RMBS

  • SFR vacancies may rise

    Certificate holders of 15 single-family rental securitisations received full payment on the distribution date for this month, says Morningstar. While the agency expects that cashflows from these deals will remain sufficient to cover bond obligations in the months ahead, it notes that lease expirations are generally rising across multiple transactions, indicating that vacancies may rise in the future.

    Additionally, after .......

    News Round-up 26 March 2015

  • Bankruptcy law could add losses

    The new Spanish bankruptcy law for nonperforming, highly indebted individuals could add additional marginal losses to securitisations, says Scope Ratings. However, the agency's structured finance ratings will be unaffected.

    Last February, the Spanish government passed a royal decree, which allows for the legal extinction of marginal debts under very tight conditions once and after an insolvency process has been finalised. .......

    News Round-up 26 March 2015

  • Non-agency defaults falling

    The stabilisation of the labour and housing markets has had a positive impact on US RMBS mortgage credit across all credit spectrums, observes Deutsche Bank. The non-agency mortgage serious delinquency rate has declined 221bp year-over-year, and non-agency loans in delinquency have fallen 9% by loan balance since the 1Q10 peak.

    Housing fundamentals have also shown steady improvement, although the US .......

    News Round-up 26 March 2015

  • Euro investors weigh UK opportunities

    European investors are increasingly looking beyond euro-denominated assets in the search for yield. UK pound-denominated ABS is up 69% from last year and accounts for over a quarter of total placed European issuance year-to-date.

    New lending by challenger banks and the ECB-induced scarcity of high-yielding assets have improved UK issuance prospects. If investors do rotate from low yielding euro assets .......

    News 26 March 2015

  • Irish prime RMBS stabilising

    The Irish prime RMBS market continued to stabilise in the three-month period ended January, according to Moody's latest index results for the sector. Arrears levels have decreased at both early and late stages on both a quarterly and annual basis, and 90-plus day delinquencies decreased to 17.5% of the outstanding balance in January from 18.6% in October 2014.

    The 360-plus .......

    News Round-up 25 March 2015

  • US refinancing opportunities restricted

    Voluntary prepayments on modified re-performing US residential loans will remain low, says Moody's, with few refinancing opportunities available for the borrowers of these loans. This is because previously offered loan modifications have significantly reduced the interest rates on the re-performing loans, despite borrowers performing on their mortgages.

    In all, Moody's expects that less than 15% of borrowers with modified re-performing .......

    News Round-up 25 March 2015

  • Further MSR sale agreed

    Ocwen Loan Servicing has agreed in principle to sell to Nationstar Mortgage the residential mortgage servicing rights on a portfolio consisting of approximately 142,000 loans owned by Freddie Mac and Fannie Mae with a total principal balance of approximately US$25bn. Subject to a definitive agreement, approvals by Freddie Mac, Fannie Mae and FHFA and other customary conditions, Ocwen and Nationstar .......

    News Round-up 25 March 2015

  • 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
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