RMBS

  • Citi settles RMBS, CDO claims

    Citigroup has agreed to settle an ongoing investigation by the RMBS Working Group. The agreement resolves actual and potential civil claims by the US DOJ, several state attorneys general and the FDIC relating to RMBS and CDOs issued, structured or underwritten by Citi between 2003 and 2008.

    Citi will pay US$4.5bn in cash - including a US$4bn civil monetary payment .......

    Job Swaps 15 July 2014

  • Russian LMI rules defined

    The Russian State Duma last month approved a number of amendments to several articles of the Federal Law On Mortgages, including defining lender's mortgage insurance (LMI) in the event of borrower default and clarification of creditors' rights. Moody's notes that such changes are credit positive for future Russian RMBS issuance as they limit losses for investors, while also potentially improving .......

    News Round-up 15 July 2014

  • Servicing guidance slated

    The FHFA is set to issue guidance by 1 December aimed at ensuring that non-bank servicers meet current servicing requirements. The move follows the release of an Office of Inspector General (OIG) report identifying broad problems in the mortgage servicing industry.

    SFIG notes that some of these problems include: non-bank mortgage servicers taking on more loans than they can handle; .......

    News Round-up 15 July 2014

  • Greek sovereign ceiling lifted

    Fitch has upgraded 15 tranches of seven Greek RMBS transactions, removing them from rating watch positive. Following the upgrade of the sovereign issuer default rating to single-B outlook stable and subsequent upgrade of the country ceiling to double-B in May, the agency increased the maximum achievable rating for Greek structured finance transactions to double-B to reflect the improvement in the .......

    News Round-up 14 July 2014

  • Cantor boosts RMBS team

    Cantor Fitzgerald has expanded its MBS sales and trading team with the appointments of Cass Tokarski and James Murray, who each join from RBS. Tokarski becomes senior md and head of mortgages and ABS, while Murray joins as md, focussing on agency ARM trading.

    Tokarski ran the CMO business at RBS and has also worked at UBS and Goldman Sachs. .......

    Job Swaps 14 July 2014

  • German RMBS performance 'stable'

    The performance of the German RMBS market was stable up to to the end of April, according to Moody's. The rating agency's outlook for German RMBS collateral performance is stable.

    The 90-plus day delinquency rate decreased from 3.13% in April 2013 to 2.87% in April 2014. Over that period the index for low- and medium-LTV transactions increased from 0.31% to .......

    News Round-up 10 July 2014

  • Oz prime, subprime arrears diverge

    Housing loans in arrears decreased in May for Australian prime RMBS but increased for subprime RMBS, says S&P. Both sectors continued to report lower levels than in the same period last year.

    Loans in arrears greater than 30 days underlying Australian prime RMBS decreased by 3bp to 1.23% in May. At the same time, the total prime RMBS outstanding fell .......

    News Round-up 10 July 2014

  • Broker-dealer adds CMBS pair

    Cross Point Capital has announced the appointments of Tim Martin and Sudeep Walvekar. Martin is head of CMBS sales and trading at the firm, while Walvekar is also part of the CMBS sales and trading team.

    Martin has extensive real estate experience, having joined Salomon Brothers in 1986 and since holding several mortgage origination and CMBS trading positions, including as .......

    Job Swaps 9 July 2014

  • Secondary RMBS supply rises sharply

    A couple of sizable US non-agency RMBS bid-lists helped bring secondary market activity up sharply yesterday after Monday's slow start to the week. BWIC volume reached around US$600m with subprime paper leading the charge.

    SCI's PriceABS data captured a number of names out for the bid during the session. Among them was the AHMA 2007-1 A1 .......

    Market Reports 9 July 2014

  • Rating agency names mortgage head

    S&P has promoted Waqas Shaikh to lead analytical manager for mortgage-bond ratings and surveillance in the US. He is based in New York and reports to Mike Binz, head of North American ABS and RMBS ratings.

    Shaikh will focus on new issues and on-going deal surveillance. He was previously part of the global risk management group and has been with .......

    Job Swaps 9 July 2014

  • Home price growth provides 'cushion'

    Strong US home price growth since 2012 is providing recent vintage US prime RMBS with a cushion against any unexpected economic stress, according to Fitch's latest monthly prime jumbo trends report. When weighted by the geographic concentration in prime RMBS pools, home prices increased at an annualised rate close to 5% in 1Q14, down from double-digit increases last year.

