RMBS

  • Remittance moves reported

    US non-agency RMBS with prior claims against PMI could see cashflows being reported in this month's remittances. Meanwhile, two SASC 2007-BNC1 loans have recognised debt forgiveness-related losses that exceeded the loan balance.

    PMI Mortgage Insurance has increased its partial claim payment on wrapped RMBS to 67% from 55%, with all claims that had previously been settled at 55% trued up .......

    News Round-up 28 April 2014

  • Optimism over Ambac rehab

    The Wisconsin Commissioner of Insurance, acting in his capacity as the rehabilitator of Ambac Assurance's segregated account, has sought approval from the Circuit Court for Dane County, Wisconsin to amend the insurer's plan of rehabilitation. The rehabilitation court is currently scheduled to hear the motion on 11 June, which - if approved - could boost Ambac-wrapped RMBS prices.

    If the .......

    News Round-up 28 April 2014

  • Colour-blind conundrum

    RMBS valuations complicated by lack of bid-list activity

    US RMBS secondary market supply has dried up over the last several weeks in a way that ABS and CMBS volumes have not. The lack of market colour has made bond valuations more difficult.

    A large bid-list last week broke what had been a lengthy run of low BWIC volume in the US non-agency RMBS market (SCI 17 April). However, .......

    News Analysis 25 April 2014

  • Barclays settles PLS claims

    Barclays Bank has settled a private-label mortgage-backed securities (PLS) lawsuit brought by the FHFA for US$280m. The FHFA has now reached settlements in 13 of its 18 PLS suits (SCI passim).

    The settlement resolves claims against Barclays and specific individuals accused of violating federal and state securities laws in connection with PLS purchased by Fannie Mae and Freddie Mac between .......

    Job Swaps 25 April 2014

  • MS, Wells settlements anticipated

    Anticipation is growing over similar settlements occurring for Morgan Stanley and Wells Fargo RMBS shelves, following the US$1.13bn Gibbs & Bruns agreement with Citi (SCI 8 April). Some senior CMLTI RMBS bonds appear to already be pricing in a 60%-70% probability of trustees accepting the latter agreement.

    The limitation of the Citi settlement to the CMLTI shelf could be due .......

    News 24 April 2014

  • US law firm promotes four

    Korein Tillery has promoted four attorneys to partner. Steve Berezney, Giuseppe Giardina, Michael Klenov and Tamara Spicer are all based in St Louis.

    Berezney specialises in high-stakes commercial, antitrust and intellectual property litigation. He has particular experience in RMBS litigation.

    Giardina focuses on complex commercial and securities litigation. Much of his work centres on the fallout from the tribulations of .......

    Job Swaps 24 April 2014

  • Non-QM methodology finalised

    Kroll Bond Rating Agency has released its methodology for assessing non-qualified mortgage risk in US RMBS. The agency says that the methodology relies on its fundamental analysis of mortgage risk, augmented by stressed assumptions regarding a borrower's propensity to engage in litigation against an originator and potential losses resulting from a successful borrower claim. These assumptions are derived primarily from .......

    News Round-up 23 April 2014

  • SFR leader appoints pair

    Blackstone's real estate portfolio company Invitation Homes has appointed John Schissel as cfo and Leslie Fox as evp and coo. Last year the company named Bryce Blair as a member of the board and Gary DeLapp as president.

    Schissel joins from BRE Properties, where he served as evp and cfo until its recent merger with Essex Property Trust. He has .......

    Job Swaps 23 April 2014

  • RMBS BWIC volumes creep up

    The US non-agency RMBS secondary market remains subdued, with a little under US$400m of P&I bonds on BWICs yesterday. Focus was on Alt-A hybrids and option ARMs as fixed-rate supply was light.

    SCI's PriceABS data shows a range of names out for the bid, including a few fixed-rate names. The prime 30-year fixed-rate CWHL 2005-28 A4 .......

    Market Reports 23 April 2014

  • RMBS prepays reach post-crisis lows

    Prepayment rates for US RMBS loans have declined to the lowest levels since the crisis, says Fitch. Voluntary and involuntary prepayment rates are both likely to decline further if mortgage rates continue to rise and liquidation rates continue to fall as expected.

    In the first quarter of the year, the CPR for prime jumbo, Alt-A and subprime loans fell to .......

    News Round-up 22 April 2014

  • Resi servicer snapshot debuts

    Fitch has launched its inaugural US residential mortgage servicer snapshot. The report contains key information for most of the active RMBS servicers, including portfolio size and trend information, as well as links to full servicer reports.

