RMBS

  • 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

  • Active start for non-agency RMBS

    The secondary US non-agency RMBS market has had an active start to the week, boosted by a CDO liquidation containing vintage mezzanine subprime collateral. A drop in supply was observed in fixed rate bonds, however.

    One notable subprime name out for the bid yesterday was PPSI 2005-WCW2 M3, which was talked in the high-40s. The tranche last appeared in SCI's .......

    Market Reports 21 May 2013

  • Specialised depositary 'critical' for Russian MBS

    Specialised depositary and management company roles are critical for Russian RMBS transactions, Moody's notes. Failure to adequately perform these functions may lead to losses for the mortgage agent and, in some cases, default under the notes.

    "To reflect the importance of these roles, we evaluate the entities acting as specialised depositary and management company as part of our rating analysis," .......

    News Round-up 21 May 2013

  • Mortgage, risk management capacity strengthened

    Treliant Risk Advisors has expanded its mortgage and risk management capacity with five financial services hires.

    John Ward joins the firm as senior director. He is a risk management consultant with broad experience in building and re-engineering diverse financial services industry businesses. Previously, he worked at Citibank for almost 30 years in the derivatives, loan sales and structured credit markets.

    Job Swaps 21 May 2013

  • REIT beefs up in operations

    Annaly Capital Management has named Glenn Votek as chief administrative officer. He brings over 20 years of financial and operational experience, with particular expertise in risk management, capital raising, liability management and regulatory oversight. He will report to Kevin Keyes, Annaly's president.

    Votek joins from CIT Group, where he was an evp and treasurer since 1999 and president of consumer .......

    Job Swaps 21 May 2013

  • ResCap plan agreed

    Ally Financial has entered into a comprehensive plan support agreement with the Residential Capital estate and its major creditors to support a Chapter 11 plan in ResCap's Chapter 11 cases. The plan will settle all existing and potential claims between Ally and ResCap and all potential claims held by third parties related to ResCap that could be brought against Ally .......

    News Round-up 20 May 2013

  • Spanish RMBS ratings reviewed

    Fitch has downgraded 97, affirmed 194 and upgraded three tranches from 80 Spanish RMBS. The agency has also maintained its rating watch negative placement on seven tranches.

    The transactions affected by these rating actions were previously placed on rating watch negative, following the publication of revised criteria assumptions for Spanish RMBS (SCI 21 March). During the course of the review, .......

    News Round-up 20 May 2013

  • Mortgage specialist enlisted

    Keeyeol Nam has joined Tilden Park in New York as md to lead a team trading agency mortgages and mortgage derivatives. He was previously head of structured products at DB Capital Management and has also worked at RBS, where he was svp.

    .......

    Job Swaps 20 May 2013

  • Freddie sale meets strong demand

    Further details have emerged on the US$1bn-plus US RMBS non-agency bid-list put out by Freddie Mac earlier this week (SCI 14 May). The collateral consisted mostly of subprime and adjustable rate prime or Alt-A loans, with all of the bonds originated in 2005 or earlier.

    The list was announced at the start of the week and scheduled to trade on .......

    Market Reports 17 May 2013

  • Co-op RMBS on review

    Moody's has placed on review for downgrade the ratings of 28 tranches in eight UK RMBS sponsored by Co-operative Bank. The rating actions follow the agency's downgrade of Co-operative Bank from A3/Prime-2 to Ba3/Not Prime on 9 May.

    Moody's believes that the affected RMBS transactions are exposed to increased payment-disruption risk, following the downgrade of Co-operative Bank. The ratings in .......

    News Round-up 17 May 2013

  • Greek country ceiling raised

    Fitch has upgraded 24, affirmed five and downgraded one tranche from 12 Greek structured finance transactions (two ABS and 10 RMBS). In addition, the three tranches of Lithos Mortgage Finance have been placed on rating watch evolving (RWE), pending the outcome of investigation into the transaction's recent performance.

    The action follows the revision of the country ceiling for Greece to .......

    News Round-up 17 May 2013

  • Differences of opinion

    RMBS rep and warranties scrutinised

    Year-to-date US non-agency RMBS issuance stands at US$7.7bn, with volumes forecast to reach US$20bn by year-end, well in excess of 2012's US$6.9bn total. However, the debate over required credit enhancement and representation and warranties continues.

    A dozen prime and subprime non-agency RMBS priced in the first four months of 2013. Recent Interactive Data commentary highlights that the timing of these .......

    News Analysis 17 May 2013

  • Canadian loss framework finalised

    Fitch has finalised its new model framework for estimating losses on prime Canadian residential mortgage pools. This follows the conclusion of the consultation period for the exposure draft that the agency published in March (SCI 5 March).

    Fitch will apply the new model to analyse both new and existing ratings for covered bond programmes, as well as those supporting ABCP .......

    News Round-up 16 May 2013

  • Cantor eyes primary CDO desk

    Cantor Fitzgerald has made four key hires across the CLO, CDO and structured credit segment. Florian Bita joins the team in New York, while Jason Eppleston, Martin Deville and Damian Horton join Cantor Fitzgerald Europe in London.

    Bita joins Cantor as md and is responsible for US CLO secondary trading. In addition, he will help build out the firm's primary .......

    Job Swaps 16 May 2013

  • NY firm adds SF lawyer

    Hunton & Williams has added Brent Lewis to its structured finance and securitisation practice as counsel in New York. Lewis' practice focuses on corporate finance and securitisation. He represents issuers, underwriters, servicers, originators and others in public and private securitisations involving residential and commercial mortgage loans.

    .......

    Job Swaps 15 May 2013
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