Securitization

In the weeks preceding Wednesday's decision by the Financial Accounting Standards Board to postpone changes to accounting rules for securitizations, attention tended to focus on the changes' ramifications for Fannie Mae and Freddie Mac.

The Securities Industry and Financial Markets Association (SIFMA) and the European Securitization Forum (ESF) said they welcome the assessment and analysis of current market conditions stated in the recent U.K. treasury report authored by Sir James Crosby. The report also looked at the implications on the securitization market and potential policy alternatives.

The U.S. central bank on Wednesday said it extended several measures aimed at enhancing liquidity in the credit markets.

Kieran Quinn, chairman of the Mortgage Bankers Association, has commented on the decision by the Financial Accounting Standards Board (FASB) to delay by a year the implementation of a forthcoming proposal that would bring broad changes to securitization accounting.

The Financial Accounting Standards Board(FASB) decided this morning to propose a single effective date for the amendments to FAS 140 and FIN 46R.

Moody's Investors Service placed the 'B2' insurance financial strength ratings of XL Capital Assurance (XLCA), XL Capital Assurance (U.K.) and XL Financial Assurance (XLFA) under review with direction uncertain yesterday, according to Moody’s release, and also placed the ratings of Security Capital Assurance (SCA) and a related financing trust on review for possible downgrade.

Moody's Investors Service said in a report that it expects further write-downs for the large European banks' structured finance portfolios resulting from continued widening in U.S. subprime RMBS spreads and deterioration in the credit quality of financial guarantors.

Bayview Financial Holdings, a Coral Gables, Fla., mortgage finance company, has agreed to sell a minority position in its Bayview Asset Management to Blackstone Group, a New York alternative investment manager.

Citigroup probably will write down the value of CDOs by $8 billion this quarter, Mike Mayo, a Deutsche Bank analyst, wrote in a report to clients Tuesday after Merrill Lynch said it would sell CDO holdings for 22 cents on the dollar.

Standard & Poor’s has affirmed its ratings on Advanta and its subsidiaries, including the ‘BB-’ long-term counterparty credit rating on Advanta and the ‘BB’ long-term counterparty credit rating on its operating subsidiary, Advanta Bank.

Merrill Lynch has planned a series of moves to improve its capital position, including the sale of problematic mortgage-related CDOs for $6.7 billion, according to yesterday’s release.

Moody's Investors Service has placed the 'Baa1' senior debt rating of XL Capital and the 'A1' IFS ratings of XL's insurance operating subsidiaries on review for possible downgrade after XL acted to increase capital, according to today’s Moody’s release.

Armins Rusis will join Markit as executive vice president and global co-head of fixed income, according to today’s release from the firm.

Clifford Chance plans to open a new office in Abu Dhabi on Aug. 3.

The remittance reports for July for the June collection period released Friday were in line with analysts' expectations, Barclays Capital stated.

Standard & Poor's today affirmed its 'AAA'/'A-1+' senior unsecured debt ratings on Fannie Mae and Freddie Mac.

The student loan sector is still in relatively good health, all things considered. In fact, Fitch Ratings released a report last week saying that for the most part, student loan ABS has continued its stable performance despite the negative funding issues plaguing the market.

It's news to no one who follows Mexican ABS that while credit markets have soured across the board, they've grown especially leery of deals collateralizing assets originated by non-bank housing finance companies called Sofols.

IndyMac Bank's failure, and the cleanup that followed, were shocking, but not unprecedented in the structured finance market.

The largest Spanish corporate default, Martinsa-Fadesa, a Spanish homebuilder, signals potential risks in SME portfolios, Deutsche Bank analysts said.