    Notably, the snapshot will also provide the names of RMBS servicers currently assigned to transactions in an easy-to-use cusip reference format. While the majority .......

    News Round-up 22 April 2014

  • Allstate ends RMBS lawsuit

    A stipulation of discontinuance has been filed in New York state court, ending a lawsuit brought by Allstate Insurance Company concerning US$167m of RMBS purchased from Merrill Lynch. The stipulation did not disclose a settlement amount, notes a Lowenstein Sandler memo.

    The lawsuit was filed in March 2011, when Allstate alleged that the quality of the loans which were underlying .......

    Job Swaps 22 April 2014

  • Heavy hedge fund allocations continue

    Investors continued to allocate heavily into hedge funds in March. The US$18.3bn influx of new capital during the month lifted 1Q14 net flows to US$55.1bn, a level last surpassed in 2Q07, according to eVestment.

    Credit fund flows continue along an uneven, albeit positive path. Inflows of US$9.6bn in Q1 were higher than in 4Q13, although directional credit fund flows were .......

    News Round-up 17 April 2014

  • Monoline, bondholders gain settlement

    A settlement has been agreed between an ad hoc group of bondholders of nine FGIC-insured Countrywide RMBS trusts, Bank of America, FGIC, Freddie Mac and BNY Mellon. It will provide US$950m in cash payments to the RMBS trusts and FGIC to settle mortgage repurchase claims.

    The settlement is the first of its kind involving a monoline insurer and bondholders working .......

    Job Swaps 17 April 2014

  • Spark returns to US RMBS market

    US RMBS secondary market activity finally picked up yesterday, as a US$678m bid-list traded. Non-agency BWIC volume reached over US$1bn for the session, with SCI's PriceABS data capturing 80 unique RMBS bonds.

    Interactive Data notes that the US$678m list "has all the hallmarks of being from one of the GSEs", although nothing has been officially confirmed. .......

    Market Reports 17 April 2014

  • Resets hasten Dutch RMBS CPRs

    European DataWarehouse (ED) loan-level data for Obvion's STORM programme suggests that forthcoming resets may affect Dutch RMBS CPRs significantly. This holds true even if those resets are up to two years away, according to Bank of America Merrill Lynch analysts.

    Dutch RMBS pools are generally dominated by fixed-rate mortgages that normally feature a reset period, during which the rate remains .......

    News 16 April 2014

  • Stable rating outlooks for APAC

    Fitch reports that over 97% of its Asia-Pacific structured finance rating actions in 1Q14 were affirmations, with eight upgrades and two downgrades accounting for the remaining rating actions. Of the 364 affirmations, 347 were from Australia and New Zealand.

    Australia also contributed all eight of the upgrades - to auto loan ABS, prime RMBS and non-conforming RMBS bonds - during .......

    News Round-up 16 April 2014

  • Peripheral country caps lifted

    Fitch has taken positive rating action on 150 tranches of 113 structured finance transactions that are capped relative to the sovereign ratings of Ireland, Portugal and Spain. The move follows the revision of the caps on structured finance (SF) ratings to align them with the country ceilings of those countries, six notches above the respective sovereign issuer default ratings (IDR). .......

    News Round-up 16 April 2014

  • Housing reform bill weighed

    Several provisions in the comprehensive housing finance reform bill introduced by US Senators Tim Johnson and Mike Crapo would help spur issuance of private-label RMBS (SCI 12 March), according to Moody's. At the same time, the bill is expected to modestly dampen prices of multifamily properties and increase CMBS refinance risk.

    Under the framework proposed in Johnson-Crapo, fewer residential mortgage .......

    News Round-up 15 April 2014

  • Post-crisis RMBS delinquencies 'near zero'

    Delinquency rates on recently issued US RMBS remain near zero nearly four years after the first post-crisis transaction was completed, according to Fitch's new US prime jumbo RMBS monthly trends report. Of the roughly 20,000 loans securitised since the start of 2010, only two loans are currently over 60 days delinquent. When loans that are only one payment behind are .......

    News Round-up 11 April 2014

  • US RMBS stays subdued

    The US RMBS secondary market was quiet once again yesterday as bid-list volume dipped to around US$335m. SCI's PriceABS data recorded a number of DNTs for the session, although a number of successful covers were also seen.

    Supply was up slightly for fixed-rate and hybrid bonds, with the focus for each segment on senior current-pays. Subprime supply was .......

    Market Reports 11 April 2014
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