RMBS

  • 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

  • Post-crisis RMBS affirmed, upgraded

    Fitch has taken various rating actions on 791 classes from 47 US prime jumbo RMBS that were issued after 2010. The agency affirmed the ratings for 93% of the classes reviewed and upgraded the ratings for 7%.

    The rating actions reflect the high credit quality and the superior performance of the collateral. The transactions reviewed have an average FICO score .......

    News Round-up 3 July 2015

  • RFC issued on Polish RMBS

    Moody's is seeking feedback on the methodology it is proposing for analysing the credit risk of Polish RMBS. The agency plans to use the proposed approach in conjunction with its existing methodologies to rate RMBS and covered bonds in Poland.

    To derive the calibration of the country-specific values and assumptions for Poland, Moody's benchmarked the Polish residential real estate market .......

    News Round-up 3 July 2015

  • Canadian ABCP impact highlighted

    The Canadian government last month proposed regulations restricting the use of insured mortgages as collateral in non-CMHC-sponsored securitisation vehicles and requiring mortgages that are portfolio-insured after the effective date to be funded through CMHC securitisation programmes. The stated rationale of reducing taxpayer exposure, increasing market discipline and restoring portfolio insurance to its original purpose is consistent with previous measures taken .......

    News Round-up 3 July 2015

  • Greek sovereign ceiling lowered

    Fitch has downgraded 18 tranches across seven Greek RMBS, one ABS tranche and four covered bond programmes issued by Alpha Bank, National Bank of Greece and Piraeus Bank. The move follows the downgrade of Greece's IDR to double-C and the revision of the country ceiling to triple-C, as well as the downgrade of Greek banks.

    The RMBS tranches have been .......

    News Round-up 3 July 2015

  • Euro secondary holds up

    European securitisation secondary market spreads are holding up as the wait for the Greek referendum continues to keep most participants sidelined.

    Flows remained light yesterday and are expected to stay the same today especially given the US public holiday. Prime assets again saw the most activity though it was still very patchy and market sentiment has slightly improved in peripherals .......

    SCIWire 3 July 2015

  • US RMBS quiet for now

    The US non-agency RMBS secondary market has had a quiet start to July, but that could change as the month moves on.

    "It's been a very low volume week - we've seen around $50m per day in for the bid over the last couple of days and today's BWIC calendar is negligible," says one trader. "There aren't a lot of .......

    SCIWire 2 July 2015

  • Portuguese housing on the up?

    Fitch reports that recent sales of properties from the possession of lenders point to greater liquidity and transparency in the Portuguese housing market, as the economy continues to recover.

    The distressed sale discount to the indexed original valuation - the quick-sale adjustment (QSA) - has been on a declining trend, according to the agency. In 2014 the average QSA fell .......

    News Round-up 2 July 2015

  • Manager charged with fraud

    The US SEC has charged AlphaBridge Capital Management and its two owners with fraudulently inflating the prices of RMBS in hedge fund portfolios they managed. A Commission investigation found that the firm told investors and its auditor that it obtained independent price quotes from broker-dealers for certain unlisted thinly-traded bonds, but instead gave internally-derived valuations to broker-dealer representatives to pass .......

    Job Swaps 2 July 2015

  • Euro secondary seeks clarity

    The European securitisation secondary markets continue to suffer poor liquidity and lack of supply as participants await further news on Greece.

    "It's still very quiet with everyone sitting on the sidelines," says one trader. "We got through quarter-end OK and had hoped things would then pick up but it looks like no one is willing to do anything until we .......

    SCIWire 2 July 2015

  • Euro secondary stable

    The European securitisation secondary market remained stable yesterday amid the varying Greece headlines and is holding firm for now ahead of further news from the ECB later today.

    Yesterday once again saw very light flows as the majority of both buyers and sellers remain content to sit out the wider market volatility. Consequently, spreads were broadly unchanged on the day.

