RMBS

  • Swap error corrected

    Moody's has downgraded the ratings of five Granite Master Issuer Series 2006-3 tranches, following a correction to an input to the rating tool the agency used. The agency had either affirmed or upgraded the securities on 18 February.

    The affected tranches are the class A3, A4, A7, B2 and M2 notes. Due to an error, Moody's did not identify all .......

    News Round-up 3 March 2014

  • Further PLS settlement reached

    The FHFA has reached a settlement with Societe Generale and related companies for US$122m. The settlement resolves claims alleging violations of federal and state securities laws in connection with private-label mortgage-backed securities (PLS) purchased by Fannie Mae and Freddie Mac in 2006.

    Under the settlement, Societe Generale will pay roughly half of the settlement monies to Fannie Mae and half .......

    Job Swaps 28 February 2014

  • SFR operational risk highlighted

    S&P says it is yet to see a single-family rental (SFR) securitisation with the level of credit enhancement and other risk-mitigating features that warrant the highest investment grade rating. The agency's primary reservations regarding the sector revolve around the industry's operational infancy, historical performance, the current business model's ability to withstand extreme economic conditions and the ultimate liquidation values of .......

    News Round-up 28 February 2014

  • Subprime settlement in the works

    Morgan Stanley has disclosed in a regulatory filing that it has reached an agreement in principle with the US SEC to resolve "an investigation related to certain subprime RMBS transactions sponsored and underwritten by the company in 2007". Pursuant to the agreement in principle, the bank would be charged with violating Sections 17(a)(2) and 17(a)(3) of the Securities Act, according .......

    Job Swaps 28 February 2014

  • Increased investor, IO loans 'credit negative'

    The increase in the proportion of investor and interest-only (IO) loans in new mortgage originations is credit negative for new Australian RMBS transactions, according to Moody's in its latest 'Structured Thinking: Asia Pacific' publication. As of 30 September 2013, the proportion of investor loans increased to 34.3% from 26.4% in March 2009, while the proportion of IO loans increased to .......

    News Round-up 27 February 2014

  • Debut Dutch RMBS marketing

    RBS is in the market with the inaugural transaction from Venn Partners' new Dutch RMBS platform (SCI 24 February). Dubbed Cartesian Residential Mortgages 1, the €481.3m deal is backed by prime mortgages originated by GE Artesia Bank via three SPVs - Quion 10, Ember Hypotheken 1 and Ember Hypotheken 2.

    The issuer financed the purchase of the mortgage pool by .......

    News Round-up 27 February 2014

  • Moderating servicer growth 'credit positive'

    The New York Department of Financial Services' (DFS) action on Ocwen (SCI 7 February) may signal a broader regulatory push to moderate the growth of the large special servicers, according to Moody's in its latest ResiLandscape publication. The agency notes that regulatory action that moderates the growth of special servicers or otherwise strengthens their operating and financial profiles would be .......

    News Round-up 27 February 2014

  • STACR percentage test triggered

    STACR 2013-DN1 failed its current subordinate percentage test this month and, as a result, the entire prepayment amount was directed away from the M1 tranche to the A tranche. A credit event resulted in a US$14,800 write-down of the B tranche that was enough to push the subordinate percentage to 2.99995% from 3%, RMBS analysts at Barclays Capital report.

    To .......

    News Round-up 27 February 2014

  • Spanish sovereign ceiling lifted

    Moody's has raised the maximum achievable rating for Spanish structured finance transactions to A1 from A3, following the upgrade of Spain's government bond rating to Baa2 from Baa3 and its local and foreign currency bond and deposit ceilings to A1 from A3. The move reflects improvements in institutional strength and reduced susceptibility to event risk, the agency says.

    Moody's is .......

    News Round-up 26 February 2014

  • Ratings vet takes top credit role

    Morningstar has appointed Calvin Wong as chief credit officer. He will be based in New York and report to president Vickie Tillman.

    Wong will take responsibility for enhancing the internal control structured for ratings, supporting credit rating model review processes and overseeing the development of rating criteria. He has in-depth knowledge of ABS and RMBS and was most recently practice .......

