RMBS

  • Spanish house prices stabilising

    Recent data indicates that the decline in Spanish home prices has bottomed out, according to Fitch. However, a persistently low level of recoveries from properties taken into possession by lenders supports the agency's view that national home price growth will be slow and uneven.

    The Spanish National Institute of Statistics revealed last week that the Spanish Housing Price Index (HPI) rose .......

    News Round-up 14 September 2015

  • Nevada rulings support FHFA position

    The US District Court for Nevada recently issued three rulings that Moody's believes are credit positive for US RMBS because they further support the FHFA's position that federal law prevents a home owner association (HOA) foreclosure from extinguishing a mortgage owned by a GSE while the GSE is under conservatorship (SCI 27 April). The new cases make it clear that .......

    News Round-up 14 September 2015

  • Interest capitalisation mods scrutinised

    The increasing use of interest capitalisation modifications is credit negative for US RMBS due to the poor performance of these modifications, according to Moody's latest ResiLandscape publication. The agency adds that many borrowers receiving modifications that increase their monthly payments do not have the ability to make the higher payments, resulting in higher re-default rates on the modified loans.

    Of .......

    News Round-up 14 September 2015

  • US, European issuance forecast

    S&P projects that US securitisation issuance levels for 2015 and 2016 will experience moderate year-over-year growth, but will not reach the pre-crisis levels of 2006 and 2007. The agency forecasts issuance of US$474bn and US$537bn in 2015 and 2016 respectively, up from a total of US$462bn in 2014.

    "Although many securitisation products are benefiting from an improving economy and are likely to see increased issuance, .......

    News Round-up 14 September 2015

  • Euro secondary stays stable

    The European securitisation secondary market closed out Friday fairly quietly but with spreads still appearing stable after a mixed week.

    Transparency was hampered by a higher than normal proportion of DNTs or colour not released on BWICs, but overall market tone remains positive and secondary spreads are broadly unchanged at this morning's open. CLOs and prime ABS/MBS continue to be the main .......

    SCIWire 14 September 2015

  • Dutch RMBS delinquencies drop

    The Dutch RMBS market saw a continued decrease in delinquencies but a modest increase in cumulative defaults during a three-month period ending in June, says Moody's. The 60-plus day delinquencies of Dutch RMBS fell to 0.81% in June from 0.85% in March, while defaults moved up to 0.76% from 0.65% in the same time - in comparison to 0.43% in June 2014.

    News Round-up 11 September 2015

  • SFR servicing scarcity underlined

    The limited number of special servicers available to administer US single-family rental (SFR) properties in the event that the operator defaults is a risk to SFR securitisations, says Moody's. The limited near-term incentive for other servicers to enter the market presents an added issue.

    There are 22 SFR transactions outstanding with two entities, Midland Loan Services and Situs Holdings, assigned .......

    News Round-up 10 September 2015

  • MBS guide rules updated

    Ginnie Mae has made a number of updates to its issuer business status criteria in its MBS guide. The GSE says that the changes are in response to recent changes in the economic and regulatory environments, as well as an increase in the volume and complexity of issuer requests for approval of certain changes.

    Among the changes made, the required five days .......

    News Round-up 9 September 2015

  • Rates masking RMBS risk

    Moody's suggests that low interest rates are currently masking key drivers of Australian mortgage defaults. The agency notes that mortgages used for investment purposes and interest-only (IO) repayments will remain key drivers of future defaults, despite their strong performance in the current prolonged low rate environment.

    The default rate of investor and IO loans is currently lower than that of owner-occupied .......

    News Round-up 9 September 2015

  • Traders charged with RMBS fraud

    The SEC has charged three traders over lying to customers with regard to pricing information on RMBS. Ross Shapiro, Michael Gramins and Tyler Peters allegedly generated millions of dollars in additional revenue for former employer Nomura Securities as a result of their supposed misconduct.

    The charges say that the three traders misrepresented the bids and offers being provided to Nomura for RMBS as well .......

    Job Swaps 9 September 2015

  • Real estate legal pro tapped

    Allen & Overy has appointed Lucy Oddy to its real estate finance group. Joining from Latham & Watkins, Oddy is a structured finance specialist who advises on a broad range of transactions, with a particular focus on CMBS and RMBS.

