RMBS

  • US secondary stays bullish

    US secondary securitisation markets, particularly CLOs, are ending a strong week in bullish mood.

    "We're seeing better buying from all types of investor from banks to real money," says one trader. "As a result, spreads are tighter across the board and everything feels as if it will stay positive for now, whether that's CLOs, CMBS or RMBS."

    The positive tone is .......

    SCIWire 6 March 2015

  • Countrywide appeal approved

    The Appellate Division of the New York Supreme Court yesterday approved the Countrywide trustee's proposed US$8.5bn rep and warranty settlement in its entirety. The court concluded that as a trustee, BNY Mellon properly exercised its discretion in settling all the claims, including repurchase claims against loan modifications that were previously excluded by Judge Kapnick's decision from early 2014 (SCI passim).

    News 6 March 2015

  • More of the same for European ABS/MBS

    Yesterday saw another positive but quiet day in the European ABS/MBS secondary market as broader credit was boosted by the ECB's QE announcement.

    Trading continued to be slow yesterday and into this morning, but remains strong in still patchy activity around the usual key areas of prime, UK non-conforming and selected peripheral paper. However, there was some softening in German .......

    SCIWire 6 March 2015

  • US RMBS disrupted but still strong

    This morning's storm in the Northeastern US has disrupted activity in the non-agency RMBS secondary market, but it continues to trade strongly.

    "It was a fairly light start to the month though activity was picking up a head of steam as the week went on, but that's changed today because of the weather," says one trader. "One larger list has .......

    SCIWire 5 March 2015

  • Euro secondary ticks over

    European secondary markets are quiet, but activity is still ticking over.

    "Secondary is reasonably quiet, but we are getting stuff done particularly around peripherals and non-conforming plus a little in CLOs," says one trader. "There's not much on BWICs again today, though there are some RMAC equity residuals later in the day, which might be quite interesting."

    The drop-off in .......

    SCIWire 5 March 2015

  • Euro secondary sees pockets of activity

    European secondary is still quiet overall, but there are pockets of activity

    "It continues to be very quiet this week, but the few trades going through are trading quite high," says one trader. "We've seen Dutch RMBS print in the mid-teens, for example."

    Strong trading is currently mainly macro driven, the trader says. "The positive tone was helped by the .......

    SCIWire 4 March 2015

  • Repo eligibility tightening?

    The ECB last month published new guidelines on the implementation of the Eurosystem monetary policy, effective from 1 May. Several changes have been made to ABS repo eligibility, which appear to reflect a bias towards tightening of the criteria.

    The changes include the exclusion of ABS comprising receivables with residual value, with a four-month grandfathering period for bonds that will .......

    News 4 March 2015

  • Portuguese arrears slow

    Fitch says the volume of defaulted Portuguese residential loans has reached a new high. However, the rate of increase has slowed and new arrears cases are at their lowest level for a decade.

    The agency believes there are signs that the fragile economic recovery and low interest rate environment are reducing the stress on the Portuguese mortgage market. The proportion .......

    News Round-up 3 March 2015

  • Irish roll rates imply improvement

    A recent DBRS analysis indicates that the Irish RMBS market is likely to continue stabilising, as underlying roll rates have improved significantly. However, the agency notes that at this stage it is difficult to project the extent to which that improvement will take place, as many of the delinquent loans in Irish portfolios are long-term delinquent borrowers for whom lenders .......

    News Round-up 3 March 2015

  • Euro ABS/MBS keeps support

    Spreads remain well-supported in European ABS/MBS secondary markets, but activity has declined dramatically from last week.

    "It's very, very quiet this week," says one trader. "The market is well-supported at these levels, but there's no real impetus to do anything."

    The trader continues: "ABSPP is still slowly happening - ECB announced €470m for last week, which is one of their bigger weeks, .......

    SCIWire 3 March 2015

  • AG actions disclosed

    Morgan Stanley has disclosed in its latest Form 10-K that the New York Attorney General's Office last month indicated that it intends to file a lawsuit under the Martin Act related to approximately 30 subprime RMBS sponsored by the firm. The lawsuit is expected to allege that Morgan Stanley misrepresented or omitted material information related to the due diligence, underwriting .......

