Securitization

Monthly chargeoffs in U.S. prime credit card asset-backed securities fell to a new low of 2.33% in December, according to Fitch Ratings’ monthly index results. However, retail credit-card performance saw "mixed" results with chargeoffs rising but monthly payment rate (MPR) levels improving.

Despite mounting losses, credit ratings agencies maintain a steady-but-cautious outlook for subprime auto loan securitization portfolio performance in 2017.

The Federal Housing Finance Agency is making it easier for Federal Home Loan banks to expand the kinds of collateral they can accept for advances

Iconix Brand Group is selling another brand in its portfolio order to further reduce its indebtedness

Institutional refinancing in the fourth quarter, and continued high investor demand, drove a 12% surge in year-over-year U.S. leveraged lending in 2016 to $875 billion.

The $43.1 million SCR Notes Series 2016-MDN2, Class B, are linked to the credit risk of 68 multifamily mortgage loans originated between 1999 and 2016 with an unpaid principal balance of $863 million

A larger-than-expected “bail-in” of Banca Monte dei Paschi di Siena has placed the focus on other major Italian banks that have similar plans to seek government guarantees on their non-performing loan securitizations.

PHH is selling its remaining residential mortgage servicing portfolio to the real estate investment trust New Residential.

Russia’s Vozrozhdenie Bank is coming to market with a RUB 7.4 billion securitization of residential mortgages, it’s fifth to date, according to Moody’s Investors Service.

Next year is shaping up to be a pivotal one for the future of the Common Securitization Platform and the issuance of the single security by Fannie Mae and Freddie Mac.

Commercial real estate markets should continue to improve in 2017, though it remains to be seen how big of a role mortgage bonds will play in financing going forward.

Merchant banking firm Opus Bank completed a $509 million securitization of its multifamily loans through a Freddie Mac-sponsored “Q-deal” risk-transfer securitization, the company announced Tuesday.

A decade ago, regulators were warning that CRE exposure could lead to earnings and capital volatility. Fast forward to today and regulators are expressing similar reservations, warning that areas such as multifamily could become problematic. Bankers, however, say they believe the industry is better equipped to handle an economic shock.

Although subprime auto lending and securitization bear similarly troubling signs to the pre-crisis housing market, they clearly do not contain the macroeconomic risks posed by the mortgage industry nearly a decade ago. But investors may still not be in the clear.

In case you haven’t been keeping track, Moody’s Investors Service downgraded about half of the guaranteed student loan bonds that it had put under review this year.

Deutsche Bank AG and Credit Suisse Group AG agreed to pay a combined $12.5 billion to resolve U.S. investigations into sales of the toxic debt that fueled the financial crisis, putting behind them a major dispute that undermined confidence in the banks and raised questions about their turnarounds.

Issuance of U.S. collateralized loan obligations is likely to get off to a slow start in 2017.

Freddie Mac has moved from transferring the credit risk on newly originated loans to older loans that have been modified in order to avoid default.

Ginnie Mae has revised the wording of the acknowledgment agreements necessary to finance mortgage servicing rights. It sought to resolve a concern warehouse lenders had in the event issuers become troubled.

Prima Capital Advisors has securitized a unusual portfolio of $301.3 million of commercial real estate holdings, according to Moody’s Investors Service.