RMBS

  • FHFA scorecard heralds change

    The FHFA has released its 2016 scorecard for the GSEs and Common Securitization Solutions (CSS). Highlights include the imminent end to HARP and an updated timeline for the implementation of the single security initiative, as well as credit risk transfer (CRT) changes.

    The FHFA scorecard calls for the GSEs to prepare for the expiration of HARP by creating a new .......

    News 18 December 2015

  • Delavaco performance triggers breached

    The underperformance of the Delavaco loan backing FirstKey Lending 2015-SFR1 - the first multi-borrower single-family rental securitisation rated by Moody's - will have minimal impact on the deal's performance, according to the agency. This is due to the small size of the loan; the low LTV at closing (61.2%); and the cash-trap mechanisms in the transaction. The borrower has also .......

    News Round-up 18 December 2015

  • Euro secondary stalls

    Activity in the European securitisation secondary market has stalled.

    Year-end illiquidity was fully in evidence yesterday with an extremely slow day across the board and secondary spreads closed unchanged. Italian and Dutch paper did garner some interest, but saw negligible trading.

    There is currently one BWIC on today's European schedule - a single €1.9m line of QUADF 2011-1 A1 due .......

    SCIWire 18 December 2015

  • Bloomberg to buy BRAIS

    Bloomberg has agreed to acquire the Barclays Risk Analytics and Index Solutions (BRAIS) business from the bank for approximately £520m. This includes Barclays' indices on securitised products, covering US MBS and CMBS, pan-European floating and fixed rate ABS, and US and European covered bonds.

    The transaction includes the sale of intellectual property in relation to the POINT portfolio analytics tool. Barclays .......

    Job Swaps 17 December 2015

  • Greek foreclosure effect limited

    A new foreclosure framework will only offer limited benefit to Greek RMBS transactions, says Fitch. This is because lenders are unlikely to increase foreclosures in an illiquid residential property market where house prices are still falling.

    The threat of repossession may deter strategic defaulters, however. These appear to have contributed to persistent weakness in the country's mortgage market, where early- .......

    News Round-up 17 December 2015

  • Fed to maintain MBS policy

    In a unanimous decision by the FOMC, the US Fed announced yesterday that it is moving its target range for the federal funds rate up to 0.25% to 0.5% from zero to 0.25%. However, it stresses that it will maintain its existing policy of reinvesting principal payments from its holdings of agency debt and MBS.

    The bank will also continue rolling over .......

    News Round-up 17 December 2015

  • Counterparty rating actions inked

    S&P has taken various credit rating actions on 74 tranches in 33 European RMBS and ABS transactions. The move follows the downgrade of Barclays and Deutsche Bank, which are counterparties in the affected transactions (SCI passim).

    Specifically, S&P has: lowered and removed from credit watch negative its ratings on 65 tranches in 26 RMBS and two tranches in two ABS; .......

    News Round-up 17 December 2015

  • Euro secondary chugs along

    Despite wider credit market volatility the European securitisation secondary market is still maintaining its course.

    "We've kept going - there have been a few BWICs, but none of the volatility of broader markets," says one trader. "Flows have been light, but we're still chugging along."

    Overall, the trader adds: "Tone remains constructive and technicals are helping the market. We've got .......

    SCIWire 17 December 2015

  • Aussie equity cushions increase

    Rising house prices have pushed down Australian RMBS LTV ratios, says Moody's. The additional equity will be useful in absorbing potential losses, although the size of that equity cushion varies across states.

    Housing prices in Australia have risen by an average of 44% over the last seven years. Despite housing price falls in certain regions, the rating agency notes that .......

    News Round-up 16 December 2015

  • Litvak case set for retrial

    The Second Circuit Court of Appeals has reversed the conviction of former Jefferies md Jesse Litvak (SCI 12 March 2014) and remanded the case for retrial. A Haynes and Boone client memo notes that in doing so, however, the Court of Appeals rejected the broker's broad argument that lies concerning ancillary transaction fees could never form the basis for a .......

    Job Swaps 16 December 2015

  • Liquid launch

    Agency RMBS favoured ahead of Fed lift-off

    A 25bp increase in the Fed funds target rate is widely expected to be announced later today. The pace of future interest rate hikes will impact the mortgage basis and the US agency market, which is strengthening investor appetite for liquid RMBS.

