RMBS

  • RMBS manager benefits weighed

    The inclusion of a transaction manager (TM) in new US RMBS transactions would likely benefit investors in higher loan default scenarios, according to Fitch. In an effectively designed framework, the TM would bear responsibility for coordinating with all transaction parties, including servicers, trustees, custodians, specialty vendors and investors.

    In addition to assuming or directly replacing servicer responsibilities (SCI 19 March), .......

    News Round-up 12 June 2015

  • RMBS repurchase suit dismissed

    The New York Court of Appeals has upheld a ruling dismissing a lawsuit - which alleged that Deutsche Bank Structured Products (DBSP) had breached reps and warranties with respect to US$330m in MBS mortgage loans - as time-barred. A ruling in favour of the appellant's arguments in Ace Securities Corp, Home Loan Equity Loan Trust, Series 2006-SL2 v. DBSP would have had the effect of extending the limitations period .......

    News Round-up 12 June 2015

  • Sequoia structural innovations evaluated

    Redwood Trust's RMBS offering from April, Sequoia Mortgage Trust 2015-2, includes several new structural enhancements for the asset class (SCI 5 May). Fitch says that the features are intended to mitigate potential conflicts of interest, many of which are a plus, but could also introduce a new risk.

    The transaction wasn't rated by Fitch, as the agency says it is currently assessing the new structure. .......

    News Round-up 12 June 2015

  • SFR default remedies differ

    Moody's suggests that special servicers will likely pursue different strategies to remedy defaults between single-borrower and multi-borrower SFR securitisations. This is because differences in the size of the borrowers of the loans backing these securitisations will affect the defaulted loan's recovery values under different resolution options.

    "Special servicers will be more likely to forbear or modify defaulted loans in single-borrower .......

    News Round-up 12 June 2015

  • MSR sale 'credit positive'

    Ocwen's sale of US$90bn in mortgage servicing rights is credit positive for the servicer, according to Moody's. The agency says this is due to the likelihood that Ocwen will use the proceeds to significantly decrease its financial leverage.

    Proceeds from the MSR sales could provide Ocwen with sufficient liquid resources to repay its outstanding corporate debt, specifically its US$1.2bn in .......

    News Round-up 12 June 2015

  • Euro ABS/MBS struggles on

    The European ABS/MBS secondary markets continue to struggle with poor liquidity and broader market volatility.

    Market tone continued to be weak on light volumes yesterday and looks unlikely to change today in the penultimate gasp before Barcelona amid further Greek concerns. Prime assets continue to attract what activity there is and spreads there are holding up reasonably well, while peripheral .......

    SCIWire 12 June 2015

  • Payment holiday 'credit positive'

    The Italian Banking Association's two-year renewal of its payment holiday scheme will support both Italian companies and individuals whose liquidity position is stretched amid the sluggish economy, according to Moody's. The agency says that the new moratorium is credit positive for SME, ABS and RMBS transactions, as it will reduce payments on loans and thus lower borrowers' propensity to default.

    News Round-up 11 June 2015

  • STACR pool risks downplayed

    Freddie Mac's newest risk-sharing RMBS transaction is the first to share a reference pool of loans with a previous transaction, says Moody's. However, the agency believes this feature will not increase credit risk for investors.

    Principal payments for STACR Debt Notes Series 2015-HQ2 will not come out of payments from STACR 2014-HQ2's portion of the shared reference pool, but rather .......

    News Round-up 11 June 2015

  • Nomura appeals fine

    Nomura has filed an appeal to the US Second Circuit Court of Appeals with regard to a recent US district court ruling that required the firm to pay US$806m in damages to the US FHFA (SCI 18 May). The figure was based on the court finding that Nomura had made false statements in selling MBS to Freddie Mac and Fannie Mae prior to the 2008 financial crisis. .......

    Job Swaps 11 June 2015

  • Euro ABS/MBS drifts

    The European ABS/MBS secondary market is continuing to drift without volume or direction.

    "The combination of Greek headlines and the run up to Barcelona is making for a difficult environment," says one trader. "Liquidity continues to be exceptionally poor with a lot of investors sitting on the sidelines. There are still quite a few BWICs but we're only seeing very limited .......

    SCIWire 11 June 2015

  • Trigger effect

    Call for consistency in UK non-conforming RMBS definitions

    Improving performance in UK non-conforming RMBS is strengthening mezzanine bondholder positions as an increasing number of deals switch to paying pro rata. However, anticipating when switches will occur is being complicated by ambiguous trigger terminology.

