RMBS

  • Whinstone tender announced

    Northern Rock Asset Management (NRAM) has launched a tender offer for six tranches of its Whinstone Capital Management 1 and 2 synthetic RMBS transactions via a modified Dutch auction. The firm says it is undertaking the offer in order to reduce its funding costs.

    The notes included in the offer comprise Whinstone 1 class B1 notes (with a principal amount outstanding .......

    News Round-up 19 May 2014

  • Aussie indexed LVRs decline

    Moody's says that rising house prices reduced the indexed weighted-average loan-to-value ratio (LVR) in Australian RMBS to below 50% in 2013. The indexed LVRs in individual states ranged from 39% in the Northern Territory to 54% in Tasmania.

    "Although the current weighted-average LVR in the Australian RMBS portfolios is 57%, when taking the house price increases into account the indexed .......

    News Round-up 16 May 2014

  • Advancing discrepancies examined

    Bondholder payments were delayed in a number of recent transactions due to differences in approaches between bank and non-bank US RMBS servicers, Fitch reports. In particular, over recent months, RMBS collateralised with mortgages transferred from Bank of America to Nationstar Mortgage have incurred bondholder payment disruptions (SCI passim).

    Fitch notes that the impact of the difference in missed payment advancing .......

    News Round-up 16 May 2014

  • GSE buyback risk diminished

    US residential mortgage lenders will benefit from a reduced risk of loan buybacks, thanks to an easing of borrower performance measures mandated by the FHFA, according to Fitch. The agency says that less uncertainty around repurchase risk should increase mortgage lending to creditworthy borrowers, which will support the housing market recovery. The FHFA announced the measures this week as part .......

    News Round-up 16 May 2014

  • Johnson-Crapo bill passes Committee

    The US Senate Committee on Banking, Housing and Urban Affairs has passed S.1217, the Housing Finance Reform and Taxpayer Protection Act, by a vote of 13-9. Two manager's amendments, no. 2 and no. 98, passed the Committee to amend the bill. But an amendment that would prohibit federal entities from purchasing or insuring mortgage loans in municipalities that use eminent .......

    News Round-up 16 May 2014

  • Turning tide?

    ECB attitude shift provides securitisation lift

    The re-emergence of the European securitisation market has been helped by initiatives like the European DataWarehouse (SCI passim). This process could be set for greater impetus from the ECB, particularly if a high quality securitisation (HQS) label is introduced.

    The build-out of the European DataWarehouse (ED) has been a key development in the market post-financial crisis. Despite some initial scepticism, .......

    News Analysis 16 May 2014

  • Aussie repayment rates examined

    Fitch has introduced new indices to monitor Australian repayment rates in securitised prime mortgages. The Australian mortgage market has been characterised by higher prepayment rates compared to other countries, which in turn have led to fast amortisation of Australian prime RMBS transactions.

    Over the past decade, Australian prepayment rates have ranged from 15%-25%, according to Fitch. Overseas, this rate has .......

    News Round-up 15 May 2014

  • Hedge fund AUM hits highs

    Investors allocated heavily into hedge funds in April, the third consecutive month of elevated inflows, according to eVestment. The US$17.9bn of new capital added offset the slight asset-weighted performance declines and pushed the industry's AUM to an all-time high of US$2.94trn.

    Credit fund flows were positive but near flat for the second consecutive month, albeit AUM remains at an all-time .......

    News Round-up 15 May 2014

  • Mortgage trading platform launched

    Third-party mortgage administration firm HML has launched the Asset Trading Solutions service, which is aimed at investors that are looking to acquire, manage or sell a performing or distressed mortgage portfolio and maximise its value. The platform supports the entire process of asset trading - from sourcing assets and analysing any associated risks to migrating portfolios and servicing customers effectively .......

    News Round-up 15 May 2014

  • Multi-borrower SFR concerns outlined

    Credit concerns related to single-family rental (SFR) securitisations backed by loans to multiple borrowers will differ in several important respects from the single-borrower SFR transactions that have recently been issued, according to Moody's. Such deals - especially when backed by loans to many small borrowers, each of which owns only a few properties - will likely exhibit less default volatility .......

