W. Scott Frame explores how U.S. banks are leveraging synthetic securitization to optimize regulatory capital allocation. By issuing credit-linked notes, banks transfer credit risk to external investors. Frame discusses the economic incentives driving these transactions,...
Read MoreFreddie Mac’s proposal represents further unnecessary encroachment by the government into sectors of the housing market that operate well. WASHINGTON, April 17, 2024 – The Structured Finance Association (SFA), a leading trade association representing the...
Read MoreAccording to a March 28th Asset-Backed Alert, three recent Floorplan ABS offerings have increased in size before issuance. Floorplan securitizations, which were put on hold from 2020 to 2022 due to pandemic impacts, began to...
Read MoreGoldman Sach Asset Management (GSAM) released their annual survey in which they polled 359 insurance company executives, ranking their expectations for returns on various asset classes. For the first time in the poll’s 13-year history,...
Read MoreThe Wall Street Journal reports that first quarter sales for the U.S. auto industry are higher year-over-year. Though Ford’s report is not yet available, and manufacturers’ gains were not uniform, some makers saw double-digit increases...
Read MoreThe expansion of the private credit market has spurred a rise in trading activity for loans approaching maturity, prompting the emergence of a "semi-active secondary market," as highlighted by The Financial Times. Quoting a report...
Read MoreAs the Federal Reserve prepares to lower interest rates later this year, mortgage rates might not decrease quickly given that demand for mortgages and mortgage-backed securities remains muted compared to pre-2022 levels. This decreased demand,...
Read MoreIncreased loan putbacks from Fannie Mae and Freddie Mac have led to increased “scratch-and-dent loans” securitization issuance. These loans were returned to their originators for reasons like missing documentation, mortgage-insurance issues, or incorrect debt-to-income ratio...
Read MoreThe Wall Street Journal reports that 2023 saw only 3.5% of office building sales coming from distressed sellers, based on MSCI Real Assets analysis. Of the $35.8 billion of office loans that came due in...
Read MoreBloomberg News reports that growing issuance of Synthetic Risk Transfers (SRTs), used by large banks to manage regulatory capital requirements, had been expected to surge this year. However, Fed Chair Jerome Powell’s recent testimony on...
Read MoreThe National Association of Realtors (NAR) has agreed to settlement terms in litigation over how buyers’ agents are paid in the sale of residential property. Under the proposal, buyers’ agents would need to present services...
Read MoreOn March 19, the United States Court of Appeals for the Third Circuit published its decision in Consumer Financial Protection Bureau v. National Collegiate Student Loan Trust, et al. The Third Circuit held that (1)...
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