Complete news archive

  • US CMBS recovery rate drops

    Recovery rates on US CMBS liquidated loans dropped significantly last year compared to 2012, according to the latest quarterly index results from Fitch. The rate of CMBS loans in special servicing has continued to fall.

    From 74.8% in 2012, the recovery rate for liquidated CMBS dropped to 66.5% last year. The final quarter of the year saw the recovery rate .......

    News Round-up 28 March 2014

  • Solar securitisation expansion expected

    More than six out of 10 solar originators believe securitisation of pooled commercial solar assets will take place over the next 12 months. More than half expect the securitisation of pooled residential solar assets will occur in the same period, according to a Mercatus survey.

    The survey also found that 56% of solar originators say they currently have enough operating .......

    News Round-up 28 March 2014

  • CDS sentiment on bank weakens

    CDS market sentiment towards Standard Chartered Bank has worsened over the course of 2014, according to Fitch Solutions. The dampened market sentiment is likely being driven by weaker annual profits and organisational changes announced earlier in the year.

    Five-year CDS on the bank have widened 23% since January, markedly underperforming Fitch's European Financials CDS Index, which tightened 6% during this .......

    News Round-up 28 March 2014

  • Chinese credit quality eyed

    The China Banking Regulatory Commission (CBRC) announced last month that commercial bank non-performing loans (NPLs) rose to RMB592.1bn in 4Q13 from RMB492.8bn in the same period of 2012. In addition, the NPL growth rate significantly outpaced total loan growth in 4Q13.

    Moody's notes in its latest 'Structured Thinking: Asia Pacific' publication that these developments suggest that the credit quality of .......

    News Round-up 27 March 2014

  • Servicers 'well prepared' for MMR

    The UK FCA on 26 April will implement the Mortgage Market Review (MMR), a set of reforms aimed at creating a mortgage market that works better for consumers and is more sustainable for all participants. S&P reports that third-party residential mortgage servicers are well prepared for the changes ahead of the MMR's implementation.

    "Third-party residential mortgage servicers will need to .......

    News Round-up 27 March 2014

  • 2005-vintage paper propels RMBS

    US non-agency RMBS secondary market activity picked up yesterday as bid-list supply increased to around US$650m. SCI's PriceABS data shows a wealth of 2005-vintage paper out for the bid, as well as a range of other names as fixed-rate and subprime levels improved.

    The oldest tranche to be captured by PriceABS during the session was MRFC 2001-TBC1 A1, .......

    Market Reports 27 March 2014

  • Servicer concentration emerging

    The past year has seen a sea-change both in who is servicing severely delinquent US mortgage loans and how they are being serviced, Fitch observes in its latest quarterly servicing index report. The transfer last year of non-agency RMBS mortgage servicing rights (MSRs) from banks to non-bank servicers, along with increased usage of subservicing arrangements has had a dramatic impact .......

    News Round-up 27 March 2014

  • Advancing rates levelling off

    Declines in US servicer advancing rates are now levelling off and could see modest improvement this year as home price gains of over 20% have increased recovery values for servicers, according to Fitch. Last month's servicer advancing rate stood at 56% after slowly increasing for four of the last five months.

    Since the start of 2007, the percentage of delinquent .......

    News Round-up 27 March 2014

  • Low FSD supports Dutch RMBS

    The Dutch RMBS market on average maintains low delinquencies (0.87%, as of December 2013), low defaults (0.44%) and low loss severities (29.1%) - despite average LTVs of over 100%, interest-only (IO) mortgage concentration of over 50% and a drop in home prices of 20% from the 3Q08 peak. Further, DBRS analysed a sample of defaulted loans across the sector from .......

    News Round-up 27 March 2014

  • SFR trade group launches

    A non-partisan coalition focused on increasing education about the professionally managed single-family rental industry has been formed. The National Rental Home Council (NRHC) will serve as a resource for policymakers, media, market observers, industry leaders and local officials.

    The professionally managed single-family rental home industry that is institutional investor-owned represents around 200,000 homes in a market of 14 million. Founder .......

    Job Swaps 27 March 2014

  • Capital requirement changes proposed

    A number of trade associations have submitted comments to the Basel Committee on revisions to the securitisation framework proposed in its Second Consultative Document. They believe that the proposed capital requirements for securitisation exposures remain much higher than justified by historical loss incidence in most asset classes, by comparison with other methods of finance or in relation to the capital .......

