Securitization

Banks choosing against renewing liquidity facilities should have no impact on the credit quality of European CMBS transactions, analysts said.

Last year, Mexican state agency Sociedad Hipotecaria Federal (SHF)was on track to cut off direct funding of mortgage origination for nonbank entities known as Sofols by the end of 2009.

The recent downgrade of U.K. mortgage lender Bradford & Bingley has resulted in the breach of some triggers of its Aire Valley securitization master trust. The negative rating action could threaten certain replenishing or management provisions of the RMBS master trust.

There is evidence of correlation in the state of the wholesale vehicle market and annualized net loss (ANL) rates in auto loan asset-backed securities (ABS). Fitch Ratings recently assessed between how wholesale vehicle values affect recoveries of defaulted auto loans, and concluded that the values in turn impact loss severity and, ultimately, loss rates in auto ABS, thus creating an inverse relationship between wholesale vehicle values and ANL rates in auto ABS - as wholesale vehicle values rise, ANL rates invariably fall and vice versa.

The Securities Industry and Financial Markets Association's (SIFMA) credit rating agency task force expressed concern regarding the implications of a proposal presented by the Securities and Exchange Commission (SEC) last week at an open meeting hosted by the commission.

Although the European securitization market might not have seen the worst yet from the credit crisis, insurers who focus on instances of catastrophe are making strides.

The Information Management Network (IMN) and the European Securitization Forum (ESF) held a poll last week asking European market participants where to host the next Global ABS conference.

HELOC lenders are beginning to limit or freeze HELOC credit lines, according to analysts.

As the Alt-A mortgage market falters, Wall Street firms are reviving an old concept to repackage triple-A bonds that may soon fall from grace. This is an effort to avert sell-offs by investors or potentially spruce up their own holdings as they search for buyers.

Babson Capital Europe appointed Andrew Godson as head of distribution. Godson will be responsible for Babson Capital Europe's global sales and distribution activities as well as distributing Babson Capital Management products to European investors. He reports to Ian Hazelton, chief executive of Babson Capital Europe. Godson was previously at Citigroup, where he ran the CDO syndicate and structured credit in Europe. Before Citi, Godson spent three years working in the securitization group at Nomura, where he focused on CDO structuring and esoteric ABS.

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

Bradford & Bingley may opt to inject more cash into its Aire Valley securitization vehicle to avoid breaching its obligations, according to market reports.

Lehman Brothers announced this morning that it had begun a shake up of its top management, following a tough period at the investment banking firm.

Natixis began marketing the €61 million ($94 million) car insurance-linked securitization deal for European insurer Axa.

The Securities Industry and Financial Markets Association’s (SIFMA) credit rating agency task force expressed concern regarding the implications of a proposal presented by the Securities and Exchange Commission (SEC) today at an open meeting hosted by the commission.

The American Securitization Forum (ASF) today announced the election of its 2008-2009 board of directors, executive officers, committee and subforum chairs and deputy chairs.

Interdealer broker ICAP will begin offering its centralized, focused voice-broking service to the structured credit market.

Moody's Investors Service placed all outstanding bonds issued from the Washington Mutual Master Note Trust and the Washington Mutual Master Trust (WMMNT, PGMT, and PMNT), except for those bonds scheduled to mature in the next three months, on review for downgrade because of the continued collateral performance deterioration.

The Office Federal Housing Enterprise Oversight (OFHEO) Director James Lockhart announced that the OFHEO has sent to the Federal Register a final rule for loss severity calculations under OFHEO’s Risk-Based Capital (RBC) regulation. The new regulation applies to the GSEs.

With less than 3,000 attendees at this month's the European Securitization Forum (ESF) and the Information Management Network's (IMN) Global ABS gathering, the new Cannes venue, the Palais des Festivals et Des Congress, stood out for being spacious.