RMBS

  • 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

  • Euro ABS/MBS slips into gear

    After a brief pause to digest the ECB's QE announcement yesterday, the European ABS/MBS has slipped back into gear.

    The wholesale buying activity seen in broader markets has not been seen in ABS/MBS, but two-way flows were evident across asset classes from mid- to late-afternoon yesterday and the tone remains positive this morning. Peripherals in particular benefitted from increased activity .......

    SCIWire 23 January 2015

  • Interventions aiding Greek RMBS

    Fitch reports that lender intervention has improved Greek RMBS performance, with a significant portion of defaulted loans having reverted back to either less critical delinquency or performing status. The agency expects originator intervention to persist in 2015 as borrower affordability slowly improves.

    The pipeline of non-performing Greek mortgage loans remains stable at below 11%. In addition, the constant default rate .......

    News Round-up 22 January 2015

  • Large list dominates US RMBS

    The US non-agency RMBS secondary market has again been in the thrall of a large GSE BWIC similar to the one seen on Friday last week.

    Today's list had a hard cut off time of 10:30 New York and consisted of around $1bn of current face, though with the option to upsize, over 17 mainly subprime line items. "The rest .......

    SCIWire 22 January 2015

  • Euro ABS/MBS unmoved

    The ECB's QE announcement earlier has found favour elsewhere, but the European ABS/MBS market is unmoved.

    "There has been no ABS market reaction to the news, literally nothing," says one trader. QE was to an extent already priced into the market but there could even be an eventual adverse reaction, the trader suggests. "Obviously the fear is now that the .......

    SCIWire 22 January 2015

  • Non-QM support service launched

    NewOak has launched a new Non-Qualified Mortgage Support Services platform. The programme provides a range of solutions to address the demands on originators and investors in non-qualified mortgage products to manage increasing regulatory and enforceability risks.

    Solutions include due diligence and quality assurance consulting services, customisable underwriting applications that ensure accurate and defendable data and work flows, and NewOak's mortgage .......

    News Round-up 22 January 2015

  • Rate dip buoys borrowers

    US mortgage rates have declined to near-historic lows, according to Fitch's latest quarterly index report for the sector. Coupled with recent actions by the FHA, this backdrop could create more incentive for borrowers to purchase a home or refinance their mortgage.

    The average interest rate for 30-year fixed-rate mortgages has fallen 92bp since mid-2013 and is currently at a 20-month .......

    News Round-up 22 January 2015

  • Ratings probe settled

    The US SEC, in conjunction with the New York and Massachusetts Attorneys General, has fined S&P US$77m and banned it from rating new issue conduit CMBS for one year. The move is expected to have a minimal effect on the CMBS market, however.

    The settlement resolves an investigation into six US conduit CMBS that S&P rated in 2011 and two .......

    News 22 January 2015

  • Euro ABS/MBS settles down

    The European ABS/MBS secondary market saw a brief hiccup yesterday before settling down to wait on the ECB this afternoon.

    Prices softened yesterday morning before reports appeared speculating that today's announcement would see higher than expected QE buying volumes. Bids immediately strengthened and core paper ended the day unchanged.

    Since then, trading has been has been even quieter, albeit across .......

    SCIWire 22 January 2015

  • Housing initiatives to drive Indian RMBS

    Housing policies initiated by the new Indian government are expected to encourage growth in the country's mortgage finance sector and provide a catalyst for the development of its emerging RMBS market. However, Moody's warns that the tax environment may hamper some investor participation in the sector.

    In 2014, RMBS issuance in India increased by 75% to INR53bn, but this growth .......

    News Round-up 21 January 2015

  • Mortgage tightening stumps Dutch RMBS

    Despite an expected further strengthening of the macro economy in the Netherlands, stricter maximum loan-to-income (LTI) ratios will likely decrease the speed at which there is a more wide-spread bottom-up recovery of larger residential properties and regional markets, says Moody's. The agency believes this is credit negative for existing Dutch RMBS and covered bonds.

    "Over the past 12 months, the .......

    News Round-up 21 January 2015

  • Japan RMBS approach updated

    Moody's has updated its approach to rating Japanese RMBS, following an analysis of Japanese mortgage loan defaults over the past 30 years. The approach aligns with its global RMBS rating methodology, but takes into account the unique characteristics of the Japanese market. The changes are also expected to bring greater transparency, as market participants will be able to more easily .......

    News Round-up 21 January 2015

  • Positive implications for EMEA ratings

    Moody's has updated a number of its ABS and RMBS rating methodologies, as well as its approach to local currency country risk ceilings. The move is expected to have positive implications for ABS and RMBS ratings in a number of euro area countries, including Spain, Portugal, Italy and Ireland.

    The updated ABS and RMBS methodologies reflect changes to the minimum .......

    News Round-up 21 January 2015

  • STACR programme enhanced

    Freddie Mac has made a number of enhancements to its STACR programme, coinciding with the announcement of its first STACR offering for 2015. The enhancements aim to reduce credit risk, as well as promote programme liquidity and provide diverse investment options for investors.

    Programme enhancements as showcased by STACR 2015-DN1 include transferring 100bp of the first loss credit risk tranche .......

    News Round-up 21 January 2015
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