RMBS

  • Further Freddie credit risk transferred

    Freddie Mac has closed its first three Agency Credit Insurance Structure (ACIS) transactions of 2015, through which it obtained a number of insurance policies as part of the GSE's continued efforts to transfer credit risk to private capital market investors and global reinsurers. The three transactions transfer much of the remaining credit risk associated with three STACR deals executed in .......

    News Round-up 13 January 2015

  • European ABS/MBS better supported

    As activity levels slowly increase in European ABS/MBS investor appetite appears to be holding up.

    "Activity levels are again a bit better today," says one trader. "There are a few BWICs scheduled for this afternoon and the pipeline is building, but secondary is active this morning and the market is a little bit better supported."

    Even previously dormant sectors are .......

    SCIWire 13 January 2015

  • Non-agency supply rises

    US non-agency RMBS BWIC activity was up to over US$150m yesterday. SCI's PriceABS data captured more than 70 unique line items, all of which come from 2003-2009 vintages.

    The increased supply appears to have traded in line with dealer price talk. A US$466m liquidation has also been announced for today.

    The earliest-vintage tranche picked up by .......

    Market Reports 13 January 2015

  • ABSPP underwhelms again

    The ECB's latest ABSPP number is likely to underwhelm the market once again.

    The ECB has confirmed that the total outstanding amount under ABSPP at 9 January was €1,792m. Meaning that last week saw a net settled volume of €48m, which is likely to further shift traders' focus away from ABSPP and build further anticipation around broader QE and hoped .......

    SCIWire 12 January 2015

  • SFR methodology clarified

    Moody's has finalised its methodology for rating single-family rental (SFR) securitisations in the US, following a request for comment on its approach to single-borrower and multi-borrower transactions in the sector (SCI 7 March 2014). The report clarifies certain aspects of the RFC.

    "In the RFC, we mentioned that there could be variations if the SFR transaction included more than one .......

    News Round-up 12 January 2015

  • Ocwen to unload agency MSRs

    Ocwen last month disclosed in a shareholder conference call that it will sell its entire agency MSR portfolio as part of a plan to raise capital and focus on the non-agency business. Citi agency RMBS analysts note that the impact on prepayment speeds from these MSR transfers will depend on which servicer acquires the assets. Buyouts on Ginnie loans serviced .......

    News Round-up 12 January 2015

  • European ABS/MBS stays firm

    Despite a volatile end to the week in broader markets, European ABS/MBS is staying firm into this morning.

    Activity levels across secondary are continuing to edge higher albeit with a little to see on the BWIC schedule for now. The main focus remains on UK and Dutch prime, where spreads have tightened over the last week, as well as UK .......

    SCIWire 12 January 2015

  • RFC issued on reverse mortgages

    Moody's is seeking comments from market participants on its proposed approach to assessing structured financed transactions backed by reverse mortgages. If adopted, the changes will result in upgrades ranging from one to three notches for some UK deals due to changes in the outlook for future mortality improvements and long-term house price appreciation.

    The request for comment details Moody's assumptions .......

    News Round-up 9 January 2015

  • Boost for Indian real estate

    KKR has established a non-banking financial company (NBFC) that will provide structured credit solutions to the real estate sector in India, with an investment from Singapore's sovereign wealth fund GIC. The firm has so far structured and participated in three transactions, with an aggregate amount of approximately US$190m.

    KKR says that while many lenders provide debt to the real estate .......

    Job Swaps 9 January 2015

  • Looking for levels

    European ABS/MBS secondary market activity continues to increase slowly but participants are still trying to determine clearing levels, particularly around Greek bonds.

    "Activity continued to pick up a bit yesterday and into today," says one trader. "However, competing factors are at work - expectations over QE and the Greek elections. There is less conviction about direction in the broader space, .......

    SCIWire 9 January 2015

  • US RMBS looks ahead

    Secondary activity in US non-agency RMBS has gradually picked up this week, but next week is expected to see a full return to normality.

    "The market has been particular quiet up until now," says one trader. "BWIC volume has picked up to just under $500m for today - that is light for a Thursday, but it is the first full .......