    SCIWire 1 July 2015

  • Granite reviewed on counterparty risk

    S&P has placed on credit watch negative its ratings on 90 Granite RMBS tranches. The move corrects an error made in February when the agency took various rating actions on a number of UK, German, Austrian and Swiss banks, following its review of government support. At that time, S&P placed 377 European structured finance ratings on credit watch negative, including .......

    News Round-up 1 July 2015

  • Greek arrears rising

    Greek mortgage arrears have risen during the prolonged negotiations between the country's government and its official creditors, Fitch reports. The agency suggests that a deteriorating economy and almost total absence of bank credit may have combined with retail borrowers withholding loan repayments during the extended period of uncertainty.

    "Some mortgage borrowers may already be strategically entering early-stage arrears as the .......

    News Round-up 30 June 2015

  • Euro secondary stays calm

    Tone continues to be weak across European securitisation secondary, but the market has remained calm.

    "Not much happened yesterday - as broader markets headed down volumes in ABS/MBS were very thin," says one trader. "Peripherals were better offered in the Street, but there was no panic selling from customers."

    Indeed, the trader adds: "There was very little customer activity at .......

    SCIWire 30 June 2015

  • Mortgage duo recruited

    Cantor Fitzgerald has expanded its fixed income team with the appointment of John Altier and Andrew Javorsky as mds. Altier will focus on US government agency and Treasury securities, while Javorsky will focus on all mortgage products.

    Altier was previously a partner at CRT Capital Group and worked as an md at UBS before that. Javorsky was previously an md .......

    Job Swaps 29 June 2015

  • Euro secondary hesitates

    The European securitisation secondary markets are making a hesitant start following the weekend's events surrounding Greece.

    For now at least, participants are holding off any real trading activity until there is a clearer idea of where pricing levels should now be. While the market tries to find a firmer footing few prices are being shown.

    Those that are unsurprisingly reflect .......

    SCIWire 29 June 2015

  • Euro secondary stalemate

    The European securitisation secondary markets remain in stalemate as uncertainty over Greece and a consequent risk-off attitude pervades.

    Secondary spreads remained unchanged yesterday on the back of very limited liquidity and only some isolated small pockets of flow trading. Equally, the flurry of BWICs yesterday saw covers lower than earlier in the month for similar assets and a significant number .......

    SCIWire 26 June 2015

  • Valuations team beefs up

    MountainView IPS has added Alvin Hsu in a vp role and Alex Kolesnikoff in a senior analyst role. The two hires fill vacant positions while addressing a strategic plan to enhance the company's valuation processes and expand into new asset classes.

    Hsu joins MountainView IPS with over 10 years of experience in structured products and credit markets. He previously spent .......

    Job Swaps 25 June 2015

  • Euro ABS/MBS illiquid again

    The European ABS/MBS secondary market is once again hampered by illiquidity.

    "Flows are once again very poor," says one trader. "The bounce we saw on Tuesday, particularly in Portuguese and Spanish names, was short lived and we've been pretty flat to weaker since then."

    The trader expects little to change in the near future. "With the continued volatility surrounding Greece .......

    SCIWire 25 June 2015

  • Rates impact 'largely credit neutral'

    Moody's expects rising short-term interest rates in the US to have varied credit effects on new and existing mortgage-backed, asset-backed and other securitisations. The agency suggests that rising rates will be credit negative for CMBS and largely credit neutral for most consumer and commercial ABS sectors, RMBS and CLOs.

    For newly originated loans backing CMBS deals, rising interest rates are .......

    News Round-up 24 June 2015

  • Euro ABS/MBS firms up

    The European ABS/MBS secondary market is showing a firmer tone, but is not yet fully back up to speed.

    "Yesterday was very busy especially in peripherals with Spanish and Portuguese names the big movers," says one trader. "Overall, market tone is much better than we've seen for a while."

    However, the trader adds: "I'm not reading too much into it .......

    SCIWire 24 June 2015
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