    As 2016 approaches, political and economic uncertainty is rising and demand for liquid investments is increasing, confirms Tradex .......

    News Analysis 16 December 2015

  • Euro secondary split

    Activity and price direction in the European securitisation secondary market is currently split in two key sectors.

    "In common with broader credit, overall volumes are low and liquidity is very thin," says one trader. "It's a result of both the time of year and the volatility in global markets."

    However, within securitisation secondary it continues to be a story of .......

    SCIWire 16 December 2015

  • Market supports benchmark change

    A majority of US ABS and CMBS market participants would support switching the pricing benchmark from the swaps curve to US Treasuries, according to a JPMorgan survey. Of the respondents, 61% favour a switch, while 28% advocate sticking with swaps.

    The survey was fairly representative of the ABS investor base, with money managers accounting for 47% of respondents (compared to .......

    News 15 December 2015

  • Ranieri recruits RMBS pro

    Ranieri Strategies has added two new partners, including Eric Kaplan to focus on structured finance. His duties will include working on housing, mortgage and RMBS reform endeavours with regulators and industry colleagues.

    Kaplan joins from Shellpoint Partners, where he was md and head of mortgage finance. In this role, he was primarily involved in the building of its non-agency RMBS and .......

    Job Swaps 15 December 2015

  • Euro secondary hangs on

    European securitisation secondary spreads are mostly hanging on despite increasing broader market volatility but there are some signs of softening.

    In the end, a handful of BWICs emerged yesterday and provided the main focus. However, the highlight, a double-B CLO list, for the most part did not trade. The covers released indicated spread widening in the sector, though the trend .......

    SCIWire 15 December 2015

  • LatAm outlook 'mixed'

    Fitch's outlook for Latin American structured finance in 2016 is mixed across sectors. Stable and positive rating outlooks for the region have dropped to 81% from 90% last year.

    The agency says that consumer ABS continues to be a better performing asset class, as adequate levels of credit enhancement and structural features continue to protect against deteriorating macro conditions. Delinquencies are expected to .......

    News Round-up 14 December 2015

  • SF practice strengthened

    DLA Piper continues to build its financial markets practice with the appointments of Vincent Keaveny, formerly head of structured capital markets and a partner at Baker & McKenzie, and Mark Dwyer, formerly a partner at Slaughter and May. The firm has made other significant hires across Europe this year including Okko Behrends, who joined the team in Germany from Latham .......

    Job Swaps 14 December 2015

  • CMHC limits upped

    Canada Mortgage and Housing Corporation (CMHC) has announced a change to the guarantee fees it charges issuers, as well as the annual limits for new guarantees for 2016 for both National Housing Act Mortgage-Backed Securities (NHA MBS) and Canada Mortgage Bonds (CMB). The revised fee structure aims to encourage the development of private market funding alternatives by narrowing the funding .......

    News Round-up 14 December 2015

  • Euro secondary stays slow

    It was, as anticipated, another quiet day in the European securitisation secondary market on Friday and today looks likely to be little different.

    Year-end liquidity thinning continues to hold sway across all sectors. However, market tone remains positive despite broader credit weakness and secondary spreads are generally holding up.

    There are currently no BWICs on the European schedule for today.

    .......

    SCIWire 14 December 2015

  • Positive outlook for Canadian securitisations

    Moody's expects Canadian ABS and RMBS to continue performing well in 2016. The agency notes that assets backing the securitisations are mainly consumer receivables, whose performance is aligned with that of the wider economy.

    Slow but steady economic growth supports Moody's positive outlook for Canadian ABS and RMBS. In particular, issuers' strong credit ratings and well-seasoned collateral pools will ensure .......

    News Round-up 11 December 2015

  • NCUA settlement signed

    The NCUA has announced a US$225m settlement with Morgan Stanley to resolve claims arising from losses related to corporate credit unions' purchases of faulty RMBS. The settlement covers claims asserted in 2013 by the NCUA Board on behalf of US Central Federal Credit Union, Western Corporate Federal Credit Union, Members United Corporate Federal Credit Union and Southwest Corporate Federal Credit .......

    Job Swaps 11 December 2015
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