RMBS

  • New home for Euro ABS trader

    Daniel Turner has joined Ellington Management Group as md in London. He takes responsibility for European ABS.

    Turner was previously a partner at Chenavari Investment Managers, where he focused on European ABS and RMBS. He has also worked at European Credit Management, ING and Capital Economics.

    .......

    Job Swaps 28 November 2013

  • Spanish severities highest in tourist belt

    Moody's loss severity calculations on repossessed Spanish properties show highest loss severities on the Mediterranean coast, Andalucia and the Canary Islands - albeit within its assumptions for defaulted loans. While this is not expected to lead to any rating actions on Spanish RMBS, high loss severities on repossessed mortgaged properties are credit negative, the agency notes.

    Moody's compared the prices .......

    News Round-up 28 November 2013

  • Driving disintermediation

    Credit availability facing further headwinds?

    Global regulatory initiatives are fostering bank disintermediation in the securitisation market. But creeping oversight of the shadow banking system could also further reduce the availability of credit.

    The recession has played out unequally, according to Tamara Box, head of structured finance at Reed Smith. "If a borrower is in prime territory, they're fine; otherwise, they're not. Current monetary and economic .......

    News Analysis 28 November 2013

  • QM standards to limit mortgage credit

    The new ability-to-repay (ATR) rule and qualified mortgage standards under the US Truth in Lending Act could mean that tight access to mortgage credit will continue, according to S&P. Beginning with loan applications accepted on 10 January 2014, the rule will require loan originators to make a reasonable, good faith determination of a borrower's ability to repay a loan. It .......

    News Round-up 27 November 2013

  • Loan mod growth to continue

    S&P has analysed which forms of mortgage loan modification have the best success rate when it comes to minimising borrower defaults. Rate reductions appear to be the most common form of modification, but principal reductions offer the most benefit to borrowers looking to avoid default.

    Both modifications pose different levels of risk to RMBS cashflows, however. "Just as no two .......

    News Round-up 27 November 2013

  • Liquidation timelines lengthening

    Morningstar Credit Ratings forecasts that, given current market dynamics, it will take 49 months to clear US RMBS distressed inventories. This forecast is five months higher than the agency's 2Q13 forecast and has increased by eleven months from its forecast one year ago.

    The overall distressed inventory has decreased by 20% from one year ago, while the number of liquidations .......

    News Round-up 27 November 2013

  • ESAIL 2007-5 restructuring implemented

    Eurosail-UK 2007-5NP bondholders yesterday duly passed the extraordinary resolutions relating to the proposed restructuring of the £662m RMBS and the issuer is set to implement the first stage of the process (SCI 6 November). The transaction is the second UK Lehman RMBS deal to be restructured to resolve 'broken swap' issues, but the first to have required bondholder meetings to .......

    News Round-up 27 November 2013

  • SCI conference line-up unveiled

    Final panellist line-ups have been announced for SCI's 7th Annual Seminar, which is taking place on 4 December in London. The event is being held at Reed Smith's offices at Broadgate Tower, 20 Primrose Street, EC2A 2RS.

    This conference will focus on the 'new normal' appearing in the structured credit markets as banks continue to dispose of risky assets and .......

    News Round-up 27 November 2013

  • FONE positive for TFOVIS RMBS

    The Mexican Lower House of Congress recently approved the governing laws for the just-created Contribution Fund for Educational Payroll and Operating Expenses (FONE). Anticipated to take effect in 2015, the reform would make the Mexican government directly responsible for the payrolls of 70%-75% of all teachers in public schools, thereby removing the responsibility from the states.

    Moody's notes in its .......

    News Round-up 26 November 2013

  • GSE progress report released

    The FHFA has issued a progress report on the initiatives outlined in the 'Strategic Plan for the Enterprise Conservatorships' and the '2013 Conservatorship Scorecard'. In particular, it says that important progress has been achieved towards the establishment of a new secondary mortgage market infrastructure and the contracting of Fannie Mae and Freddie Mac's dominant presence in the marketplace.

    Among the .......

    News Round-up 26 November 2013

  • LMI sensitivity examined

    The sensitivity of Australian triple-A rated prime RMBS to lenders' mortgage insurance (LMI) providers has continued to decrease, S&P reports. The agency adds that subordinated RMBS credit quality remains highly dependent on the credit quality of LMI providers and the continuation of their strong claims pay-out ratios.

