Securitization

The Securities Industry and Financial Markets Association (SIFMA), the American Securitization Forum (ASF) and the European Securitization Forum (ESF) have formed a global working group with the intention of restoring confidence in the securitization markets.

Germany has set new regulations for residential mortgage book sales to third parties. The law referred to in German as "Risikobegrenzungsgesetz" is expected to lead to a longer workout process for German residential mortgage loans.

Over the past two years, the Islamic securitization market has grown dramatically, although its growth faces serious roadblocks if the legal issues surrounding how to achieve a true sale are not clarified.

The RMBS market reported another paltry quarter, wrapping up a dismal first half for new issuance despite both local and Federal loss-mitigation initiatives.

The world's largest primary silver producer, Industrias Penoles, announced last week that it had pre-paid a 12-year structured bond issued in 1997 for $380 million. The Mexican company retired the issue using funds from a two-tranche syndicated loan in dollars and pesos.

A New Legislative Regime for U.K. Covered Bonds

The amendment of the legal framework for French SPVs is expected to significantly impact the structuring landscape of French securitizations, making transactions backed by higher yields - from the easier to the more complex - less difficult to structure.

Despite a steadier pace of issuance in the second quarter for the consumer ABS market, the first half of 2008 finished significantly behind last year's totals.

CLOs continued to squeak out new issuance in the second quarter, making them the only corner of the U.S. CDO market to do so. The good news is that, of the new CLO deals to hit the market, several were structured from fresh loan assets - rather than from balance sheet assets, which have thus far represented most 2008 CLO issuance.

Fitch Ratings released proposed indicators and ratings that it believes should add value to existing structured finance ratings.

Last week nine European trade groups released 10 industry initiatives to make the securitization market more transparent. The move follows the European Council of Finance Ministers' (Ecofin) call in its October 2007 roadmap to "enhance transparency for investor, markets and regulators" by mid-2008.

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

Freddie Mac-approved mortgage insurer Republic Mortgage Insurance Co. (RMIC) has been downgraded by Moody’s Investor Services to 'A1' from 'Aa3'.

Creditex and Markit announced a joint initiative to launch an industry-wide portfolio compression platform for the credit derivative market.

Nine European and global trade associations today released Ten Industry Initiatives to Increase Transparency in the European Securitization Markets in response to the European Council of Finance Ministers’ (ECOFIN) call in its October 2007 roadmap to “enhance transparency for investor, markets and regulators” by mid-2008.

Noel Kirnon, former head of global structured finance at Moody's Investors Service, has left the rating agency.

Barclays Capital reported that Hatfield Philips posted an interim notice today regarding the fact that ILVA, the Danish furniture retailer, is in administration and is likely to close its three U.K. shops.

CIT Group has agreed to sell its home lending business to Lone Star Funds, according to today’s company release.

Swiss Re has sponsored its latest natural catastrophe protection program called Vega Capital, which closed on June 27.

The securities law firm of Klayman & Toskes filed an arbitration claim seeking damages of $125,000 against Charles Schwab from the Financial Industry Regulatory Authority's office of dispute resolution, according to a release from the law firm.