    Oddy's clients include financial institutions, funds and private equity firms. She focuses on employing new funding structures for real estate assets across .......

    Job Swaps 9 September 2015

  • RMBS tail risk protections examined

    All post-crisis US jumbo RMBS have credit enhancement floor protections built in to protect the deals from tail-end losses. However, Moody's notes that the protections for the subordinate bonds differ across transactions.

    Tail-end losses are defined as losses that occur late in the transaction's life when only a few loans remain in the mortgage pool. In those transactions, credit enhancement floors .......

    News Round-up 4 September 2015

  • CRT rating upgrades begin

    Moody's is the first rating agency to upgrade CRT bonds after taking action on CAS 2014-C01 M1, STACR 2013-DN2 M1 and both STACR 2014-DN1 M1 and M2. Upgrades for a wave of newer deals are also anticipated.

    The bonds were upgraded this month as a result of recent performance of the underlying pools and because of updated loss assumptions and .......

    News Round-up 4 September 2015

  • Euro secondary ticks up

    Broader market improvement on the back of the message from the ECB and the Chinese holiday has extended into the European securitisation secondary market with a slight uptick in activity and some improvement in pricing levels.

    Flows continued to revolve around the usual suspects with sterling-denominated prime and peripherals, especially Italy, benefitting the most. At the same time, the CLOs .......

    SCIWire 4 September 2015

  • US RMBS on hold

    The US non-agency RMBS secondary market is effectively on hold until after the long weekend.

    "It's quiet this week with volume down significantly," says one trader. "There's only about $100m in for the bid today - very low for Thursday."

    The trader goes on to explain: "There's plenty of people away and there'll be even more tomorrow as the long .......

    SCIWire 3 September 2015

  • Rates hold back Aussie arrears

    Relatively low arrears for housing loans underlying prime RMBS in Australia are due to borrowers benefiting from low interest rates, suggests S&P. Nevertheless, overall arrears increased marginally during Q215 from the previous quarter.

    Of all regions, arrears were highest in Western Australia where they climbed to 1.49% during Q2. This is in part due to the region feeling the effect of .......

    News Round-up 3 September 2015

  • Blackstone buys into mortgage insurer

    Blackstone has bought a significant equity stake in PMI Group through its Blackstone Tactical Opportunities unit and has agreed to provide a working capital facility to the company in exchange for warrants and other rights. Blackstone is also expected to nominate a director to the board. PMI will use the funds to pursue its investment strategy, which may include raising .......

    Job Swaps 3 September 2015

  • Euro secondary still slow

    Despite hopes for a post-August spike, volumes in the European securitisation secondary market are still only growing slowly.

    "It's still pretty quiet and could take a while to really get going," says one trader. "This week has been slower than we hoped as broader market volatility continues and people are also waiting on the ECB today and the growing primary schedule .......

    SCIWire 3 September 2015

  • Origination enhancements 'reduce risk'

    Widespread changes to US residential mortgage origination practices since the financial crisis have reduced the risk of fraud and misrepresentation, according to Fitch. The agency believes a key driver behind the previous poor performance of peak vintage collateral was weak operational controls for the information used in the loan decision process.

    Several of the improvements since, however, have been driven by .......

    News Round-up 2 September 2015

  • Chinese issuance quotas 'positive'

    Moody's says that the People's Bank of China's (PBOC) inaugural approval of issuance quotas for Chinese securitisations is a positive development for the country's securitisation market. Under the new system, issuers should have greater certainty about the size and number of deals that they can issue over a set period.

    "The quota system will enable sponsors to speed up the .......

    News Round-up 2 September 2015

  • Euro ABS/MBS struggles back to life

    The European ABS/MBS market is slowly struggling back to life after the summer lull.

    Secondary market tone remains generally weaker and liquidity is still thin across the board. Euro-denominated prime assets continue to be the main focus for the market, but some buying interest has returned for peripheral paper, particularly Italian and Portuguese bonds.

    There are four BWICs on the .......

    SCIWire 2 September 2015
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