    SCIWire 8 January 2015

  • GCM backs new investment manager

    A new global structured products investment management firm, Hollis Park Partners, has launched with significant investment capital from GCM Grosvenor and other institutional investors. Hollis Park was founded by cio and managing partner Troy Dixon.

    "We believe today's environment presents attractive and rapidly changing opportunities across a wide spectrum of structured products, including agency and non-agency mortgage-backed securities, CLOs, CMBS .......

    Job Swaps 8 January 2015

  • Acenden sale agreed

    Blackstone Tactical Opportunities and TPG Special Situations Partners (TSSP) are set to acquire Acenden Mortgage Servicing Solutions from the administrators of Lehman Brothers. Acenden provides primary servicing, special servicing, analytics and securitisation services.

    The firm has over 64,000 loans under management, with a value of about £5.4bn. It employs almost 400 staff located in central London, High Wycombe and Dublin.

    Job Swaps 8 January 2015

  • Euro ABS/MBS activity continues to rise

    Trading activity in the European ABS/MBS secondary market is slowly but surely increasing as the week continues.

    "Today looks to be a bit better again," says one trader. "We're seeing more prices and more enquiries, but the market is slow to come back."

    Yesterday's positive tone has continued into this morning on the back of improved macro sentiment. RMBS remains .......

    SCIWire 8 January 2015

  • FHA MIPs moved down

    The FHA's mortgage insurance premiums (MIPs) are being lowered by 50bp. This brings policy risk back into the picture for RMBS investors, say Bank of America Merrill Lynch analysts, as the FHA looks to maintain market share in the face of the GSEs' high-LTV programmes (SCI 9 December 2014).

    The MIP decreases will apply across the board and lower annual .......

    News 8 January 2015

  • Reps and warranties remain 'challenging'

    The US RMBS sector has seen some substantial improvements of late, though the pace of progress remains slow and challenges remain, according to Fitch's latest structured finance progress report.

    Residential mortgage loan underwriting has improved dramatically since the financial crisis, with Fitch md Rui Pereira noting that the performance of recent vintage mortgage loans is the best on record thus .......

    News Round-up 7 January 2015

  • Spanish RMBS delinquencies up

    Severe delinquencies that last more than 90 days in Spanish RMBS peaked at 6.18% in 3Q14 following a decrease in 2Q14, according to S&P. The rating agency adds that high unemployment and low household income could offset positive macroeconomic indicators, thus constraining the RMBS sector's nascent recovery.

    S&P believes that economic growth prospects are now more positive as conditions have .......

    News Round-up 7 January 2015

  • Ellington portfolio acquired

    American Homes 4 Rent has acquired the Ellington Housing Single-Family portfolio. The company paid approximately US$126m for the portfolio, comprised of approximately US$74.4m of cash and the assumption of approximately US$51.6m of debt that matures on 1 July 2019 and bears interest at 4.055% per year.

    This follows the completion of several transactions last year as the SFR securitisation market .......

    News Round-up 7 January 2015

  • Russian RMBS ratings rethought

    Ongoing economic sanctions against Russia are affecting RMBS, with Moody's downgrading the ratings of the senior tranches in four domestic RUB-denominated Russian RMBS transactions. The rating agency has also put on review for downgrade the ratings of Red & Black Prime Russia MBS No.1.

    The downgrades are a result of the agency's decision to lower Russia's foreign currency bond ceiling .......

    News Round-up 7 January 2015

  • SEC targets RMBS fraudsters

    The SEC has charged VERO Capital and the firm's president, Robert Geiger, general counsel, George Barbaresi, and chief financial officer, Steven Downey. The agency has accused them of secretly diverting investor money for their own benefit to prop up a side business.

    The SEC says the firm and its three officers managed a pair of funds whose offering documents indicated .......

    News Round-up 7 January 2015

  • Ocwen settlement 'credit neutral'

    Ocwen Financial's recent US$150m settlement with the NYDFS (SCI 23 December 2014) is credit neutral for RMBS transactions that the firm services, says Moody's. The firm's servicing is expected to improve as a result of the settlement's conditions, while servicing costs may increase and transactions with high New York state concentration could face longer foreclosure timelines, thus reducing recoveries on .......

    News Round-up 7 January 2015
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