    Job Swaps 26 February 2014

  • Countrywide wrangling continues

    Judge Scarpulla of the New York State Court ruled last week that the judgement entered by Judge Kapnick on 31 January in the US$8.5bn Countrywide settlement case will not be further delayed. AIG and other objectors had asked for the entry of the judgement to be stayed, alleging that various issues remained unclear (SCI 12 February).

    AIG is nevertheless pursuing .......

    News 25 February 2014

  • Syncora warns of liquidity mismatch

    Syncora Guarantee has settled its RMBS-related claims with JPMorgan. In return for releases of all of the insurer's claims against the bank and certain of its affiliates arising from insured RMBS transactions that were the subject of litigation or dispute, it will receive a cash settlement.

    Separately, the insurer has remediated its exposure to several material financial guarantee insurance policies .......

    Job Swaps 25 February 2014

  • Agency derivatives trader joins

    Andy Chang has joined Pierpont Securities from Cantor Fitzgerald to trade agency derivatives. He has previously worked at RBS and Donaldson, Lufkin & Jenrette.

    .......

    Job Swaps 25 February 2014

  • Dutch RMBS platform prepped

    Venn Partners has acquired a €500m portfolio of Dutch residential mortgages from GE Artesia Bank. The deal marks the first step in Venn's establishment of a new lending platform focusing on the Dutch residential mortgage market, through primary origination and acquisitions of high-grade secondary mortgage portfolios. The firm plans to finance this business through the creation of a prime RMBS .......

    News Round-up 24 February 2014

  • Surge in SFR issuance anticipated

    US home rental securitisation issuance is predicted to hit US$5bn this year. The increasing cost of homeownership is driving the need for rental housing and institutional investors appear to be responding to the demand.

    The rise in renter households has outpaced ownership by a factor of 10, according to Deutsche Bank CRE debt strategist Harris Trifon. He notes in a .......

    News Round-up 21 February 2014

  • Canadian ABS to remain robust

    DBRS notes in its annual review of Canada's structured finance market that the combined effect of conservative underwriting, modifications to mortgage lending rules and improving economic conditions provided a solid foundation for securitised portfolios in 2013. For the second year in a row, the market saw combined term ABS and ABCP issuance of over C$26bn.

    Underlining the strong asset performance .......

    News Round-up 21 February 2014

  • Mexican housing outlook examined

    Mexico's relatively benign inflation environment and sustainable residential property appreciation rates are credit positives for RMBS, Fitch says. Nominal housing prices in Mexico rose by 4.1% in 2013, according to Sociedad Hipotecaria Federal (SHF). Fitch's calculated annual real increase was 0.4% and has averaged 1.2% over the past eight years, demonstrating that home prices continue to grow at levels slightly .......

    News Round-up 21 February 2014

  • Credit fund redemptions persist

    Investors allocated an estimated US$4.9bn to hedge funds last month, but performance losses of US$12.8bn resulted in total industry AUM declining by 0.3% to US$2.845trn, according to eVestment figures. At the same time, MBS strategies continued to lose assets: January was the sixth month of net redemptions for the sector in the last eight.

    Nevertheless, performance from the group was .......

    News Round-up 20 February 2014

  • RBS settles Harborview claims

    RBS has settled an RMBS class action litigation led by New Jersey Carpenters Health Fund for US$275m. It is the third largest RMBS federal securities class action settlement in the US.

    The settlement covers securities violations involving the packaging and sale of 14 public offerings of Harborview series RMBS where RBS failed to disclose that the loans collateralising the certificates .......

    Job Swaps 20 February 2014

  • RMBS market moves higher

    US non-agency RMBS BWIC activity picked up strongly yesterday to reach almost US$900m. Subprime paper was prevalent on bid-lists, concentrated in the 2005-2007 vintages, with price talk and covers on several bonds moving up from the previous session.

    For example, FFML 2005-FF7 M3 was covered in the low-80s yesterday, having been talked in the mid/high-70s in the previous session. When .......

    Market Reports 20 February 2014

  • Purchase loans to boost RMBS

    Moody's suggests that lower mortgage refinancing volume could lead to a higher proportion of purchase loans in new US jumbo RMBS. This, in turn, is likely to boost the credit quality of the pools because purchase loans typically have lower default rates.

    "Rising interest rates have caused a drastic drop in mortgage refinancing applications since mid-2013," says Moody's vp and .......

    News Round-up 20 February 2014
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