Although overall bank investment in non-mortgage ABS was down slightly in the first quarter, a handful of institutions made significant increases in their portfolios.
Read More
Investors and issuers are divided on the usefulness of disclosure requirements for MBS and ABS. While investors said disclosures encourage them to buy securities, issuers cited them as a burden.
Performance of the subprime auto ABS market is expected to decline, which likely will prompt higher credit-enhancement requirements from rating services.
Morningstar plans to buy fellow rating agency DBRS for $669 million. Currently, there are 10 nationally recognized statistical rating organizations, and speculation is the space could be ripe for consolidation.
Insurance-linked notes have become all the rage among mortgage insurance firms. The latest deal to hit the market is a $316 million note offering from MGIC via a Bermuda reinsurance affiliate.
A Third Circuit appeals panel held that owner trustees are not responsible for residential MBS losses, given their limited duty under governing contracts.
Read More
Lenders are preparing for a new accounting standard set to take effect early next year, which would require expected loan losses to be estimated over the remaining life of the loan, as opposed to incurred losses.
Read More
Freedom Mortgage plans to buy RoundPoint Mortgage. But how will the corporate debt ratings of Freedom be affected? Fitch Ratings, for one, isn’t worried but the purchase price has not yet been publicly disclosed.
Read More