Securitization

Although mortgage portfolios are going for bargain-basement prices, investors are still shying away from them.

GMAC said Wednesday that it had completed a debt-exchange offer as part of becoming a bank holding company, though just 59% of bondholders took part in the offering, less than the 75% the company had said it needed to achieve its capital goal.

The Federal Reserve said yesterday that it will be starting its program to buy MBS in early January, according to a Dow Jones report.

The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) just announced the membership of the Financial Crisis Advisory Group (FCAG).

Orrick, Herrington & Sutcliffe announced Monday it would freeze salaries for its nearly 670 associates, according to Law.com. The law firm cited the current challenging business environment.

The Treasury Department announced Monday evening it has given GMAC, the financing arm of General Motors Corp. (GM), $6 billion in support from the Troubled Asset Relief Program (TARP).

The Financial Accounting Standards Board (FASB) is on track to give investors in mortgage-backed securities a break in the way they determine other-than-temporary impairment for their fourth quarter financial reports.

Thomas Zimmerman, who used to be part of the team that published UBS investment research’s Mortgage Strategist, is still at UBS heading up a research group within Swiss National Bank Fund Management Group.

Despite concerns about mixing banking and commerce, the Federal Reserve Board said Wednesday that it approved GMAC Financial Services' application to become a bank holding company.

For banks awaiting word on whether they are eligible for capital infusions from the Treasury Department, approval may hinge on whether they can raise money on their own first.

Eric Billings, founder, chairman and chief executive of FBR Capital Markets, will step down as CEO of the firm on Jan. 1. He will stay on as chairman but will be replaced as CEO by Richard Hendrix, FBR's president and chief operating officer.

The Federal Deposit Insurance Corp. (FDIC) is expected to announce the sale of IndyMac Bancorp soon, possibly as early as Wednesday, sources said Tuesday.

Single-family existing home sales fell 8% in November from October as deteriorating economic conditions produced a drop in homebuying for the second month in a row, as well as a further slide in house prices.

Sonnenschein Nath & Rosenthal, in a major lateral move, effective Jan. 1, the law firm will add approximately 100 lawyers, including 40 partners, from Thacher Proffitt & Wood, including Stephen Kudenholdt and Stephen T. Whelan

Freddie Mac's monthly volume summary for November revealed a second month of sizeable growth in its retained portfolio — not surprising given its placement in conservatorship and the government's goal of reducing mortgage rates for borrowers.

There are still attractive opportunities in call protection paper for investors who are concerned about a refinance wave happening as a result of a drop in mortgage rates, Barclays Capital analysts said.

Mortgage lenders funded just $20.58 billion in second liens during the third quarter, an 82% decline from the same period last year, according to exclusive survey figures compiled by National Mortgage News.

Societe Generale Asset Management (SGAM) announced last Friday that it will sell its London-based asset management subsidiary (SGAM U.K.) to GLG Partners (GLG).SGAM U.K. manages $8.2 billion of assets as of Nov 30. This is equivalent to around 2.5% of overall assets managed by SGAM.

The International Accounting Standards Board (IASB) today published an exposure draft, ED10, Consolidated Financial Statements.

AllonHill, a due diligence provider specializing in whole loans and MBS today announced the opening of its Washington, D.C.-area office. The office, located in Bethesda, Md., will serve regulators and private investors seeking to understand, manage and reduce risk associated with whole loans, bonds and mortgage-backed securities.