RMBS

  • US RMBS looks for direction

    The US non-agency RMBS secondary market is still relatively quiet, but one big list tomorrow could help to give the market some direction.

    "Things are still a little slow as they have been since the end of March," says one trader. "However, it is reasonably busy today, as is normally the case on a Thursday, with just under $700m in .......

    SCIWire 16 April 2015

  • Boost for Spanish housing

    An increase in mortgage lending in Spain over the last year could help the housing market to recover in 2015, Moody's suggests. Rising mortgage origination will likely improve the demand for housing, which in turn could help lift house prices.

    "Historically, there has been a high positive correlation between mortgage origination and changes in house prices. In our opinion, the .......

    News Round-up 16 April 2015

  • Freddie beefs up

    Freddie Mac has appointed Anil Hinduja as evp and chief enterprise risk officer, responsible for providing the overall leadership and direction for the company's enterprise risk management division. The GSE has also named David Leopold vp of affordable housing production for the multifamily business.

    Hinduja reports to Freddie Mac ceo Donald Layton and will serve on the company's senior operating .......

    Job Swaps 16 April 2015

  • Housing market corrections examined

    Housing market corrections coincide with a country's GDP being 6% lower on average than if it had continued on its growth path before prices peaked, according to Moody's research. The study examines economic developments in countries after housing market declines based on 50 global episodes of housing market corrections since 1973.

    "On average, GDP is around 6% lower than its .......

    News Round-up 16 April 2015

  • Korean ratings window widened

    Moody's says that Korean cross-border structured finance transactions can now achieve triple-A ratings if they benefit from external enhancement mechanisms that cover currency transfer and convertibility risks. This follows the agency's raising of Korea's local currency country risk ceiling to triple-A, although Korea's foreign currency bond ceiling remains at Aa1.

    Moody's explains that Korean structured finance transactions will in general .......

    News Round-up 16 April 2015

  • Banks eyeing MSR purchases

    Recent fallout surrounding Ocwen is bringing US banks back to the market in greater numbers as buyers of mortgage servicing rights, according to Fitch. In recent months, banks have agreed to purchase several bulk packages of MSRs from Ocwen due to a number of factors, including the current regulatory environment, improvements in bank portfolio make-up, bank interest in maintaining servicing .......

    News Round-up 16 April 2015

  • Prime focus for European ABS/MBS

    The European ABS/MBS secondary market continues to be reasonably active with prime paper being the main focus.

    "Overall, the market remains quite positive and flows are picking up," says one trader. "They are still mainly concentrated in the prime segment where spreads are unchanged but there is plenty of activity with real money participating."

    In contrast, the trader says: "UK .......

    SCIWire 16 April 2015

  • EMEA auto ABS surveyed

    Fitch says that transactions across the most active auto ABS jurisdictions in the EMEA region share many key building blocks, such as asset characteristics and origination practises, and risk drivers in the form of obligor defaults and car market values. However, each country also has unique features that can influence transaction performance, including tax risks in Germany, voluntary termination risk .......

    News Round-up 15 April 2015

  • Rate hikes to trouble CMBS, RMBS

    Faster increases in interest rate rises by the US Fed and a corresponding shock to the economy would likely leave most US structured finance (SF) ratings untouched, according to Fitch. However, it could slow the refinancings that will be crucial to the CMBS market and could hurt some RMBS deals that include legacy adjustable-rate mortgages.

    Fitch expects the Fed's actual .......

    News Round-up 15 April 2015

  • Euro ABS/MBS ticks over

    Dynamics in the European ABS/MBS secondary market remain unchanged as it continues to tick over.

    "We've been pretty busy over the last few days with the usual dynamics in evidence," says one trader. "Tone seems OK, the ECB is chugging along albeit at a slow pace and a few BWICs are going through."

    Consequently, spreads remain range-bound. "A fair amount .......

    SCIWire 15 April 2015

  • Countrywide settlement nears completion

    BNY Mellon has presented the US$8.5bn Countrywide settlement agreement to the New York Supreme Court for final approval. The bank is seeking a modification of the language in the February 2014 judgment to bring it in line with last month's appellate division ruling (SCI 6 March), specifically by deleting any language regarding withholding the release of modification claims.

