RMBS

  • Euro secondary stabilises

    The European securitisation secondary market continues to stabilise.

    Yesterday was another solid day with spreads holding form to edging tighter across the board. Buying interest off- and on-BWIC continues to increase, while auction activity is also growing.

    Yesterday's lists saw mixed results with most line items going through at or around talk, but a handful of mezz autos failed to .......

    SCIWire 17 July 2015

  • Turnaround for US RMBS

    The US non-agency RMBS secondary market is seeing a turnaround from last week's low levels of activity.

    "After a very quiet week last week, we've turned full circle and the market is back to some kind of normality," says one trader. "With positive headlines around Greece and Puerto Rico combined with a clearer view on US interest rates paper is trading again."

    SCIWire 16 July 2015

  • Euro ABS/MBS continues to pick up

    The European ABS/MBS secondary market is continuing to pick up.

    "Tone continues to improve now we've finally got some stability and clarity in broader markets," says one trader. "However, while there is more activity we're not seeing lots of volume, though that could also be to do with the time of year and people heading off on vacation."

    Peripherals in .......

    SCIWire 16 July 2015

  • Special situations pro recruited

    400 Capital Management has hired Chris Schiavone as director, special situations investment management. He will be responsible for special situation credit origination and portfolio management at the firm.

    Previously, Schiavone was part of Perella Weinberg Partners' asset management business, where he was responsible for sourcing, structuring, executing and managing distressed investments in commercial and residential mortgage debt, among other related .......

    Job Swaps 15 July 2015

  • Further actual-loss deals expected

    Fitch expects more US GSE securitisations to be issued in 2H15. The agency says that Freddie Mac's first two actual-loss risk-sharing transactions are a sign that US RMBS investors are willing to buy more risk.

    As per Freddie Mac's first two STACR DNA transactions, losses are passed to investors based on actual recoveries at loan liquidation. All previous risk-sharing transactions from .......

    News Round-up 15 July 2015

  • APAC ratings stay solid

    Fitch says it affirmed a total of 111 Asia-Pacific structured finance tranches in 2Q15. During the quarter, 10 Australian tranches, one Japanese tranche and one Chinese tranche were upgraded, while one ABCP conduit from Australia was downgraded.

    The agency claims that rating actions in Australia continued to be supported by a strong economy, with most ratings affirmed in the quarter. .......

    News Round-up 15 July 2015

  • New risk sharing deal debuts

    Fannie Mae has completed an additional credit risk sharing transaction - CIRT 2015-1 - that aims to further diversify its counterparty exposure and reduce taxpayer risk by increasing the role of private capital in the mortgage market. The credit insurance risk transfer (CIRT) deal shifts credit risk on a pool of mortgage loans to a panel of reinsurers.

    In this .......

    News Round-up 15 July 2015

  • Euro secondary improves

    After a long period in the doldrums things look to be improving for the European securitisation secondary market.

    "Overall tone was much better yesterday," says one trader. "Notably, we saw good activity in both UK and Dutch prime, so there's more liquidity there and prices are marginally better."

    The trader continues: "Peripherals too are improving with sentiment generally much better, .......

    SCIWire 15 July 2015

  • CRT, NPLs 'both attractive'

    Macro developments over the last few weeks have pushed residential credit wider, with CRT spreads at the LCF level now around 40bp wider than in April. However, fundamentals in this space are unlikely to be affected by those macro events and so LCF bonds could present an attractive buying option.

    The is "especially [true] on deals with some seasoning or enhancement. .......

    News 14 July 2015

  • RMBS settlement resolutions 'years away'

    Several recent legal developments could affect cashflow distributions from ongoing settlements and lawsuits. Morgan Stanley analysts believe these developments could also affect the likelihood of investors recouping any cash from future settlements.

    Citigroup's ongoing US$1.125bn settlement is well shy of Countrywide (US$8.5bn) or JPMorgan (US$4.5bn), but is unusual in having no investors object to it. Countrywide attracted the majority of the .......

    News 14 July 2015

  • Jumbo RMBS on record pace

    US prime jumbo RMBS is on pace to exceed last year's issuance levels after another strong quarter, reports Fitch. Eight RMBS deals came to market in 2Q15, only slightly below the previous quarter in volume, combining to roughly US$7.1bn of issuance for 1H15.

