Securitization

Spirits were as low as the turnout on the first day of the 14th annual Information Management Network ABS East conference in Hollywood, Florida last week.

CLO market participants at the Information Management Network's 14th annual ABS East conference in Hollywood, Florida last week expressed confidence in the sector's long-term performance, despite the currently depressed spreads.

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

The Treasury Department is reviewing an Federal Deposit Insurance Corp. proposal, which includes using credit enhancements as a tool to encourage loan modifications.

After surging 52 basis points last week, 30-year fixed mortgage rates dropped back 42 basis points this week to 6.04%, according to Freddie Mac's weekly survey.

RealtyTrac reported a decrease in foreclosure activity in September. September saw foreclosure filings on 265,968 properties, a 12% drop from August.

The Federal Housing Finance Agency reported a 0.6% decline in its House Price Index for August. This compares to -0.8% reported in July. Year -over-year, the index is down 5.9%.

Radian Group promoted David Beidler, currently Executive Vice President and Chief Operating Officer of its principal financial guaranty subsidiary, Radian Asset Assurance, to President of Radian Asset, effective January 1, 2009.

Yesterday the largest ABS student loan issuer Sallie Mae reported that, despite credit market dislocation in 3Q08, its core student loan businesses were profitable while its total managed student loan portfolio performed within expectations.

Oak Hill Advisors hired Goran Puljic, T.K. Narayan and Scott W. Snell for the firm’s structured products group. The new hires will be focusing on investment opportunities in the credit markets.

The Municipal Infrastructure and Assurance Corp. came one step closer to insuring municipal bonds by gaining approval from the New York Insurance Department to act as a financial guarantor.

Jefferies Group announced the hiring of three senior managing directors in its fixed-income sales and trading platform.

Few investment banks know the trust-preferred securities market as well as FTN Midwest Securities Corp. Since 2001, the First Horizon National Corp. unit has structured more than 30 pooled trust-preferred deals, raising $22 billion for hundreds of banks and thrifts.

Liffe, the international derivatives business of Euronext, said that the Exchange will soon launch a credit default swap offering on Bclear in 4Q08. The CDS will combine the security of an exchange and clearing house with the flexibility enjoyed in the OTC market.

DebtX and boutique investment banking firm KEMA have signed a multi-year agreement with the U.S. Department of Housing and Urban Development (HUD) to sell commercial real estate loans via www.debtx.com.

Deutsche Bank’s global institutional asset management business, DB Advisors, appointed Kyle Delaney as head of the division in the Americas.

Despite all the troubles that the structured finance sector is experiencing, it is still worth saving, said Richard Field, managing director at TYI, LLC, in a presentation at Information Managment Network's ABS East conference that started Sunday.

Lowenstein Sandler created a global financial crisis group, a team of attorneys from a broad scope of practice areas dedicated to serving a growing list of clients affected by the current economic turmoil.

The Federal Housing Finance Agency (FHFA) is set to announce 2009 conforming loan limits for Fannie Mae and Freddie Mac by Nov. 7. The limits define the maximum loan size of mortgages that can be purchased by the Enterprises.

Federal Housing Administration lender and Ginnie Mae issuer Lend America, Melville, N.Y., said it is finalizing a "structured transaction" designed to help "a major global financial institution" refinance a roughly $1 billion pool of sub-performing loans into mortgages with more affordable terms.