RMBS

  • More scrutiny on SFR managers

    Certain operational risk fundamentals for property managers in the single-family rental space are only now being addressed, says Morningstar. This is largely due to the lack of an extensive operating history.

    "As the rush to acquire large numbers of rental houses has slowed, institutional property managers are turning their attention to stabilising their platforms and focusing on documenting policies, strengthening .......

    News Round-up 22 January 2016

  • Small balance RMBS RFC issued

    S&P is requesting feedback on proposed changes to its surveillance of US RMBS backed by small-balance commercial loans. These securitisations are backed by mortgages on properties that have commercial characteristics - such as mixed-use, multifamily or retail - but also have underwriting and transaction structural features aligned to RMBS.

    The agency warns that the proposals would bring higher loss projections .......

    News Round-up 22 January 2016

  • STS securitisation supported

    The European Economic and Social Committee (EESC) has added its voice to calls for the introduction of a simple, transparent and standardised (STS) securitisation regime in Europe. It says securitisation can still be a secure system and can create growth through the unlocking of additional credit.

    "The risks involved in such transactions should now be clearly understood and responsibilities well .......

    News Round-up 22 January 2016

  • Euro secondary improves

    Better wider markets have improved European securitisation secondary tone once more.

    A combination of a return to form in stocks/broader credit, the ECB press conference and the successful execution of the Spanish OWIC boosted the secondary market across the board yesterday and that has continued into this morning. Nevertheless, it is only the prime and ECB-eligible peripheral sectors that are .......

    SCIWire 22 January 2016

  • EBA consults on 'implicit support'

    The EBA has launched a consultation regarding its guidelines on implicit support for securitisation transactions. The guidelines were drafted to provide clarity on what constitutes 'arm's length conditions' and when a transaction is not structured to provide support for securitisations.

    The capital requirements regulation (CRR) foresees restrictions on implicit support to securitisations due to significant supervisory concerns and the belief .......

    News Round-up 21 January 2016

  • Fresh mortgages rap for Ocwen

    Ocwen has settled US SEC charges that it misstated financial results by using a flawed and undisclosed methodology to value complex mortgage assets. Ocwen has made a string of settlements (SCI passim) and under this latest one will pay the SEC a US$2m penalty.

    The SEC found Ocwen inaccurately disclosed to investors that it valued assets independently at fair value .......

    News Round-up 21 January 2016

  • Euro ABS/MBS turns

    After two weeks of insulation from broader market volatility the positive tone in the European ABS/MBS secondary market has turned.

    "It's become challenging, to put it mildly, now that macro volatility is impacting our space and drying up liquidity," says one trader. "The last two sessions have been risk off and I don't see that changing today with most investors .......

    SCIWire 21 January 2016

  • Euro secondary story unchanged

    Yesterday's improvement in broader markets did not change the story in the European securitisation secondary market and this morning's macro weakness is likely to keep it that way.

    "Yesterday things were a bit better overall and credit indices came in some way," says one trader. "However, little changed in our sector."

    Instead, recent trends continue, the trader says. "Senior prime .......

    SCIWire 20 January 2016

  • FHLB rule impact gauged

    The FHFA has released a final rule which amends its guidelines for Federal Home Loan Bank (FHLB) membership. The rule adds to the woes of leveraged RMBS investors by excluding captive insurers from the list of entities eligible for FHLB membership.

    An increasing number of new members over the last few years have been reeled in by the temptation of low-cost, reliable funding from .......

    News 19 January 2016

  • Swaps allow for higher ratings

    Cross-currency swaps that mitigate the effect of foreign exchange controls have enabled Moody's to assign ratings above the applicable foreign currency bond ceilings to foreign currency-denominated securitisation transactions, says the rating agency. Without these features such ratings would not be attainable.

    "To mitigate the transferability and convertibility restrictions, an offshore swap counterparty typically receives local currency payments from an onshore .......

    News Round-up 19 January 2016

  • Oil slump is CRT concern

    Oil prices last week hit their lowest mark for 12 years, with significant implications for CRT deals. Should oil prices remain depressed over the coming quarters, Barclays analysts expect the underperformance of oil-affected areas to worsen.

