RMBS

  • Euro ABS/MBS supply keeps coming

    The European ABS/MBS secondary market is continuing to see healthy BWIC supply and to absorb it well.

    "We've seen plenty of supply from BWICs every day this week including today, but secondary ABS tone is still firm," says one trader. "Primary has been active too, but we're seeing no real softening as a result."

    ABS/MBS secondary has also remained insulated .......

    SCIWire 25 March 2015

  • Japanese wage increase 'RMBS positive'

    Japan's annual spring wage negotiations between employers and unions are expected to deliver the highest pay increases in 21 years, averaging around 3% in 2015 for workers of large companies, says Moody's. This situation will be credit positive for Japanese RMBS, because it will increase borrower ability to make loan repayments.

    Japanese Prime Minister Shinzo Abe has been pushing Japanese .......

    News Round-up 24 March 2015

  • Mortgage pro takes the reins

    Tony Ward has been appointed as president and ceo of Clayton Euro Risk and will take up this role from the start of April. Co-ceo Michael Bolton is leaving the firm.

    Ward joins Clayton Euro Risk from Home Funding, where he was ceo. Before that he founded Kleinwort Benson's mortgage origination and securitisation business Mortgage Funding Corporation and has also .......

    Job Swaps 24 March 2015

  • Dutch RMBS prepayments improve

    The number of properties sold in the Netherlands in December 2014 increased to a record high, according to Fitch's latest index results for the sector. This is due to a number of factors, which have also had an impact on prepayments in Fitch's portfolio of RMBS transactions.

    These factors include the expiry of a temporary exemption in the gift tax .......

    News Round-up 24 March 2015

  • Euro ABS/MBS themes continue

    Recent themes in the European ABS/MBS secondary markets are continuing.

    "Overall yesterday was very quiet, but where there was activity we saw a continuation of recent trading themes," says one trader. "For example Dutch prime moved in another 1-2bp, so it's very tight now - we're heading towards the mid-to-high teens for three-year bonds."

    Elsewhere, activity was patchy, the trader .......

    SCIWire 24 March 2015

  • Spanish housing to recover slowly

    Recent data suggests that Spain's protracted house price correction is coming to an end, observes Fitch. Improving credit supply will support the housing market, but weak fundamentals in certain regions mean the recovery will be slow.

    The Spanish National Institute of Statistics' (INE) data showed that house prices rose by 1.8% year-on-year in 4Q14, the largest increase since the start .......

    News Round-up 23 March 2015

  • Granite call more likely?

    UK Chancellor George Osborne announced in last week's Budget that the UK government would look to sell £13bn of mortgage assets from the bailouts of Northern Rock and of Bradford & Bingley. This amount matches the current outstanding size of the legacy Granite RMBS programme.

    JPMorgan analysts note that the Granite trust currently stands at £13.4bn, of which £1.5bn is .......

    News 23 March 2015

  • G-fee status updated

    The FHFA's inspector general has released a report stating that, as policy perspectives change, the GSE guaranteed fee income could reduce in future, while citing the FHA MIP cut of 50bp as an example. This follows the result of execution levels on recent Freddie Mac risk transfer RMBS, which indicated a potential drop in fees (SCI 19 February).

    The FHFA .......

    News Round-up 23 March 2015

  • HSBC targeted in NCUA suit

    The NCUA has filed suit in federal court against HSBC, alleging the bank violated state and federal law by failing to fulfil its duties as trustee for 37 RMBS trusts. The agency is suing as liquidating agent for five failed corporate credit unions, continuing a number of recent suits against various trustees (SCI passim).

    The five corporate credit unions - .......

    News Round-up 23 March 2015

  • Euro BWICs pick up again

    The European BWIC calendar is picking up again for today and the remainder of this week.

    As was the case for most of last week BWICs look set to drive activity in secondary today. The bulk of line items on Friday's limited calendar traded in line with expectations and activity across the board on the day was positive but muted .......

    SCIWire 23 March 2015

  • Ocwen's performance highlighted

    A number of news outlets are carrying a letter from United Capital Markets ceo John Devaney to Moody's, written in support of Ocwen. The letter indicates that Ocwen-serviced private label RMBS have performed better from 2009 to 2014 across all tranches on a combined basis relative to any other servicer.

