RMBS

  • Model integration issues persist

    Principia Partners has released the findings of a survey focusing on ABS, MBS and CDO investors' use of cashflow and waterfall models. The results show that while the growing commoditisation of issuer reporting, collateral performance and loan level data has benefitted the modelling of cashflows, it is not enough to lighten the burden investors carry when building and managing cashflow .......

    News Round-up 18 September 2013

  • Dutch NHI plan weighed

    The Dutch government is set to purchase - via the National Mortgage Institute (NHI) - up to €50bn of RMBS backed by NHG mortgages from banks over the next five years (SCI 4 April). The NHI will issue bonds guaranteed by the government to finance these purchases.

    Fitch suggests that the initiative is unlikely to materially reduce overall funding costs .......

    News Round-up 18 September 2013

  • NCUA's misrepresentation suit to proceed

    The Kansas District Court last week allowed the NCUA to proceed with its claims against a number of financial institutions in connection with the sale of RMBS to credit unions. The NCUA alleges that the originators of the loans underlying the RMBS systematically abandoned the stated underwriting guidelines, resulting in securities that were riskier than defendants disclosed.

    A Lowenstein Sandler .......

    Job Swaps 18 September 2013

  • Swap risk remedies discussed

    Providing collateral with significant cushion remains an important remedy to counterparty ineligibility in a structured finance cross-currency swap, according to Fitch. The agency adds that only allowing replacement as a remedy with little or no collateral posting beforehand exposes noteholders to extra risks.

    "Without collateral providing ample support, both structured finance and covered bond issuers can accumulate significant exposure to .......

    News Round-up 18 September 2013

  • Mexican reform 'credit negative' for RMBS

    The Mexican Congress is expected to pass a new fiscal reform bill that could take effect next year. The bill aims to increase tax revenues for the federal government, but is credit negative for outstanding Mexican RMBS because it would lead to higher delinquencies and higher losses, according to Moody's latest Credit Outlook.

    The bill calls for: a new 16% .......

    News Round-up 16 September 2013

  • Delivering unification?

    Common TBA proposal could ease GSE transition

    The concept of a unified conventional TBA deliverable for the GSEs has gained traction recently. Such a move could mark a first step towards unifying the GSEs themselves, which is one of many GSE reform options under discussion.

    Freddie Mac's securities consistently trade at a lower price than those of Fannie Mae and, despite compensating lenders with guarantee fee rebates, .......

    News Analysis 13 September 2013

  • NCR proposals 'credit positive'

    The French government is proposing to create a National Credit Registry (NCR) that captures individual consumer loan indebtedness. Moody's notes in its latest Credit Insight publication that the creation of such a registry is credit positive for most French auto ABS, consumer ABS and RMBS, as it will improve the ability of lenders to assess borrower affordability.

    The agency suggests .......

    News Round-up 13 September 2013

  • Richmond lawsuit 'not ripe'

    Wells Fargo and Deutsche Bank's lawsuit, on behalf of bondholders affected by Richmond's eminent domain proposal, was heard in Federal Court yesterday. The trustees are seeking preliminary and permanent injunctions against the city from implementing its seizure programme (SCI 13 August).

    US District Judge Charles Breyer stated the request to block the plan was "not ripe". SIFMA responded by stating: .......

    News Round-up 13 September 2013

  • CDO issuers file suit

    A number of CDO issuers - including Phoenix Light SF, Blue Heron Funding and Kleros Preferred Funding V - have filed a lawsuit in New York state court against Credit Suisse in connection with the purchase of over US$362m in RMBS. According to the complaint, the bank made numerous misrepresentations and omissions regarding the quality of loans underlying the RMBS.

    Job Swaps 13 September 2013

  • RMBS reshuffle targets trading focus

    Amherst Securities is changing its focus to concentrate more on facilitating day-to-day trading. To that end, Lidan Yang and Brian Landy will report directly to the non-agency and agency MBS desks, respectively, replacing departing head of RMBS strategy Laurie Goodman.

    Yang and Landy will be responsible for producing material for internal and external distribution with a greater focus on issues, .......

    Job Swaps 13 September 2013

  • Richmond continues with MRP plan

    Richmond, California city council yesterday voted 4-3 to continue exploring Mortgage Resolution Partners' (MRP) proposal to use the City's power of eminent domain to seize underwater mortgages (SCI passim). SIFMA responded by stating it continues to believe that the move is unconstitutional and "would do much more harm than good" in the local Richmond community and across the country.

