RMBS

  • US RMBS oscillates

    The US non-agency RMBS secondary market has shifted around in line with broader market volatility this week.

    "Events around the yuan have seen us oscillate between risk-off and risk-on this week," says one trader. "Currency moves tend to push the market off the rails, as was the case with the Swiss franc earlier this year."

    Nevertheless, BWIC headline volume continues .......

    SCIWire 13 August 2015

  • US housing demand shifts

    A return of significant housing demand in US city centres is elevating into a countrywide demographic shift, according to Fitch. The shift in demand is occurring amid stabilising US home price growth.

    Since 2000, home prices have grown 50% faster in urban centres than in the broader MSA areas, with population growth trends beginning to favour city centres too. "This demand shift implies .......

    News Round-up 13 August 2015

  • Euro secondary stays insulated

    The European securitisation secondary market remains quiet despite broader market volatility.

    "It's still pretty slow," says one trader. "We've remained insulated from the China news, but it's August so the market is illiquid."

    The latest THRONES deal remains the chief talking point. "Price talk on the new deal is weak and while that should have a knock-on impact in secondary .......

    SCIWire 13 August 2015

  • Greater supply, risks widen spreads

    New issue spreads for RMBS and CMBS deals are widening on either side of the Atlantic as supply remains higher than demand. It appears to be a trend that will last beyond the usual summer slump.

    "There is a very large pipeline of expected deals, but a shortage of investors lining up for them," says one European ABS trader. .......

    News 12 August 2015

  • Ocwen makes settlement strides

    Joseph Smith - the monitor of the US National Mortgage Settlement - has filed his final report on his investigation into the independence of Ocwen's internal review group (IRG) and compliance with the settlement for the first and second quarters of 2014. The report to the US District Court for the District of Columbia includes the results of the independent retesting of .......

    News Round-up 12 August 2015

  • QM exception penalties analysed

    Fitch suggests that residential mortgages in US RMBS with material exceptions to the income documentation standards required to achieve qualified mortgage (QM) status will likely be penalised with both higher default and loss severity assumptions. The combined penalty could increase loss projections by 1.3 to two times that of a similar non-QM loan with documentation that meets the QM standard.

    News Round-up 12 August 2015

  • Polish RMBS methodology released

    Moody's has published its approach to rating Polish RMBS transactions using its MILAN framework. The approach implements the proposals made in its request for comment last month (SCI 3 July) and will be used in conjunction with the agency's existing methodologies to rate RMBS and covered bonds in Poland.

    The agency says that benchmarking the Polish residential real estate market .......

    News Round-up 12 August 2015

  • Euro secondary limps on

    Despite broader market volatility the European securitisation secondary market continues to limp along on very thin volumes.

    "There's not a great deal happening with only a few BWICs and a couple of OWICs due all this week," says one trader. "We're fully into summer and the weaker macro picture isn't helping."

    So far, the European ABS/MBS market has been insulated .......

    SCIWire 12 August 2015

  • Euro secondary winds down

    The European securitisation secondary markets continue to wind down as seasonal factors hold sway.

    "We're really in summer mode now with not a lot of flows," says one trader. "Activity is down to a minimum with little BWIC supply and no major credit news to stimulate trading."

    One piece of relevant news did however come from the similarly quiet primary .......

    SCIWire 11 August 2015

  • Euro secondary limited

    Activity in the European securitisation secondary market remains limited as seasonal illiquidity prevails.

    Nevertheless, Autos alongside Dutch and UK prime continue to see some signs of life. At the same time, there is selective demand for Italian, Portuguese and Spanish paper.

    Today, currently sees one BWIC on the schedule - at 14:30 London time there is a single €700k line .......

    SCIWire 10 August 2015

  • Rating correlations analysed

    S&P has published four reports illustrating how ratings on European ABS, CMBS, RMBS and structured credit transactions may change over time. The agency's analysis includes sensitivity of ratings to underlying analytical assumptions, as well as a discussion of how various market developments that move parameters built into the rating analysis may influence credit ratings.