    When measuring all types of modifications, data shows that Ocwen .......

    News Round-up 20 March 2015

  • Euro secondary cools

    After a busy week the European secondary securitisation markets saw a quieter day yesterday and today looks likely to cool still further.

    Again, the bulk of yesterday's action surrounded BWICs most of which traded in line with expectations. Away from the lists it was major UK RMBS names that saw the most investor interest.

    Today, the tone remains positive, but .......

    SCIWire 20 March 2015

  • German affordability pressure emerging?

    The German housing market showed a sharp slow-down in price rises in wealthy mid-sized cities in 2014, according to Fitch. This follows the moderation in prices already seen for large wealthy cities since 2011 and may reflect affordability pressure.

    In its analysis of the German residential property market, Fitch uses four categories (A-D) based on a purchasing power index (PPI) .......

    News Round-up 20 March 2015

  • Liquidity challenges for US RMBS

    The US non-agency RMBS secondary market continues to trade strongly, but there are potential challenges ahead as the market's liquidity is tested.

    Today is a typical Thursday in a reasonably busy week with around $1bn in for the bid coming from a mix of hedge funds and money managers. Highlight of the week comes tomorrow at 10:00 New York time .......

    SCIWire 19 March 2015

  • Euro secondary flows building

    Two-way flows in the European secondary securitisation market are continuing to build this week.

    "It's been very busy the last couple of days with a lot of BWICs and we're seeing flows building around that," says one trader. "There's been activity in peripherals, SMEs, UK non-conforming, CMBS - across the board really. Overall, the secondary market is continuing to take .......

    SCIWire 19 March 2015

  • Trustee settlement approved

    New York federal judge Katherine Forrest last week approved the US$69m settlement agreement between the Retirement Fund Investors and Bank of America/US Bank as trustees for 50 RMBS trusts. The ruling should have a significant impact on other pending lawsuits against trustees, according to Deutsche Bank RMBS analysts, including lawsuits against the six largest RMBS trustees by large institutional investors.

    News Round-up 19 March 2015

  • Ocwen terminated on two more trusts

    Wells Fargo, as trustee, last week disclosed that the majority of the investors in the SBR 2004-OP11 and NTIX 2007-HE22 RMBS had voted to terminate Ocwen as a servicer or subservice of the trusts. The current deal balances of SBR 2004-OP1 and NTIX 2007-HE2 are approximately US$79.9m and US$403.6m respectively, according to Deutsche Bank figures. Pursuant to section 7.02 of .......

    News Round-up 19 March 2015

  • Euro mortgage prepays rising

    Fitch reports that borrower prepayments are becoming more common in the European mortgage markets. The drivers of rising prepayment rates vary across markets and include attractive alternative mortgage products in the UK, Belgium and Italy, the repurchase of mortgages by originators in Spain and regulatory measures in the Netherlands.

    In all, 10 of the 11 European markets covered by Fitch's .......

    News Round-up 18 March 2015

  • Euro primary drives secondary

    The European secondary securitisation markets are being driven by new issuance activity

    "We're taking our direction from the primary market, but secondary tone remains positive," says one trader. "For example, the initial wider guidance on the latest Paragon deal weakened secondary buy-to-let, but the deal priced tighter and then tightened on the break yesterday causing secondary spreads in the sector .......

    SCIWire 18 March 2015

  • ResCap distribution due

    The ResCap liquidating trust is set to distribute US$2 per unit to unit holders on 31 March. Covered RMBS trusts own almost 26 million units and will consequently receive a US$51.9m cash payment in the April remittance, according to Barclays Capital figures.

    The move marks the fourth distribution from the ResCap liquidating trust, which has previously made payments totalling US$20.3 .......

    News Round-up 17 March 2015

  • IOS convexity examined

    Markit has launched two new IOS indices, referencing FN pools issued in 2014 for the 3.5 and 4 coupons. Overall, the IOS 3.5 of 2014 are expected to demonstrate worse convexity than the IOS 3.5 of 2013.

    To evaluate the new indices, Barclays Capital RMBS analysts compare the 3.5s of 2014 with the existing index for 3.5s issued in 2013. .......

    News Round-up 17 March 2015
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