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Latest News

Credipar Plans Investor Placed French Auto ABS

– Credipar, a subsidiary of Banque PSA Finance, plans to issue the first investor-placed French auto ABS of the year, the €470 million AUTO ABS FCT Compartiment 2013-2.

Citibank Plans Credit Card ABS

– Citibank plans to issue a follow up to its early May issue according to a deal prospectus filed with US Securities and Exchange Commission yesterday.

Ally Paying ResCap $2.1B for Creditor Claims

– Ally Financial agreed to pay $2.1 billion to unsecured creditors of its bankrupt mortgage unit, Residential Capital, including securitization trusts.

FeatherStone Plans REO-to-Rent Securitization

– FeatherStone Investment Group is working on its first securitization of rental income; the deal should be completed in the next 90 to 120 days.

Large Portfolio Sale Tests RMBS Appetite

– An $8.7 billion sale by a European bank is set to test market appetite for non-agency residental mortgage-backed securities.

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Featured Articles

S&P: Beware of Extension Risk in Older Euro CLOs

– Loan extensions create risks for investors in older European collateralized loan obligations.

Student Loans Become Tempting to Smaller Banks

– A number of community banks are discovering that bulking up on student loans is easier said than done.

European CLO Revival

– Deal economics are improving, trumping regulatory challenges and a shortage of collateral

U.S. CLO Managers March to Europe

– The first three European CLOs to price since the financial crisis were structured to ease investor worries, and their successively tighter spreads suggest that’s happening.

Demand Rising for Private Student Loan Backed Securities

– Until recently private student loans were the laggards in the recovery of the U.S. securitization market, but demand is picking up.

Seasoned Private SLABS Have Unseen Risks

– Deals issued pre-crisis are past their most perilous years but structural flaws could still prove hazardous for investors.

Searching for the New Normal in U.S. Private Label RMBS

– As new deal volume in the private label RMBS market continues to ramp up, so do questions from investors about how these deals will evolve over time.

When Will Solar ABS Finally Catch Fire?

– There’s been plenty of talk about using securitization to finance solar energy, but to date, no deals; the Department of Energy’s National Renewable Energy Laborator wants to jumpstart the process

CLOs Under Stress from Loan Re-Pricings

– Corporate borrowers continue to take advantage of strong demand for loans to re-price existing debt, and this is putting a squeeze on some of the biggest buyers of loans—collateralized loan obligations.

Handoff

– As banks exit mortgage servicing, new players are turning to securitization to fund advances.

Timeshare ABS Catches On as Getaway

– With consumer spending on the rise and investors warming to more esoteric assets, timeshare operators are increasingly turning to the securitization market to finance loans.

RMBS Investors Still Seek Assurances on Lien Priority

– Buyers of private-label mortgage backed securities still have a beef with the federal mortgage modification plan, which allows holders of a second-lien on distressed properties to jump ahead of first-lien holders in terms of payment priority.

What the Fannie Freddie Single Platform Means

– 'I think this could serve as a building block for Congress to realize a future mortgage market,' Federal Housing Finance Agency Acting Director Edward DeMarco told lawmakers.

More Downgrades in Store for European MBS, ABS

– By tweaking one aspect of its methodology for rating securitizations, Moody’s Investors Service has set the stage for more downgrades of deals issued out of peripheral Eurozone countries.

FDIC Might Push Banks into Riskier CLO Tranches

– Banks are expected to start buying riskier portions of collateralized loan obligations in response to a deposit-insurance rule change that takes effect next month.

Unlocking Credit

– How long until looser underwriting affects the performance of auto securitizations?

Testing a Novel Structure for Auto ABS

– Investors are signing on to auto loan securitizations that allow sponsors to add new, and potentially riskier, loans at a later date.

S&P: Auto ABS Ratings Expected to Remain Stable

– Strong payment structures and high credit enhancement levels will mitigate the impact of less conservative underwriting on subprime auto loan securitizations.

RMBS Reps & Warranties Trouble Fitch, Moody's

– Ratings agencies have received a number of proposals for private-label residential mortgage backed securities (RMBS) and they apparently do not like what they see.

Calling All (Eligible) CLOs

– Spreads in the primary market have tightened so much that equity holders are calling collateralized loan obligations issued as recently as 2011 in order to fund new deals more cheaply.

Aircraft Lease ABS Takes Off

– Lease securitization has the potential to plug a yawning financing gap for non-U.S. airlines.

New Blood Revives Russian Ruble RMBS

– Five new originators of Russian RMBS debuted last year; players say the issuer stable will keep growing.

After Crash, Brazilian ABS Poised to Recover

– After contracting sharply last year amid regulatory uncertainty and an economic slowdown, Brazil’s structured finance market now appears to be poised for a recovery.

Student Lender SoFi Sets Sights on Elite Schools

– Social Finance, a non-bank lender, is looking to upend student lending by offering more favorable rates to borrowers it views as most likely to repay their loans.

Private Student Lending Gets Boost From Job Market

– Private student lending is enjoying something of a recovery, and it appears to have a lot to do with the improving market for college graduates.

Now Paying

– There's an ongoing discussion about what structural features should be re-thought to attract junior investors to film securitizations.

REO to Rental: Closer, but No Securitization

– REO to rental has come a long way in the past year, but it is still not clear what role securitization will play.

