RMBS

  • 'Market consensus' emerging in Spain

    Price declines in the Spanish residential property market are coming to an end after nearly seven years, Fitch reports. The agency notes that while the return of mortgage credit is driving the stabilisation, high unemployment and a large property overhang will prevent a rapid rebound in prices.

    Fitch's latest Spanish repossession analysis suggests that property value depreciation on repossessed and .......

    News Round-up 18 September 2014

  • Dutch bonds remain attractive

    DSB Bank's Chapel and Monastery securitisations remain attractive following an update on their performance, say Morgan Stanley European securitisation analysts. CHAPE seniors have factored down more than 25% since late 2012, while MONAS has factored down 15%, with the bonds now trading three or four points higher.

    The trustee has published its latest update on the transactions, noting that a response has .......

    News 18 September 2014

  • BWICs still dominating Euro ABS

    Today sees another large slew of European ABS and MBS BWICs, which is dampening other secondary market activity.

    "It's a question of getting through a lot of line items again today. It's been the same story for the past few days, throughout which we've seen reasonably good execution," says one trader.

    The volume of lists has meant that the rest of .......

    SCIWire 18 September 2014

  • Regulatory requirement

    Call for scrutiny under risk retention originator route

    European CLO and RMBS issuers are increasingly adopting the originator route under the Capital Requirements Regulation to satisfy risk retention rules. While the flexibility provided by this approach appears to be attracting external capital to the market, scrutiny of both the owner and substance of risk retention is recommended to ensure sufficient alignment of interest between sponsors and investors.

    The .......

    News Analysis 18 September 2014

  • No demand for eclectic list

    The 40 line €185m eclectic BWIC list of ABS, CDOs, CFOs, SME CLOs, CMBS and RMBS failed to find investor demand this afternoon with 32 of the bonds on offer not trading.

    A further six bonds were only revealed to have traded - BBVAR 2007-2 A2, BCJA 5,CSTNA 2007-1 A, DEKAE II-X E, EMERM 4 B and SANFI 2006-1 E. .......

    SCIWire 17 September 2014

  • Large lists lift non-agencies

    US non-agency RMBS secondary activity was up sharply yesterday, as BWIC volume comfortably exceeded US$1bn. Much of the supply came from a pre-announced US$727m legacy list.

    SCI's PriceABS data captured a range of price talk and cover prices on tranches from deals issued between 2003 and 2013. Many of the bonds out for the bid came from subprime .......

    Market Reports 17 September 2014

  • Servicing continuity risk highlighted

    The rapid growth of several US mortgage servicers means that a small group of entities control the vast majority of legacy loans in need of a work-out. Fitch suggests that this could present risks for some private label RMBS.

    The top-five non-agency mortgage servicers - Ocwen, Nationstar, Bank of America, JPM Chase and Select Portfolio Servicing - together service approximately .......

    News Round-up 17 September 2014

  • Strong trading in European RMBS

    Yesterday saw strong execution on European RMBS bid lists and continued bilateral buying. More of the same is expected over the rest of the week.

    Yesterday's dollar-denominated list went well with all bonds trading, but there was even stronger execution on the peripheral mezz and Dutch RMBS BWICs later in the afternoon. However, investor demand continued on the follow and .......

    SCIWire 17 September 2014

  • Better off single?

    Unified GSE security could provide PLS boost

    FHFA director Mel Watt last week reaffirmed the agency's intention to create a single TBA market for GSE securities. Although the industry has voiced concerns over the proposal, it could be a step towards rebuilding the private-label RMBS market.

    Watt's remarks were made during a speech at the North Carolina Bank Association's American Mortgage Conference. However, the agency's position does .......

    News Analysis 17 September 2014

  • Eclectic euro list circulating

    The market's continuing appetite for all things European seemingly irrespective of deal type could meet its match tomorrow with a large eclectic BWIC list currently circulating. The 40 line €185m list due for trade at 14:00 London time includes ABS, CDOs (including ABS CDOs, CBOs and Trups CDOs), CFOs, SME CLOs, CMBS and RMBS.

    Talk appears to be thin on .......

