By Kevin Wack
The unusually strong loan performance in the credit card business lasted longer than many observers expected. But today the industry's prolonged post-crisis era finally appears to be over.
July 26, 2016 – Bank of America is securitizing a portion of a new $450 million commercial mortgage for the International Square office complex in Washington, D.C., featuring The Federal Reserve and The World Bank as prime tenants.
July 27, 2016 – Banco Sabadell is pushing out a 1.75 billion (US$1.92 billion) securitization of small business loans through a newly established trust platform.
July 26, 2016 – Freddie Mac has reached a binding commitment with Chimera Investment Corp., a New York-based real estate investment trust, in its pilot structured sale of seasoned loans.
July 26, 2016 – Barclays 13th U.S. credit card securitization, and the first for 2016, has taken a shift toward older vintage accounts in its new $609.8 million pool of receivables. Fitch, S&P have issued preliminary ratings to the Class A notes in the capital stack.
July 25, 2016 – The platform that party officials approved at this week's Republican National Convention in Cleveland states that, "The utility of both agencies should be reconsidered." That contrasts with the 2012 version of the platform, which stated, "Both Fannie Mae and Freddie Mac should be wound down in size and scope."
July 21, 2016 – Since 2013, CLO Managers have been issuing notes with rates that are initially low, but step up after 18 to 24 months, betting that they can refinance them more cheaply; so far their success has been mixed.
July 11, 2016 – Banks that stuck with student lending after the financial crisis are finding the business far less risky than it used to be.
July 8, 2016 – Recently allegations of fraud against Lending Club and several Chinese marketplace lenders have some observers calling for more daylight on the loans sold on these marketplaces. Specifically, they're floating the idea of a technology and service that would register and track ownership of the loans and validate basic facts about them and the borrowers.
June 28, 2016 – The $1.17 billion deal follows a years worth of management deliberations over issuing asset-backeds, which Verizon expects to lower the cost of financing device payment-plan agreements.The deal will also ease pressure on the carrier's own corporate credit ratings.
June 27, 2016 – The Supreme Court's decision Monday not to hear a closely watched lending case leaves unresolved some key questions for the U.S. financial industry.
June 26, 2016 – The total outstanding balance of Ginnie Mae mortgage-backed securities was $1.624 trillion on May 31, compared with $1.623 trillion in outstanding Freddie Mac MBS, according to Urban Institute calculations based on eMBS agency MBS security data.
June 21, 2016 – The $1.3 billion transaction was marketed as a corporate bond, and the strategy appears to have paid off. It was priced last week at interest rates in line with those of some the highest rated U.S. companies and government agencies.
June 20, 2016 – Collateralized loan obligations with static portfolios have less overhead than actively managed deals, making them more economical to run when market conditions are challanging. These deals also amortize much more quickly than CLOs with actively managed portfolio, which appeals to certain investors.
June 16, 2016 – Raising the legal age for tobacco purchases by three years, to 21, is expected to lower California's tobacco tax income by about $68 million a year, according to legislative analyses. It could also have broader implications for other states.
Managing Director, Structured Products
Firm: Guggenheim Securities
State student loan authorities sense a business opportunity helping graduates who are gainfully employed lower their payments. Their low-cost funding could put them in competition with banks and marketplace lenders.Current Issue