other countries.

Russian Factoring 1 is in serious trouble.

Even when the credit crunch started to unfold and unleash a harsh reality for the future of European securitizations, the continent's covered bond market at least looked poised to step up as a beacon of security for risk-adverse investors still looking to put money to work.

After a nearly four-month drought, securitization of credit card and other consumer receivables is poised for a revival - with a different group of buyers.

After strong buying over the first three days following the Federal Reserve's announcement that it had started to buy agency MBS, flows turned more balanced. The average price of the MBS market stands at just under a $104 handle and is up against increased resistance as rates rally further.

The Bank of England made its move to cut the U.K. base rate by half a point to 1.5%.

The Securities and Exchange Commission (SEC) issued a study on Dec. 30 recommending that mark-to-market and fair value accounting - including Financial Accounting Statement 157 or FAS 157 - be kept.

To combat a CLO market frozen stiff by a lack of new capital, price declines, and waning confidence, some firms are working on new CLO portfolio strategies to bring in business and keep current clients interested in the loan market.

The Jan. 6 filing by SLM Corp., known by the Sallie Mae moniker, to pursue a $1.5 billion financing through Goldman Sachs, represents an innovative deal structure that Goldman pioneered with CIT Financial last year.