    The .......

    News Round-up 12 September 2013

  • Strong start for secondary RMBS

    US RMBS BWIC volume reached US$1.3bn yesterday, after a particularly quiet session to end last week. Non-agency supply stood at more than US$800m, with adjustable-rate bonds dominating activity.

    SCI's PriceABS data lists price talk on several option ARM tranches, such as SAMI 2006-AR5 4A1, from yesterday's session. That tranche was talked in the low/mid-50s and mid-50s, having first .......

    Market Reports 10 September 2013

  • Ginnie-guaranteed conduit prepped

    The Federal Home Loan Bank of Chicago plans to issue securities guaranteed by Ginnie Mae and backed by mortgages originated by member financial institutions. The new conduit product - dubbed MPF Government MBS - is designed to provide mortgage lenders with a new option when creating mortgage products for their home-buying customers. Lenders will be able to choose whether to .......

    News Round-up 10 September 2013

  • Allonhill team, technology acquired

    Stewart Lender Services has acquired key assets of Allonhill, adding due diligence, loan quality reviews, compliance solutions and servicer performance management to its suite of services. Allonhill's team will move over to Stewart as part of the transaction and ceo Sue Allon will become vice chairman at Stewart and will lead the company's capital markets efforts.

    .......

    Job Swaps 10 September 2013

  • Bank agrees to RMBS settlement

    Barclays Bank will pay US$36.1m to settle allegations that it financed, purchased and securitised residential loans that were presumptively unfair under Massachusetts law. Similar actions against Morgan Stanley, Goldman Sachs and RBS have already achieved over US$214m in settlements.

    Barclays will pay more than US$25m for principal reduction and related relief, approximately US$2m to compensate cities and towns, approximately US$1m .......

    Job Swaps 10 September 2013

  • Reporting compliance enabled

    The ECB has enhanced the loan-level reporting requirements for RMBS and SME ABS that are used as collateral in Eurosystem monetary policy operations but are unable to satisfy the previously announced implementation timeline. The enhancements aim to ensure a smooth transition to full compliance while ensuring a level playing field between RMBS and SME ABS at different stages of the .......

    News Round-up 9 September 2013

  • Vegas council rejects eminent domain use

    The North Las Vegas city council has rejected a plan promoted by Mortgage Resolution Partners (MRP) to use eminent domain to seize underwater mortgages from securitisation trusts. The vote to oppose the plan was unanimous.

    .......

    News Round-up 6 September 2013

  • RMBS BWIC volume returns

    US non-agency RMBS secondary supply began to pick back up again yesterday. BWIC volume for the session was over US$650m, with SCI's PriceABS data listing tranches from vintages as early as 1998.

    IMCHE 98-1 A5 was talked in the low-pars, while another PriceABS debutant from the 1990s - MLNHE 1999-1 A1 - was talked in the mid-80s. Most .......

    Market Reports 5 September 2013

  • REIT names new cfo

    AG Mortgage Investment Trust has appointed Brian Sigman as cfo, replacing Frank Stadelmaier who will continue to serve as a director. Sigman also becomes the REIT's principal accounting officer and treasurer.

    Sigman was previously cfo at Newcastle Investment Corp and served as md of Newcastle's external manager, an affiliate of Fortress Investment Group. Before joining Newcastle he was a senior .......

    Job Swaps 5 September 2013

  • Spanish RMBS bond switches touted

    Using European DataWarehouse (ED) loan-level data, Deutsche Bank European securitisation analysts have examined the credit quality of 97 Spanish RMBS to uncover the extent of stressed mortgages across the sector. They identify relative value based on the ratio of credit enhancement relative to liquidation loss.

    The 97 deals in the sample account for 85% by volume of Spanish investor-placed RMBS .......

    News 4 September 2013

  • RMBS concentration concerns rising

    European RMBS issuance has been limited so far this year, with the bulk of supply coming from a handful of Dutch programmes. The lack of paper has sparked concerns over concentration risk, which may force investors to look elsewhere.

    European primary issuance has been focused on a handful of sectors, meaning that a growing number of investors are reaching their .......

    News 4 September 2013
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