RMBS

  • 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

  • GSE risk-sharing delinquencies 'immaterial'

    One year after GSE risk-sharing RMBS deals were introduced to the market, delinquencies and defaults remain immaterial, according to Fitch. Loan repurchases due to issues identified through GSE quality control reviews have outnumbered non-performing credit events by more than two-to-one. All but one of the loans repurchased were performing at the time of the repurchase.

    "Though repurchases are outpacing credit .......

    News Round-up 2 July 2014

  • Italian servicers adapting to NPL increase

    S&P suggests that the recent rise in Italian non-performing loan volumes could create new growth opportunities for Italian loan servicers. The agency reports that the Italian servicers it ranks have positioned themselves well to be able to manage some of the NPLs that banks and financial institutions could either sell to investors or outsource the servicing.

    The volume of NPLs .......

    News Round-up 2 July 2014

  • PCS criteria revised

    Prime Collateralised Securities (PCS) has introduced the first substantial revision of its criteria in relation to high quality securitisations. The move is designed to raise the standard enshrined in the label, with a few criteria being softened or removed when they proved not to add anything to the quality represented by the label or when the market could demonstrate that .......

    News Round-up 2 July 2014

  • Treasury looks to boost PLS market

    US Treasury Secretary Jacob Lew last week outlined plans to expand access to credit by boosting the private-label securities market. A new financing partnership between the Treasury and HUD will also support the FHA's multifamily mortgage risk-sharing programme.

    The Treasury-led effort to catalyse the PLS market is part of encouraging securitisation as a way of shifting risk to investors in .......

    News Round-up 1 July 2014

  • MBS fraud sentence handed out

    David Higgs, a former md at Credit Suisse, has been sentenced in connection with a scheme to hide more than US$100m in MBS trading losses. He had previously pleaded guilty and agreed to cooperate with the government's investigation into the losses (SCI 17 April 2013).

    The bonds concerned were subprime RMBS and CMBS and contributed to Credit Suisse taking a .......

    Job Swaps 30 June 2014

  • US RMBS secondary activity stable

    US non-agency RMBS BWIC volume hit US$566m yesterday, slightly lower than the total for the prior session. Supply was mainly driven by 2005- and 2006-vintage subprime bonds.

    SCI's PriceABS data captured a range of names out for the bid in yesterday's session. Among them was a US$2.053m piece of the ACE 2004-HE4 M2 tranche, which was .......

    Market Reports 26 June 2014

  • Banks look to restructured assets

    Banks and other market participants are increasingly looking to securitise residential mortgage and SME loan portfolios materially exposed to refinanced or restructured assets in Europe, says Fitch. The variety of loan restructurings complicates the rating process and necessitates extra detail.

    The enquiries Fitch has received on potential deals mainly concern collateral in countries which have had sharp economic or housing .......

    News Round-up 26 June 2014

  • Peripheral possibilities

    Peripheral RMBS relative value explored

    The recently announced €1bn-plus Berica ABS 3 RMBS transaction has piqued investor interest in peripheral paper. Publically distributed Italian RMBS has been rare post-financial crisis, but it could offer compelling relative value.

    The peripheral European housing markets have emerged from the financial crisis in varying states of health. This is at least in part because of differing governmental approaches, but .......

    News Analysis 23 June 2014

  • Granite ratings upgraded

    Fitch has upgraded 78 tranches of the Granite Master Trust programme and three tranches of the Whinstone programme. All other tranches have been affirmed.

    Granite comprises five 'capitalist' issuers (Granite Mortgages 2003-2, 2003-3, 2004-1, 2004-2 and 2004-3) and nine 'socialist' issuers (Granite Master Issuer 2005-1, 2005-2, 2005-4, 2006-1, 2006-2, 2006-3, 2006-4, 2007-1 and 2007-2). Following the breach of the non-asset .......

    News Round-up 23 June 2014

  • Derivative actions filed against trustees

    A number of large institutional investors last week sued six RMBS trustees in New York state court for breaching their fiduciary duties and failing to force mortgage originators and RMBS issuers to repurchase defective loans. The trustees named include BNY Mellon, Citi, Deutsche Bank, HSBC, Wells Fargo and US Bank.

    The investors include BlackRock, PIMCO, Prudential and DZ Bank, according .......

    Job Swaps 23 June 2014

  • PLS suit settlement announced

    The FHFA has reached a US$99.5m settlement with RBS to resolve claims alleging RBS violated federal and state securities laws in connection with private-label mortgage-backed securities (PLS) that were purchased by Freddie Mac between 2005 and 2007. The FHFA has now reached settlements in 15 out of the 18 PLS lawsuits it filed in 2011 (SCI passim).

    .......

    Job Swaps 23 June 2014

  • Servicing pro appointed

    Krupali Mehta has joined Link Financial Group. She will lead the backup servicing team.

    Mehta specialises in the servicing and management of securitised transactions and most recently worked for Hatfield Philips, overseeing CMBS portfolios. She has also worked at Allied Irish Bank as a credit analyst.

    .......

    Job Swaps 23 June 2014

  • Tough times

    Recruitment quiet as markets squeezed

    The tone in structured finance recruitment on each side of the Atlantic is cautious at best. While hiring continues in both the US and Europe, it is limited and must be set against the backdrop of other large teams being closed down.

    Partially the issue is that markets are not providing the kind of opportunities that people had hoped for. .......

    News Analysis 20 June 2014
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