Securitization

ABS market trading remained woefully slow last week, according to traders, who said they expected this pace to continue at least until Labor Day.

For the first time since the Canadian securitization market came into existence, issuers are able to sell asset-backed notes to U.S. investors without dealing with withholding tax issues for non-exempt transactions. Elimination of withholding tax on arms-length payments of interest to U.S. investors came at a critical time for many Canadian issuers faced with few, if any, liquidity alternatives. Such issuers are now able to tap the term securitization market and extend the offerings to qualifying U.S. investors. The notes may also have credit enhancement in the form of a performance guaranty where the Canadian originator is a subsidiary of a foreign parent. These securities should be very attractive to U.S. investors looking for highly rated notes.

As deal flow has fallen silent in the subprime mortgage and CDO markets, forecasts that ABS is in its death throes have grown louder and more confident.

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

Wachovia appointed Robert Steel as chief executive officer effective immediately, according to a release from the firm.

Moody’s Investors Service has reviewed the impact of the financial guarantors’ mark-to-market losses relating to CDS’ in a new report released Wednesday.The report is titled Interpreting Financial Guarantors’ Mark-to-Market Losses.

Standard Chartered Bank has completed Start V CLO, its fifth CLO transaction under its Start CLO series.

Prostpect Mortgage has signed an agreement to acquire the majority of Indymac Bancorp’s retail mortgage branches, according to Tuesday’s Prospect release.

Five trade associations who are co-sponsors of the Joint Associations Committee (JAC) have released Structured Products: Principles for Managing the Distributor-Individual Investor Relationship.

Treasury Secretary Henry Paulson on Tuesday supported expanding the use of covered bonds by U.S. institutions to provide alternative sources of liquidity.

Moody’s Investors Service has released a new report called ABS Market in Japan: 2Q 2008 Market Review.

Year to date as of 08/16 Term (days) 08/10 08/11 08/12 08/13 08/16 1-week

The Securities and Exchange Commission delivered a blistering report Tuesday that detailed the shortcomings of Fitch Ratings, Moody's Investors Service and Standard & Poor's when it came to rating RMBS and CDOs.

IndyMac is abandoning its forward mortgage origination business and focusing on Financial Freedom, its reverse mortgage unit, according to published reports.

The American Securitization Forum (ASF) has updated its Streamlined Foreclosure and Loss Avoidance Framework for Securitized Subprime Adjustable Rate Mortgage Loans as described in the association's release today.

GFI Group has named Scott Wilson as head of structured credit products and Jim Higgins head of North American credit brokerage , according to today’s company release.

June CPRs were slower than the negative 3% to negative 4% that was expected. Instead, speeds declined 10% on average for Fannie Mae, 13% for Freddie Mac, and 8% for Ginnie Mae securities.

Fitch Ratings launched its issuer report grades (IRGs) for European ABCP conduits. The grades indicate the quality of post-issuance performance reports for the European ABCP conduits publicly rated by the rating agency.

Impac Mortgage Holdings has restructured its repurchase agreement financing facility with UBS Real Estate Securities, according to today’s Impac release.

Radian Group has appointed Teresa Bryce as president of Radian Guaranty, the company’s mortgage insurance subsidiary, according to a release from the company.