    SCIWire 16 September 2014

  • RFC issued on updated SHP model

    Fitch has released an updated methodology for its Sustainable US Home Price (SHP) model as an exposure draft. The agency is soliciting market comments before incorporating the model into its rating methodology.

    While the foundation of the SHP model has not fundamentally changed, Fitch has expanded the dataset and introduced statistical techniques designed to enable the model to self-identify home .......

    News Round-up 16 September 2014

  • Large RMBS settlement agreed

    A group of underwriters for IndyMac Bank RMBS have agreed to settle class-action claims concerning underwriting misrepresentations for US$340m. The underwriters in the case are Credit Suisse, Deutsche Bank, JPMorgan, RBS, Morgan Stanley and UBS.

    The claims allege that offering materials for 50 RMBS offerings issued in 2006 and 2007 contained untrue statements which mischaracterised the underwriting practices used to .......

    Job Swaps 16 September 2014

  • Peripheral mezz list circulating

    With European peripheral and mezzanine paper in demand it was only a matter of time before a BWIC capitalising on both aspects would appear. There is now a nine line peripheral mezzanine list doing the rounds for trade tomorrow at 15:00 London.

    The €25.2m list contains two CLOs and seven RMBS most of which are rarely seen bonds - only .......

    SCIWire 15 September 2014

  • Further FHFA suit settled

    The US FHFA has agreed a settlement of US$550m with HSBC North America Holdings, related companies and specifically named individuals. The settlement resolves claims in the lawsuit 'FHFA v. HSBC North America Holdings Inc., et al.', alleging violations of federal, Virginia and District of Columbia securities laws in connection with private-label MBS purchased by Fannie Mae and Freddie Mac during .......

    Job Swaps 15 September 2014

  • Euro mezz takes centre stage

    ECB president Draghi's comment on Friday that the ABSPP would be more effective if it were to include mezzanine paper has drawn market focus to that section of the capital structure.

    On Friday and into this morning investor demand has centred on mezz paper in European ABS, CMBS and RMBS, notably Dutch prime. Consequently, spreads have moved tighter across all .......

    SCIWire 15 September 2014

  • Whole loan securitisation on the rise?

    Gross agency MBS issuance increased from US$85bn to US$89bn and net issuance increased from US$7bn to US$14bn from July to August, according to Citi figures. The increase was partly driven by a jump in seasoned loan securitisation by Bank of America and SunTrust.

    Agency MBS issuance backed by seasoned loans has picked up since July, with September issuance surpassing the .......

    News 12 September 2014

  • Agency trader added

    Randy Turso has swapped RBS for RBC, joining the Canadian bank as a director. He will trade agency RMBS bonds and report to co-head of securitised products Chris Bellhumeur.

    .......

    Job Swaps 12 September 2014

  • ABSPP challenges outlined

    The ECB will likely allocate national targets for ABS purchases based on its capital key percentages, Citi European securitisation analysts suggest. They anticipate that the central bank may have to buy bonds at off-market prices to ensure the success of its purchase programme.

    Basing national targets on capital key percentages is in line with the approach the ECB used in .......

    News 11 September 2014

  • Manufactured housing REIT to unwind

    Origen Financial is to sell substantially all of its assets - in addition to the assumption of its securitisation financing - to an affiliate of GoldenTree Asset Management for a purchase price of US$47m, subject to certain adjustments. Upon closing of the sale, Origen - a REIT that manages residual interests in securitised manufactured housing loan portfolios - intends to .......

    Job Swaps 11 September 2014

  • Euro ABS/MBS softer

    European ABS and RMBS markets opened softer this morning following the direction seen into the close last night and, in turn, broader credit trends. CMBS spreads are still unchanged, but the tights seen over the past week look set to be tested in all three deal sectors over the next two days as BWIC supply is on the increase and .......

    SCIWire 10 September 2014

  • ABS strategies outperform

    Hedge funds returned an average of 1.4% in August, with average gross market exposure across the industry lower in the month than any point in the last two years, according to eVestment. Credit strategies posted their second consecutive negative month in August, declining by 0.03%, for the first time since the height of the European sovereign debt crisis in 2011.

    News Round-up 10 September 2014

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