Harley-Davidson in motorcycle loan securitization

Seneso Journal — Mon, 23 Nov 2009 20:13:57 +0000

Underwriters are marketing a $562 million Harley-Davidson Motorcycle Trust asset-backed sale to investors on Monday to be sold under the Federal Reserve’s emergency loan program, market sources said.

The securities backed by motorcycle loans will be sold under the Fed’s Term Asset-Backed Securities Loan Facility, known as TALF, under its next loan subscription round scheduled for Dec. 3.

Read the whole story @ Reuters

Jump in sovereign CDS volumes

Seneso Journal — Mon, 23 Nov 2009 05:58:04 +0000

The volume of activity in sovereign credit default swaps linked to the US, UK and Japan have doubled in the past year because of concerns about their public finances.

Read the whole story @ FT Alphaville

Insight pair add RMBS to fund range

Seneso Journal — Mon, 23 Nov 2009 02:31:49 +0000

Insight Investment multi-manager duo Mike Pinggera and Steve Waddington have defended their decision to introduce residential mortgage-backed securities (RMBS) into their multi-asset range.

Mr Waddington said adding a position in Monument Bond fund was justified, despite the very cautious mandate the team runs.

Read the whole story @ FTAdviser

Fed’s Bullard: Keep MBS program alive

Seneso Journal — Mon, 23 Nov 2009 02:21:41 +0000

A senior Federal Reserve official said on Sunday the central bank should keep alive a mortgage-backed securities buying program beyond a planned end-date to give policy-makers more flexibility as they help the economy recover from a painful recession.

“I have advocated to keep the asset purchase program open but at a very low level, and wait and see what happens, and as information comes in about the economy we can adjust that program while the federal funds rate remains at zero,” St. Louis Federal Reserve bank James Bullard said in an interview with Dow Jones newswire.

Read the whole story @ Reuters

CIT Bonds Valued at 68.125 Cents to Settle Credit-Default Swaps

Seneso Journal — Fri, 20 Nov 2009 17:12:16 +0000

Credit derivatives traders settling contracts that protected against a default by CIT Group Inc. set a value of 68.125 cents on the dollar for the commercial lender’s bonds.

The price, the result of an auction by 13 dealers including JPMorgan Chase & Co. and Barclays Plc, means sellers of the swaps will pay 31.875 cents on the dollar to buyers of protection to settle the contracts, according to data from administrator Markit Group Ltd. and broker Creditex Group Inc.

Read the whole story @ Bloomberg

American Securitization exec director to resign

Seneso Journal — Fri, 20 Nov 2009 17:09:20 +0000

George Miller, executive director of the American Securitization Forum, is resigning next month, the U.S. bond lobbying group said on Friday.

The ASF is an advocate for the securitization industry that was at the heart of the financial crisis. It has promoted increased transparency and federal programs that have helped stabilize part of the market, but issuances other than those supported by the government are mostly frozen.

Read the whole story @ Reuters

Japanese Corporate Bond Risk Rises, Credit-Default Swaps Show

Seneso Journal — Fri, 20 Nov 2009 17:06:04 +0000

The cost of protecting Japanese corporate bonds from default increased, according to traders of credit-default swaps.

The Markit iTraxx Japan index rose 2.5 basis points to 145.5 basis points as of 9:30 a.m. in Tokyo, according to Morgan Stanley. That’s up from 135 basis points on Nov. 13, CMA DataVision prices show.

Read the whole story @ Bloomberg

CMBS investors have thin(ner) skins in the game

Seneso Journal — Fri, 20 Nov 2009 16:48:31 +0000

ECB to Tighten ABS Requirements

Seneso Journal — Fri, 20 Nov 2009 16:37:07 +0000

The European Central Bank on Friday announced its first active step to unwind the extraordinary stimulus measures it has used to support the financial sector since the global crisis last year.

The bank said it will tighten the standards by which it accepts certain asset-backed securities as collateral for its refinancing tenders.

Read the whole story @ WSJ

Bank resumes sales of mortgage debt

Seneso Journal — Fri, 20 Nov 2009 16:34:47 +0000

Bank of America Corp. plans to sell $460 million of securities backed by commercial real estate without relying on a US program to aid lending, three days after the first sale of the debt in more than a year.

Backed by mortgages on office and industrial properties in Florida, the bonds are split into four portions, the largest of which is $350 million of top-rated debt, according to people familiar with the matter. Fortress Investment Group LLC is the sponsor on the transaction.

Read the whole story @ The Boston Globe