    In comparison, the 2014 total of issuance was US$8.3bn, while 2013 saw a figure of US$13.1bn. "Only .......

    News Round-up 14 July 2015

  • AOFM announces auctions

    The Australian Office of Financial Management (AOFM) has confirm that its third RMBS auction will take place on 18 August. It has also notified the market that its fourth auction will take place on 15 September.

    The August auction will incorporate up to A$500m in amortised face value. It will include tranches such as Barton 2011-1 A2, SMHL 2008-2 A1 .......

    News Round-up 14 July 2015

  • Bulk upgrades for Spanish RMBS

    Moody's has upgraded the ratings of 254 tranches, confirmed 23 tranches and affirmed 106 tranches in 115 Spanish RMBS transactions. The agency's actions are a result of its update to several of its cross-sector, primary and secondary rating methodologies for structured finance securities, in order to incorporate the new counterparty risk assessment that it recently introduced for banks (SCI 16 March).

    News Round-up 14 July 2015

  • Chinese expansion predicted

    The Chinese auto ABS and RMBS markets have high potential for growth over the medium term and should expand on the success of CLOs in China, says Moody's. This is due to high demand for auto loans and mortgages in the country on the back of higher consumption and rapid growth in the housing sector.

    The result has left auto .......

    News Round-up 13 July 2015

  • Mortgage REIT diversity dawns

    Kroll Bond Rating Agency says there are signs that some traditional agency mortgage REITs are diversifying towards CRE securities. The agency says residential mortgage REITs could be faced with either increasing leverage or diversifying due to rising funding costs and margin compression.

    Strong investor demand has allowed mortgage REITs to significantly grow portfolios by issuing over US$50bn in equity and US$7.8bn in senior .......

    News Round-up 10 July 2015

  • CSP advisory group established

    Freddie Mac, Fannie Mae and Common Securitisation Solutions (CSS) have formed an Industry Advisory Group to provide feedback and share information on efforts to build the Common Securitisation Platform (CSP) and implement the single security. This follows the US FHFA's recent progress update on the single security, outlining the objective to finalise its structure in 2015 (SCI 18 May).

    In addition .......

    News Round-up 10 July 2015

  • Further ABSPP purchases detailed

    The ECB this week  provided an updated breakdown of its ABSPP holdings. As of the end of last month, the Eurosystem held €8.8bn in securities purchased under the programme - with €6.6bn purchased in secondary and €2.2bn from the eurozone primary market.

    The ECB previously provided an ABSPP breakdown for April at the start of June (SCI 2 June), so these .......

    News 10 July 2015

  • New players spurring UK RMBS

    Moody's says that new players in the UK's prime mortgage market and pre-crisis legacy assets hold the keys to deal issuance for the next 12 months. In the 18 months from January 2014 to June 2015, such pools accounted for almost half of all newly issued UK RMBS at 15 out of 33 deals, which is £8.2bn out of total .......

    News Round-up 9 July 2015

  • Greek RMBS prisoner to politics

    As well as the obvious implications of any exit from the euro, Greek RMBS could also be affected by another political decision: a fresh moratorium on home repossessions. Both political paths could be pursued, with negative RMBS consequences, say JPMorgan analysts.

    The Greek RMBS universe is around €2.2bn. There are three large shelves of €600m-€800m outstanding (Estia, Grifonas and Themelion) .......

    News 9 July 2015

  • House sales boost Dutch RMBS

    A recovery in house sales in the Netherlands will increase the proceeds that originators recover in cases of foreclosure, says Moody's. This should reinforce the stable performance of the Dutch RMBS market, with the agency forecasting a maximum house price increase of up to 5% in 2015.

    Available data shows that a 16% rise in house sales in the first five .......

    News Round-up 8 July 2015

  • RBS settlement losses expected

    RBS could face potential settlement fees totalling US$13bn (£8.3bn) relating to alleged violations linked to the sale of US$32bn of MBS to Fannie Mae and Freddie Mac, according to Fitch. The figure is outlined in court filings made on behalf of the US FHFA.

    Fitch says this latest round of conduct and litigation fines that may be imposed on RBS is already reflected in the bank's standalone viability .......

    News Round-up 6 July 2015
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