RMBS

  • Broker-dealer adds RMBS trio

    Nathan Hale Capital has made three hires to strengthen its institutional agency RMBS team. The new additions are Scott Mooney, John Fenwick and DJ Dal Pizzol.

    Mooney has more than 15 years of experience in trading agency RMBS. He was most recently director of mortgage-backed trading at Société Générale in New York and has also worked at BNP Paribas and .......

    Job Swaps 6 November 2015

  • Euro secondary firms up

    Tone in the European securitisation secondary market continues to firm up.

    Despite the large number of BWICs yesterday, pricing levels held up across the majority of sectors and the majority of bonds in for the bid traded in line with expectations. CMBS, peripherals and UK non-conforming continue to improve, while UK and Dutch prime remain solid. Auto ABS were the .......

    SCIWire 6 November 2015

  • US RMBS distracted

    Macro concerns are distracting the US non-agency RMBS secondary market.

    "The market has been fairly busy this week, but continued rate volatility is proving a distraction," says one trader. "Swap spreads are tighter - currently negative to US Treasuries; we have non-farm payrolls tomorrow; and the Fed still has a chance to do something this month. That's all keeping people .......

    SCIWire 5 November 2015

  • AOFM auctions put on hold

    The AOFM has cancelled its previously planned RMBS auctions for November and December. The decision follows the government agency's failure to sell any assets in its fifth auction last month (SCI 22 October).

    The AOFM has not committed to any further scheduled sales as of now, but states that auctions will be on hold until at least February 2016. If the government agency .......

    News Round-up 5 November 2015

  • Low losses for Japanese apartments

    Credit losses on Japanese apartment loans will remain low for Moody's-rated banks because they tend to attract strong borrowers, says the rating agency. This is despite the strong growth in the construction of new rental housing.

    The average annualised default rate in the past 10 years for securitised apartment loans has been only 0.07%, with a loss given default rate .......

    News Round-up 5 November 2015

  • Euro secondary improves

    Yesterday saw further improvement in the European securitisation secondary market, but it is still yet to take off.

    "We've got what we wanted at last - stability in broader markets - but our space isn't picking up massively," says one trader. "Tone is generally better and we are seeing a pick-up in high beta paper in particular."

    The trader continues: "CMBS .......

    SCIWire 5 November 2015

  • Grey area

    Granite casting shadow on European sentiment

    UKAR's sale of the Granite portfolio remains the hot topic in the European RMBS market, with uncertainty over its resolution affecting sentiment. Resecuritisation is a viable option for the eventual buyer, but how much paper will remain in the market post-sale is uncertain.

    A variety of potential bidders for the portfolio have been touted, with speculation dating back to earlier .......

    News Analysis 4 November 2015

  • Mortgage fund inks first investment

    UK Mortgages Limited (UKML), TwentyFour Asset Management's listed closed-ended fund, has signed its first transaction. Under the agreement, the fund will invest in profit participating notes (PPNs) issued by a dedicated acquisition company (Corporate Funding), which will purchase £310m UK buy-to-let mortgages from The Coventry Building Society Group.

    The pool comprises 1,743 recently originated mortgages, with an average balance of .......

    Job Swaps 4 November 2015

  • Rating agency targets expansion

    A partnership has been formed between Kroll Bond Rating Agency, the Kroll family and Wharf Street, effective immediately. It will provide permanent capital for the rating agency to grow.

    Kroll Bond Rating Agency says it will use the additional capital to develop other sectors beyond the structured finance, public finance and financial institution spaces. It will particularly look to accelerate .......

    Job Swaps 4 November 2015

  • Euro secondary strengthens

    The positive tone in the European securitisation secondary market continues to build.

    "Overall, we're strengthening, but still lagging the positive tone in broader markets," says one trader. "We're seeing something of a pick-up and flows are better especially in some of the recently quiet sectors."

    The trader continues: "We're not seeing much in prime, but Portuguese RMBS and UK non-conforming .......

    SCIWire 4 November 2015

  • MERS settlement agreed

    Bank of America has agreed to pay US$335m to settle a lawsuit, in which it allegedly misled shareholders about risky mortgage securities and its dependence on the electronic mortgage registry known as MERS. According to an SEC quarterly earnings filing from the bank, the agreement remains subject to final documentation and court approval.