    News Round-up 27 March 2014

  • BSABS surprise in March remittances

    In a somewhat unexpected move, JPMorgan has recognised in the March remittances prior forbearance-related losses for a number of BSABS deals. A couple of other RMBS also realised similar losses during the month.

    BSABS 2005-AQ2, 2005-HE9, 2006-HE3, 2006-HE7, 2006-HE9, 2006-HE10, 2007-AQ1, 2007-HE1, 2007-FS1, 2007-HE2 and 2007-HE3 recognised losses of between US$7.5m and US$24.4m - representing 5.3%-7.1% of the current balance .......

    News Round-up 27 March 2014

  • Asset manager adds risk head

    SCIO Capital has appointed Jason Harris as head of risk in London, reporting to Saul Greenberg. The firm has also completed a round of fundraising for SCIO Partners Fund II.

    Harris was previously European head of securitisation risk at Deutsche Bank, where he was responsible for ABS, RMBS and CLO positions. Before that he spent a decade at Citibank.

    Partners .......

    Job Swaps 27 March 2014

  • French firms partner up

    Amundi and Tikehau have signed a strategic asset management partnership to collaborate on private debt management. Amundi will also acquire a stake in Tikehau IM and become a shareholder of Tikehau Capital Advisors.

    Amundi will provide its clients with access to Tikehau's innovative and bespoke product range, while Tikehau will be able to accelerate the development of its asset management .......

    Job Swaps 27 March 2014

  • Asia RMBS delinquencies to remain low

    Residential mortgage loans in Australia, Japan and Korea have recorded low delinquency rates with little volatility over the past eight years - a trend that is expected to continue through the end of 2014. When loans default, RMBS in the three regions have not experienced a reduction in the subordination that junior bond classes provide, owing to other credit support .......

    News Round-up 26 March 2014

  • Japanese ABS issuance jumps

    The low and stable default rate of assets backing Japanese ABS transactions broadly underpins investor confidence and has boosted rated issuance by 68.3% from 1Q13 to 1Q14. This increase in volume is expected to continue as corporate sector borrowings rise due to the 'Abenomics' effect.

    Moody's notes in its latest 'Structured Thinking: Asia Pacific' publication that the expected default rate .......

    News Round-up 26 March 2014

  • Aussie job stability weighed

    Australian regions highly populated by blue collar and production industry borrowers are more vulnerable than other regions to 30-plus day mortgage delinquencies during economic downturns, according to Moody's. The agency suggests that blue collar and white collar categories better identify a borrower's skill level and hence job stability, compared to the industry that borrowers work in.

    "Blue collar and production .......

    News Round-up 26 March 2014

  • AON list boosts CMBS supply

    US CMBS BWIC volume climbed to around US$700m yesterday, significantly boosted by one large list of 2005 and 2006 duper paper that traded all-or-none to one dealer. SCI's PriceABS data lists 50 unique bond tranches out for the bid during the session, with a range of price talk and a high number of covers.

    The AON list is .......

    Market Reports 26 March 2014

  • Consumer weighting for HY22

    The Markit CDX HY index rolls from Series 21 to Series 22 tomorrow (27 March), with two constituent and three name changes. The impact of the two constituent substitutions is around 4bp, according to Morgan Stanley estimates.

    One of the names leaving HY21 has been upgraded to investment grade (Host Hotels & Resorts), while the other is no longer rated .......

    News Round-up 26 March 2014

  • UK resi criteria change unveiled

    Fitch has published an exposure draft detailing proposed new elements of its criteria for estimating losses on UK residential mortgage pools. The agency proposes to apply the sustainable loan-to-value (sLTV) ratio as a predictor of default instead of using the original loan-to-value (OLTV) ratio.

    SLTV is the ratio of the current loan balance to Fitch's estimated sustainable house price (SHP) .......

    News Round-up 26 March 2014

  • RFC issued on QM approach

    Moody's is requesting comment from market participants on its proposed approach to evaluating incremental risks of qualified and non-qualified mortgage loans in its ratings of US RMBS. The agency notes that the US Consumer Financial Protection Bureau's ability-to-repay (ATR) rules, which established the qualified mortgage (QM) category, create incentives that could lead to incremental risks for RMBS trusts.

    "The broad .......

    News Round-up 26 March 2014
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