    Job Swaps 3 March 2015

  • Trustee drops Ocwen

    Ocwen Financial says it has received notice from a trustee that a majority of certificate holders of two RMBS trusts - SABR 2006-FR1 and 2006-FR3 - have voted to terminate Ocwen as servicer. The move follows an EOD triggered when its servicer ratings were downgraded in October 2014.

    The two pooling and servicing agreements (PSAs) represent US$260m of unpaid principal balance, .......

    News Round-up 2 March 2015

  • Brazilian RMBS criteria updated

    Fitch has updated its rating criteria for assessing credit risk in Brazilian residential mortgage loan pools that are used as collateral for structured finance transactions. The revised assumptions include increased market value decline (MVD) assumptions for lower stress scenarios, longer foreclosure timing expectations and higher expected prepayments, but also lower expected foreclosure frequencies (FOF) for loans in higher original loan-to-value .......

    News Round-up 2 March 2015

  • Russian RMBS downgraded

    Moody's has downgraded 22 tranches and confirmed one tranche in 16 Russian RMBS transactions and concluded its review for downgrade for four transactions. The rating actions follow the weakening of Russia's credit profile, as reflected in Moody's recent decision to lower Russia's government bond rating to Ba1 and the lowering of the country's local-currency bond and deposit ceilings to Baa3 .......

    News Round-up 2 March 2015

  • Euro secondary quieter

    It's a quieter start to the week and month in European secondary markets today.

    February closed out quietly too after hectic activity earlier in the week, but Friday's UK non-conforming list was in the end joined by another and both traded well. There was patchy but strong trading elsewhere in other sectors including CLOs Italian RMBS and that overall positive .......

    SCIWire 2 March 2015

  • Specialist lending quality improving

    Relative to pre-2008 lending standards, the credit quality of mortgage loans in the specialist lending sector in the UK has significantly improved, according to Moody's. This is due to lenders having to comply with Mortgage Market Review (MMR) standards on affordability and income verification.

    "Aside from affordability assessments and more rigorous income checking, stronger borrower profiles have also played a .......

    News Round-up 27 February 2015

  • Euro secondary absorbs BWICs

    Yesterday's spike in European BWIC volume was absorbed comfortably, but today looks to be quieter.

    "The lists yesterday traded well though many bonds were in reasonably small size so it's difficult to read too much into it," Says one trader. "It's quieter today as it's a Friday, but the overall tone remains positive."

    There are only a few BWICs circulating .......

    SCIWire 27 February 2015

  • Softening signs for US RMBS?

    The US non-agency RMBS secondary market remains active and spreads are tight, but there are small signs of potential softening around the edges.

    "In many ways it's more of the same - the market has been busy this week, especially Tuesday, as people looked to get ahead of two big lists that are due today and tomorrow," says one trader. .......

    SCIWire 26 February 2015

  • California settlement disclosed

    Morgan Stanley disclosed in a recent Form 8-K filing that it has reached an agreement in principle with the US Department of Justice and the US Attorney's Office for the Northern District of California to pay US$2.6bn to resolve certain claims that they indicated they intended to bring against it. In connection with the resolution of this matter, the bank .......

    Job Swaps 26 February 2015

  • Prime RMBS approach finalised

    Moody's has outlined its approach to rating and monitoring US RMBS and GSE risk-transfer transactions backed by first-lien prime mortgage loans issued after 2009. This follows the agency's request for comment last year (SCI 14 August 2014).

    Under the new approach, the MILAN model will be the main quantitative tool for collateral analysis. The methodology also incorporates Moody's approach to .......

    News Round-up 26 February 2015

  • HLSS sale welcomed

    New Residential Investment Corp is set to acquire all outstanding HLSS shares for US$18.25 per share in cash, totalling approximately US$1.3bn. The sale is expected to boost HLSS's future liquidity and capital resources and, in turn, its ability to fund future servicer advances.

    The purchase price represents a 9% premium to HLSS' closing price of US$16.76 on 20 February. John .......

    Job Swaps 26 February 2015
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