RMBS

  • Euro ABS/MBS sees weak peripherals

    While broader markets have been boosted overnight by news on Greece, the European ABS/MBS secondary market is still showing signs of peripheral weakness.

    "It's been a slow week but we are bit weaker in Portuguese and Greek names," says one trader. "As a result of peripheral concerns we're seeing customers bringing out more and more paper."

    At the same time, .......

    SCIWire 28 May 2015

  • Reverse mortgage approach published

    Moody's has finalised its global rating methodology for rating reverse mortgage securitisations. The implementation will result in a number of rating changes, which the agency will publish as it completes its analysis of each affected transaction.

    Moody's global approach to rating reverse mortgage securitisations details the rating agency's assumptions for assessing whether the value of the underlying homes at their .......

    News Round-up 27 May 2015

  • Euro secondary stays stable

    European securitisation secondary markets are staying stable despite the broader credit market weakness of the past couple of days.

    "Macro noise is keeping investors on the sidelines and there's quite a bit of new issuance to distract from secondary too," says one trader. "However, the general tone remains unchanged and we're still experiencing the status quo of the past couple .......

    SCIWire 27 May 2015

  • Expanding horizons

    China seeking fresh growth opportunities

    The Chinese securitisation market continues to show promising signs of growth. The authorities are now exploring new ways to strengthen the market by involving foreign investment and reinvigorating secondary activity.

    Issuance in the Chinese securitisation market under the country's Credit Asset Securitisation (CAS) programme jumped to approximately CNY280bn in 2014 from CNY16bn in 2013 (SCI 3 March), according to Moody's. .......

    News Analysis 27 May 2015

  • Euro secondary starts settled

    Last week ended quietly as anticipated for European secondary securitisation markets and, following the long weekend either side of the Atlantic, looks likely to begin this in settled form barring any interference from macro-driven volatility.

    Secondary spreads ended last week broadly unchanged on the day on the back of continued light flows. Meanwhile, the few BWICs there were on Friday .......

    SCIWire 26 May 2015

  • Broker-originated mortgages scrutinised

    Fitch expects new Spanish broker-originated residential mortgages to suffer much larger credit losses than prime loans over the medium term, if the economy deteriorates or interest rates rise sharply, despite improved underwriting standards since the financial crises. The agency says this is because it may be in some brokers' economic interest to submit weak loan applicants to the lender. Broker .......

    News Round-up 22 May 2015

  • Matching engine launched

    ICAP e-Commerce has launched a US agency securities matching engine, powered by the company's US agency securities desk. ICAP says that the matching engine brings together buyers and sellers in the US agency securities marketplace by using both traditional and new execution methods to provide a liquid user experience for new and existing customers. 

     

    .......

    News Round-up 22 May 2015

  • Euro BWICs ease

    The BWIC-led week in European securitisation secondary markets is easing to a close today.

    BWICs dominated ABS/MBS secondary trading once again yesterday and the bonds that traded did so in line with expectations. Flow trading was patchy once more, but broadly spreads remained unchanged though Italian and Portuguese paper continued to weaken.

    At the same time, European CLO secondary activity .......

    SCIWire 22 May 2015

  • US RMBS winds down

    The US non-agency RMBS secondary market is winding down ahead of the holiday weekend, but the week has had its talking points.

    "It's been an interesting week," says one trader. "We've seen a lot of hedge fund selling in an effort to shed some assets to raise cash for calendar-based opportunities. They're now beginning to look for paper both in .......

    SCIWire 21 May 2015

  • Euro ABS/MBS holds up

    European ABS/MBS secondary spreads are mostly holding up despite a heavy BWIC calendar and a general risk-off attitude.

    "There were a lot of BWICs yesterday and nearly all line items traded well," says one trader. "The calendar is quieter today, but overall volume in BWICs significantly up."

    This contrasts with the rest of the secondary market, the trader adds. "Elsewhere .......

    SCIWire 21 May 2015

  • Swiss house prices to stabilise

    Signs of house price stagnation in Switzerland herald a soft landing for the market rather than a residential property crash, Fitch suggests. Sustained demand is expected to offset the downward pressure from Swiss franc appreciation, macro-prudential regulation and possible restrictions on immigration. The agency believes that prices will stabilise in the medium term.

    Nationally, residential property price growth slowed in .......

