Securitization

In the current market, making the case for any asset class would be hard. However, the appetite for insurance-linked deals is growing and the market could see a volume increase over the next year, analysts said. To be certain, the potential for this market segment has been long recognized and analysts said that the current market environment might just be the right time to get the ball rolling.

Two new CLO deals were marketed in Europe last week, and one deal closed on the public market. However, market sources said that the activity of the past weeks still doesn't offer a definitive direction as to where pricing will settle.

It appears that rating agencies have listened and learned from investor gripes about the ratings process's opacity.

Last week Judge Colin Campbell, who is overseeing the $32 billion restructuring plan for Canada's nonbank ABCP, said that he will decide quickly on whether he will approve the plan or not. This is a ray of hope for a market that has been frozen since the liquidity crisis started last year.

Babson Capital Management is currently marketing its fourth CLO-related transaction since the beginning of the year, adding to the 50 plus CDOs it currently oversees. But some investors are wondering where the commitments are coming from, given the CLO sector's relatively limited investor base.

Moody's Investors Service last Tuesday said the ratings for the bond insurers could be significantly affected by their exposure to second-lien RMBS losses, which are higher than the rating agency expected.

Last week, JPMorgan Chief Executive Officer Jamie Dimon said that the credit crunch was nearing an end.

The ABS market continued to see sunny skies last week, as the Senate Banking Committee was close to approving a bill that would set up a $300 million Federal Housing Administration loan guarantee program, and appoint a regulator that would oversee both Fannie Mae and Freddie Mac, initiatives that, according to one trader, will made ABS "a safer place to put money."

A Ukrainian bank has launched its - and the country's - second existing asset deal. Regardless of whether lead arranger UBS will hit up institutional investors or underwrite until sunnier times bring tighter market pricing, the transaction will be a step forward for an emerging market country that's an infant in securitization.

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

World Bank Group member IFC and Standard Chartered Bank announced that they have collaborated on the launch of the first-ever issuance of notes backed by loans to microfinance institutions in Africa and Asia.

Mortgages rates were mostly lower this week, according to Freddie Mac. The largest declines were in the adjustable rate products.

As part of its effort to wind down much of its entire structured products portfolio, Merrill Lynch is shedding more of its staff in that area.

Moody's Investors Service has announced that it would be introducing two supplemental measures to its structured finance ratings aimed at enhancing their transparency and information content.

The Securities Industry and Financial Markets Association (SIFMA) said it supports the ongoing efforts to gain economic integration and regulatory convergence. Examples of such moves are ongoing efforts by the Transatlantic Economic Council (TEC) aimed at increased cross-border cooperation.

Wachovia CEO Ken Thompson says the bank plans to cut one third of its fixed-income staff and make a 10% reduction in corporate and investment bank support staff.

Amlin, Lloyd's largest insurers, plans to launch a new investment management partnership to be headed by John Wells and Luca Albertini. Both hires were previously with Swiss Re.

Denver-based The Chotin Group has announced changes in its management team. Effective today, Helen Dickens, president and chief operating officer assumes all responsibility for The Chotin Group’s asset management division. Dickens replaces Zach Pashel, who is leaving the company to pursue another opportunity.

Fremont General Corp. said Friday that it expects to file for bankruptcy protection, because it cannot file its financial information in a "realistic time frame" to obtain shareholder approval for the pending sale of some assets and deposits to CapitalSource.

Prudential Capital Group announced that Thomas Downey, Roger Finn, and David Scully have joined as vice presidents in its commercial asset finance unit, which is headquartered in Atlanta.