Weekly Wrap: Freddie Mac CEO David Brickman resigns

Sheila Bair, as head of the Federal Deposit Insurance Corp. during the financial crisis, oversaw the resolution of more than 300 failed banks that went into receivership.

Now, she’ll play a major role in tackling one of the last problems left undone from that era: getting the mortgage giant Fannie Mae out of federal conservatorship.

Bairwill become chair of Fannie’s board next week, slightly more than a year after joining the government-sponsored enterprise as a director. The choice was surprising given her past criticisms of the structure of Fannie and Freddie Mac as private companies that enjoyed an implied government backing — which became explicit when the Treasury rescued the companies at a price tag of more than $191 billion in 2008.

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Jon Prior, American Banker

New-issue prime and subprime auto securitization deals picked up this week, with four new bond offerings backed by auto-loan receivables totaling between $5.5 billion and $6.06 billion.

The transactions include a massive $2 billion credit-linked notes series from JPMorgan Chase on its recently launched auto-loan securitization platform, representing the second issuance by Chase since September when it re-entered the auto ABS sector for the first time in more than a decade.

Also launching deals were AmeriCredit, Santander Consumer USA and Ford Motor Credit.

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Glen Fest, Asset Securitization Report

A real estate investment trust owned by Brookfield Property Partners (NYSE: BPY) specializing in property sale-leaseback deals with automotive-related businesses is marketing $568.1 million in bonds backed by triple-net lease revenues.

McLean, Va.-based Capital Automotive LLC is planning to sell six classes of senior and subordinate notes via Goldman Sachs, secured by a pool of 44 commercial automotive properties – primarily franchised dealerships – leased to 26 dealer groups in 20 states and four Canadian provinces.

The notes will be issued from Capital Automotive’s CARS-MTI master trust through six special-purpose entities. S&P Global Ratings has assigned preliminary AAA ratings to the Class A-1 and A-2 tranches totaling $221.7 million, an A rating to the $297.9 million in Class A-3/A-4 notes and a BBB to the Class B-1/B-2 notes adding up to $48.5 million.

The deal is the first from the CARS-MTI shelf since its 2016-1 Series, an original $470 million net-lease mortgage notes issuance that remains outstanding.

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Glen Fest