RMBS

  • Buy-back targets mezz bonds

    UCI has launched a fixed price tender offer for 11 Spanish RMBS tranches from across the UCI 10 to UCI 17 deals. The bank is offering to purchase up to €300m of the €3.4bn currently outstanding across the bonds.

    This is the seventh tender for UCI bonds, with the first being in August 2009 and the last in November 2010. .......

    News Round-up 30 May 2013

  • New name for investment firm

    UCM Partners is rebranding as Semper Capital Management, effective from 1 June. The firm's senior management, investment personnel and ownership remain unchanged.

    The firm specialises in RMBS, CMBS and ABS, offering investors access to a range of securitised debt investment platforms, from private absolute return to public index-based strategies.

    .......

    Job Swaps 30 May 2013

  • Short sales trump loan mods

    The remedy of choice for underperforming residential mortgage loans has undergone a sea-change of sorts over the last several months for US RMBS servicers, according to Fitch's latest quarterly index for the sector. Once the norm, loan modifications have slowed notably, while short sales have become the proverbial order of the day.

    For non-agency loans, short sales by bank servicers .......

    News Round-up 29 May 2013

  • Better RMBS data provides Irish guidance

    The European DataWarehouse (ED) is benefitting sectors that had previously suffered from a paucity of information, such as peripheral RMBS. One such jurisdiction is Ireland, where greater access to data is set to facilitate more rigorous fundamental analysis and aid in the trading of bonds.

    With late-stage 90-day plus arrears averaging 17.5% for prime Irish RMBS, the sector remains particularly .......

    News 29 May 2013

  • MILAN methodology updated

    Moody's has updated its methodology for rating RMBS using the MILAN framework, including the introduction of a new approach for the analysis of mixed-pool mortgage loan portfolios. At the same time, the agency has updated its related approach to originator assessments.

    In EMEA Moody's uses a unified approach when analysing a mixed-pool portfolio (a portfolio comprising two sub-pools of mortgage .......

    News Round-up 29 May 2013

  • Home price warning issued

    Fitch believes the recent US home price gains recorded in several residential markets are outpacing improvements in fundamentals and could stall or possibly reverse. Many of these areas are in California, which has seen price increases of 13% over the last year.

    In many markets, fundamentals are improving as unemployment rates continue declining, while low prices and low interest rates .......

    News Round-up 29 May 2013

  • Self-employed IO loan concentration examined

    Moody's expects self-employed borrowers' exposure to current UK economic weakness not to have a significant impact on the creditworthiness of UK RMBS, since over three-quarters of RMBS loans are made to employed borrowers. But, in addition to their exposure to current UK economic weakness, self-employed borrowers remain particularly at risk from a potential rise in interest rates because of the .......

    News Round-up 29 May 2013

  • Dutch RMBS fundamentals eyed

    Statistics Netherlands (CBS) has reported a house price decline in April of 1.4% month-on-month and 7.6% year-on-year for the country. Dutch house prices now stand at a 10-year low and 19% below their 2008 peak, with the rate of price declines continuing to accelerate. Combined with the current 17-year high in the unemployment rate, S&P says this suggests that the .......

    News Round-up 29 May 2013

  • Weakening enforcement highlighted

    The news that a delinquent borrower in a repossessed property belonging to a Spanish RMBS (Mixto III) will be allowed to remain in their home under recent Andalucian legislation highlights the risk of weakening mortgage enforcement in Spain, Fitch says. The Autonomous Community of Andalucia last month approved the legislation (Decreto ley 6/2013), which gives it power to control the .......

    News Round-up 29 May 2013

  • Euro mezz ABS takes a breather

    The European ABS sector showed a muted response to the volatility seen in equity markets last week. Granite triple-B prices were down slightly on Thursday and Friday.

    "After what seems like a very long period characterised by strong unflinching demand for bonds, very little supply and consequently steadily increasing prices, a slight pause in this dynamic has been notable," ECM .......

    News Round-up 28 May 2013

  • APAC ratings remain stable

    Fitch reports that Asia Pacific (APAC) structured finance (SF) tranches remained largely stable in 2012, with over 95% of tranches maintaining their ratings or being paid in full (PIF), compared with 89% in 2011. As in previous years, most downgrades (92.8%) were made to Japanese transactions, three-quarters of which were CMBS.

