RMBS

  • Right to return

    Non-prime mortgages set for US comeback?

    Attempts to reinvigorate the US non-prime RMBS market appear to be gaining traction. However, the sector still needs to overcome being tarnished by the subprime stigma.

    Angel Oak recently tapped the non-prime RMBS market when it completed its first deal in the sector - Angel Oak Mortgage Trust 2015-1 - in December via Nomura. The US$150.4m transaction comprises US$135.32m of senior and .......

    News Analysis 11 February 2016

  • Broker-dealer adds RMBS trader

    First Empire Securities has hired RMBS trader Richard Liao. He was most recently an agency RMBS trader at Société Générale. Liao has also previously worked at RBC Capital Markets and BNP Paribas.

    .......

    Job Swaps 11 February 2016

  • Euro ABS/MBS switchback

    Yesterday was a better day in the European ABS/MBS secondary market, but today looks set to see a switch back to recent patterns.

    "There was a slight rebound in broader markets yesterday, which enticed people back into the market," says one trader. "Notably, we saw some selling of senior assets and they all went through in line with expectations."

    However, .......

    SCIWire 11 February 2016

  • Servicing penalties imposed

    The OCC has terminated mortgage servicing-related consent orders against US Bank and Santander, and assessed civil money penalties against the banks for previous violations of the orders. The consent orders were terminated after the OCC determined that the institutions now comply with the orders.

    The OCC - and the former Office of Thrift Supervision in the case of Santander - .......

    Job Swaps 10 February 2016

  • Florida servicer payments 'credit positive'

    The payments made on delinquent loans by servicers in Florida are credit positive for the RMBS backed by the assets, Moody's reports in its latest Servicer Dashboard publication. The agency suggests that the practice may protect servicer rights to restart the foreclosure process on properties underlying long-delinquent loans and consequently gain recoveries on them.

    Some servicers have been crediting payments .......

    News Round-up 10 February 2016

  • CMBS originations business closed

    Redwood Trust is repositioning its commercial mortgage business to focus solely on investing activities and will discontinue commercial loan originations for CMBS distribution. However, the company will continue to opportunistically invest in mezzanine and subordinate CMBS tranches that meet its risk/return profile.

    "We have concluded that the challenging market conditions our CMBS conduit has faced over the past few quarters .......

    Job Swaps 10 February 2016

  • CAF 2015-1 workout progressing

    The first loan default in the US$251.6m Colony American Finance 2015-1 multi-borrower single-family rental (SFR) securitisation is expected to have little impact on the transaction's performance, as the US$1.1m loan accounts for just 0.4% of the collateral pool. The loan transferred to the special servicer - Midland Loan Services - in November 2015, a month after the transaction closed.

    Of .......

    News Round-up 10 February 2016

  • Euro secondary struggles

    The European securitisation secondary market continues to struggle amid wider market volatility, but there are still some exceptions.

    "Yesterday was once again quite weak overall," says one trader. "There was hope of some improvement thanks to better things in broader credit, but it will take more than that for us to recover more fully."

    However, the trader adds: "We continue to see .......

    SCIWire 10 February 2016

  • Loan loss model changes mooted

    Fitch has proposed changes to its US RMBS loan loss model criteria and is seeking market feedback. The model's core methodology would be unchanged and no rating implications are expected for outstanding bonds issued since 2009.

    The key proposed changes include: a revision to the distressed sale adjustment to reflect new GSE historical data; a cure-rate adjustment for borrowers that .......

    News Round-up 9 February 2016

  • Euro secondary sidelined

    The European securitisation secondary market remains quiet as participants continue sit out wider market volatility.

    "It's understandably very quiet as everyone watches what's going on in banks and financials, which is brutal to say the least," says one trader. "The majority of investors we speak to are planning on staying on the sidelines - everyone is in risk-off mode."

    However, .......

    SCIWire 9 February 2016

  • HSBC settles over mortgage practices

    The US Justice Department, the Department of Housing and Urban Development and the CFPB, along with 49 state attorneys general and the District of Columbia's attorney general, have reached a US$470m agreement with HSBC to address mortgage origination, servicing and foreclosure abuses. The settlement reflects a continuation of enforcement actions to hold financial institutions accountable for abusive mortgage practices, with .......