    News Round-up 15 May 2014

  • Tightening seen in risk-sharing bonds

    CAS and STACR spreads continued to grind tighter last week, with M2 classes hovering at 225bp-250bp and STACR M3s reaching new tights, coming in by about 20bp-25bp to 288bp-291bp. All classes from the risk-sharing RMBS are now trading above par and some earlier M2 classes are trading at significant premiums.

    Secondary trading volumes of risk-sharing bonds rose by 60% month-on-month .......

    News Round-up 14 May 2014

  • Portuguese sovereign ceiling lifted

    Moody's has upgraded Portugal's government bond rating to Ba2 from Ba3 and placed the rating on review for possible further upgrade. Concurrently, it raised the country's local and foreign currency bond and deposit ceilings to Baa1 from Baa3 to reflect the country's reduced economic, legal and political risks.

    Consequently, the maximum achievable rating for Portuguese structured finance rated transactions has .......

    News Round-up 14 May 2014

  • FHA expands access to credit

    The FHA has released its 'Blueprint for Access', designed to expand access to credit for underserved borrowers. The move is being seen as a further effort to loosen the current tight mortgage underwriting standards (SCI 13 May).

    Under the latest measures, MIP requirements for FHA purchase borrowers that undergo housing counselling will be reduced. The changes include a 50bp reduction .......

    News Round-up 14 May 2014

  • RMBS fraud action dismissed

    A New York state court last week dismissed a fraud action filed by MBIA Insurance against JPMorgan. The suit was filed in 2012 in connection with a US$1.2bn RMBS - GMACM Home Equity Loan Trust 2006-HE4.

    MBIA alleges that it was fraudulently induced by Bear Stearns to issue an insurance policy for the transaction, which went on to sustain US$168m .......

    Job Swaps 14 May 2014

  • Incremental changes for the GSEs

    The FHFA has released its 2014 strategic plan for the conservatorship of and the scorecard for the GSEs. Many of the changes are seen as incremental in nature compared with previous strategic plans.

    Under the scorecard, the FHFA has set a US$90bn target for risk transfer in 2014 and each enterprise must utilise at least one transaction type in addition .......

    News Round-up 14 May 2014

  • Bid-list boost for US RMBS

    US non-agency RMBS BWIC volume reached US$716m in yesterday's session as supply was up across all product types. Most of the supply came from senior and mezzanine subprime floaters but there was also interest in senior Alt-A current-pays and senior option ARMs.

    SCI's PriceABS data shows supply concentrated in 2005-2007 vintage names. However, there were also .......

    Market Reports 14 May 2014

  • Switch sense

    Non-conforming pay-down triggers anticipated

    UK non-conforming RMBS continues to outperform US subprime RMBS and several deals are now approaching their pay-down switch triggers. Anticipating the switch is a key factor in deciding where and when to invest.

    "Investors have not really suffered losses. There have been reserve fund draws in deals, but performance has been stable and it is improving," says Steve Rogers, director .......

    News Analysis 13 May 2014

  • GSE guidelines loosened

    The GSEs have updated their representation and warranty guidelines, effective for mortgages settled on or after 1 July 2014. The changes are anticipated to increase the number of loans eligible for rep and warranty relief, but no substantial changes appear to have been made to the relief provided.

    "On balance, these changes point to an incremental loosening of the credit .......

    News Round-up 13 May 2014

  • Aussie reporting requirements enhanced

    The Reserve Bank of Australia (RBA) has published updated and more detailed information on how its new reporting requirements for repo-eligible ABS will be implemented. In particular, all data for each securitisation must now be provided on a monthly basis, no later than seven calendar days after an issuer's specified coupon payment date and the equivalent monthly anniversary in non-coupon-payment .......

    News Round-up 13 May 2014

  • RMBS market vet recruited

    Cello Capital Management has appointed Nicholas Letica as md and senior portfolio manager. He has 27 years of RMBS experience and has previously worked at Bear Stearns, Deutsche Bank, HSBC and Bankers Trust.

    .......

    Job Swaps 12 May 2014

  • Radian buys to boost RMBS capabilities

    Radian Group is set to boost its RMBS capabilities by purchasing Clayton Holdings. The acquisition is expected to close in the summer, after which Clayton will become a Radian Group subsidiary.

    Radian will pay US$305m to purchase all of the outstanding equity interests in the mortgage solutions provider. The figure includes repayment of Clayton's outstanding debt.

    .......

    Job Swaps 12 May 2014
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