RMBS

  • 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

  • Liquidity rules could 'hurt demand'

    S&P says that upcoming rules governing bank liquidity could hurt demand for European securitisations. The agency also notes that the treatment of securitisations is less favourable than that of some other debt securities, such as covered bonds and corporate bonds, which could significantly reduce banks' incentives to hold securitisation tranches.

    "Historically, banks have been one of the largest investor constituencies .......

    News Round-up 9 May 2014

  • Positive post-crisis performance continues

    Post-crisis US RMBS collateral is performing well, according to Fitch's latest prime jumbo RMBS trends report. However, the agency notes that the pace of new issuance this year remains scarce, with no near-term change likely.

    Fitch calculates that 48 prime RMBS deals have come to market since 2010, though only five have been completed in 2014. "The still-dominant presence of .......

    News Round-up 9 May 2014

  • Aussie credit risk highlighted

    Fitch says that APRA's recently released discussion paper, 'Simplifying the prudential approach to securitisation' (SCI 29 April), may affect RMBS transaction structures and credit risk profiles in the future. In particular, the agency suggests that the proposed APRA requirement for a two-class structure will leave the current triple-A rated AB note orphaned, requiring it to be either merged into the .......

    News Round-up 9 May 2014

  • Credit drives hedge fund returns

    Hedge fund performance was positive in April, rebounding from its decline in March, according to eVestment. Returns rose by 0.16% during the month and are up by 1.35% year-to-date, on pace for an annualised return of only 4.12%.

    Credit strategies appear to have benefited from a decline in rate markets since the beginning of 2014 and are now the best-producing .......

    News Round-up 8 May 2014

  • QM amendments considered

    The Consumer Financial Protection Bureau (CFPB) is proposing several changes to the qualified mortgage (QM) rule, which it is hoped will allow more loans to meet the definition. Specifically, the proposals provide more flexibility for loans to meet QM status, despite its cap on points and fees and its restrictions on debt-to-income ratios.

    Additionally, the CFPB plans to allow more .......

    News Round-up 8 May 2014

  • 'Type 1' capital charges lowered

    EIOPA has updated its technical specifications for the Solvency II preparatory phase. The proposal includes lower capital charges for Type 1 securitisations.

    Proposed capital charges for triple-A, double-A, single-A and triple-B rated Type 1 bonds now stand at 2.1%, 4.2%, 7.4% and 8.5% per year of duration respectively. Type 1 securitisations are defined as those backed by residential mortgage loans, .......

    News Round-up 8 May 2014

  • Additional settlement proceeds projected

    US RMBS investors could receive an estimated US$11.5bn-US$24.2bn in additional proceeds, if other rep and warranty settlements are announced with similar payments to the recent Gibbs & Bruns agreements with Citi and JPMorgan (SCI 24 April). To quantify the potential universe of settlement payments remaining, Bank of America Merrill Lynch RMBS analysts have calculated cumulative collateral loss and settlement projections .......

    News 8 May 2014

  • CLO lawyer added in New York

    Meagan Signoriello has joined Lowenstein Sandler's mortgage and structured finance group as an associate. She counsels collateral managers in CLO transactions and also has experience in ABCP and RMBS. Signoriello was previously at Seward & Kissel and will be based in New York.

    .......

    Job Swaps 7 May 2014

  • Pricing partnership formed

    SCI has launched a partnership with Intex to provide INTEXcalc users with free trial access to SCI PriceABS market prices for securitised products. SCI PriceABS is a daily secondary market colour and price service that includes pre- and post-auction price talk and covers/traded prices for ABS, CMBS, RMBS and CDO/CLO bonds across Europe and the US.

    The SCI .......

    News Round-up 7 May 2014

  • Call for increased trustee responsibilities

    The Association of Institutional Investors last week requested in a letter to the Senate Banking Committee that Congress establish clear fiduciary standards for trustees of non-agency RMBS. Additional trustee duties being lobbied for include ensuring that initial collateral conforms to representation and warranties, put-back rights under a securitisation's R&Ws are exercised properly and all loan documentation is properly executed and .......