    The settlement fee will be paid to Pennsylvania Public School .......

    Job Swaps 3 November 2015

  • Regulation threatens market viability

    Banks' market making ability in securitised products is set to be severely affected by the Basel Committee's proposed Fundamental Review of the Trading Book (FRTB). JPMorgan ABS analysts have joined a growing chorus (SCI 15 June) in warning that FRTB would make secondary trading in securitised products unprofitable.

    The final FRTB ruling is expected to be published next month, before .......

    News 3 November 2015

  • Euro secondary refocuses

    After a couple of quiet sessions the European securitisation secondary market looks set to refocus in the days ahead.

    "After a very busy week last week on our side at least it was pretty quiet yesterday and one or two data points were enough to distract the market," says one trader. "However, there are a couple of big BWICs today, .......

    SCIWire 3 November 2015

  • Deutsche re-allocates trading resources

    Deutsche Bank's management board has approved a five-year plan to revamp its strategy in the hope of achieving a number of newly set financial objectives. In a large cost-cutting scheme, the bank will exit uncleared CDS market-making and agency RMBS trading, along with higher risk-weight securitised trading.

    The cuts are part of Deutsche's goal to reduce costs to below €22bn in .......

    Job Swaps 2 November 2015

  • Population growth to support RMBS

    Population growth will support housing demand and property prices in the UK, the Netherlands and Ireland, says Moody's. Housing supply shortages and robust economic growth could help reduce losses on residential mortgage loans.

    The UK is projected to experience population growth of 3.2% until 2020, with 1.5% growth in the Netherlands. Moody's believes this will support housing markets in the context .......

    News Round-up 2 November 2015

  • Euro secondary rolls on

    The bulk of the European securitisation secondary market took month end in its stride and continues to roll on at a solid if unremarkable pace.

    Friday was quieter than earlier in the week, but saw relatively healthy flows for month-end. Overall, tone remained positive and spreads were little moved.

    The main area of buying focus was once again UK prime .......

    SCIWire 2 November 2015

  • Law firm expands in California

    Baker Botts is opening an office in San Francisco. It will be the firm's second office in California and it is expected to work closely with the team already established in Palo Alto.

    Patricia Stanton, chair of the firm's real estate practice, will move from its Dallas office to take the role of partner-in-charge in San Francisco. The firm expects to grow .......

    Job Swaps 30 October 2015

  • South African affordability analysed

    South African borrowers whose mortgage debt backs RMBS are "much more likely" to make regular payments than other borrowers, says Moody's. This is expected to remain the case, even if interest rates rise materially.

    Should interest rates rise by 3%, only an additional 1% of borrowers would have difficulties repaying their mortgages. To affect an additional 10% of borrowers, rates .......

    News Round-up 30 October 2015

  • APAC ratings 'stable'

    Fitch affirmed a total of 133 APAC structured finance tranches in 3Q15. No ratings were upgraded, downgraded or withdrawn during the quarter.

    Of the affirmed tranches, 53 were prime and non-conforming RMBS bonds backed by Australian or New Zealand properties, while 47 were CMBS backed by Japanese properties and 14 were ABS backed by loans in New Zealand. The remaining affirmations include: .......

    News Round-up 30 October 2015

  • Euro secondary mixed

    The European securitisation secondary market continues to experience mixed fortunes, though tone continues to improve overall and some sectors are getting ever-more active.

    UK non-conforming continues to lead the way with healthy activity on- and off-BWIC yesterday. Flows are strong in both directions, so spreads for now remain broadly unchanged.

    The pick-up in peripherals is continuing with trades going through .......

    SCIWire 30 October 2015

  • US RMBS held

    US non-agency RMBS secondary spreads are being held at or around recent wides by a range of external and internal factors.

    "All eyes were on the Fed yesterday and while the lack of a rate rise was anticipated their hawkish comments mean fixed income and equities are off today," says one trader. "Even though high yield is edging tighter the .......

    SCIWire 29 October 2015
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