RMBS

  • Euro ABS/MBS holds firm

    Away from Greece secondary European ABS/MBS spreads are holding firm.

    Core bonds continue to grind tighter and peripheral spreads are holding up well on the back of broad-based demand. Areas of focus remain Dutch prime, UK non-conforming and Italian RMBS.

    The BWIC calendar so far today is again relatively light with a fair number of line items only offered in small .......

    SCIWire 6 February 2015

  • Mixed reception for mortgage limits

    Limits on mortgage lending announced by the Central Bank of Ireland last week are positive for the health of the banking system in the long term, as they should support more sustainable and prudent lending by Irish banks, Fitch suggests. But in the short term credit demand and supply may be reduced, which could slow house price growth and NPL .......

    News Round-up 5 February 2015

  • Unusual sectors for US RMBS

    Secondary US non-agency RMBS activity is quieter this week overall, but two sectors of the market are unusually busy.

    "We've seen a slowdown in advance of the conference in Vegas next week," says one trader. "However, there has been a lot of activity in two areas where we don't often see high volumes trading - wrapped bonds and re-REMIC structures."

    SCIWire 5 February 2015

  • Hearing scheduled for Citi settlement

    The New York Supreme court last week signed a show cause order in the Citi RMBS rep and warranty case, scheduling the first oral hearing for the case for 19 May. Investors who oppose the deal have until 17 April to file their objections and trustees have 17 days after that to file their response to the objections.

    The trustees .......

    News Round-up 5 February 2015

  • Greek RMBS hit again

    Volatility in broader markets has fed through into Greek RMBS this morning, but elsewhere in European ABS/MBS spreads are steady.

    Sellers are outnumbering buyers in Greek RMBS this morning on the back of the ECB implementing further funding restrictions to the country's banks. GRIF 1 A is currently quoted at 65 bid - down over two points today and a .......

    SCIWire 5 February 2015

  • Master trusts to remain 'strong'

    The performance of UK RMBS master trusts will remain strong in 2015, according to Moody's. This trend is supported by the country's robust economic recovery and improving affordability.

    "Rising house prices will support the collateral performance of UK RMBS master trusts by leading to lower severities and enhancing borrowers' refinancing abilities," says Emily Rombeau, a Moody's analyst.

    Home price appreciation .......

    News Round-up 4 February 2015

  • Euro ABS/MBS keeps steady

    The European ABS/MBS secondary markets maintained their steady head of steam through yesterday and into today.

    While spreads continue to hold in across the board, two areas were involved in notable price action - UK non-conforming RMBS, which saw a further increase in activity and traded strongly off- and on-BWIC yesterday, and CMBS deal INFIN SOPR.

    "There was a drop in valuation .......

    SCIWire 3 February 2015

  • UK BTL stays strong

    Three slices of UK buy-to-let seniors traded strongly on BWIC this afternoon.

    The results of the auction at 16:00 London time today reflect the continued demand for UK buy-to-let RMBS seen off-BWIC over the past week. The list consisted of three slices of Aire Valley bonds totalling £23.12+m of current face - AIREM 2004-1X 3A1, AIREM 2005-1X 2A1 and AIREM .......

    SCIWire 2 February 2015

  • Positive tone continues in European ABS/MBS

    The European ABS/MBS secondary markets held onto their positive tone into the end of last week and the start of this.

    As expected, European secondary volumes were low on Friday due to a combination of month-end and continued broader market concerns over Greece and oil prices keeping many investors on the sidelines. However, ABS/MBS spreads were either unchanged or slightly .......

    SCIWire 2 February 2015

  • Euro secondary stays firm

    Despite broader market volatility European secondary spreads held firm throughout yesterday and into today.

    The large volume of BWICs dominated the market yesterday, but all traded at or above talk. Off the back of the lists and in secondary more broadly there was healthy activity notably again in UK non-conforming and buy-to-let RMBS as well as increased, but patchy, trading around .......

    SCIWire 30 January 2015

  • US RMBS back in full flow

    Secondary liquidity in US non-agency RMBS was hit hard earlier in the week, but is now back to full flow.

    "Due to the snow warnings liquidity dried up as lists were pulled Monday and Tuesday, but we're back to normal today with over $1bn of BWICs," says one trader. Those lists cover a broad range of sellers, primarily money managers .......

