RMBS

  • Compounded calculations

    First RMBS tied to Sonia index issued

    The first RMBS to use the recently introduced Bank of England Sonia index to calculate the interest paid on sterling floating rate notes closed last month. Nationwide’s Silverstone Master Issuer Series 2022-1 is set to be the first of many securitisations to link to the new index because it simplifies the calculation of compounded Sonia.

    “The index method .......

    News Analysis 9 February 2022

  • Agencies win 'valid-when-made' cases

    Sector developments and company hires

    Agencies win ‘valid-when-made’ cases
    The US OCC and FDIC yesterday received favourable court rulings in cases challenging their ‘valid-when-made’ rules. In each case, the plaintiffs were three states – California, Illinois and New York – challenging the validity of the rulemakings.

    The states' attorney generals alleged that both federal agencies violated the Administrative Procedure Act. In particular, the plaintiffs .......

    Market Moves 9 February 2022

  • KIS embraces asset management

    Sector developments and company hires

    Kuvare Insurance Services (KIS) has launched a third-party asset management business. Over the past two years under the leadership of president and cio Brian Roelke, KIS has built a seasoned team of insurance industry professionals and asset class specialists to drive portfolio performance across Kuvare’s operating companies. The firm now plans to extend its experience across private asset-backed and structured .......

    Market Moves 8 February 2022

  • Wider spreads coming

    European ABS/MBS market update

    The hawkish pivot of the ECB, combined with lingering inflation-driven volatility conspired to drive spreads wider and dampen activity in the European ABS/MBS primary market over the past week. The two transactions in the near-term visible pipeline will have to scramble to price against the currently strained market backdrop.

    Finnish auto ABS Tommi 2 (LT Autorahoitus) is due .......

    News 7 February 2022

  • MBS meltdown

    Fed ends MBS purchases, will reduce portfolio

    MBS yields have risen 15bp since the beginning of the year and are set to rise at least another 15bp and probably more, say market analysts.

    Mortgage securities have been buffeted by a combination of inflationary pressures and the rapidly attenuating Fed MBS purchase programme.

    Things could also turn a lot worse if the Fed decides to hike rates more often and to run .......

    News 3 February 2022

  • Big business

    Strategic shift favours alternative credit M&A activity

    The alternative credit industry might be at an inflection point in its development, with a decisive change anticipated in M&A activity in terms of the dominant acquirer from a financial to strategic buyer. Such a transition would inevitably benefit leading alternative credit managers.

    “After five years of real and incredible growth in alternative credit acquisitions, we have witnessed .......

    News Analysis 3 February 2022

  • Maltese SME guarantee inked

    Sector developments and company hires

    Bank of Valletta and the EIB Group have renewed their partnership to support the business needs of SMEs in Malta. Under this new agreement, the bank will provide an additional €28m to Maltese SMEs on favourable terms and with long tenors over the next two years.

    The favourable conditions on the loans are achieved through risk transfer, implemented by combining .......

    Market Moves 1 February 2022

  • Inflection Point?

    European ABS/MBS market update

    The European ABS/MBS primary market has been hit by macro volatility this week. While the previous week saw healthy investor demand and firm pricing (SCI 21 January), the current tense backdrop of central banks unwinding and major geopolitical tensions, appears to have affected spreads.

    “The primary market has generally been very volatile this week,” notes one ABS/MBS .......

    News 28 January 2022

  • Multi-family moves

    SitusAMC Insights speaks up on the US multi-family market

    Senior director and head of SitusAMC Insights Peter Muoio and svp Jennifer Rasmussen give their views on the multi-family scene and CMBS market heading into 2022 

    Q. What is the current picture in the multi-family MBS market and how do you expect it to look in 2022?

    PM: The apartment market is in good shape fundamentally with strong investor interest. Investors see .......

    The Structured Credit Interview 27 January 2022

  • New hires

    Sector developments and company hires

    Greystone has announced several new senior hires as it continues to grow its CMBS platform. Jared Noordyk and Natalie Grainger will be joining the firm as head of securitisation and cco, respectively, and will report to head of CMBS, Rich Highfield Noordyk will join the firm from SitusAMC, where he served in a senior role for its CRE Advisory group working .......

    Market Moves 26 January 2022

  • New members

    Sector developments and company hires

    DBRS Morningstar has appointed two new independent non-executive members to its board of directors – Joseph M. Donovan and Katherine L. Frey. Both industry veterans, Donovan presently serves in similar roles on the board of directors at STORE capital and Trip Rail Holdings. Frey previously held role of md at Moody’s, and before this worked on municipal finance, derivatives and .......