    News Round-up 20 May 2015

  • TRID to raise loss risk?

    Moody's says that the risk of losses for RMBS trusts have been raised by the initial operational challenges for lenders to implement and comply with the new TILA-RESPA Integrated Disclosure Rule (TRID). Lenders could also be challenged with the potential for increased costs in the event of non-compliance.

    TRID expands and replaces the current disclosure requirements of the Truth in .......

    News Round-up 20 May 2015

  • Qualitative underwriting examined

    Greater insight into how US prime RMBS perform can be achieved by observing the qualitative mortgage loan underwriting factors that supplement quantitative measures in a pool, says Moody's. The agency believes these measures would be useful to examine during an economic downturn.  

    In general, RMBS pools backed by loans with similar quantitative measures but weaker qualitative measures will perform worse than pools backed .......

    News Round-up 20 May 2015

  • Ohio, Michigan RMBS performance warning

    US RMBS deals backed by delinquent loans concentrated in Ohio and Michigan will perform worse than those backed by delinquent loans in other states because of high loss severities, Moody's suggests. The agency says this higher level of loss has been driven in part by significantly higher rates of home value depreciation.

    Average loss severities for defaulted loans from Ohio .......

    News Round-up 20 May 2015

  • Euro ABS/MBS BWIC spike

    After another relatively quiet day yesterday, the European ABS/MBS secondary market looks set for a busy day today with a spike in BWIC volumes.

    For the most part secondary spreads remained range-bound yesterday on light activity. Although one trader notes: "Market tone is a little bit weaker away from core product - peripherals and mezz 2.0 CMBS have edged out, .......

    SCIWire 20 May 2015

  • FNMA completes debut NPL sale

    Fannie Mae has disclosed the results from its first non-performing loans sale. The transaction comprised 3,068 loans with a UPB of US$762m, divided into two pools.

    Pool 1 accounted for 710 loans (US$173.8m), while Pool 2 accounted for 2,358 loans (US$587.9m). The winning bidders for the pools were SW Sponsor and Neuberger Berman Fixed Income Funds respectively. The cover bid .......

    News Round-up 19 May 2015

  • Non-agency RMBS approach released

    Morningstar has published its US non-agency RMBS resecuritisation methodology, while updating its current RMBS ratings methodology and US residential mortgage loan reps and warranties framework. The agency's framework covers its analytical approach to various types of RMBS transactions, including qualified mortgages, non-qualified mortgages, reperforming loans, non-performing loans and resecuritisations of existing classes of RMBS.

    Generally, Morningstar utilises a proprietary loan-level .......

    News Round-up 19 May 2015

  • ABS survey signals stability

    ABS investors remain comfortable with performance in the market, according to JPMorgan's mid-year ABS investor survey. This will likely be reflected in continued participation in the sectors that the investors currently invest in.

    JPMorgan ABS analysts expect ABS supply to reach US$200bn by year-end 2015, which would supplant the US$190bn of primary issuance in 2014. Survey respondents concurred, with 45% of .......

    News Round-up 19 May 2015

  • Granite upgraded on improved performance

    Fitch has upgraded 52 tranches of the Granite master trust RMBS programme and nine tranches from the Whinstone transactions. The agency has affirmed all other tranches and revised the outlooks on 19 tranches.

    The agency's actions are a result of a number of factors, including improving asset performance within the transactions. The balance of loans in arrears by more than .......

    News Round-up 19 May 2015

  • Ocwen downgrade eyed

    HSBC, as trustee to three Ocwen-serviced deals (RAMC 2005-4, RAMC 2006-1 and RAMC 2006-3), last week sent notices to noteholders requesting votes on terminating Ocwen as servicer. The notices refer to Fitch's downgrade of Ocwen's rating to RPS4 from RPS3 in February.

    In the servicing agreements between Wells Fargo as master servicer and Ocwen as servicer, the downgrade constitutes a .......

    News Round-up 19 May 2015

  • RMBS 3.0 servicing improvements touted

    Successive years of difficulties in the mortgage servicing sector have prompted a call for change among new-issue US RMBS market participants, according to Fitch. Most mortgage servicers have already begun undergoing significant transition since the mortgage crisis, including reductions in bank servicing portfolios and growth of non-bank servicing portfolios.

    However, changes now being sought by the market include improved incentive .......

    News Round-up 19 May 2015
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