RMBS

  • 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

  • Abenomics to have varied impact

    The Japanese structured finance market will perform well in 2014, according to Moody's, although the effects of 'Abenomics' for each sector may be varied (SCI 5 August). A continued strict lending and regulatory environment will ensure the good credit quality of Japanese RMBS and ABS will be maintained in 2014. At the same time, the performance of CMBS will benefit .......

    News Round-up 21 November 2013

  • Master trust performance to improve

    Moody's expects the performance of UK RMBS master trusts to improve in 2014. However, the agency notes that some borrowers will continue to struggle to make payments as a result of inflationary pressures on prices, as exemplified by recent energy price hikes.

    "We expect that the performance of UK RMBS master trusts will improve in 2014, on the back of .......

    News Round-up 21 November 2013

  • GSE reduction targets met?

    The retained portfolios of Fannie Mae and Freddie Mac stand at well below their US$552.5bn limit for year-end 2013. The GSEs are also believed to have already achieved their 2013 targets for reducing their non-agency mortgage-related assets.

    Per the GSEs' quarterly statements, the targeted reduction amount for non-agency mortgage-related assets was US$15.7bn for Freddie Mac and US$21.1bn for Fannie Mae. .......

    News 20 November 2013

  • Record settlement for RMBS claims

    JPMorgan has agreed to a settlement of US$13bn with the US Department of Justice to resolve federal and state civil claims arising from RMBS issued by JPMorgan, Bear Stearns and Washington Mutual prior to 1 January 2009. It is the largest settlement with a single entity in American history.

    The resolution also requires JPMorgan to provide relief to underwater homeowners .......

    Job Swaps 20 November 2013

  • Invitation to begin

    First deal heralds arrival of SFR securitisation

    The arrival of Invitation Homes 2013-SFR1 - the first-ever single-family rental (SFR) securitisation (SCI 1 November) - has finally provided the spark for the long-mooted REO-to-rental asset class in the US. Further issuances are expected, although the sector's success in the long-term will depend on several factors, not least changing home prices.

    "Single-family rental securitisations could become a considerable market. .......

    News Analysis 20 November 2013

  • JPM settlement is RMBS positive

    JPMorgan has agreed to make a payment of US$4.5bn to the 330 non-agency RMBS trusts issued by JPMorgan, Bear Stearns and Chase to settle mortgage repurchase and servicing claims (SCI 18 November). The settlement appears positive for senior mezzanine and subordinated triple-A tranches.

    Morgan Stanley RMBS analysts note that the settlement re-affirms the notion that put-back optionality is valuable in .......

    News 19 November 2013

  • Slow session for non-agency RMBS

    The US RMBS secondary market was dominated by agency paper yesterday, with non-agency BWIC supply remaining light. SCI's PriceABS data reveals a range of non-agency names out for the bid, although several were recorded as DNTs.

    Non-agency supply was mainly driven by senior adjustable-rate hybrids, with little in the way of fixed-rate or subprime paper. Despite .......

    Market Reports 19 November 2013

  • Dutch servicing strategies maturing

    Fitch reports that more effective mortgage servicing strategies originally developed in the UK are being adopted in the Netherlands in response to rising arrears. These sophisticated servicing strategies often focus on more timely and targeted intervention to prevent or remedy arrears, although factors such as cost concerns and data availability mean it is not clear that Dutch servicers can replicate .......

    News Round-up 18 November 2013

  • JPM, Bear Stearns RMBS claims settled

    JPMorgan has reached a US$4.5bn agreement with 21 institutional investors to make a binding offer to the trustees of 330 RMBS. The institutional investors have committed to support the settlement and requested that the trustees accept the settlement offer.

    The cash payment will settle all representation and warranty claims as well as servicing claims that have been or could have .......

    Job Swaps 18 November 2013

  • Single-family space targeted

    Blackstone has established B2R Finance to provide residential buy-to-rent mortgages for property investors, focusing exclusively on single-family home investors. Blackstone intends to securitise the loans provided.

    Blackstone has appointed John Beacham as president of B2R. He was previously head of single-family rental home finance at Deutsche Bank.

    Jeff Tennyson will serve as B2R's ceo. He has 20 years of experience .......

    Job Swaps 18 November 2013

  • Positive outlook for Aussie ABS, RMBS

    Moody's expects Australia's securitisation market to continue performing well in 2014, with issuance levels likely to remain similar to those seen in 2013. Specifically, RMBS will carry into next year the steadiness seen this year, as losses will remain low - even though delinquencies are anticipated to rise incrementally.

    The agency bases this view on its expectation for modest GDP .......

    News Round-up 15 November 2013

  • Ratings reviewed for swap linkage

    Moody's has placed on review for downgrade the ratings of 150 notes in 48 RMBS, 17 notes in 14 ABS and four notes in two CMBS due to swap counterparty exposure. At the same time, it has placed on review for upgrade three tranches in two RMBS transactions. The move follows the finalisation of the agency's swap linkage approach (SCI .......

    News Round-up 15 November 2013

  • Further Richmond case dismissed

    US District Court Judge Charles Breyer last week issued an order in the Bank of New York Mellon v. City of Richmond, California and Mortgage Resolutions Partners LLC case. The plaintiff sought to block Richmond from using its eminent domain authority to seize and restructure underwater mortgage loans.

    The order grants Richmond's motion to dismiss without prejudice, stating that the .......

    News Round-up 14 November 2013

  • Structured salesman joins in NY

    Brian Bowes has joined StormHarbour Securities in a structured products sales role in New York. He covers ABS, CLOs, CMBS and RMBS in the US as well as ABS and RMBS in Europe.

    Bowes was previously head of non-agency mortgage trading at KGS-Alpha Capital Markets. He has also worked for Hexagon Securities and UBS, where he focused on residential mortgages.

    .......

    Job Swaps 14 November 2013
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