RMBS

  • DOJ lawyer moves on

    Geoffrey Graber has joined Cohen Milstein Sellers & Toll as a partner. He will be part of the firm's consumer protection and product safety practice group, and will contribute to other practice areas, including whistleblower/false claims, securities fraud and public clients.

    Prior to joining the firm, Graber served as a deputy associate attorney general and director of the RMBS Working .......

    Job Swaps 20 October 2015

  • BTL rate buffers evaluated

    The prospect of increasing interest rates in the UK is prompting a re-examination of mortgage affordability, says Moody's. However, the agency believes that UK buy-to-let landlords should benefit from substantial affordability buffers through rising rental income.

    "With a 0.5% interest rate hike, if we take the rising cost of rent since the loan was granted into account, the percentage of BTL landlords with insufficient .......

    News Round-up 20 October 2015

  • Barclays settles with NCUA

    Barclays has agreed to pay US$325m to settle NCUA claims that it sold faulty RMBS. It is the latest in a string of settlements (SCI passim) and brings the NCUA's total recoveries to over US$2bn.

    The proceeds will be used to reduce Temporary Corporate Credit Union Stabilization Fund assessments charged to federally insured credit unions to pay for the losses .......

    Job Swaps 20 October 2015

  • Euro secondary picking up?

    After a quiet start to the week, the European securitisation secondary market looks to be picking up.

    "Yesterday was very quiet both on- and off-BWIC," says one trader. "The highlight was probably the deep mezz UK non-conforming auction, which on the face of it was pretty interesting and saw strong client interest. But as is the case with many BWICs .......

    SCIWire 20 October 2015

  • Euro secondary patchy

    Activity in the European securitisation secondary market remains patchy.

    Friday saw a slight dip in volumes and liquidity remains thin overall. Activity continues to be patchy across sectors and selective within them. However, spreads remained broadly stable amid broader market positivity.

    Prime assets and UK non-conforming continue to attract the most attention and look strongest. Meanwhile, peripherals and CLOs are .......

    SCIWire 19 October 2015

  • Peripheral calls to gain pace?

    The THEME 2 RMBS (with a mortgage factor of 7%) was called and the final distribution received this week, following last month's UCI 5 and 6 clean-up calls. Deutsche Bank European securitisation analysts note that the move underlines their view that peripheral RMBS calls are likely to gain pace.

    Although reserve fund size, the cleanness of the pool and the .......

    News Round-up 16 October 2015

  • 'Swapless' Belgian RMBS prepped

    Belfius Bank is marketing Penates 5, the first Belgian RMBS to be publicly placed since the financial crisis. The structure is similar to the swapless Arena NHG and Dutch Residential Mortgage Portfolio transactions seen in the Netherlands (SCI 20 August 2014).

    It appears that only mortgage loans with fixed rates until maturity will be included in the Penates 5 pool. .......

    News 16 October 2015

  • US RMBS turns positive

    The US non-agency RMBS secondary market has taken a turn for the positive.

    "It's been a relatively busy week despite the holiday on Monday and yesterday's concerns over a China slowdown," says one trader. "Indeed, yesterday morning saw a 44 line $589m list and all the bonds traded, which is a very positive sign for the market."

    The positive tone .......

    SCIWire 15 October 2015

  • 'Unique' SFR parity feature debuts

    Colony American Finance's (CAF) latest deal is the first single-family rental (SFR) transaction to include a parity feature, which accelerates principal payments under moderate-to-high collateral losses. Moody's says that CAF 2015-1's unique structural feature helps provide additional protection to senior bonds.

    The feature, tested for class A through class E bonds, is effective whenever the aggregate outstanding par value of the .......

    News 15 October 2015

  • RMBS arrears reach record low

    Australian housing loan arrears in August reached their lowest level for the prime RMBS sector since 2004, according to S&P. Arrears levels for prime RMBS fell to 0.93% in August, down from 0.96% in July.

    Additionally, loans in arrears for more than 90 days, categorised as 'severe', fell to the lowest level since 2009. Non-conforming RMBS in arrears recorded a .......

    News Round-up 15 October 2015

  • Countrywide IRS ruling received

    The IRS ruling on the Countrywide RMBS settlement has been received, making the approval date 13 October. The move clears the way for settlement cashflows to be made to investors.

