Securitization

California Republic Bancorp has completed a securitization of nearly $183 million of prime indirect automobile loans.

PHH Corp. posted a $42 million loss in the third quarter after marking down the value of its servicing portfolio by $217 million.

Mezzanine-level subprime bonds securitized by Texas loans are likely to have higher valuations than mezzanine subprime bonds without Texas exposure.

BofA Merrill analysts expect the national S&P Case Shiller index to increase 5% this year, up from an initial forecast of a 2% gain the bank called in August.

Interest shortfalls in European CMBS loans continue to push note-level defaults. In September, the number of defaults pushed the 2012 total to 21, which is more than half of the 37 defaults seen in 2011, according to a Standard & Poor’s report.

The percentage of loans paying off on their balloon date remained elevated in October, according to the Trepp Oct. 2012 payoff report.

In its weekly report, Freddie Mac reported 30-year fixed mortgage rates averaged 3.40% from 3.39% last week. Since the end of September, rates have held to a narrow range of 3.36% to 3.41%.

Moody's Investors Service has assigned a ‘Aaa’ rating to both the floating and fixed rate tranches of Barclays’ Capital first SEC registered, reg AB compliant, U.S. credit card receivable platform called Dryrock Issuance Trust.

Fitch Ratings said in a report today that Korea's proposed covered bonds act should boost issuance.

Fannie Mae reported weaker earnings in the third quarter – including a loss on its single-family business – but also announced that its MBS market share set a new all time record: 52%.

As expected, superstorm Sandy in the northeast contributed to a 5% decline in mortgage application activity in the week ending Nov. 2. The Refi Index fell 5% to 4244.3, while the Purchase Index was down 4.8% to 176.4.

Speeds increased more than projected in October due primarily to much stronger HARP-related activity than was expected -- particularly from Bank of America.

Middle Market CLOs continue to make-up a small part of primary volumes, driven by CLO mezzanine investors that are attracted to the wider spreads these deals offer.

Bank of America Merrill Lynch analysts examined specific issues that now concern ABS players, namely: the fiscal cliff and budget policy; change in Fed leadership and policy; and the government's housing policy.

Consumer ABS sectors, including autos and credit cards, have shown comparatively good credit performance throughout the recession and following period of "lethargic recovery."

Regulators are expected to miss a global deadline to finalize Basel III capital and liquidity requirements by yearend.

After losing out in a bankruptcy auction of former GMAC's ResCap mortgage servicing assets, the company insisted that there are plenty of other, potentially better portfolio acquisitions waiting in the wings.

Most of a lawsuit that accuses JPMorgan Chase of misleading mortgage investors before the meltdown may advance, a federal judge in Manhattan has decided.

PennyMac Mortgage Investment Trust was considered one of the runner-up bidders on a $70 billion package of mortgage servicing rights that was sold to JPMorgan Chase by MetLife.

U.S. primary ABS issuance continues its slower, post hurricane pace. Around $4bn priced last week, a below-average amount, and this week is likely to see the same.