Complete news archive

  • Qualitative underwriting examined

    Greater insight into how US prime RMBS perform can be achieved by observing the qualitative mortgage loan underwriting factors that supplement quantitative measures in a pool, says Moody's. The agency believes these measures would be useful to examine during an economic downturn.  

    In general, RMBS pools backed by loans with similar quantitative measures but weaker qualitative measures will perform worse than pools backed .......

    News Round-up 20 May 2015

  • Liquidity indicators prepped

    Interactive Data is set to launch a new liquidity indicators service in July. The service leverages the same fixed income evaluated pricing and reference data content that supports pricing and trading functions from buy-side and sell-side firms.

    The service's liquidity indicators include estimates of the projected trade volume capacity of a fixed income security, which can be used in conjunction with .......

    News Round-up 20 May 2015

  • Ohio, Michigan RMBS performance warning

    US RMBS deals backed by delinquent loans concentrated in Ohio and Michigan will perform worse than those backed by delinquent loans in other states because of high loss severities, Moody's suggests. The agency says this higher level of loss has been driven in part by significantly higher rates of home value depreciation.

    Average loss severities for defaulted loans from Ohio .......

    News Round-up 20 May 2015

  • Timeshare delinquencies 'stable'

    US timeshare ABS delinquencies were stable in 1Q15 and remain within historically normal levels, according to Fitch's latest index results for the sector. Total delinquencies were 2.9% for the quarter, consistent with 2.89% in 4Q14 but below the 3.19% observed in 1Q14.

    Fitch says there was a slight increase in defaults in 1Q15, due to typical winter performance. Defaults stood .......

    News Round-up 20 May 2015

  • Euro ABS/MBS BWIC spike

    After another relatively quiet day yesterday, the European ABS/MBS secondary market looks set for a busy day today with a spike in BWIC volumes.

    For the most part secondary spreads remained range-bound yesterday on light activity. Although one trader notes: "Market tone is a little bit weaker away from core product - peripherals and mezz 2.0 CMBS have edged out, .......

    SCIWire 20 May 2015

  • Court proceeding for TITN 2006-3

    US Bank, as trustee for the Titan Europe 2006-3 CMBS, is seeking directions from the English courts under a Part 8 proceeding as to matters of contractual interpretation relating to noteholder entitlements under the priority of payments. The move is due to a continuing dispute between the class X noteholders and the other noteholders, the resolution of which is required .......

    News Round-up 20 May 2015

  • FNMA completes debut NPL sale

    Fannie Mae has disclosed the results from its first non-performing loans sale. The transaction comprised 3,068 loans with a UPB of US$762m, divided into two pools.

    Pool 1 accounted for 710 loans (US$173.8m), while Pool 2 accounted for 2,358 loans (US$587.9m). The winning bidders for the pools were SW Sponsor and Neuberger Berman Fixed Income Funds respectively. The cover bid .......

    News Round-up 19 May 2015

  • Non-agency RMBS approach released

    Morningstar has published its US non-agency RMBS resecuritisation methodology, while updating its current RMBS ratings methodology and US residential mortgage loan reps and warranties framework. The agency's framework covers its analytical approach to various types of RMBS transactions, including qualified mortgages, non-qualified mortgages, reperforming loans, non-performing loans and resecuritisations of existing classes of RMBS.

    Generally, Morningstar utilises a proprietary loan-level .......

    News Round-up 19 May 2015

  • US CMBS stays stable

    US non-agency CMBS secondary market levels are staying stable.

    Despite recent broader market volatility CMBS secondary spreads up and down the capital structure have been reasonably stable. Now, with equities and rates recovering, that stability looks set to continue.

    "Investors are definitely axed to buy bonds and we expect spreads to remain stable for the rest of the month," says .......

    SCIWire 19 May 2015

  • Euro CLOs see demand and supply

    The European CLO secondary market is continuing to see strong demand and supply.

    The unabated demand for 2.0 European CLO paper was underscored by the two line items on BWIC yesterday, GROSV 2015-1X D and RPARK 1X C, covering above par. Off-BWIC paper was changing hands across the capital structure for both 1.0 and 2.0 bonds.

    The rest of this .......

    SCIWire 19 May 2015

  • ABS survey signals stability

    ABS investors remain comfortable with performance in the market, according to JPMorgan's mid-year ABS investor survey. This will likely be reflected in continued participation in the sectors that the investors currently invest in.

