RMBS

  • Euro secondary liquidity on the rise

    European securitisation secondary market liquidity is continuing its rise this week.

    "There's more activity this week than last overall," says one trader. "With more and more trades getting done off-BWIC."

    While market tone remains broadly positive, some areas are softer than others. "There is some weakness in peripherals," notes the trader. "That's particularly true in Portuguese names, where, for example, .......

    SCIWire 13 May 2015

  • MBS mis-selling case concluded

    A US district court has ruled that Nomura made false statements in selling MBS to Freddie Mac and Fannie Mae prior to the 2008 financial crisis. The court's opinion cites figures stating that the GSEs' conservator, the US FHFA, is entitled to US$624.4m in compensation.

    However, the court has set out an order for the FHFA to submit a proposed judgment with updated damages figures. The .......

    Job Swaps 12 May 2015

  • REIT preps risk transfer

    PennyMac disclosed in its 1Q15 results that it has entered into a credit risk transfer structure with Fannie Mae in relation to the REIT's correspondent mortgage production. Under the programme, PennyMac will continue to produce conventional conforming loans and securitise up to US$1bn of them on a flow basis through a new SPV, dubbed PMT CRT 2015-1.

    The REIT will .......

    News Round-up 12 May 2015

  • Euro ABS/MBS holds steady

    European ABS/MBS secondary spreads are holding steady despite broader market weakness.

    As expected, volumes on- and off-BWIC picked up yesterday and look set to continue to do so today. Market tone is improving and secondary spreads are holding steady initially unfazed this morning by the overnight sell-off in rates.

    The focus of activity still surrounds autos, UK non-conforming and UK .......

    SCIWire 12 May 2015

  • Slow return for European secondary

    European securitisation secondary markets look set to return to life this week, but progress is slow.

    Wider market positivity on the back of the UK election and US non-farm payrolls has improved the tone in European ABS/MBS secondary markets. However, spreads remain broadly unchanged for now as activity is only slowly picking up again.

    Many buy-side participants are still sitting .......

    SCIWire 11 May 2015

  • Euro ABS/MBS stays stable

    In the face of heightened broader credit market volatility yesterday the European ABS/MBS secondary market remained relatively stable with spreads unchanged to slightly softer.

    However, volumes remained low with many investors opting to wait it out for now. Consequently, BWICs saw an increase in DNTs and bid-offers continued the week's widening trend. Little is expected to change today with sentiment .......

    SCIWire 8 May 2015

  • US RMBS keeps going

    Despite broader market concerns combined with liquidity challenges the US non-agency RMBS secondary market is keeping going.

    "Market participants have been distracted by the back up in rates and soft stocks, which has led to trepidation in RMBS," says one trader. "That's meant liquidity has continued to be challenging. At the same time, many of the sell-side have been out at .......

    SCIWire 7 May 2015

  • REIT brings in quartet

    Annaly Capital Management has beefed up its agency MBS investment team and corporate infrastructure with a number of hirings. The appointments include Ilker Ertas, who joins as md in the firm's agency portfolio team. Ertas arrives from Citi, where he was most recently md in securitised products and head of mortgage derivatives trading.

    In addition, Michael Fania and Roman Shimonov .......

    Job Swaps 7 May 2015

  • Euro secondary mixed

    European secondary securitisation markets are seeing a mixed tone amid continuing low volumes.

    Volumes were light again yesterday though a few more BWICs joined the schedule as the day wore on and there is a considerable increase in lists circulating for trade today. Prime assets remain the strongest ABS/MBS sector across autos and UK and Dutch RMBS, while CLOs continue .......

    SCIWire 7 May 2015

  • Euro liquidity hampered

    Broader market volatility combined with a holiday shortened week continues to hamper liquidity across European secondary securitisation markets.

    Yesterday saw another quiet day in European secondary with low volumes on- and off-BWIC. However, yesterday's Italian BWIC did trade reasonably well.

    Overall, spreads remained unchanged to slightly wider as market sentiment continued to soften on macro news. CLO paper remains the .......

    SCIWire 6 May 2015

  • NPL pools up for bid

    The US Department of Housing and Urban Development has announced its first NPL sale under the Distressed Asset Stabilization Program for 2015 (SFLS 2015-1). Freddie Mac also announced its next standard pool NPL sale, scheduled for 20 May.

