More punitive capital treatment of commercial real estate under Basel III could prove to be a boon for CMBS issuance.

The red-hot vehicle ABS market saw intense competition between S&P and Fitch for ratings supremacy. Kroll rode the resurgent ECM MBS market to boost its share of rated issuance. (Includes two data tables.)

After S&P made changes to its insurer risk-based capital adequacy criteria, Arch Capital canceled eight of its mortgage insurance-linked note transactions, citing newly unfavorable capital treatment.

Bank of America Global Research is projecting an increase in agency MBS issuance next year despite muted demand from banks.

REIT values can rise and fall depending on interest-rate swings. The good news is that rates have steadily dropped the past five weeks. The bad news: A rate cut by the Fed will need a recession to occur first.

The criteria include new calculations for property values and qualitative adjustments tied to loan-to-value ratio-sizing benchmarks.

Bank holdings of credit-card ABS were the only sector to show an increase in the third quarter as most top players recorded declines in their portfolios. (Includes two data tables.)

Capitol Federal Savings Bank took a loss of about $200 million on the sale of $1.3 billion of securities (largely MBS) with low interest rates. The bank reinvested the proceeds in higher-yielding assets and paid off some debts. Pacific Premier Bank made a similar move this week.

MBS creation is weak thanks to high mortgage rates and anemic refis but one positive for the market is the October increase in agency trading volumes. A real sign of hope or a head fake?

Servicing practices at credit unions, relatively new participants in the auto ABS market, differ in some ways from the industry at large.