Subordinated Auto ABS Still Outperforming

– Spreads on subprime auto ABS and the subordinated tranches of prime auto ABS continued to outperform in January.

Basel Goes Easy on RMBS, At Least for European Banks

– The Basel Committee’s decision to allow banks to include highly rated residential mortgage bonds into the calculation of a new liquidity coverage ratio is good news, at least for European banks.

Sector Selection Will Be Key in 2013

– Spreads on asset-backed securities narrowed sharply across the board in 2012, but some sectors are already looking rich, according to participants at the ASF 2013 conference.

Fitch: Securitization Investors Span the Globe

– The securitization investor class of 2013 is likely to be the most geographically diverse group since before the onset of the financial crisis.

Mortgage Rule Signals Relief for Securitizers

– The banking industry's positive reaction to the Consumer Financial Protection Bureau’s 'qualified mortgage' rule, which governs mortgage underwriting, is prompting cautious optimism that a related securitization rule may also turn out better than expected.

Strong Sponsors Help REO-to-Rental Securitization

– There’s no easy way to get a high rating on an REO-to-rental securitization. But a strong sponsor helps, according to Moody's Investors Service.

Increases in G-Fees Could Spur Private-Label MBS

– The private-label mortgage-backed securities market can make more of a comeback this year due to factors like the agencies’ rising guarantee fees, scarcity of higher-yielding assets for investment and home price appreciation.

Back to the CDO Playbook

– The much-maligned collateralized debt obligation appears to be set to play a crucial role in the recapitalization of commercial real estate. Only no-one is calling these deals CDOs.

Large Loan, Single Borrower CMBS Returns

– Securitization of very large commercial loans, a hallmark of the CMBS market before the financial crisis, is making a comeback -- but with a twist.

Both Style and Skill Set CLO Managers Apart

– Experience isn the only thing that sets managers of collateralized loan obligations apart; according to Scott D’Orsi, a partner with Feingold O’Keeffe Capital, it's also a matter of investment style.

Will Housing Finance Reform Happen This Year?

– Policymakers appear unwilling to take on the future of Fannie Mae and Freddie Mac as they face other issues and the housing market begins to recover.

Fed’s MBS Buys Stifle Small Bank Access

– Quantitative easing, particularly the Federal Reserve’s ongoing effort to buy mortgage-backed securities, has frustrated smaller banks that are also in the market for such assets.

Shadow Inventory is Wild Card in Housing Recovery

– The housing market finally appears to be on the mend, but the “shadow” inventory of housing that is unoccupied but has not yet been released into the market, either as a rental property or sale listing bears watching.

Little Risk of Oversupply in Multifamily Housing

– An increase in new builds in the multifamily sector in recent months has raised some concerns that the market may face supply risk down the line; but CMBS industry analysts said it’s probably premature to suggest that the sector is headed towards a bubble.

BofA Merrill Looks at Maturing CMBS Conduit Loans

– Bank of America Merrill Lynch said in a report on Friday that half of all outstanding CMBS conduit loans set to mature over the next five years would be able to refinance successfully.

Trends in Student Loan Reports Can Limit Headline Risk

– Bank of America Merrill Lynch analysts maintain their positive view on student loan ABS given recent reports showing trends that can reduce headline risk in the sector.

Citi Analysts Expect Regulatory Activity Post Elections

– Citigroup Global Markets analysts said that they expect a spurt of regulatory activity after the Nov. 6 presidential elections.

Subprime Auto Lending Continues to Rise

– Subprime lending in the auto sector, which has been driven in part by rising used-vehicle sales, has continued to rise, S&P said in a short note this morning.

ABS East: CLO Equity Finds New Fans

– More and more investors are taking a gander at the riskiest tranches of collateralized loan obligations, and they like what they see.

'Tranche Warfare' Halts Recovery in Euro CMBS

– In Europe, efforts by out-of-money investors has thwarted recovery efforts by senior bondholders in troubled CMBS deals, according to a Fitch Ratings report published today.

ABS East: Froth in Subprime Auto?

– Despite being the ABS market's current darling, a speaker at ABS East saw a potential bubble forming in the subprime auto segment.

ABS East: GSE and QRM Still in the Way

– Speakers harped on two topics in particular: the qualified residential mortgage rule and what they see as the unfair advantage that Fannie Mae and Freddie Mac still enjoy over the private-label RMBS market.

ABS East: Beware of the Fiscal Cliff

– The fiscal cliff being faced by our government at the end of the year is probably the most chilling macro-economic risk, ABS East panelists said.

ABS East: Housing Prices to Inch Higher

– While the recovery of the housing market is on firm footing, house prices in aggregate are unlikely to rise quickly, participants say.

ABS East: Securitization Gets Socially Responsible

– Securitization isn't typically associated with environmentally or socially responsible investing, but speakers at one panel of IMN's ABS East conference are confident the industry will come around to this field's potential.

Ahead of Basel III, Regulators Review Securitization

– European securitizations are likely to face more stringent capital requirements as the Basel Committee examines how these transactions are regulated.

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Current Issue

European CLO Revival

Deal economics are improving, trumping regulatory challenges and a shortage of collateral

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SLIDESHOW

ASF 2013
Highlights from the American Securitization Forum's 2013 conference in Las Vegas