RMBS

  • RMBS vet appointed risk solutions director

    RiskSpan has named Don Brown as director of risk solutions. He has more than twenty years of trading experience and has previously worked at RBS, UBS, SwissRe Financial Products and Mizuho, trading both agency and non-agency RMBS, CDOs and CDS.

    .......

    Job Swaps 23 October 2013

  • Pomona eminent domain decision awaited

    Further details have emerged about Pomona, California's eminent domain proposal. The plan is the same as the one put forward by Mortgage Resolution Partners in other cities, with one exception: it will now allow short sales with a sale and lease-back option for homeowners after their mortgage has been taken from the private label RMBS trusts.

    The documents released by .......

    News Round-up 22 October 2013

  • Investment bank adds CLO vet

    Canaccord Genuity has appointed Sam Spackman as a CLO trader, further boosting its structured finance capabilities after a number of recent hires (SCI 3 September). He also has experience in ABS and RMBS.

    Spackman was previously CLO trading svp at Odeon Capital and has also served as structured products director at Katonah Debt Advisors, as structured credit analyst at Greywolf .......

    Job Swaps 22 October 2013

  • Back-up servicer concentration risk highlighted

    The growth of UK RMBS third-party servicer back-up servicing portfolios reflects awareness of the extra protection a back-up servicer (BUS) can provide against operational risk, Fitch says. However, an emerging trend for a small number of third-party servicers to hold a large proportion of back-up mandates could ultimately reduce the effectiveness of BUS appointments as risk mitigants, according to the .......

    News Round-up 22 October 2013

  • Revised Mexican reform bill welcomed

    Mexico's Lower House of Congress has passed the fiscal reform bill proposed by President Enrique Peña Nieto last month (SCI 16 September). Moody's suggests in its latest Credit Outlook publication that the Senate is likely to expedite approval of the bill, which would take effect next year.

    The fiscal reform bill approved by the Lower House differs significantly from the .......

    News Round-up 21 October 2013

  • APAC upgrades outweigh downgrades

    Upgrades (accounting for 3.7% of total rating actions) outnumbered downgrades (1.8%) across Fitch-rated Asia-Pacific structured finance deals in 3Q13. The agency reports that most ratings were affirmed during the period.

    There were five upgrades in Australia and three in Japan. Of the Australian upgrades, four were for tranches from an unsecured consumer loan transaction and were due to better-than-expected asset .......

    News Round-up 21 October 2013

  • SEC says Octans CDO investors 'misled'

    The US SEC has charged Harding Advisory and its owner Wing Chau for misleading investors in a CDO and breaching their fiduciary duties. The SEC alleges Chau and Harding compromised their independent judgement as collateral manager on Octans I CDO in order to accommodate trades requested by a third-party hedge fund - Magnetar Capital - whose interests were not necessarily .......

    Job Swaps 21 October 2013

  • Greek repurchases 'artificially stabilising' arrears

    Sponsor bank repurchases of mortgage loans from Greek RMBS deals are reaching high levels, totalling up to 65% of the original pool in some transactions, according to Moody's latest Credit Insight publication. The move is artificially stabilising arrears levels, which masks the true extent of the deterioration of Greek RMBS collateral credit quality.

    As long as banks continue to provide .......

    News Round-up 18 October 2013

  • Credit bureau move panned

    The South African government last month approved the removal of adverse credit information from the public records of borrowers with cured arrears. Moody's says in its latest Credit Insight publication that the move is credit negative for South African RMBS and ABS transactions because it will reduce the amount of information available to originators to assess the creditworthiness of new .......

    News Round-up 18 October 2013

  • Credit funds set for largest post-crisis inflow

    With concerns of a significant near-term taper by the US Fed removed, investors allocated the most to credit hedge fund strategies since August 2012, according to eVestment. The firm's hedge fund asset flow report for September shows that inflows to the sector surpassed US$60bn for the year in Q3, putting it on pace to see the largest annual inflow since .......

    News Round-up 18 October 2013

  • Nevada subprime settlement negotiated

    DB Structured Products will pay the state of Nevada US$11.5m as part of an agreement to resolve an investigation into its role in purchasing and securitising subprime and Alt-A mortgage loans. DB has also committed to changes in its securitisation practice.

