May 4, 2014
For sheer scale of securitizable assets, itís tough to beat trade finance, and banks have new incentives to get these assets off their balance sheets.
Either as a spur or a hindrance to structured finance, regulations remain the dominant theme of our industry (and, by extension this magazine) in 2014.
A two-year extension to the deadline for banks to conform CLO holdings to the Volcker Rule doesn't apply to all, the Federal Reserve says.
Finke says the industry needs to address the lack of understanding about its performance and role in the economy.
Despite regulatory hurdles, participants see nothing in the way of issuance reaching $60 billion to $70 billion this year.
Wider pricing on the second-ever securitization of single-family rental properties suggests that investors are becoming more discerning about this new asset class.
Since the first securitization of single-family rental properties materialized last November, the sector has drawn criticism from housing analysts and politicians.
Residential mortgage bonds backed by qualified mortgages, as well as non-qualified mortgages, are no doubt on the drawing board if not in the works, as issuers run out of earlier loans to securitize; however experts diverge on the composition of the first deals.
Disclosing loan-level data is crucial to rebuilding investor confidence in mortgage-backed securities. It also introduces the risk of compromising borrowers' personal information.
European regulators are coming around to the idea that strict rules on securitizations are hurting efforts to jump start the regionís economy, in particular by restricting smaller companiesí access to financing.
After the financial crisis, Turkish banks found that they could continue to securitize diversified payment rights without the by-then worthless insurance wraps. Some banks have found that they can also do deals without arrangers from abroad.
Vice President of Regulatory Compliance
Firm: Clayton Holdings
In the news: How Ability-to-Repay Rules Could Reshape RMBS Market
Unlike their existing risk-sharing programs, which have drawn $12.5 billion of private capital into the mortgage market by referencing $454 billion of mortgages since their July 2013 inception, some of the latest deals transfer the first loss sustained when a homeowner stops making payments.Current Issue