RMBS

  • 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

  • Return to flexible lending welcomed

    The Dutch Finance Ministry last month published the minutes of its periodic meeting with the Authority for the Financial Markets and Dutch Lenders Association regarding the application of the Code of Conduct for mortgage lending. Moody's considers flexible lending to be credit positive as normal lending practices cautiously return to the Dutch RMBS market.

    The agency notes in its latest .......

    News Round-up 19 February 2014

  • Supply squeeze

    Spread compression to drive non-core issuance

    A supply squeeze in European ABS is driving spread compression across asset classes and between senior and junior tranches. Against this backdrop, non-senior and non-core issuance is expected to pick up.

    Rob Ford, ABS portfolio manager at TwentyFour Asset Management, questions whether there is room for European ABS spreads to move any tighter at the top end of the market. .......

    News Analysis 19 February 2014

  • CMBS commutations announced

    MBIA Insurance Corp has disclosed that it commuted policies insuring approximately US$3bn of CMBS exposure, in which the reference CMBS were originally rated single-A, for a cost in excess of the third-quarter statutory loss reserve. The monoline says it now has approximately US$760m of CMBS exposure remaining, in which the reference obligations were originally rated triple-B, of which approximately US$391m .......

    News Round-up 17 February 2014

  • New Russian SPVs highlighted

    The official text of Federal Law No. 379-FZ 'On Amendments to Certain Legislative Acts of the Russian Federation' was published on 23 December 2013 (SCI passim). A recent Liniya Prava client memo outlines the highlights of the legislation as it pertains to securitisation.

    The law provides for the securitisation of non-mortgage assets and creates a legal framework for project finance .......

    News Round-up 14 February 2014

  • Final straight for legacy issues?

    After some GMAC/RFC deals wrapped by FGIC began to receive settlement payments in the January remittance (SCI 7 February), this month and the next should see further cash flow through for the remaining bonds. Additional returns are also expected to emerge as a result of ongoing settlement negotiations.

    FGIC entered into a settlement with ResCap debtors, deal trustees and certain .......

    News 14 February 2014

  • Stable outlook for Canadian ABS

    Moody's is maintaining its stable outlook for Canadian ABS and RMBS in 2014 because of the improving Canadian economy, which should support already strong collateral performance. Assets backing Canadian ABS and RMBS are predominantly consumer receivables, whose performance correlates to economic conditions.

    "Rising Canadian GDP and employment bode well for the performance of securitised collateral," says Richard Hunt, a Moody's .......

    News Round-up 14 February 2014

  • 'Broken swap' restructurings progressing

    Restructurings are progressing, at different stages, for three UK Lehman RMBS.

    First, restructuring proposals have been implemented for ESAIL 2007-PR1 (SCI 5 February), with an aggregate amount of US$64.87m of proceeds converted into an amount of £39.78m. £1.5m converted realised termination amounts were credited to the restructuring costs ledger and the remainder to the distributable termination proceeds ledger, according to .......

    News Round-up 14 February 2014

  • RMBS tender withdrawn

    Fir Tree Partners has terminated its cash tender offer for six RMBS (SCI passim). All of the trusts that were subject to the offer are involved in active litigations against JPMorgan for breaches of representations and warranties. On those trusts where Fir Tree is acting as a directing holder, it says it will continue to vigorously seek to prosecute these .......

    News Round-up 14 February 2014

  • Best practices

    Noteholder communications, technology and clearing systems discussed

    Participants in SCI's latest corporate trust roundtable met in December to discuss post-closing best practices and noteholder communications. Technology and documentation challenges, as well as improvements to the clearing systems were among the topics covered. (The full SCI Corporate Trust Roundtable discussion can be downloaded here.)

    Corinne Smith, SCI: Investor concern over securitisation noteholder communications is increasing. I .......

    News Analysis 13 February 2014

  • NHG approach clarified

    S&P has published additional criteria for assessing the support from the NHG guarantee in Dutch RMBS. The criteria clarify the methodology the agency uses for the analysis of Dutch government support under the NHG programme.

    The criteria apply to all new and existing Dutch RMBS and covered bond deals where the benefit of the guarantee provided under the Dutch NHG .......

    News Round-up 13 February 2014

  • Mod claims delay Countrywide settlement

    Approval of the US$8.5bn Countrywide RMBS settlement (SCI 3 February) has been stayed by Justice Saliann Scarpulla of the New York State Supreme Court. On the appeal of objectors including AIG, 19 February has been set as the date for oral arguments on the issues raised by Judge Kapnick's decision.

    In addition to uncertainty over how to handle modification claims, .......

    News 12 February 2014

  • Stable outlook for Russian SF

    Moody's outlook for the performance of Russian RMBS and ABS in 2014 is stable. The agency's view is underpinned by robust collateral performance, continued - albeit slower - economic growth and stabilised house prices.

    Moody's expects the performance of Russian RMBS and ABS transactions to remain relatively stable, even though economic indicators have weakened and portfolio composition in recent transactions .......

    News Round-up 12 February 2014

  • Quieter start for US RMBS

    Bid-list activity eased off in the US RMBS market yesterday, with total non-agency BWIC volume of around US$240m. Dealer offering levels were mostly unchanged and the only non-agency market segment to see an increase in activity was fixed-rate mortgages.

    "One notable list is in focus, consisting mostly of strong performing, relatively clean prime senior fixed-rates, with guidance ranging from the .......

    Market Reports 11 February 2014
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