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’Taxing times for MBS
Back in the 1980s — when Lewis Ranieri was still fighting for the legal status of MBS — something seminal happened for the mortgage securitisation market.
The Tax Reform Act was passed by the US in 1986,
The mother of all bank re-securitisations?
FT Alphaville first mentioned reports that the FDIC, the US body in charge of guaranteeing American bank deposits, was looking at `the mother of all bank securitisations’ back in October.
The Federal Deposit Insurance Corporation has accumulated some $36bn worth of assets from the plethora of failed US banks.
All aboard the commercial real estate bailout train
It’s not as prominent as some other bailouts — but it is gaining steam.
To wit, here’s a bit from the Wednesday Congressional testimony of Sheila Bair, chairwoman of the Federal Deposit Insurance Corporation,
The IRS will save commercial real estate
Guess who’s just got a tax break?
Remics – the real estate mortgage investment conduits used to pool and securitise residential and commercial mortgages.
WASHINGTON, Sept. 15 /PRNewswire-USNewswire/
Re-Remic-ing the Talf
Commercial real estate has, rather suddenly, become the new doom-spot for the US economy.
Fed chairman Ben Bernanke is worried about it, Morgan Stanley and Wells Fargo posted losses because of it, and S&P is confusing everyone about it.
Re-mimicking the crisis
Commercial mortgage-backed bonds have been flying higher this week. As Reuters reported on Thursday:
June 18 (Bloomberg) — Yields on bonds backed by commercial mortgages fell relative to benchmark interest rates for the third day to the lowest this month as new offerings boosted investor interest.
The Re-Remic gimmick?
That’s resecuritisation of real estate mortgage investment conduits. Also known as: mutton dressed as lamb. Or in the patois of the international back-office banking shameless: recooked CDOs
Bloomberg reports today that re-Remics are growing rather popular: