RMBS

  • GE portfolio sold off

    GE Capital has agreed to sell a £3.8bn portfolio of first lien mortgage loans from its UK Home Lending business to an investment consortium consisting of Blackstone, TPG Special Situations and CarVal Investors. The transaction represents the sale of almost all of GE Capital's remaining UK mortgages and is expected to close in December.

    "We began this year with around .......

    News Round-up 25 November 2015

  • Bank's LatAm exit raises concerns

    Deutsche Bank's decision to close its operations in Argentina and Mexico is credit negative for the Argentine and Mexican securitisations for which it acts as trustee or common representative, says Moody's. Deutsche Bank Argentina acts as trustee in 36 securitisations, while Deutsche Bank México acts as common representative in 1,300 transactions.

    The bank's decision to close its operations in Argentina .......

    News Round-up 25 November 2015

  • Euro secondary stays strong

    Despite weaker global markets and reduced volumes the European securitisation secondary market is still showing some strong signs.

    "Yesterday was a bit quieter with flows minimal across most sectors as a result of weakness in broader credit thanks to increasing global political tension," says one trader. "However, we saw some strong activity and prints around BWICs."

    The trader continues: "Italian .......

    SCIWire 25 November 2015

  • US RMBS restricted

    Activity and transparency in the US non-agency RMBS secondary market is restricted in this shortened week.

    "As expected for this holiday week it's pretty quiet - today is likely to be the busiest day and there's $2-300m in for the bid," says one trader. "Overall, it's hard to get a sense of real pricing levels with trading sessions essentially restricted .......

    SCIWire 24 November 2015

  • Marketing head brought in

    Clayton Holdings has hired Mark Hughes as evp of sales and marketing. He will be responsible for sales, business development and marketing for Clayton, as well as subsidiaries Green River Capital, Red Bell Real Estate, ValuAmerica and Clayton Euro Risk.

    Prior to joining Clayton, Hughes was president of LenderLive's due diligence division, assisting lenders and investors in diligence and underwriting .......

    Job Swaps 24 November 2015

  • Euro secondary UK focused

    The heightened focus on UK RMBS is continuing in the European securitisation secondary market.

    "Overall, secondary is somewhat quiet," says one trader. "With Thanksgiving coming, today will be another day to get a few things done but away from UK RMBS there's not much broad-based trading."

    The trader continues: "Both UK prime and buy-to let were very busy yesterday. It's .......

    SCIWire 24 November 2015

  • Largest ACIS deal inked

    Freddie Mac has obtained the largest insurance policy to date under its Agency Credit Insurance Structure (ACIS) programme. The transaction transfers much of the remaining credit risk associated with the fourth actual loss STACR offering, STACR Series 2015-DNA3.

    The policy transfers up to a combined maximum limit of approximately US$702.4m of losses on a pool of single-family loans acquired from .......

    News Round-up 23 November 2015

  • Aussie affordability deteriorating

    Moody's reports that housing affordability in Australia has deteriorated significantly over the 12 months to October 2015. The agency suggests that this increases the risk of delinquency and default for Australian RMBS.

    "Nationally, Australian households with two income earners spent an average of 29.3% of their monthly income on monthly mortgage repayments as of 30 October 2015, up from 28.2% .......

    News Round-up 23 November 2015

  • Euro secondary undented

    A typically quiet Friday has failed to dent the positive tone in the European securitisation secondary market.

    After a pick-up in activity earlier in the week, Friday was typically quiet across most sectors. Nevertheless, market sentiment remained strong and spreads closed the day broadly unchanged.

    Continued trading around the Granite redemption means UK prime remains the main focus. Friday again .......

    SCIWire 23 November 2015

  • Fighting Irish

    RMBS fundamentals trending up

    The performance of Irish RMBS continues to improve against the backdrop of a stable economy. A potential slowdown in the recovery and lingering NPLs point to a number of challenges, but a dramatic downturn is not anticipated.

    "Clearly, the level of new issuance is still relatively low, but there are a number of positive factors - particularly the rise in .......

    News Analysis 23 November 2015

  • GSEs continue risk transfer innovation

    Fannie Mae and Freddie Mac have both priced innovative risk transfer deals. The deals build on plans outlined earlier in the year (SCI 20 August).

    Fannie Mae has completed two more credit insurance risk transfer (CIRT) transactions, one of which has, for the first time, been completed directly with a multi-line insurer. Also for the first time, the covered loan pools of .......

    News Round-up 20 November 2015

  • RMBS uses new servicing fee structure

    Mill City Mortgage Loan Trust 2015-1 has introduced a fee-for-service structure which is unique to rated re-performing loan (RPL) securitisations, notes Moody's. This new structure will see Shellpoint Mortgage Servicing charge a base free that increases as a loan becomes more delinquent.

    The rating agency notes that this fee structure provides monetary incentives for the servicer to work out delinquent loans .......

    News Round-up 20 November 2015

  • HECM deal rated

    Nationstar Mortgage is marketing an RMBS backed by inactive home equity conversion mortgages (HECM), believed to be the first deal of its kind to be rated. Moody's has assigned provisional ratings to three classes of Nationstar HECM Loan Trust 2015-2.

    The class A tranche in the deal has been rated Aaa by the agency. The M1 tranche has been assigned an A3 .......

    News Round-up 20 November 2015

  • SFIG proposals 'credit positive'

    SFIG has proposed a transaction parties framework for private-label RMBS which contains a pair of features that will provide a stronger governance structure for these securities, says Moody's in its latest ResiLandscape publication. These features are an expanded transaction parties framework and the role of a 'deal agent' (SCI passim) to provide independent oversight of the trust and represent investors' .......

    News Round-up 20 November 2015

  • Euro secondary accelerates

    The recent uptick in the European securitisation secondary market accelerated further yesterday.

    A noticeable pick up in flows was seen across the board. As a result, prices were broadly either unchanged or edged a little higher.

    Stronger but still selective activity was seen in Autos, CLOs and CMBS. At the same time, peripherals held firm with continued buying interest in Italian .......

    SCIWire 20 November 2015

  • US RMBS steady

    The US non-agency RMBS secondary market is keeping steady.

    "Anticipation of year-end is increasing, but while the market is a little slower it's steady," says one trader. "It's been fairly busy this week with increasing volumes each day - there's around $1bn in for the bid today."

    The make-up of today's supply is steady too, the trader notes. "Sellers today .......

    SCIWire 19 November 2015

  • Euro HPA 'RMBS positive'

    Recovering house prices in the UK, Ireland, Spain and the Netherlands will help to suppress RMBS deal losses, says Moody's. However, the recovery has been noticeably less pronounced in the Italian market.

    All else being equal, the increase in borrower equity which typically results from house price growth should lead to higher recoveries on loans that default. The risk of .......

    News Round-up 19 November 2015

  • Aussie arrears at record low

    Australian nonconforming RMBS arrears fell to a record low of 3.99% in September, according to S&P's latest performance index (SPIN) result for the sector. The total is down from 4.47% in August, a drop of 0.48%.

    "The nonconforming arrears level is significant because it is the lowest recorded since we began compiling the SPIN in 2000," says S&P credit analyst Narelle .......

    News Round-up 19 November 2015

  • Euro secondary tight

    Spreads across the European securitisation secondary market are holding up, but liquidity remains tight.

    "Market tone and pricing levels are better across secondary in line with global credit," says one trader. "However, we're not seeing huge flows, they even fell back a little yesterday, and liquidity is still tight, so it doesn't take many trades to move spreads."

    UK non-conforming .......

    SCIWire 19 November 2015

  • Winning NPL bidders named

    Fannie Mae has announced the winning bidders for its third non-performing loan (NPL) sale of approximately 7,000 loans totalling US$1.24bn in unpaid principal balance (UPB), divided among three pools (SCI 12 October). The winning bidders for the transaction - which is expected to close on 17 December - are Fortress (New Residential Investment Corp) for pools one and two, and .......

    News Round-up 18 November 2015

  • CRT deals upgraded on performance

    Moody's has upgraded the ratings of 37 tranches from six credit risk transfer transactions backed by conforming balance RMBS loans issued by Freddie Mac and Fannie Mae. US$1.6bn of securities are impacted by the move.

    The affected deals are: Connecticut Avenue Securities (CAS) Series 2014-C04; and Structured Agency Credit Risk (STACR) Series 2014-DN3, 2014-DN4, 2014-HQ1, 2014-HQ2 and 2014-HQ3. Moody's notes .......

    News Round-up 18 November 2015
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