    Barclays estimates that seven UK non-conforming RMBS transactions which are currently paying sequentially have a higher likelihood of switching to pro-rata before the end of .......

    News Analysis 11 June 2015

  • RMBS analyst switches banks

    Anish Lohokare has joined Wells Fargo as a director and senior research analyst in structured products research. He will cover RMBS, develop strategies, publish research and generate investment ideas for institutional investors, with a focus on prepayment analysis and pass-through strategies.

    Lohokare joins from BNP Paribas, where he was the lead RMBS strategist with a focus on both agency RMBS .......

    Job Swaps 10 June 2015

  • AOFM auctions announced

    The Australian Office of Financial Management (AOFM) has announced details of its first two RMBS auctions (SCI 9 June), to be held on 24 June and 14 July. The results of the sale will be announced on the same day as the auctions, with settlement due on 29 June for the first auction and on 17 July for the second.

    News Round-up 10 June 2015

  • Euro ABS/MBS hindered

    The risk-off attitude across the European ABS/MBS secondary market is continuing to hinder activity.

    "Liquidity is pretty terrible at the moment," says one trader. "The tone of the market is generally weak with concerns about Greece hampering broader markets and ABS specific issues around the disappointment over the ABSPP."

    BWICs continue to be churned out however and are going through .......

    SCIWire 10 June 2015

  • Post-auction headache

    HUD NPL post-sale changes increase complexity

    The US Department of Housing and Urban Development (HUD) has been an increasingly significant source of NPL supply, but recent changes to its loan auction post-sale requirements make purchasing and securitising loans more challenging and expensive. Although the HUD is far from the only source of NPL supply, these changes are likely to have significant implications for the NPL securitisation .......

    News Analysis 9 June 2015

  • ABS, RMBS principal losses drop

    Moody's expects the resilience of senior European ABS and RMBS tranches to deterioration in collateral performance and counterparty risk to continue this year. None of the European ABS and RMBS bonds that the agency has rated triple-A have incurred principal losses to date.

    "On the back of macroeconomic re-balancing, we expect the number of notes that are likely to incur .......

    News Round-up 9 June 2015

  • Special offer

    Investors set to gain from Australian triple-A auctions

    The first of the Australian Office of Financial Management's (AOFM) planned series of RMBS auctions is expected this month. The sales present investors with an attractive opportunity.

    The AOFM has been instructed to sell off the Australian government's A$4.551bn triple-A rated RMBS holdings. Monthly sales of A$300m-A$500m are planned (SCI 13 May).

    "Conversations I have been having have revealed a .......

    News Analysis 9 June 2015

  • Euro secondary stabilises

    After a week of softening and amid continued broader market volatility the non-peripheral European securitisation secondary markets stabilised yesterday and have opened unchanged this morning.

    "It was a bit more active yesterday and the market appears to have stabilised," says one trader. "We saw two-way flows in quite a few sectors, though mainly in prime paper - from autos, to .......

    SCIWire 9 June 2015

  • Uplift for Tunisian RMBS

    Moody's has upgraded the global and national scale ratings of five tranches from a pair of Tunisian RMBS - FCC BIAT-CREDIMMO 1 and FCC BIAT-CREDIMMO 2. The move follows the upgrade of the Tunisian local-currency bond and deposit ceilings to Baa2 from Baa3 and further deleveraging of the two transactions. The rating agency had placed the deals on watch for .......

    News Round-up 8 June 2015

  • Business development pro recruited

    Suzanne Singer has joined Clayton Holdings as senior md of business development. She will be responsible for expanding Clayton's customer base and developing and executing strategic initiatives with its parent company, Radian Group.

    Singer most recently served as evp of sales and marketing for Litigation Guard, a provider of mortgage-lending risk management tools and technology services. She has also held .......

    Job Swaps 8 June 2015

  • Spanish foreclosures stabilising

    Spanish RMBS performance will benefit from a stabilisation in mortgage foreclosures, reports Moody's. With the foreclosure rate dropping by almost 14% since the peak of the crisis in 2010, the downward pressure on the performance of residential mortgages is easing, which is credit positive for the asset class.

    "We expect that a lower number of foreclosures will be accompanied by a shortening .......

    News Round-up 8 June 2015
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