    Without giving credit to LMI, about 82% of triple-A rated prime RMBS are .......

    News Round-up 26 November 2013

  • Bank settlement exposure analysed

    Bank of America, Citi, Goldman Sachs, JPMorgan, Morgan Stanley and Wells Fargo together have paid or set aside more than US$45bn for mortgage representation and warranty issues and have incurred roughly US$50bn in combined legal expenses since 2009, according to S&P figures. This is in addition to another roughly US$30bn of expenses and mortgage payment relief to consumers to settle .......

    News Round-up 26 November 2013

  • MSR transfers changing servicing landscape

    Large portfolios of non-agency RMBS mortgage servicing rights (MSRs) continued to move from banks to non-bank servicers in 3Q13. Fitch expects additional large MSR transfers to occur by year-end as the banks continue to offload defaulted/high-risk loans.

    These transfers have contributed to many changes in the servicing landscape as non-bank servicers now have higher subprime delinquency rates and use principal .......

    News Round-up 26 November 2013

  • TPO performance improving

    Recent residential mortgages initiated by third-party brokers and correspondent lenders have been performing nearly as well as the retail loans that the ultimate originators source directly from the borrower, Moody's reports. Pre-financial crisis third-party originated loans (TPOs) defaulted far more frequently than retail loans.

    Moody's notes that the narrower gap in recent loan performance is due to tighter lending and .......

    News Round-up 25 November 2013

  • Former credit chief sentenced for MBS fraud

    Credit Suisse's former global head of structured credit, Kareem Serageldin, has been sentenced to 30 months in prison for his part in hiding more than US$100m in losses in an MBS trading book at the bank (SCI 20 February 2008). The bonds included subprime RMBS and CMBS.

    Serageldin's manipulation of bond prices contributed to Credit Suisse taking a US$2.65bn write-down .......

    Job Swaps 25 November 2013

  • Obstacle to Watt's confirmation removed

    The route has been cleared for Mel Watt to be confirmed as the next FHFA director after the US Senate approved rules to allow nominees to be confirmed with a simple majority vote. After receiving 56 votes on his first nomination attempt (SCI 1 November), Watt should have sufficient support this time around, although he might not be confirmed until .......

    News 22 November 2013

  • Positive run continues for credit funds

    Hedge funds saw a fourth consecutive month of strong inflows in October. Investors allocated an estimated US$9.3bn to the sector during the month, according to eVestment figures, totalling US$56.4bn during the four-month streak.

    Last month's performance gains increased hedge fund AUM by an additional US$47.6bn. The estimated asset weighted performance of 1.74% is the industry's largest since December 2010. With .......

    News Round-up 22 November 2013

  • Lehman RMBS restructuring completed

    Fitch and S&P have upgraded the Mortgage Funding 2008-1 class A1 notes (to AA/AA from BB/B- respectively) and assigned ratings to additional classes of A2, A3 and B1 notes. The move reflects the further restructuring of the non-conforming RMBS on 19 November, following the first phase of restructuring on 23 August.

    Under the second master restructuring agreement, the existing class .......

    News Round-up 22 November 2013

  • Second city considers eminent domain

    The city of Irvington, New Jersey, is set to perform a legal study of eminent domain as a way of buying mortgages that currently are in foreclosure. The New Jersey chapter of the American Civil Liberties Union is said to support the Irvington plan, as the city has been hard-hit by foreclosures. Nearly 1,800 homes have been foreclosed upon since .......

    News Round-up 21 November 2013

  • Aussie master trust proposals examined

    The Australian Prudential Regulation Authority's recent update of its proposed revision of the Prudential Standard APS 120 includes provision for master trust issuance (SCI 12 November), which should enable take-up of this structure in the country, Fitch says. But the agency notes that APRA's conditions may prevent Australian master trusts using credit-positive structural features prevalent in other jurisdictions.

    APRA has .......

    News Round-up 21 November 2013

  • FedTrade prepped for MBS

    The New York Fed's open market trading desk is set to test its ability to conduct agency MBS transactions over its proprietary trading platform FedTrade. It plans to conduct an exercise consisting of a series of small value purchase and sale operations of agency MBS beginning today (21 November), running through January 2014.

    The operations will not exceed US$500m in .......

    News Round-up 21 November 2013
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