    Market Moves 24 January 2022

  • Mortgage marvel

    Sharp 2021 drop in foreclosure/delinquency - serious delinquency still elevated

    At the end of 2021, mortgage foreclosures had hit an all-time record low while the delinquency rate was only 0.10% higher than the historic low of 3.28% hit in February 2020 - just before the pandemic hit - according to data released this morning by Black Knight.

    This constitutes a dramatic turnaround from the early days of Covid 19. The delinquency rate, .......

    News 21 January 2022

  • Primary primary

    European ABS/MBS market update

    Focus remained on the primary market in European ABS/MBS this week. Another swathe of new issues on offer meant secondary had to again take a back seat.

    Five deals priced on the week. All were RMBS and all met with healthy investor demand ensuring support for continued tight levels throughout the stack.

    Yesterday saw two deals print – Elstree Funding .......

    News 21 January 2022

  • Community-focused RMBS prepped

    Sector developments and company hires

    Community-focused RMBS prepped

    Change Lending is in the market with its inaugural RMBS – the US$297.26m CHNGE Mortgage Trust 2022-1. Change is certified by the US Treasury as a Community Development Financial Institution (CDFI). As such, the firm is required to lend at least 60% of its production to certain target markets, including low-income borrowers or other underserved communities.

    The .......

    Market Moves 21 January 2022

  • Junior tranche guaranteed

    Sector developments and company hires

    Junior tranche guaranteed

    The EIB Group and Banco BPM have joined forces to support the working capital requirements and investments of Italian SMEs hit by the Covid economic crisis. In the first operation of this type in Italy, the EIB and the EIF will provide a guarantee of €91m on a junior tranche of a synthetic securitisation that references a portfolio of .......

    Market Moves 20 January 2022

  • UniCredit unveils ARTS

    Sector developments and company hires

    UniCredit, in cooperation with the EIB Group, has finalised a new synthetic securitisation under its Asset Risk Transfer Sharing (ARTS) programme. The transaction references a circa €2bn portfolio of Italian SME and mid-cap loans, with the EIF guaranteeing the mezzanine tranche, which is counter-guaranteed by the EIB. The capital freed up by the operation will be used to deploy €720m .......

    Market Moves 18 January 2022

  • New leadership

    Sector developments and company hires

    Crestbridge has appointed Martin Lambert as its new head of UK operations following the retirement of former boss Paul Windsor. Lambert will join the firm with more than 30 years of experience in the field, having most recently served as partner at Grant Thornton. Based in London, Lambert will work as part of the senior leadership team to continue its .......

    Market Moves 17 January 2022

  • DTI ratios eyed

    Affordability changes could 'increase default risk'

    Proposed changes to residential mortgage affordability testing in the UK would increase first-time buyers’ (FTBs) access to mortgage credit and support UK home prices. However, Fitch suggests that the changes could increase default risk for some borrowers through higher debt-to-income ratios, a key attribute considered in its RMBS rating analysis.

    The Bank of England’s Financial Policy Committee (FPC) .......

    News 14 January 2022

  • Strong start

    European ABS/MBS market update

    European ABS/MBS got fully underway for 2022 over the past week. Both primary and secondary markets saw strong execution and a building pipeline.

    The first two new issues of the year are due to price today – Dutch BTL RMBS Jubilee Place 3 and UK non-conforming RMBS Tower Bridge Funding 2022-1. The former saw its class A spread .......

    News 14 January 2022

  • Navient agrees multi-state settlement

    Sector developments and company hires

    Navient agrees multi-state settlement

    Navient has reached agreements with 39 US state attorneys general to provide relief totaling US$1.85bn to resolve their multi-state litigation and investigations in connection with allegations of unfair and deceptive student loan servicing practices and abuses in originating predatory student loans. In the agreements, Navient expressly denies violating any law - including consumer-protection laws - or causing .......

    Market Moves 14 January 2022

  • Texas rising

    New Texas Capital broker dealer eyes securitization

    Texas Capital Bank has launched a broker dealer subsidiary, which is expected to extend its reach to the securitization market before the end of this year, says the Dallas-based bank.

    “The way we’re thinking is that securitization would be the logical extension of our business. It would not be surprising to see us as the co-manager or even a lead manager on .......

    News 13 January 2022
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