    JPMorgan ABS analysts expect ABS supply to reach US$200bn by year-end 2015, which would supplant the US$190bn of primary issuance in 2014. Survey respondents concurred, with 45% of .......

    News Round-up 19 May 2015

  • Granite upgraded on improved performance

    Fitch has upgraded 52 tranches of the Granite master trust RMBS programme and nine tranches from the Whinstone transactions. The agency has affirmed all other tranches and revised the outlooks on 19 tranches.

    The agency's actions are a result of a number of factors, including improving asset performance within the transactions. The balance of loans in arrears by more than .......

    News Round-up 19 May 2015

  • HQLA trading platform unveiled

    Tradition is set to launch a new marketplace for collateral and secured deposits, with the platform expected to go live in Europe later this year. DBV-X will offer market participants access to a range of counterparties and high-quality liquid assets that can be traded as collateral on a peer-to-peer basis.

    The platform will offer full pre-trade counterparty anonymity, price transparency .......

    News Round-up 19 May 2015

  • Auction listings up

    Auction.com and RealCapitalMarkets.com listings indicate that 84 properties with US$575m in balance from 80 distressed CMBS loans are out for bid in May and June. GCCFC 2005-GG5 has the highest exposure to the auctions at US$145m across nine properties, followed by LBUBS 2006-C4 with US$101m exposure from 13 properties, according to Barclays Capital figures.

    US$45m Meadowbrook North, US$34m Senator Office .......

    News Round-up 19 May 2015

  • Middle market pro recruited

    Chip Cushman has joined Golub Capital as md in its middle market lending group. He will be responsible for originating, underwriting, executing and monitoring investments for the firm.

    Cushman was previously md at GE Antares, a division of GE Capital. In this role, he was responsible for developing and maintaining relationships with private equity firms, and originating and evaluating new .......

    Job Swaps 19 May 2015

  • Ocwen downgrade eyed

    HSBC, as trustee to three Ocwen-serviced deals (RAMC 2005-4, RAMC 2006-1 and RAMC 2006-3), last week sent notices to noteholders requesting votes on terminating Ocwen as servicer. The notices refer to Fitch's downgrade of Ocwen's rating to RPS4 from RPS3 in February.

    In the servicing agreements between Wells Fargo as master servicer and Ocwen as servicer, the downgrade constitutes a .......

    News Round-up 19 May 2015

  • RMBS 3.0 servicing improvements touted

    Successive years of difficulties in the mortgage servicing sector have prompted a call for change among new-issue US RMBS market participants, according to Fitch. Most mortgage servicers have already begun undergoing significant transition since the mortgage crisis, including reductions in bank servicing portfolios and growth of non-bank servicing portfolios.

    However, changes now being sought by the market include improved incentive .......

    News Round-up 19 May 2015

  • Euro ABS/MBS builds up steam

    The European ABS/MBS secondary market looks to be building up a head of steam.

    Yesterday was, as expected, a quiet day with caution prevailing. However, there was patchy trading in the usual sectors plus an increase in interest in specific Spanish names. BWICs traded in line with expectations and overall spreads remained range-bound.

    With broader credit improving, today is likely .......

    SCIWire 19 May 2015

  • US CLOs still going strong

    US CLO secondary market is still going strong with the BWIC pipeline growing and paper trading well.

    "BWICs are continuing to trade very well," says one trader. "Many bonds are going through right at par or just above."

    The trader attributes this to the relative value the sector offers. "Right now, CLOs seem to be offering the best opportunities rating .......

    SCIWire 18 May 2015

  • SCI Start the Week - 18 May

    A look at the major activity in structured finance over the past seven days

    Pipeline
    It was another active week for the pipeline. At the final count there were 13 new ABS, one ILS, three RMBS, five CMBS and one CLO.

    The ABS were: US$500m Avis Budget Series 2015-2; C$479m BMW Canada Auto Trust 2015-1; £490m CPUK (refinance); US$809m DRIVE 2015-B; US$1.88bn Ford Credit Auto Owner Trust 2015-B; €543.5m Globaldrive Auto Receivables 2015-A; .......

    News 18 May 2015

  • Euro ABS/MBS shows caution

    Some signs of caution are entering the European ABS/MBS secondary market, but it may not last.

    The quiet end to last week, which saw ABS/MBS spreads close unchanged has morphed into an even more cautious tone today with some signs of softening as broader credit edged wider on Greek concerns this morning. However, it is hoped that the building BWIC .......

    SCIWire 18 May 2015
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