    "Home .......

    News Round-up 8 July 2014

  • Stable outlooks dominate APAC

    Fitch affirmed 195 Asia-Pacific structured finance (SF) tranches in 2Q14. The agency also upgraded seven tranches and downgraded three others.

    Of the total affirmations, 77 were from Australia, which also contributed five of the upgrades during the quarter. The upgrades were made to prime RMBS and unsecured consumer loan ABS bonds, where a build-up of credit enhancement supports the higher .......

    News Round-up 8 July 2014

  • Rating actions for Irish RMBS

    Fitch has upgraded ten, affirmed 23 and downgraded four tranches across 12 Irish RMBS. At the same time, outlooks on 14 tranches were revised to stable from negative and the rating watch positive on five tranches has been resolved.

    Fitch placed five tranches of Irish RMBS on RWP in April, following a revision in the rating cap on structured finance .......

    News Round-up 7 July 2014

  • Alternative asset manager adds two

    Premium Point Investments has appointed Ivan Chee to oversee trading in non-agency mortgage bonds. He is based in New York.

    Chee was previously at Morgan Stanley, where he was most recently desk strategist for agency RMBS. Before joining Morgan Stanley he was a software design engineer for Expedia and has also worked at IBM.

    Premium Point has also appointed Mark .......

    Job Swaps 7 July 2014

  • Further settlement deadline extended

    The trustees for the RMBS that fall under Citibank's US$1.125bn rep and warranty settlement have exercised their right to extended by 45 days the deadline to respond to the offer. The new deadline is 14 August.

    Barclays Capital RMBS analysts note that the trustees for the 68 deals that are part of the Citibank settlement - Deutsche Bank, HSBC,US Bank .......

    News Round-up 7 July 2014

  • HUD auction sees three firsts

    Lone Star on 11 June became the first single bidder to win each of the pools offered in a HUD single family loan sale. The 2014-2 Part 1 auction comprised 16 different pools of geographically diverse non-performing FHA loans, with US$3.9bn of aggregate UPB and a US$3.3bn aggregate BPO.

    Loan Star's weighted average bid was 77.6% of BPO (65.8% of .......

    News Round-up 4 July 2014

  • Clean-up call candidates identified

    The ECB's TLTRO operation entitles banks to initially borrow up to €400bn for four years at a fixed rate of 25bp. The availability of this low-cost funding increases the likelihood of originators exercising clean-up calls in European ABS and RMBS deals, according to Citi securitised product strategists.

    Issuers generally have the right to call outstanding notes at par once the .......

    News 4 July 2014

  • Recoveries surprise to the upside

    MSAC 2006-HE3 and SVHE 2006-WF1 bondholders last month received significant pay-outs related to subsequent recoveries. The trustee for both RMBS is Deutsche Bank and the pay-outs are believed to be due to individual rep and warranty-related settlements with one of the originators or related pay-outs at the loan level.

    MSAC 2006-HE3 group 2 bonds saw a subsequent recovery of about .......

    News Round-up 4 July 2014

  • New contender for worst-performing postcode

    Fitch reports that Budgewoi on the Central Coast of New South Wales has become the worst performing postcode in Australia for missing housing loan payments, with a 30+ days delinquency rate of 3.7%. The suburb has been among the 20 worst performing postcodes each March and September over the five years since March 2009, with the exception of September 2012. .......

    News Round-up 4 July 2014

  • Green light for ABS, RMBS ratings

    Morningstar Credit Ratings' designation on the NAIC credit rating provider (CRP) list has been extended to cover all ABS and MBS. Previously the designation only covered CMBS.

    The amendment became effective last month and provides insurance companies with an extra option among rating providers for determining risk-based capital under NAIC guidelines. Investors using a designated CRP are exempt from making .......

    News Round-up 3 July 2014

  • Hedge fund assets top US$3trn

    Total assets in hedge funds surpassed US$3trn for the first time in May, according to eVestment. The US$22bn of new capital added brings year-to-date flows to US$93.3bn, the largest five-month total to begin a year since 2007.

    Performance gains added US$37.8bn to total AUM for an estimated asset-weighted return of 1.28% in May. This compares to the 1% the industry .......

    News Round-up 3 July 2014
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