RMBS

  • 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

  • Euro ABS/MBS gets some momentum

    The European secondary ABS/MBS market is being given some momentum again today thanks to primary activity and an uptick in BWICs.

    "Supply has slowed down this week on BWICs after last week's high levels of activity, though there are a few now scheduled for today," says one trader. "At the same time, primary is really picking up, which is good .......

    SCIWire 17 March 2015

  • RFC on Israeli RMBS

    Moody's is seeking comments on its proposals for analysing the credit risk of Israeli RMBS transactions. The agency plans to use the proposed approach in conjunction with its existing methodologies to rate RMBS and covered bonds in Israel.

    To derive the calibration of the country-specific values and assumptions for Israel, Moody's benchmarked the Israeli residential real estate market to other .......

    News Round-up 16 March 2015

  • Euro ABS/MBS stays positive

    The positive tone in European ABS/MBS continued through to the end of last Friday and into today's open.

    Another healthy BWIC calendar on Friday appears to have been comfortably absorbed by the market though no covers have yet been released for the large CDO liquidation list. Market tone remained positive across the board with Portuguese paper the main beneficiary.

    Today .......

    SCIWire 16 March 2015

  • Debt forgiveness implications evaluated

    Recent legal changes that facilitate debt restructuring agreements for personal borrowers in Spain formalise practices that are already common, Fitch observes. While the changes introduce debt forgiveness to the Spanish personal insolvency regime, the agency believes that the attitude of mortgage borrowers who are able to pay will not materially change. This is because debt cancellation would only happen after .......

    News Round-up 13 March 2015

  • RMBS 'conduct issues' identified

    The UK FCA has identified certain conduct issues in connection with some mortgages securitised in the Leek Finance Number 17 to 22 and Silk Road Finance Number 1 and 3 RMBS transactions. Under the resulting remediation exercise, the principal balances of the affected loans will be adjusted lower.

    In order to mitigate the impact on noteholders, the principal balances will .......

    News Round-up 13 March 2015

  • Liquidation list looms

    The hectic pace in European secondary securitisation markets looks set to continue today with six BWICs currently due, but of those a large CDO liquidation list will dominate attention.

    Despite the heavy volume of BWICs yesterday, the market absorbed the supply and the majority of line items traded well. Off-BWIC the tone was also positive particularly for Portuguese and UK .......

    SCIWire 13 March 2015

  • Patchy week for US RMBS

    The US non-agency RMBS secondary market has seen patchy activity in a quieter week, but there have been some unusual bonds on offer and the overall tone remains positive.

    "This week has been a little quieter than usual - we've never really got going with busy mornings and then activity slipping right away in the afternoon, like summer Fridays," says one trader. .......

    SCIWire 12 March 2015

  • Rep and warranty frameworks weighed

    The two types of US RMBS representation and warranty (R&W) frameworks that are prevalent post-crisis can adequately detect and remedy R&W breaches, according Moody's. However, the approaches have different strengths and weaknesses.

    Transactions with open-ended reviews of loans - such as those recently sponsored by Redwood Trust and WinWater - can be very effective at catching R&W breaches if there .......

    News Round-up 12 March 2015

  • Euro secondary BWICs surge

    European secondary securitisation markets continue to be focused on BWICs as today sees especially heavy volumes.

    There are already more than ten ABS/MBS BWICs circulating for trade today accounting over a 100 line items. "There is a wide mix of sellers including asset managers and hedge funds across a wide range of assets, plus there are a few CLO lists .......

    SCIWire 12 March 2015

  • Russian arrears, defaults to be limited

    Moody's expects any rise in arrears and defaults in Russian securitised mortgage and consumer loans to be limited in 2015. This is despite the looming possibility of a recession of a greater magnitude than that experienced during the 2009 sovereign debt crisis.

    "The underlying loan characteristics support borrowers' ability to repay, with fixed interest rates for life and modest loan-to-value .......

    News Round-up 11 March 2015

  • Dutch prime slows as CLOs pick up

    European secondary markets continue to see discrete activity with Dutch prime the latest area to see a slowdown as some European CLOs get a boost. Meanwhile, this week's heavy BWIC calendar continues to roll on.

    "The price guidance for the new STORM deal, which is wider than secondary, hasn't pushed spreads wider as some thought but it has put the .......

    SCIWire 11 March 2015

  • US RMBS looks ahead

    Activity remains strong in the US non-agency RMBS market secondary market, but at the same time participants are keeping an eye on future.

    "We're continuing to see what's now normal BWIC activity," says one trader. At today's open just shy of $500m was in for the bid throughout the day as the market maintains its positive tone.

    At the same time, extraneous .......

    SCIWire 10 March 2015

  • IT exec hired for platform push

    Stonegate Mortgage has hired Douglas Gilmore as cio to lead its IT and technology efforts, including the development of Stonegate Connect. Stonegate Connect is a technology platform that is designed to allow investors to connect with third-party originators, creating an online marketplace that facilitates institutional investment in mortgages and MBS.

    Along with this, Gilmore will oversee all information technology for .......

    Job Swaps 10 March 2015
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