RMBS

  • P2P lender poaches ABS pro

    Dipesh Mehta has joined Funding Circle as a director in its capital markets team following a period of consulting for the P2P lender. In this role, he focuses on secured lending and serving institutional clients.  

    Mehta previously worked as an analyst in European ABS research strategy for Barclays. His core sector coverage was on consumer ABS, with a primary focus .......

    Job Swaps 15 February 2016

  • Euro secondary stronger

    After a relatively benign close to last week, today is opening with a stronger tone across the bulk of the European securitisation secondary market.

    Friday once again saw extremely thin liquidity across the board, but low beta paper continued to catch a bid and senior peripherals traded well on- and off-BWIC, especially Italian names, but even select Portuguese bonds tightened .......

    SCIWire 15 February 2016

  • Fourth set of FNMA NPLs sold

    Fannie Mae has revealed the winning bidders from its fourth NPL sale, which included 6,500 loans totalling US$1.32bn. The winners were Canyon Partners for the first pool, Pretium Mortgage Credit Partnerns I Loan Acquisition for the second pool and Goldman Sachs for both the third and fourth pools.

    The GSE began marketing the loans last month (SCI 14 January). The weighted average sale .......

    News Round-up 12 February 2016

  • Latest toxic MBS case settled

    Morgan Stanley has agreed to pay out on another settlement involving failed MBS assets that it sold in the lead-up to the financial crisis. According to New York Attorney General Eric Schneiderman, the bank will pay a total of US$3.2bn, US$550m of which will go to helping New York State residents repair mortgage issues.

    The lawsuit, headed by Schneiderman, accused Morgan Stanley of making .......

    Job Swaps 12 February 2016

  • Potential PMI boost for RMBS

    The recovery of the private mortgage insurance (PMI) industry suggests that there is value to be found in legacy non-agency RMBS. Even insurers in run-off are making payments and bond values are expected to improve significantly for legacy deals backed by loans with PMI underwritten by still-active insurers.

    The financial crisis devastated the PMI industry, with 2010 marking a trough .......

    News 12 February 2016

  • German loan terms decreasing

    Average German residential mortgage loan terms are falling as the amortisation portion of instalments increase in response to low interest rates, Fitch reports. An analysis of 310,800 loans in Fitch-rated covered bond and structured finance deals shows that average terms for new originations fell to 19 years in 2015 from just over 25 years in 2010.

    Average interest rates dropped .......

    News Round-up 12 February 2016

  • Euro secondary slides

    Activity and pricing levels are sliding across the European securitisation secondary market.

    Prime autos and RMBS finally succumbed to broader market downward pressure and edged wider on very light volumes yesterday. 2.0 CMBS is still offering some resistance, but elsewhere tone remains weak and liquidity is thin across the board.

    Street buyers are occasionally being seen in select names in .......

    SCIWire 12 February 2016

  • 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
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