RMBS

  • 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

  • RMBS recoveries revealed

    August non-agency RMBS remittances show cash payouts for three DBALT deals in relation to the Monarch Alternative Capital representations and warranty settlement. A few HVMLT deals also received chunky subsequent recoveries during the month.

    The DBALT settlement was finalised in July between HSBC, which is trustee on the affected deals, and Deutsche Bank. The payouts came to US$29.26m, US$52.52m and .......

    News Round-up 1 September 2015

  • ECB 'behind OWIC increase'

    OWICs have been circulating in the European ABS secondary market in growing numbers. While their source has not been confirmed, one London-based portfolio manager strongly suspects they are coming from the ECB.

    "It could be anybody, but it is probably a reasonable bet that it is the agents of the ECB. The market is generally quiet right now, but the work .......

    News 28 August 2015

  • Freddie loans swap servicer

    Marix Servicing, an affiliate of Walter Capital Opportunity (WCO), has been approved by Freddie Mac to hold MSRs relating to a pool of approximately US$3.3bn in UPM of the GSE's residential mortgage loans. Walter Investment subsidiary Green Tree Servicing will sub-service the loans on its behalf.

    WCO ceo Denmar Dixon says that the transaction represents approximately half of the MSRs associated with US$6.75bn in .......

    News Round-up 28 August 2015

  • Greek upgrades follow sovereign action

    Following the upgrade of the Greek sovereign's issuer default rating to triple-C and revision of the country ceiling to single-B minus, Fitch has upgraded 18 tranches of seven Greek RMBS. It has also taken action on one credit-linked Greek ABS tranche.

    The 18 RMBS, originated by Piraeus Bank, Consignment Deposit & Loans Fund and Eurobank Ergasias, have all been upgraded .......

    News Round-up 28 August 2015

  • Euro secondary lacks conviction

    Despite an improving overall tone, the European securitisation secondary market continues to lack conviction.

    Even though broader market concerns are shelved for now yesterday was extremely quiet thanks to month-end and the summer lull. What small pockets of activity there were revolved around short-dated prime assets, some peripheral paper and a few major CMBS names.

    With a UK bank holiday .......

    SCIWire 28 August 2015

  • FHA to provide PACE update

    The FHA will soon issue guidance on residential property-assessed clean energy (PACE) financing. Kroll Bond Rating Agency says there should be no negative credit effect on the senior PACE lien asset class, although borrowers may be encouraged to refinance and subordinate their PACE liens to mortgage liens, in which case prepayments could increase.

    The FHFA has already voiced its opposition .......

    News Round-up 27 August 2015

  • Aussie delinquencies diverging

    Fitch reports that Sydney's mortgage performance has benefitted the most from the rise in house prices. Metropolitan regions, including the historically worst-performing ones in western Sydney, appear not to have experienced the usual deterioration in mortgage delinquency rates caused by Christmas spending.

    Budgewoi (2262), on New South Wales' (NSW) Central Coast, has topped Fitch's list of worst-performing postcodes in Australia .......

    News Round-up 27 August 2015

  • Euro secondary improves

    Tone in the European securitisation secondary market is improving as broader market volatility reduces.

    Market sentiment improved across the board yesterday and consequently secondary spreads edged in slightly, albeit on continuing very low volumes. Yesterday's BWICs all traded at or above expectations with the Italian RMBS auction a highlight, though covers were below recent levels.

    Nevertheless, the summer lull is .......

    SCIWire 27 August 2015

  • FHFA plots GSE paths

    The FHFA has adopted a final rule to establish single-family and multifamily housing goals for Fannie Mae and Freddie Mac for 2015-2017. It has also released a risk transfer document pointing to continued large volumes of CRT deals in various forms.

    The final rule sets the same benchmarks for each GSE. For single-family, the GSEs have been set a purchase .......

    News 26 August 2015

  • RMBS trust suit filed

    The FDIC has filed a lawsuit against BNY Mellon over alleged breaches that the bank made as trustee for approximately US$2.06bn worth of bonds in 12 RMBS trusts. Standing as receiver for Guaranty Bank, the FDIC claims that the breaches led to it losing over US$440m from the sale of a resecuritsed transaction - SSGN 2010-S1.

    In its filing to the US .......

    Job Swaps 26 August 2015

  • Euro secondary struggles on

    The European securitisation secondary market continues to struggle on amid broader market volatility.

    Yesterday's European BWICs covered at reasonably strong levels where the line items did actually trade. However, the overall lack of flows continues to hamper price transparency and is pushing bid-offers still wider.

    Today's BWIC schedule currently sees four lists. At 10:00 London time is a seven line .......

    SCIWire 26 August 2015

  • US secondary slowdown

    US BWIC supply has slowed to a trickle today across asset classes.

    Events in China and the feared knock on impact on the US Fed's rate strategy look to have sidelined the bulk of US securitisation secondary market participants. The resultant absence of sellers is making for a quiet looking day across asset classes even for the fourth week of .......

    SCIWire 25 August 2015

  • Euro secondary holds up

    In the face of continuing equity market volatility the European securitisation secondary market appears to be holding up relatively well.

    True price discovery remains very difficult with almost no trading thanks to the summer lull combined with the extreme equity and FX market volatility discouraging any securitisation market participants still at their desks. However, dealers for now appear to be taking .......

    SCIWire 25 August 2015
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