    HUD's latest sale consists of two portfolios: the first comprising geographically diversified NPLs (dubbed national pools), to be auctioned on 24 June; .......

    News Round-up 5 May 2015

  • Stop-advance provision introduced

    Redwood Trust's Sequoia Mortgage Trust 2015-2 has become the first US prime RMBS to limit the time over which a servicer can advance principal and interest on delinquent loans. Moody's says that such a stop-advance feature benefits senior bonds by reducing the risk of loan losses associated with servicers' interest advances on long-delinquent loans.

    The feature prevents a servicer from .......

    News Round-up 5 May 2015

  • RMBS settlements progressing

    The US$8.5bn Countrywide RMBS rep and warranty settlement was last week fully approved, with a modified judgement entered into the New York Supreme Court. Separately, a letter submitted by the trustee's counsel in Citi's proposed US$1.125bn settlement has confirmed that no objections were filed in that case.

    Following the Countrywide judgement, trustee-appointed experts will now calculate the allocable shares for .......

    News Round-up 5 May 2015

  • Uptick for European secondary

    With the UK public holiday the European secondary securitisation markets remained extremely quiet yesterday, but activity should see an uptick today.

    With the Greece story still rumbling on in the background, focus is, for now, on the two BWICs scheduled for trade today so far. One is the previously mentioned re-scheduled CLO list due at 14:30 London time; the other .......

    SCIWire 5 May 2015

  • Euro secondary on hold

    The European secondary securitisation markets are now effectively on hold until Tuesday.

    With European and/or UK public holidays today and Monday and another EU-Greece meeting tomorrow, unsurprisingly yesterday saw no major change in the patterns seen in recent days and looks set to remain the same today. Flows were again light yesterday, but spreads held up with the exception of .......

    SCIWire 1 May 2015

  • Muted month-end for US RMBS

    The recent trend of muted activity in the US non-agency RMBS secondary market is continuing in to month-end.

    "We've got around $350m in for the bid today, which is low for a Thursday and overall it's fairly quiet for month-end," says one trader. "It's early and some stuff is still trickling in, but I don't expect today's pattern to change .......

    SCIWire 30 April 2015

  • Euro ABS/MBS unsettled

    The European ABS/MBS secondary market has become unsettled as broader market volatility spikes, but for now spreads are holding firm.

    A mix of the sell-off in Bunds and month- and week-end for most of Europe limited flow trading activity across European ABS/MBS yesterday. BWICs generally traded in line with expectations though some Spanish names took a hit. Overall, spreads held .......

    SCIWire 30 April 2015

  • Euro secondary takes back seat

    Activity is on the rise in European securitisation secondary markets this week so far, but the primary market is still traders' main focus.

    "BWICs picked up a bit yesterday and flows were reasonable," says one trader. "ABS/MBS Secondary is still taking a little bit of a back seat to primary where the Warwick print was the main talking point yesterday .......

    SCIWire 29 April 2015

  • US RMBS remains positive

    Secondary activity is still light in US non-agency RMBS, but the outlook for spreads remains positive.

    "BWIC volume today is pretty light even for a Tuesday," says one trader. "There's an element of people holding back waiting for some macro event to happen, but a bigger issue is that primary is still taking a lot of attention away from secondary."

    SCIWire 28 April 2015

  • Euro ABS/MBS picking up again?

    The European ABS/MBS secondary market continues to keep one eye on primary, but there are signs that activity is beginning to pick up again.

    "It was very quiet again yesterday, but activity looks to be picking up today helped by a few more BWICs coming out," says one trader. "That said, there's still a strong focus on primary with the .......

    SCIWire 28 April 2015

  • Rock out?

    Granite buyer could take RMBS exit

    The UK government's desire to sell the mortgage loans it acquired bailing out Northern Rock - which are securitised in the Granite master trust - has fundamental implications for the RMBS market (SCI 23 March). While there is a chance the loans could exit the market completely, they also make a compelling candidate for resecuritisation.

    "Granite is not a bad .......

    News Analysis 28 April 2015
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