    S&P notes that its European structured finance .......

    News Round-up 7 August 2015

  • ABS lawyers promoted

    Katten Muchin Rosenman has named nineteen new partners, among them Christina Burgess and Don Macbean for structured finance and securitisation. Burgess' experience includes ABS and MBS, with an emphasis on prime and sub-prime automobile loan and lease, dealer floorplan receivable and equipment lease securitisations and warehouses. Macbean's practice encompasses structured energy and commodity-related transactions, market-value CLOs and structured derivatives transactions.

    .......

    Job Swaps 7 August 2015

  • Compliance partner named

    Dentons has appointed Joshua Jordon as a partner in its capital markets practice. He joins from American Mortgage Consultants (AMC), where he was svp, general counsel and compliance officer. In his new role, Jordon will focus on mortgage banking and consumer finance regulatory matters as part of Dentons' regulatory compliance group.

    At AMC, he regularly advised on complex mortgage banking .......

    Job Swaps 7 August 2015

  • Euro secondary on the up

    Yesterday was another positive day in European secondary, though today looks to be quiet.

    Secondary activity improved again yesterday with higher levels of end-user involvement than in recent days. Nevertheless, volumes remain fairly light and patchy.

    In line with recent patterns prime assets led the way, but there were also pockets of activity in CLOs, CMBS, Italian ABS/MBS and UK .......

    SCIWire 7 August 2015

  • US RMBS stays respectable

    The US non-agency RMBS secondary market continues to see respectable volumes for the time of year.

    "It's been fairly quiet since month-end, which is only to be expected in August," says one trader. "We saw about $400m in for the bid on Tuesday and Wednesday, which is respectable but far from busy."

    One trend that has emerged this week is .......

    SCIWire 6 August 2015

  • PIMCO sent Wells Notice

    PIMCO has received a Wells Notice from the US SEC indicating that its staff have recommended that the regulator commence a civil action against the investment manager stemming from a non-public investigation relating to PIMCO's Total Return Active ETF. The matter principally pertains to the valuation of smaller sized positions in non-agency MBS purchased by the fund.

    The purchases that are being investigated .......

    Job Swaps 6 August 2015

  • Chimera internalises management

    Chimera Investment Corporation has entered into an agreement with Fixed Income Discount Advisory Company (FIDAC), a subsidiary of Annaly Capital Management, to internalise its management. In connection with the transaction, Chimera will purchase Annaly's 4.4% stake in the firm for a purchase price of US$126.4m or US$14.05 per share.

    Annaly and the independent members of the Chimera board agreed to .......

    Job Swaps 6 August 2015

  • Euro secondary improves

    Levels are improving in the European securitisation secondary market, but activity remains patchy and limited.

    "The market has generally got better in terms of spreads over the past couple of days," says one trader. "However, flows remain very thin - there's not a lot going on by way of BWICs, primary has slowed and the client side is very quiet, .......

    SCIWire 6 August 2015

  • RMBS calls edge up

    Fitch reports that close to 50 legacy US RMBS transactions were called through optional redemptions in 1H15. This is on pace to slightly exceed the number of transactions called in prior years, but is still a relatively low percentage of the approximately 1,000 prime and Alt-A transactions that are currently eligible to be called.

    Mortgage pools in transactions called this year .......

    News Round-up 5 August 2015

  • Euro secondary keeps it light

    With light flows and a light BWIC calendar summer is taking its toll on the European securitisation secondary market.

    "With primary active last week and now that we're into August there's very little going on in secondary," says one trader. "The BWIC calendar is pretty light as well."

    Overall, the trader describes secondary spreads as mixed with light flows ensuring .......

    SCIWire 5 August 2015

  • Freddie launches SB certificates

    Freddie Mac has expanded its credit risk transfer programme with the introduction of SB certificates, a new form of multifamily MBS which are backed by small balance loans underwritten by Freddie Mac and issued by a third-party trust. Approximately US$108m is expected to be guaranteed in the first series (SB1), which are anticipated to price this week and settle on or about .......

    News Round-up 4 August 2015
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