    According to Morgan Stanley RMBS analysts, three steps remain: the allocable share must be calculated by the third-party expert within 90 days of the approval date (by 11 January 2016); .......

    News Round-up 15 October 2015

  • Euro secondary unchanged

    The European securitisation secondary market continues to see light flows and only pockets of activity.

    Yesterday saw another day of broadly directionless trading and limited activity away from BWICs. Consequently, spreads across the board were unchanged at the close.

    Once again, UK non-conforming was one of the few sectors to see above average activity on the day and pricing levels .......

    SCIWire 15 October 2015

  • TRS programme debuts

    Goldman Sachs and Sumitomo Mitsui Trust Bank are marketing the first series of notes from an unusual total return swap (TRS) programme. The US$1bn SumitG Guaranteed Secured Obligation Issuer series 2015-1 has been assigned a preliminary double-A plus rating by S&P.

    SumitG is an SPE established in Ireland. At closing, it will issue the series 2015-1 notes and enter into .......

    News Round-up 14 October 2015

  • Spanish housing recovery 'uneven'

    Fitch reports that loss severities on Spanish mortgage foreclosures have continued to rise, despite the gradual recovery of the country's residential property market. The agency suggests that the distressed property market is unlikely to share in the benefits of the wider recovery any time soon.

    Average loss severities on repossessed properties sold in 1H15 were 61% of the loan balance .......

    News Round-up 14 October 2015

  • Euro secondary consolidates

    Yesterday was primarily about consolidating recent gains in the European securitisation secondary market, though pockets of activity remain.

    "After a few days of market strength, yesterday saw some stabilisation," says one trader. "At the same time, away from BWICs flows reduced again."

    However, there continue to be strong pockets of activity. "We again saw activity in autos with DRVON bid .......

    SCIWire 14 October 2015

  • Subprime loan losses compared

    Loans that are serviced by banks experience higher losses than those serviced by non-bank entities within the top US states for home foreclosures, says Moody's. Florida, New York and New Jersey account for 42% of all subprime loans in foreclosure in US private label RMBS, with loss severities across all three more than 10% higher for bank serviced loans that .......

    News Round-up 13 October 2015

  • GSE remedies clarified

    Fannie Mae and Freddie Mac have released a selling representation and warranty remedies framework, which aims to provide clarity on the process followed in categorising origination defects, seller corrections of such defects and available remedies. In addition, it offers greater transparency regarding GSE discretion on loan-level decisions when reviewing a mortgage in quality control.

    The framework introduces a new three-category .......

    News Round-up 13 October 2015

  • Euro ABS/MBS keeps impetus

    Despite a quiet day yesterday thanks to the US holiday, the European ABS/MBS secondary market is still heading in the right direction.

    "We're seeing more flows and there's generally more impetus to get things done," says one trader. "Stability in broader markets for the last six or seven days, though they have opened weaker this morning, is bringing people back .......

    SCIWire 13 October 2015

  • Third NPL batch up for sale

    Fannie Mae is marketing its third set of NPLs as part of its programme to offload severely delinquent loans and assist troubled mortgage borrowers. The latest group consists of three pools of approximately 7,000 loans, totalling US$1.2bn in UPB.

    "As with previous loan sales, servicers are required to apply a range of options to help borrowers avoid foreclosure whenever possible," says .......

    News Round-up 12 October 2015

  • Cross-asset conviction

    Renaud Champion, head of credit strategies for La Fran&#...

    Q: How and when did La Française Global Investment Solutions (LFGIS) become involved in the securitisation market?
    A:     LFGIS is the solutions business line of the La Française Group. LFGIS was established in late 2012 and is 35% owned by its founders - Sofiene Haj Taieb and Arnaud Sarfati - and key personnel; La Française is .......

    The Structured Credit Interview 12 October 2015

  • Euro secondary settled

    The European securitisation secondary market is continuing in the settled pattern seen of late.

    There were no surprises on Friday as a relatively quieter day, though flows continue to improve slowly, saw spreads close broadly unchanged overall. Today looks set to follow a similarly settled pattern especially given the US public holiday.

    Peripherals continue to benefit the most from buying .......

    SCIWire 12 October 2015
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