Strategy and Outlook


How Swap Margin Rules for ABS Could Up Borrowing Costs

A rule recently finalized by the Federal Deposit Insurance Corp. and other banking regulators would impose a margin-posting requirement for uncleared swaps, which are used to hedge interest rate risk in securitization.

Regulators Finalize Rule to Boost Collateral for Uncleared Swaps

Swap dealers covered by the rule would be required to post “initial margin” upon the execution of a swap, determined either using a standardized table or an internal model approved by the entity’s supervising agency.

Swaps "Trade War" Means More Uncertainty on Margin Rules

While the vast majority of swaps used in securitization are uncleared, and currently don't face a margin requirement, this exemption may not last.

New Credit Rating Agency Rules Target Due Diligence Transparency

New regulations for credit rating agencies that took effect this week are expected to make mortgage and other asset-backed securities more transparent by requiring broader disclosure of certain due diligence reports.

Regulatory Clarity Makes for a Steadier Ship in 2015

It's an integral factor in Fitch Ratings' continued stable outlook for the securitization market in 2015.



Fitch: External Factors Biggest Threat in 2014

Overall issuance growth will moderate in 2014, Fitch Ratings' managing director for asset backed securities says in the firm's outlook.

How Big Box Bankruptcies Would Impact CMBS

Direct exposure to either J.C. Penney or Sears is typically highest in seasoned deals where there are only a small number of loans remaining, and one is secured by a retail property.

No Exception to Risk Retention for CLOs

Risk-retention rules could thin the ranks of CLO managers; the industry was hoping for a workaround, but what it got is pretty much unworkable.

Risk Retention Rules May Shrink U.S. CLO Market

The U.S. market for collateralized loan obligations would shrink by 75% if proposed risk-retention rules are implemented, according to the Loan Syndication and Trading Association.

New Trade Group, Same Old Problem?

Longstanding tensions within the American Securitization Forum (ASF) boiled over in March, when most of its board of directors resigned and formed a new trade group.


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Credit Barbelling in CMBS is on the Rise

As concerns mount about the riskier loans being packaged into commercial mortgage backeds, several banks have come up with a new strategy for making deals more attractive to investors. They are boosting exposure to both high quality and highly leveraged mortgages.

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