    Oil prices began to fall in 2H14 and have been on a downward trajectory for much of 2015-2016. While oil areas had been outperforming .......

    News 19 January 2016

  • Euro secondary hesitant

    It was an unsurprisingly quiet day yesterday in the European securitisation secondary market as participants appear hesitant to return to the fray.

    As a result of the US holiday and continuing broader market volatility it was a quiet session yesterday even for a Monday. Many investors remained sidelined and appear to be waiting for some signs of broader credit stability .......

    SCIWire 19 January 2016

  • Euro secondary resilient

    The European securitisation secondary market remained resilient into Friday's close despite broader market volatility.

    That volatility continues to ensure that activity is patchy, however. Nevertheless, the last session of the week was reasonably busy for a Friday as technicals, notably lack of supply, continue to support spreads and fuel buying interest.

    The major beneficiaries are still ECB-eligible peripherals, CMBS and .......

    SCIWire 18 January 2016

  • Finalised FRTB 'still punitive'

    The Basel Committee has released the final version of its fundamental review of the trading book (FRTB). While the final ruling remains punitive for securitisation, it is not as harsh as earlier drafts suggested it might be.

    The final version has lower capital requirements than earlier versions recommended. However, the proposed requirements are still higher than the current SSFA standard.

    News 15 January 2016

  • Unique features boost SFR deal

    Home Partners of America's (HPA) unique tenant-driven property acquisition and rent-to-own business strategy will benefit the performance of its first single-family rental (SFR) securitisation, Home Partners of America 2016-1, says Moody's. HPA 2016-1 hit the market on 12 January.

    HPA acquired the properties backing the transaction based on requests from prospective homeowners who desired to rent the properties with eventual .......

    News Round-up 15 January 2016

  • Working Group settlement agreed

    Goldman Sachs has reached an agreement in principle to resolve the ongoing investigation of the RMBS Working Group of the US Financial Fraud Enforcement Task Force, relating to the firm's securitisation, underwriting and sale of RMBS from 2005 to 2007. The settlement will resolve actual and potential civil claims by the US Department of Justice, the New York and Illinois .......

    Job Swaps 15 January 2016

  • Euro secondary steady

    The European securitisation secondary market continues to see steady activity and pricing levels are for the most part stable.

    Once again, yesterday's activity was driven primarily by BWICs and flows off the back of those auctions. The main interest surrounded autos following the Renault raid with a few sellers emerging after the news broke, but by the close buying interest had .......

    SCIWire 15 January 2016

  • Fannie to offload more NPLs

    Fannie Mae has announced another sale of NPLs, including a second community impact pool. The community impact pool is a geographically-focused, high-occupancy pool being marketed to encourage participation by smaller investors, non-profits and minority-owned businesses.

    The four larger pools contain approximately 6,700 loans totalling US$1.35bn in unpaid principal balance. The community impact pool has around 60 loans from the Miami .......

    News Round-up 14 January 2016

  • AXA IM boosts SF team

    AXA Investment Mangers has appointed The Duy Nguyen as senior portfolio manager. He will be based in Paris and report to co-head of securitised and structured assets Alexandre Martin-Min.

    Nguyen will be responsible for managing multi-asset class portfolios within AXA IM's structured finance team. He was most recently at Natixis and has also worked at Société Générale.

    .......

    Job Swaps 14 January 2016

  • Chase settlement edging to end

    JPMorgan has now paid US$3.68bn in consumer relief to 3,695 borrowers through 30 June 2015, according to the latest figures from RMBS Settlement Monitor Joseph Smith. The payments are part of an agreed settlement following claims that Chase, Bear Stearns and Washington Mutual packaged and sold bad RMBS.

    The latest figures reveal a further US$126.25m in claimed credit through the first .......

    Job Swaps 14 January 2016

  • Euro secondary unchanged

    The European securitisation secondary market looks to be keeping to the same pattern seen in previous sessions - quiet away from a reasonably active BWIC calendar.

    "This week flows have been relatively quiet because of the very high volatility in broader credit," says one trader. "Today is looking like it will be no different."

    There have, however, been some pockets .......

    SCIWire 14 January 2016
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