    SCIWire 29 January 2015

  • Servicer ratings exposure examined

    The number of US RMBS transactions likely to experience servicer EODs due to servicer rating changes is marginal, according to Fitch. The agency's comment comes in light of increased negative pressure on Ocwen Loan Servicing, the largest servicer of non-agency US RMBS loans.

    Fitch conducted a review of transaction documents for approximately 450 US RMBS transactions. In addition to standard .......

    News Round-up 29 January 2015

  • Aussie postcode performance analysed

    Fitch says that Kingston (4114), in the Logan City region of Queensland, was the worst performing postcode in terms of Australian mortgage repayment delinquencies as at end-September 2014, replacing Budgewoi (NSW). Kingston's 30-plus days delinquency rate was 3.2%, approximately 3.5x the national average of 0.9%. Moreover, its delinquency rate rose by 20bp between March and September 2014, in contrast to .......

    News Round-up 29 January 2015

  • Euro ABS/MBS scope broadens

    ECB-eligible ABS/MBS are mostly continuing their rise but non-eligible bonds are also finding buyers.

    Yesterday and this morning has seen further strengthening across most European ABS/MBS with the exceptions of Greek RMBS, which continues to drift wider, and Portuguese paper that retraced some of the gains made over previous sessions. Dutch bonds continue to lead the way grinding ever tighter, .......

    SCIWire 29 January 2015

  • Home price concern amid rate cut

    The economic uncertainty implied by the Bank of Canada's surprise interest rate cut could be detrimental for home prices, says Fitch. It believes this could be especially true in energy-dependent provinces, such as Alberta.

    Fitch views Canadian house prices as 20% overvalued compared to long-term economic fundamentals, with prices growing over the last several years, despite low levels of affordability .......

    News Round-up 28 January 2015

  • Euro secondary activity up

    The European secondary markets are seeing increased activity across jurisdictions and securitisation asset classes.

    "There have been good two-way flows over the past two days," confirms one trader. "Most price levels are up in ABS, CLOs and MBS."

    Dutch prime paper continues lead the way hitting record lows again yesterday. For example, a five-year DOLPH senior covered at around 25 .......

    SCIWire 28 January 2015

  • Oil prices 'low risk' for SFR

    Moody's says that most US single-family rental (SFR) securitisations have low risk of material declines in overall cashflows and property values if low oil prices persist and weigh on oil-dependent regional economies. SFR transactions generally have low, or no, concentrations of properties in oil price-sensitive markets.

    However, unemployment that results from the loss of oil-related jobs will harm SFR securitisations .......

    News Round-up 27 January 2015

  • Servicer issues robust response

    Ocwen has responded to a claim by a group of investors represented by Gibbs & Bruns that certain contractual breaches have occurred in connection with 119 RMBS trusts that it services. The servicer says the complaints are "essentially the same baseless allegations" as were previously asserted by the same investors in their failed attempt to block the transfer of servicing .......

    News Round-up 27 January 2015

  • HSART EODs eyed

    BlueMountain Capital Management has notified the trustee of HLSS Servicer Advance Receivables Trust that three EODs have been triggered under the trust indenture. If a sufficient number of other noteholders agree with the firm's assessment, the RMBS notes could be accelerated.

    BlueMountain claims that: Ocwen has materially breached covenants to comply with applicable laws and its requisite servicing obligations; Ocwen .......

    News 26 January 2015

  • Greek RMBS soften

    Broader market pessimism over the Greek election result and subsequent coalition formation is reflected in the European RMBS market this morning.

    Although no significant trade flow has yet been seen today dealers' offers have been reduced on Greek RMBS. For example GRIF 1A finished last week at 75 and is currently being quoted around two points lower.

    Other peripheral ABS/MBS markets .......

    SCIWire 26 January 2015

  • Euro ABS up and running

    The European ABS market has begun to pick up steam over the last week and will be further boosted by yesterday's highly anticipated QE announcement from the ECB. However, the immediate ABS spread reaction to the QE announcement has been limited, as the market started pricing it in well in advance.

    "It was a pretty slow start to the year .......

    Market Reports 23 January 2015
×