RMBS

  • Euro ABS/MBS stays positive

    The European ABS/MBS secondary market ended last week quietly and looks to be starting the month in a similar fashion, but market tone remains positive.

    In Friday's quiet as anticipated session core prime paper was the main focus for buying interest. The few BWICs there were, mainly revolving around UK bonds, also traded reasonably well.

    Meanwhile, peripherals seem to have .......

    SCIWire 1 June 2015

  • SFR market moves east

    While the single-family rental securitisation market continues to grow, the profile of the underlying properties is changing. Where earlier deals were overwhelmingly backed by properties from the western US, more recent deals contain heavier concentrations of eastern properties.

    SFR issuance this year has passed US$4.3bn and is on course to surpass last year's total, say Morgan Stanley analysts. It is .......

    News 29 May 2015

  • Euro secondary subdued

    A distracted European securitisation secondary market looks to be closing the week in subdued manner.

    With traders distracted by a busy primary market and the large CDO liquidation, for which the results are yet to be released, yesterday's European secondary market was relatively quiet. Month-end today should ensure more of the same.

    Away from the big list the large ABS .......

    SCIWire 29 May 2015

  • Supply returns to US RMBS

    Pent up supply following the holiday weekend has burst on to the US RMBS secondary market.

    "It's a very busy week for month-end," says one trader. "We saw $500m in for the bid on Tuesday, which is high for the first day back from a long weekend, with large lists announced for today and tomorrow."

    Today's BWIC volume is sizeable .......

    SCIWire 28 May 2015

  • Call for clarity on repo eligibility

    Another 31 Spanish prime RMBS and SME ABS bonds were dropped from the ECB's repo-eligible list (SCI 6 March) last week. It appears that the move was due to non-compliance with the subordination rule, which requires that no tranche other than the eligible tranche is given priority over the receipt of principal and interest payments post a delivery of acceleration .......

    News Round-up 28 May 2015

  • Agency auction completed

    Freddie Mac has sold via auction 1,052 deeply delinquent Ocwen serviced NPLs from its mortgage investment portfolio, making it the GSE's third standard pool offering this year. The loans have an aggregate UPB of US$201m and the transaction is expected to settle in July.

    The loans were offered as a single pool of mortgages, with LSF9 Mortgage Holdings the winning .......

    News Round-up 28 May 2015

  • Italian mortgage prepays rise

    Italian mortgages saw a sharp increase in annual prepayment rate to 3.2% in 1Q15 from 2.5% in 4Q14, according to Fitch's latest index results for the sector. The agency suggests that loan refinancing was the dominant factor in the rising wave of prepayments, while low interest rates and renewed lender appetite resulted in growth in new lending volumes.

    Fitch adds that lenders .......

    News Round-up 28 May 2015

  • 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
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