Securitization

After a long wait for the debut of new Italian covered bonds (Obbligazioni Bancarie Garantite) in the Jumbo market, it has finally come true. Banca Popolare di Milano (BPM) started its road show and is planning to launch its first issue as part of a €10 billion ($15.7 billion) issuance program in early July.

The credit rating agency task force of the Securities Industry and Financial Markets Association (SIFMA) supports the proposal presented by the Securities and Exchange Commission (SEC) today, according to a SIFMA release.

At the request of Republican members of the House Financial Services Committee, chairman Barney Frank, D-Mass., has delayed a vote on a bill he introduced last week that would require the credit rating agencies to rate municipal, corporate and other securities based on the likelihood of repayment alone.

Lehman Brothers said Tuesday it has brought back two senior managers, and promoted two other staffers. Michael Gelband will return to serve as global head of capital markets, and Alex Kirk has rejoined as global head of principal investing. They will report to Bart McDade, the newly named president and chief operating officer at Lehman.

Fitch Ratings yesterday published an exposure draft on disclosing the retention of the equity piece risk. This move is aimed at improving transparency in the global structured finance markets.

ICBA Mortgage — an Independent Community Bankers of America mortgage subsidiary that provides secondary marketing services to members — reported yesterday that 22% of this month’s loans were insured by the Federal Housing Administration (FHA), up from last year’s 9%.

The Office of Federal Housing Enterprise Oversight (OFHEO) reported home prices on its Purchase Only Index fell a seasonally adjusted 0.8% in April. Year-over-year prices are down 4.6%.

Markit announced that it is working with leading dealers to facilitate the distribution of European ABS prospectuses and investor reports.

An internal memo made the rounds announcing that the European Securitization Forum (ESF) has developed its own centralized Web portal to link a variety of sources containing information on European RMBS transactions and CDO managers, Royal Bank of Scotland analysts reported.

Luminent Mortgage Capital appointed Barry Weiss as its new chief investment officer and Eric Richter as a portfolio manager, effective June 30.

Brazilian boutique shop Hampton Solfise has hired Jose Candido Pimentel as a directing partner.

BNP Paribas appointed Adam Brodnicki and Andrew Miller directors in the New York fixed-income team.

Mark Watson has left Citigroup after 22 years in the firm, according to an internal memo seen by Financial News.

The former co-heads of Citigroup fixed income Randy Barker and Geoff Coley are in the very early stages of planning a hedge fund, according to a Reuters report that cites people familiar with the matter.

Orrick, Herrington & Sutcliffe has hired Howard Altarescu as a partner in its structured finance practice in New York.

Wall Street banks continue to slash headcount, with the latest cuts reportedly coming from Citigroup and Goldman Sachs.

Dexia will provide a $5 billion committed, unsecured standby line of credit to Financial Security Assurance’s (FSA) financial products segment, according to today’s company release.

Guggenheim Capital Markets, New York-based subsidiary of Guggenheim Partners, has added a whole loan group to further expand its specialized fixed-income capabilities, according to today’s company release.

GMAC-RFC's Australian nonconforming branch, Capital First is looking to conduct a strategic review of its operations and has consequently ceased accepting new business,according to market reports. GMAC bought 25% of Capital First in 2005 and took full ownership in 2006.

Recognizing that no homeowner should lose his or her home while experiencing financial hardship and considering the impending problems in the mortgage sector, HOPE NOW, the largest alliance of lenders, servicers, investors and counselors, has taken the necessary steps to prevent home foreclosures by establishing a uniform set of procedures and guidelines for all of its servicer members.