    If the .......

    News Round-up 14 April 2015

  • Euro ABS/MBS static

    The European ABS/MBS secondary market remains quiet but well-supported.

    "Secondary ABS/MBS is still static and very quiet post-Easter," says one trader. "Levels are pretty much unchanged and despite the Street feeling long they appear well-supported."

    The primary market is also dragging attention away from secondary trading. "There is a lot of investor interest focused on new issues including the latest .......

    SCIWire 14 April 2015

  • MSR sale due

    JPMorgan plans to transfer 4,138 loans from 12 US RMBS transactions to Select Portfolio Servicing (SPS) by way of a mortgage servicing rights sale. Moody's says that the transfer will not result in a reduction or withdrawal of the current ratings on the securities.

    The 12 affected transactions are: Aegis ABS Trust 2004-4; ABFC Asset-Backed Certificates Series 2006-HE1; Citigroup Mortgage .......

    News Round-up 13 April 2015

  • Regional bank settlement agreed

    First Tennessee, the regional bank for First Horizon National, has agreed in principle with the US Department of Housing and Urban Development and the US Department of Justice to settle claims related to the bank's underwriting and origination of FHA-insured mortgage loans from 1 January 2006 through to 31 December 2008. Under the agreement, First Tennessee has committed to pay .......

    News Round-up 13 April 2015

  • Euro secondary stays slow

    The light BWIC volumes seen in European securitisation markets throughout the much of the Easter holidays look set to continue into today.

    It was a quiet day on- and off-BWIC on Friday with spreads for the most part unchanged and a similar pattern appears to be forming at today's open. CLOs, Dutch and UK prime continue to garner the most .......

    SCIWire 13 April 2015

  • FNMA NPLs marketed

    Fannie Mae is marketing its first bulk-sale of non-performing loans, featuring an overall pool of approximately 3,200 loans that total US$786m in unpaid principal balance. This follows Freddie Mac's recent sale via auction of 5,398 deeply delinquent NPLs (SCI 1 April).

    The pool is available for purchase by qualified bidders and will be offered in two pools. The first pool .......

    News Round-up 10 April 2015

  • Transaction manager oversight 'credit positive'

    Oversight of private-label RMBS by a transaction manager improves transaction governance, which is a credit positive, Moody's notes. The agency says that such an independent and impartial transaction party will enhance investors' interests and underpin a stronger administrative infrastructure in RMBS transactions.

    Redwood Trust is one issuer that has suggested that the inclusion of a transaction manager in private-label RMBS .......

    News Round-up 10 April 2015

  • Steady performance predicted for Japan

    In its baseline scenario, S&P assumes that Japan's economy will stage a soft recovery in 2015, with real GDP growing by 0.8% year-on-year. Against this backdrop, the agency believes that the assets underlying RMBS, ABS and CMBS are generally likely to show steady performance.

    Assets backing owner-occupied RMBS and condominium investment RMBS are expected to show steady performance in 2015 .......

    News Round-up 10 April 2015

  • Euro secondary flow holds sway

    The European secondary securitisation market is currently focused on flow trading.

    Securitisation markets are continuing to move independently of the rally in broader markets. Instead, spreads are being driven by technicals amid healthy if patchy flow trading.

    Autos, CLOs, CMBS, UK non-conforming, UK and Dutch prime are all either tighter or staying firm this week thanks to continued investor demand .......

    SCIWire 10 April 2015

  • US RMBS on hold

    The US non-agency RMBS secondary market appears to be on hold for now and hoping for a pick-up in activity next week.

    "We seem to be in a holding pattern this week," says one trader. "Spreads are unchanged as market activity continues to be diminished following on from quarter-end and with many people still on holiday."

    There is around $1bn .......

    SCIWire 9 April 2015

  • Servicing advance rates increasing

    US RMBS servicing advance rates increased slightly in 4Q14, according to Fitch's latest index results for the sector. While bank servicer advance rates have steadily declined over time, some non-bank servicers - particularly Ocwen - are gradually increasing their advance rates in line with economic conditions and housing market improvements.

    Since Ocwen services a large portfolio of delinquent loans, including .......

    News Round-up 9 April 2015
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