    The settlement is the result of an investigation by Nevada Attorney General Catherine Masto into potential misrepresentations by New .......

    Job Swaps 18 October 2013

  • Russian mortgage proposal welcomed

    The Russian Ministry of Economic Development recently proposed several amendments to certain articles of the Federal Law 'On Mortgages', as well as the National Tax Code. Moody's notes that the proposed amendments are credit positive for future Russian RMBS issuance, as they will reduce interest rates on mortgage loans, improve mortgage loan affordability and increase the frequency with which participants .......

    News Round-up 17 October 2013

  • CCMA insufficient to solve Irish distress?

    A recent survey conducted by Moody's shows that Irish RMBS originators have welcomed the revised Irish Code of Conduct Mortgage Arrears (SCI 6 August), particularly with regard to clarifying the definition of 'not cooperating' borrowers and removing the ban on effective repossession. Irish lenders expect that the revisions will increase repossessions and reduce long-term delinquencies among not cooperating borrowers. An .......

    News Round-up 17 October 2013

  • RWN placements follow US rating action

    Fitch says it expects to take limited rating actions on US CMBS transactions as a result of its placement of the US sovereign rating on rating watch negative. Bonds in five deals are directly linked to the US rating and have already been placed on rating watch negative, while many others have exposure to defeased collateral and the US government .......

    News Round-up 17 October 2013

  • ARM, subprime names circulating

    US non-agency RMBS BWIC volume picked up yesterday to reach around US$560m, with a focus on ARM and subprime bonds. Bid-side levels appear to be firming across the ARM sector, with POAs up by two points and hybrids up by a point.

    One noteworthy name from the session was SABR 2006-FR1 A2C, which SCI's PriceABS data shows was .......

    Market Reports 17 October 2013

  • New hires to lead EM debt push

    Babson Capital Management has appointed Brigitte Posch and Ricardo Adrogue to lead its new emerging market debt investment team. Posch will be based in London and Adrogue will be based in Boston.

    Posch joins from PIMCO, where she was evp and head of emerging market corporates. Before that she established a Latin American securitisation and trading platform at Deutsche Bank .......

    Job Swaps 16 October 2013

  • EMEA downgrade trends discussed

    Fitch reports that asset underperformance was the dominant driver of EMEA structured finance (SF) downgrades since the onset of the credit crisis in 2007, accounting for 69% of negative rating actions. At the highest rating levels, asset underperformance is a far less dominant driver of rating downgrades, however.

    "This suggests that structured finance structures have operated as intended, with senior .......

    News Round-up 16 October 2013

  • Accounting change to hurt TBA liquidity?

    A new rule amendment being considered by the FASB, if adopted, is set to change the accounting treatment for TBA dollar rolls. The move could reduce the attractiveness of dollar rolls for some investors and thus lower liquidity in the market.

    The new guidance clarifies that a TBA dollar roll without stipulations would not result in the return of a .......

    News Round-up 15 October 2013

  • Greek flavour to RMBS secondary

    The periphery continues to outperform in secondary European RMBS. Among the bonds circulating on BWICs yesterday were a number of Greek tranches, where price talk is trending upwards.

    Among these bonds was the ESTIA 2 A tranche, which was talked at around 70, at 73-74 and at 78-79 during the session. The tranche was covered at 70.5 on 11 July, .......

    Market Reports 15 October 2013

  • Reduction in sovereign ceiling proposed

    S&P has published a request for comment on proposed changes to its methodology for assigning ratings above a sovereign's foreign currency rating on single-jurisdiction structured finance transactions. The proposal is designed to bring additional clarity and comparability to the agency's global approach for considering structured finance ratings above that of the sovereign.

    The proposed criteria apply a rating differential above .......

    News Round-up 15 October 2013

  • IRS impact anticipated

    In light of the ongoing US government shut-down, Kroll Bond Rating Agency says it has reached out to RMBS issuers to find out how they are handling the inability to execute IRS form 4506-T (Request for Transcript of Tax Return) and what impact it may have on both origination practices and origination volumes.

    While the underwriting guidelines of most lenders .......

    News Round-up 14 October 2013
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