Securitization

Credit card holders are keeping a lid on spending, and banks are flush with cheap deposits to fund new accounts. These might not seem like the ideal conditions for credit card securitization to take off, but that's just what is happening.

The mortgage and MBS market landscapes have profoundly changed over the last month as a result of actions by both regulators and monetary authorities.

Florida Citizens' Sharon Binnun brings to fruition largest cat bond by a state entity to date.

In a clear sign that everyone's getting more comfortable with ABS, JPMorgan analysts reported that about $18 billion was issued in the market during the first three weeks of September.

The ASR Scorecards database's preliminary public lead manager rankings for 3Q12 showed JPMorgan Securities taking the top spot with $22.7 billion sold and an 18.5% market share.

In the aftermath of a critical audit of Spanish banks, some institutions will face any combination of restructuring, merger into a larger institution, a wind-down or bad-asset sales. Covered bonds are bound to feel some effect.

The low interest rate environment and demand for high-quality, short-duration paper continued to fuel demand for auto ABS and other consumer assets in September. The market absorbed $18 billion of new issuance through Sept. 17, according to a JPMorgan Securities report published on that date.

JPMorgan Securities analysts look at the effect on excess spread from a bankruptcy judge's decision allowing Ambac to start making payments on wrapped non-agency bonds.

David Schneider and Steven Rotella – former Washington Mutual executives who paid fines to the Federal Deposit Insurance Corp. last year for the thrift's "reckless" lending practices – are eyeing a return to mortgage lending.

A new fear has began to take hold in the mortgage servicing industry: the GSEs are preparing to hike their minimum net-worth requirement for all customers.

Aggregate prime auto loan exhibited slightly weakened performance, although remained in line with historical seasonal trends, Barclays Capital analysts said.

Freddie Mac won’t have to face a lawsuit filed by investors accusing it of misrepresenting the state of its finances in 2007 and 2008, a federal judge ruled.

Fitch Ratings said that after reaching a high-water mark of $92 billion in June 2010, the balance of specially serviced loans dropped to $80.5 billion through June 2012.

Manager Activity: Autos Book Runner Amount (US$ Mil) Rank Mkt.

Since Risk Management Solutions changed its hurricane model in March 2011,

Santander Consumer USA is planning to issue a subprime auto securitization called Santander Drive Auto Receivables Trust 2012-6 worth $1.25 billion.

CarMax and Huntington are both planning to sell their respective auto securitizations.

Citibank plans to launch a new securitization deal from its Citibank Credit Card Issuance Trust, according to an SEC registration the bank filed today.

Redwood Trust filed an SEC registration for a new RMBS deal to be issued from its Sequoia series of deals.

The ABS industry right now is very focused on the October 12, changes the U.S. Commodity Futures Trading Commission plans to make that would render deals "commodity pools".