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’The Ian Dyson detox plan
Punch Taverns — aka the Toxic Pub Company — won’t be handing back the keys to its troubled tenanted inns after all.
Chief executive Ian Dyson has decided on a break-up instead, creating a pub world equivalent of a ‘good bank’ and a ‘bad bank’.
Portugal: finally about the banks
Portugal’s fiscal plight is dire: but unlike in Spain or Ireland, the country’s banks are not major burdens on the sovereign. Where was the big 2000s Portuguese housing bubble, after all. Right?
No.
‘Securitisation is not that evil after all’
Now there’s a title, from a new BIS working paper, to catch one’s eye.
In it, the authors tackle the issue of information asymmetry in the securitisation process — or the basic idea that the holders or creators of a security might have better information about the investment than potential buyers.
Back to the future with CMBS
Blink and you might have missed it — but the market for Commercial Mortgage-Backed Securities (CMBS) reopened about 15 months ago with three transactions.
But the deals, issued in late 2009, were not CMBS as we knew them pre-financial crisis.
UK banks sorcery
The Government today welcomed the commitment by the UK’s biggest banks on lending expectations and capacity, the size of the 2010 bonus pool, pay disclosure and support for regional growth and the Big Society.
What lies in Greek RMBS
Greece has lots of problems.
Yet unlike Ireland or Spain, a collapsed housing market (even under austerity) isn’t one of them. But…
This is Grifonas Finance No. 1.
Grifonas is a Greek RMBS transaction launched in 2006 (here’s the prospectus).
‘Banks may be the best holders of mortgage risk,’ says Deutsche
Or, why the private label mortgage securitisation market keeps failing to rise from the dead — especially as the US grapples with Fannie/Freddie reform.
Here’s the thinking, from Deutsche Bank’s Steven Abrahams:
Dear Sir John
Which anarchist added this to the list of public responses sent to the UK’s Independent Banking Commission? (H/T to the FT’s Paul Davies):
While again emphasising that this is a personal view, I do believe that in the interests of competition,
A very messy Ambac lawsuit for JPMorgan
JPMorgan didn’t want this to be made public. You can kind of see why.
Quick background — the bank has been engaged in a legal battle with Ambac since November 2008. The monoline says EMC, Bear Stearns old mortgage-banking arm,
CMBScurviness by originator
Iffy commercial loans pre-financial crisis? Blame the conduits.
A new Federal Reserve discussion paper takes a look at 30,000 loans that were eventually turned into Commercial Mortgage-Backed Securities (CMBS) to figure out whether mortgages originated by certain types of lenders were more risky.
Solving the second-lien sticking point
Remember this chart? It’s old, but still relevant.
Those are second-lien (or just plain second) mortgages held by US banks — also known as remortgages or home-equity withdrawals in the UK. The top four,
A court case to challenge securitisation standards [updated]
Currently winding its way through the Massachusetts Supreme Court — a little court case that could end up having big consequences for mortgage securitisations.
It’s called the ‘Ibanez case’ and here’s the story.
That mysterious missing mortgage note
Whoops. Securitisation snafu straight ahead.
The New York Times picked up on small court case — with big implications — over the weekend. According to testimony by a Bank of America executive, and presented as part of a New Jersey bankruptcy judge’s opinion,
The mother-of-all MERS fixes
Here’s an, erm, efficient way to solve problems around MERS — the Mortgage Electronic Registration Systems Inc. that’s been making headlines in recent months.
From an unconfirmed report by consumer-advocate Neil Garfield:
The least ‘advanced’ mortgage servicers
The mortgage servicing biz is not coming out of the foreclosure scandal unscathed.
What was once a fairly steady industry — based on narrow margins but lots of volume — is suddenly having to rethink its business model.
Collateralised contagion
Interactive graphics at their best, this.
Network scientist Valedis Krebs has created a visualisation of ownership in Collateralized Debt Obligations (CDOs) — all that securitised cross-ownership.
To make it,
Toxic Pub Co. meets toxic bond insurer
You won’t find Ambac mentioned in Punch Tavern’s most recent annual report.
But it’s there. Hovering — waiting — in the background.
The zombie US bond insurer began guaranteeing some of the British (toxic) pub co.’s formidable securitisation programmes back in 2003.
CDO lemons, a government fruit bowl
‘Asymmetric information’ in Collateralised Debt Obligations is not a good thing.
That much we know from Goldman Sachs’ Abacus 2007-AC1 CDO and, err, Goldman Sachs’ Abacus 2006-13 and Abacus 2006-17 deals.
MERS casts its shadow on commercial mortgages
Barclays Capital analysts have done it.
They’ve linked Mortgage Electronic Registration Systems Inc — currently making headlines in US residential mortgages — to the commercial mortgage market.
And specifically,
One size does not fit all in ABS risk, Fed says
Risk retention requirements for Asset-Backed Securities *yawn.*
But the 96-page report released by the US Federal Reserve this week — outlining the potential impact of risk retention on ABS — makes for interesting financial crisis forensic reading.
Turn of the (MBS) trustees
Bank of New York Mellon may have been the other addressee in that Pimco, New York Fed, BlackRock et al letter regarding $47bn in RMBS — but it’s managed to escape much of the limelight shining on co-addressee Bank of America.
Those blemished Countrywide credit loans
So… since FT Alphaville was working on a special RMBS supplement;
We spoke with Scott Simon, head of MBS at Pimco last week — who gave us this quote:
“There’s been an amazing amount of things
Mortgage multiplicity
Naked Capitalism — which has been producing boatloads on the mortgage mess — has something interesting. It’s a court filing made by Bank of America back in June.
Quick background — the filing has to do with Ocala Funding LLC,
A stab at securitisation
Some weekend foreclosure scandal, securitisation-related reading.
It’s based on a 159-page class action lawsuit, filed in Kentucky on behalf of all Kentuckian homeowners, and against MERS and several financials.