S&P Revising Rating Methodology for Servicer Advance ABS

The changes could result in upgrades for potentially 20% of the servicer advance deals that it rates and downgrades for another 30%.


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Latest News

Credit Union Trade Group Weighs in on Securitization Rule

– The National Association of Federal Credit Unions strongly supports a proposed securitization rule, but wants its members to have more flexibility to purchase assets.

Venture Debt ABS Faces Downgrades on Moody’s Rehaul

– Moody’s Investors Service plans changes to its methodology for rating securities backed by the debt of start up companies that could result in downgrades of up to two notches on outstanding transactions.

CMBS Exposure to Napa Valley Earthquake $620M

– Barclays analysts estimate that $620 million of securitized commercial mortgages are exposed to Sunday’s 6.0 magnitude Napa Valley, California earthquake.

SEC to Vote on Reg AB II on Wednesday

– The revisions would require asset-backed issuers to provide enhanced disclosures including information for certain asset classes about each asset in the underlying pool in a standardized, tagged format and revise the shelf offering process and eligibility criteria for asset-backed securities.

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Featured Articles

The Five Challenges Facing Private Label RMBS

– Regulatory hurdles, stability of counterparties, the rep and warranties framework, exogenous variables, and technical factors all pose challenges; but GSE reform will probably have the biggest influence, according to Morningstar.

Why G-Fees Have Taken Center Stage in Housing Finance

– The always-important question of what Fannie Mae and Freddie Mac charge for loan guarantees is emerging as a central issue in the development of a stable housing finance market.

What Makes the DOJ's Subprime Auto Probe Different

– The auto loan market has a different track record and players than mortgages, setting the stage for a unique fight among prosecutors, lenders and dealers.

Warehouse Financing for CLOs Makes a Comeback

– The entrance of new equity investors, including business development corporations and CLO equity funds, willing to contribute the first-loss piece has led to a return of warehouse bridge funding lines that dried up after the financial crisis.

Gearing Up

– Chinese auto loan securitization, initially destined for a largely domestic investor base, is taking off.

New Target for RMBS Lawsuits: the Trustees

– Investors who lost big on RMBS minted befor the financial crisis are focusing on a new target: the trustees who oversee these deals on their behalf.

Shift to Term Funding for Accounts Receivable Securitization

– It’s still more common for companies to finance sales that they have yet to collect on through asset-backed commercial paper conduits or asset-based loans, but term securitizations offer issuers more flexibility.

High-Tech Repo Men Reshape Subprime Auto Lending

– Advances in technology could explain why lenders continue to offer subprime car loans. While the loans are still risky, these technologies have made the process of repossessing vehicles cheaper and easier, minimizing potential losses on soured loans.

Banking on the Upstart Solar Securitization Industry

– The solar industry is still developing, but Mercatus CEO Haresh Patel has suggestions for banks that want to get in on it now.

The Right Way to Regulate Overseas Swaps Trading

– Decisions about how to apply U.S. swaps trading rules abroad should be based less on fears of risk to the financial system and more on considerations of market integrity, according to attorney Timothy Karpoff.

New Investors Flocking to CLO Triple-A Paper

– While the Volcker Rule gets blamed for the sudden lull in CLO issuance in January and February, it’s now getting some credit for helping one aspect of the roaring comeback: the infusion of new primary investors in triple-A tranches.

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In the news: How Ability-to-Repay Rules Could Reshape RMBS Market

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Current Issue

China Auto Securitization Gears Up

As more and more Chinese gain the financial access to buy a car with a loan, lenders will look increasingly to securitization to keep origination going.

Current Issue