RMBS

  • FNMA unveils actual loss deal

    Fannie Mae has priced its latest credit risk sharing transaction, which is the first to use an actual loss framework. The GSE says that this structure will be the standard for its CAS programme going forward, and follows in the footsteps of Freddie Mac after it debuted its first actual loss issuance earlier this year (SCI 8 April).

    The US$1.45bn note offering in .......

    News Round-up 22 October 2015

  • HAMP payment ramp begins

    In the more than six years that HAMP has been in effect, there have been eight million modifications. As a growing number of mods reach 60 months of performance, increased borrower payments are expected to increase the number of prepayments, delinquencies and refinancings.

    Morgan Stanley analysts note that 2.3 million borrowers have begun a HAMP trial modification since the programme's .......

    News 22 October 2015

  • Wachovia claims settled

    Wachovia has agreed to pay US$53m to resolve NCUA claims arising from losses related to purchases of RMBS securities by corporate credit unions. This brings the agency's total recoveries from litigation against banks that sold faulty RMBS to corporate credit unions to US$2.2bn.

    NCUA uses the net proceeds to reduce Temporary Corporate Credit Union Stabilisation Fund assessments charged to federally .......

    Job Swaps 22 October 2015

  • Euro secondary still strong

    The European securitisation secondary market is continuing to see a strong BWIC calendar and market tone, but little overall price movement as liquidity remains thin.

    Despite the continuing positive tone and yesterday's BWICs trading well, secondary spreads are broadly unchanged. Away from lists flows remain light with peripherals notably quiet ahead of today's ECB meeting.

    The UK non-conforming space continues .......

    SCIWire 22 October 2015

  • French true sale RMBS debuts

    Crédit Agricole has closed FCT Crédit Agricole Habitat 2015, a self-led retained securitisation of French home loans. The transaction is the bank's first true sale RMBS in France.

    The underlying asset portfolio consists of French residential mortgage loans extended to individuals, which are either guaranteed or benefit from a first mortgage lien. The €10bn transaction has been fully subscribed by the .......

    News Round-up 21 October 2015

  • Default predictors identified

    In an analysis of default frequencies of both US agency and non-agency mortgage loans originated from 1999-2008, S&P finds that default rates for both agency and non-agency loans were higher for crisis-era vintages relative to pre-crisis vintages. The study also suggests that the default rate of agency loans was approximately 30%-65% that of comparable non-agency loans, with FICO scores, debt-to-income .......

    News Round-up 21 October 2015

  • Euro secondary retains BWIC focus

    BWICs are continuing to dominate the European securitisation secondary market.

    Thanks in part to a relatively quiet primary market, secondary auctions saw increased interest yesterday. Most bonds in for the bid traded in line with expectations and tone across most sectors firmed a little. The notable exception is CLOs where any potential rally is being hampered by strong primary and secondary supply.

    SCIWire 21 October 2015

  • 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
×