    Job Swaps 8 February 2016

  • Countrywide verified petition filed

    Bank of New York Mellon, as trustee for all 530 RMBS involved in the Countrywide settlement, last week filed a verified petition for judicial instruction regarding the proper distribution of the allocable shares within deal capital structures. As a result, it now appears that the final payment of the US$8.5bn may be delayed once again.

    Morgan Stanley RMBS strategists suggest .......

    News Round-up 8 February 2016

  • Euro secondary lacklustre

    Friday saw another lacklustre session in the European securitisation secondary market.

    Macro market weakness once again kept investors stuck on the sidelines. Consequently, flows were light and spreads were broadly range-bound.

    Prime assets were once again the positive area with two-way flows albeit at low volumes focused at the front end of the curve. Meanwhile, non-eligible peripheral bonds remain the .......

    SCIWire 8 February 2016

  • Repo RMBS debuts

    Jefferies Funding is in the market with an RMBS backed by a one-year revolving warehouse facility guaranteed by Jefferies Group. The US$225m Station Place Securitization Trust 2016-1 transaction is structured with two legs of back-to-back repurchase agreements.

    The facility's collateral will be newly-originated first-lien, fixed-rate residential mortgage loans eligible for purchase by Fannie Mae, Freddie Mac or Ginnie Mae. At .......

    News 5 February 2016

  • Euro secondary varies

    Volumes continue to be light in the European securitisation secondary market with performance still varying sector by sector.

    CMBS continues to be one of the strongest sectors. Prices remain well-supported and yesterday's €45m BWIC traded well.

    Prime assets are still seeing two-way flows albeit at much lower volumes than previous weeks. Buying interest in short-dated paper remains the dominant theme, though .......

    SCIWire 5 February 2016

  • STS expected losses highlighted

    Preferential capital treatment for simple, transparent and standardised (STS) securitisations would be consistent with the superior performance of STS-compliant tranches, says Fitch. However, the proposed capital charges are still significantly higher than expected losses.

    Fitch expects losses of 1% for STS-compliant deals and 4.3% for non-STS deals. "This suggests that lower capital charges for STS tranches than for non-STS tranches .......

    News Round-up 4 February 2016

  • Dispute resolution framework inked

    Fannie Mae and Freddie Mac have implemented a new independent dispute resolution (IDR) process for handling alleged loan-level breaches of selling representations or warranties that are unresolved after completing the GSE appeals process. The aim is to provide lenders with a simpler and more certain representations and warranties framework for originations.

    Andrew Bon Salle, evp, single-family business at Fannie Mae, .......

    News 4 February 2016

  • Euro secondary difficult

    Wider market weakness continues to make life difficult in the European securitisation secondary market.

    "Yesterday conditions were once again difficult thanks to the global meltdown," says one trader. "As a result, flows and liquidity in our space were very thin."

    However, the trader adds: "We are still seeing some pockets of activity - particularly in short-term bonds across a range .......

    SCIWire 4 February 2016

  • Morgan Stanley settlement reached

    Morgan Stanley has agreed to pay the FDIC nearly US$63m regarding claims over the sale of RMBS to three banks that later failed. The settlement, which resolves lawsuits brought forward by the regulator as receiver for the banks, will be distributed among their respective receiverships.

    The three banks include Colonial Bank of Montgomery, Alabama, which failed in August 2009. The other two .......

    Job Swaps 3 February 2016

  • Business development leader added

    ZAIS Group has appointed Gregory Barrett as head of client relations and business development. He reports to ceo Michael Szymanski and is based in Red Bank, New Jersey.

    Barrett will work with the firm's client relations team, portfolio managers and cio to lead and create distribution strategies for ZAIS. He will also be responsible for client service for investors.

    Barrett .......

    Job Swaps 3 February 2016

  • Euro ABS/MBS stifled

    The European ABS/MBS secondary market continues to be stifled by wider market weakness.

    Activity was once again limited both on- and off-BWIC yesterday as macro volatility kept many investors on the sidelines. The low beta ABS/MBS sectors continue to do well, however.

    Autos and Dutch RMBS in particular are garnering some buying interest and spreads there continue to outperform; while .......

    SCIWire 3 February 2016
×