    News Round-up 7 May 2014

  • RMBS supply ticks up

    US non-agency RMBS bid-list volume was moderate again yesterday at a little under US$500m. Supply was dominated by adjustable rate and subprime bonds, while derivatives supply was non-existent.

    SCI's PriceABS data captured a number of tranches out for the bid during the session, including several cover prices. Supply was concentrated in the 2005-2007 vintages, although a couple of .......

    Market Reports 7 May 2014

  • Servicer performance compared

    In its latest 'Servicer Dashboard' publication, Moody's continues its comparison of Nationstar Mortgage, Ocwen Financial Corporation and Walter Investment Management Corporation. By focusing on key differences in their operations, technology, staffing and servicing, the aim is to gain a more nuanced understanding of their servicing performance and loss mitigation outcomes.

    For example, in their operations, Ocwen and Nationstar both focus .......

    News Round-up 7 May 2014

  • RMBS trading director added

    RED Capital Markets has appointed Michael Franzoni as a sales and trading director. He will be based in Columbus, Ohio and take responsibility for placing multifamily debt and recycling capital through RMBS executions and trading RMBS and municipal securities.

    Franzoni was previously capital markets avp at Arbor Commercial Mortgage and an analyst at UBS. He has also worked at Deloitte .......

    Job Swaps 7 May 2014

  • Turkish RMBS criteria finalised

    Moody's has published its approach to rating Turkish residential mortgage-backed loan pools, using the MILAN framework. The move implements the proposals outlined in the agency's recent RFC (SCI 10 March).

    Moody's says it did not receive comments in connection with the RFC and, as a result, did not make any changes to the proposed approach. The agency notes that benchmarking .......

    News Round-up 6 May 2014

  • RMBS postponed after ratings spat

    S&P has withdrawn its preliminary ratings on the US$184.9m Bayview Opportunity Master Fund IIIa Trust 2014-9RPL re-performing RMBS, after the issuer stated that it intends to delay the offering beyond the expected close of 12 May. The agency had previously requested additional information pertaining to property valuations and loss severity experience, following the publication of the deal's presale report.

    The .......

    News Round-up 6 May 2014

  • Rating withdrawal process outlined

    Moody's has clarified its global process for determining the minimum number of borrowers in the pools underlying securitisations below which excessive exposure to the idiosyncratic credit risk of a few borrowers may prevent it from assigning or maintaining ratings. The report updates a previous version which dealt with only RMBS (SCI 6 November 2013).

    As consumer ABS and RMBS transactions .......

    News Round-up 2 May 2014

  • Capital idea

    Housing finance solution debated

    A US senate markup hearing took place this week for the Crapo-Johnson bill (SCI 12 March), although it was recessed without a vote. Over 100 filed amendments await during a future markup, with the final treatment of the first-loss piece in single-family deals one of the more pressing concerns for the RMBS market.

    SFIG notes that although the senate committee .......

    News Analysis 2 May 2014

  • Euro eyes on French RMBS

    The European RMBS market is currently abuzz with interest in an upcoming French deal. Meanwhile, secondary market spreads continue to grind tighter as activity levels remain restricted.

    The long-awaited deal from Credit Foncier de France - CFHL-1 2014 - is being marketed via Credit Suisse, JPMorgan, Lloyds, Natixis and RBS. It provides a rare opportunity to take French residential exposure .......

    Market Reports 1 May 2014

  • FHFA pay-out ratios discussed

    Fourteen large banks that sold private label MBS to Fannie Mae and Freddie Mac have now settled with the FHFA (SCI passim). A loss analysis undertaken by Deutsche Bank RMBS strategists suggests that Bank of America reached the most favourable agreement with the FHFA so far, due to the low loss-based pay-out ratio.

    Excluding the most recent settlement with First .......

    News 1 May 2014

  • Positive performance for GSE deals

    Loan performance for GSE risk-sharing RMBS deals has been positive so far, according to Fitch in a new monthly report. To date, seven risk-sharing transactions have come to the market, with quarterly issuance expected from both Fannie Mae and Freddie Mac.

    "Since the first risk-sharing transaction was issued last year, issuance has been steady and performance has been excellent," comments .......

    News Round-up 1 May 2014
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