    Ratings from two credit-linked notes referencing a Japanese government .......

    News Round-up 28 May 2013

  • Origination acquisition eyed

    Ellington Management Group has appointed Steven Abreu to a new role as head of mortgage originations. He will lead the firm's efforts to acquire one or more mortgage originators and oversee both agency and non-agency mortgage originations, including refinancings, purchase loans and retention of servicing rights.

    Abreu was previously president of GMAC Mortgage from 2009. Prior to that, he was .......

    Job Swaps 28 May 2013

  • Property price indexing introduced

    Fitch is set to introduce property price indexing into its analysis of Australian RMBS in the near future. The aim is to create a more accurate picture for investors of the value of security backing the underlying loans, as well as allow Fitch a more systematic assessment of regional variations in house price changes when it assesses recoveries.

    Fitch notes .......

    News Round-up 28 May 2013

  • Statute of limitations analysis recommended

    Two recent New York State Supreme Court decisions regarding claims arising from US RMBS representations and warranties (R&Ws) breaches significantly differed in their analyses of the applicable statute of limitations (SOL), S&P reports. The agency consequently believes that investors should consider both cases when reviewing such transactions.

    The first decision was when the defendant's motion was granted on 10 May .......

    News Round-up 24 May 2013

  • Caution emerging in secondary RMBS?

    Further details have emerged regarding the US$8.7bn non-agency RMBS BWIC scheduled to trade on 28 May (SCI 23 May). The list is composed of mostly adjustable-rate collateral, with over half being Alt-A paper. Bidding will be conducted on an all-or-none basis.

    Interactive Data notes that although the list comprises similar collateral to the list put out by Freddie Mac on .......

    News Round-up 24 May 2013

  • Freddie unveils modified PCs

    Freddie Mac has begun securitising certain performing modified mortgage loans held in its mortgage-related investments portfolio. To be eligible for securitisation, loans need to be current for at least six consecutive months.

    The modified mortgage loans are being pooled into new Freddie Mac fixed-rate modified participation certificates (Modified PCs) with new 'MA-MD' prefixes. They are not TBA deliverable and do .......

    News Round-up 24 May 2013

  • ResCap plan 'net negative' for RMBS

    Ally Financial, along with Residential Capital and ResCap's major creditors, has completed the next step in implementing the comprehensive settlement agreement and Chapter 11 plan (SCI 20 May). ResCap filed a motion seeking court approval of the plan support agreement in the bankruptcy proceedings, which includes announcement of the terms of the Chapter 11 plan.

    The plan includes releases of .......

    News 24 May 2013

  • RMBS alpha

    Hedge fund appetite hinges on security selection

    Relative value opportunities in legacy US non-agency RMBS remain for credit hedge funds, despite significant price appreciation in the sector. Complexity of individual bonds means that security selection still offers a significant source of alpha.

    "Much of the beta in mortgage securities has disappeared since 2010, as the distressed sector has seen significant price appreciation. But the market is complex, .......

    News Analysis 24 May 2013

  • Ups and downs for US RMBS

    The primary focus in the US RMBS market yesterday was on the possible tapering of QE, given Fed chairman Ben Bernanke's scheduled testimony to Congress. The implication that QE will remain in place until year-end has given further impetus to the rally in risk assets, but sparked heavy selling in fixed-rate agency RMBS.

    Interactive Data reports that agency mortgage pass-throughs .......

    Market Reports 23 May 2013

  • Second agency upgrades MBIA

    Moody's has upgraded the insurance financial strength (IFS) ratings of MBIA Insurance Corporation (to B3 from Caa2), National Public Finance Guarantee Corporation (to Baa1 from Baa2), MBIA UK Insurance (to B1 from B3), MBIA Mexico (to B3 from Caa2) and MBIA Inc (to Ba3 from Caa1). The rating action also has implications for the various transactions wrapped by the MBIA .......

    News Round-up 22 May 2013

  • REIT subsidiary spun off

    Newcastle Investment Corp has spun off its New Residential Investment Corp subsidiary. New Residential is now an independent REIT trading on the New York Stock Exchange, primarily focused on investing in residential mortgage-related assets. Holders of Newcastle common stock have been electronically issued one share of New Residential common stock for each share of Newcastle common stock held.

    .......

    Job Swaps 22 May 2013
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