RMBS

  • Increased volume as US RMBS reawakens

    The US RMBS secondary market yesterday shook off the lethargy with which it had been afflicted to spring back into action. Non-agency supply was particularly impressive, picking up after a quiet few days to reach US$662m in BWIC volume.

    "Secondary supply is finally picking up in the RMBS sector, after more than a week of muted volume. Dealer offering levels .......

    Market Reports 24 April 2013

  • FLS extension agreed

    The Bank of England and the UK Treasury have extended the Funding for Lending Scheme (FLS) by one year to January 2015. The aim is to provide participating lenders with confidence that they will be able to access funding on reasonable terms for longer in the light of continued uncertainty in the euro area.

    In determining the amount participants can .......

    News Round-up 24 April 2013

  • Small lenders to lose out under AOFM action?

    Moody's says it doesn't expect the end of the AOFM's investments in RMBS (SCI 10 April) to have any immediate impact on Australia's financial sector, given that improved market conditions have enabled lenders to issue RMBS without AOFM support. However, although the rebound in RMBS has been modest, the agency does not expect RMBS issuances to support the competitive positions .......

    News Round-up 24 April 2013

  • Private-label policy proposals released

    As part of its ongoing white paper series, the ASF has released a report entitled 'ASF Policy Proposals to Increase Private Capital in the US Housing Finance System'. The paper constitutes a concise summary of key policy proposals that can be implemented in the short term to expedite the process of bringing private capital back to the mortgage market by .......

    News Round-up 24 April 2013

  • Improved origination, servicing for Russian RMBS

    Stable performance and improving origination and servicing standards underpin Moody's current stable outlook on the Russian RMBS market, the agency reports. The sector has reached record levels due to new entrants and new products.

    Around 10 new Russian RMBS are expected to be issued in 2013, versus seven in 2012, with an anticipated volume in the range of RUB50bn-RUB60bn. It .......

    News Round-up 23 April 2013

  • RFC issued on tail risk adjustments

    Moody's is requesting comment from market participants on proposed adjustments to its monitoring approach for evaluating tail risk in pro-rata pay US RMBS that do not have compensating mechanisms of support. The change in approach would primarily affect ratings of the prime jumbo, Alt-A, FHA/VA and scratch-and-dent sectors, which typically have shifting interest structures without credit enhancement floors or non-declining .......

    News Round-up 23 April 2013

  • UK-linked deals downgraded

    Fitch has downgraded 32 tranches and affirmed three tranches of 11 structured finance transactions that are credit-linked or have significant credit exposure to the UK sovereign. The agency has also maintained three tranches of Finance for Residential Social Housing (Fresh) on rating watch negative (RWN). The rating actions follow the downgrade of the UK's long-term issuer default rating (IDR) to .......

    News Round-up 23 April 2013

  • Ginnie Mae consolidation considered

    Ginnie Mae is seeking feedback from MBS market participants in connection with potentially consolidating the Ginnie Mae I and II programmes into a single Ginnie Mae MBS programme. The primary focus is to obtain industry views on the market viability for maximising liquidity while seeking to eliminate some of the pricing inefficiencies in the Ginnie Mae MBS market, according to .......

    News Round-up 22 April 2013

  • RMBS holders consider clean-ups

    Clean-up calls are back on the agenda for seasoned senior jumbo RMBS now that the search for yield has pushed the securities above par. So far there has been significant variation between sellers as to how often they call, with several economic factors needing to be taken into account.

    From a total of 2,729 issued jumbo deals that were eligible .......

    News 18 April 2013

  • NHG-backed RMBS 'well protected'

    Fitch reports that NHG-backed RMBS are well protected if a downgrade of the Dutch sovereign and Waarborgfond Eigen Woningen, the provider of NHG, were to occur.

    "We believe the Dutch government is strongly committed to the NHG guarantee scheme and will continue to remain so, even if its own financial situation were to somewhat deteriorate," says Pierre Soens, Fitch's Dutch .......

    News Round-up 18 April 2013

  • US home prices seen as overvalued

    Fitch's view on US home prices remains unmoved, despite the continued rise in the Case-Shiller index. The agency continues to believe that national prices are overvalued by roughly 10% in real terms and 2% nominally (after taking into account inflation and price momentum).

    Fitch attributes the rise in prices and sales volume - particularly in California - primarily to pent-up .......

    News Round-up 18 April 2013

  • Countrywide class action settled

    A US$500m settlement has been agreed in the MBS class action litigation against Countrywide Financial Corporation and others, led by lead plaintiff the Iowa Public Employees' Retirement System (IPERS). It marks the largest MBS-federal securities class action settlement in the US to date.

    If approved by the US District Court in the Central District of California, the settlement will bring .......

    Job Swaps 18 April 2013

  • NAIC changes to hit Alt-A, subprime

    The NAIC recently proposed changes to its modelling process for insurance company holdings of RMBS and CMBS positions. The changes aren't expected to affect most zero-loss designation bonds, but are likely to reduce NAIC price points for securities forecasted to take a loss in at least one of its economic scenarios.

    NAIC is proposing to use the risk-free US Treasury .......

    News Round-up 17 April 2013

  • New measures to tackle Irish arrears

    Ireland's Department of Finance (DoF) and the Central Bank of Ireland have announced new measures to strengthen lenders' ability to deal with the country's growing mortgage arrears problem. The DoF plans to introduce by the end of this month new legislation that removes the current legal ban on repossessions, while the central bank has proposed several changes to the Code .......

    News Round-up 17 April 2013

  • Russian property valuation warning

    The Russian Federal Antimonopoly Service (FAS) has begun requiring the country's largest refinancing organisation - the Agency for Housing Mortgage Lending (AHML) - to accept property valuation reports from non-accredited appraisers. The FAS aims to restrict AHML from using an exclusive list of pre-selected, accredited appraisers to carry out property valuations on which it would then base its mortgage underwriting.

    News Round-up 17 April 2013

  • Guilty plea for ex-Credit Suisse md

    Former Credit Suisse md and global head of structured credit Kareem Serageldin has pled guilty to conspiring to falsify the books and records of Credit Suisse before US District Judge Alvin Hellerstein. Serageldin was extradited from the UK to face charges that he fraudulently inflated the prices of asset-backed bonds in Credit Suisse's trading book in late 2007 and early .......

    Job Swaps 17 April 2013

  • APAC outlook remains stable

    Fitch reports that the Asia Pacific structured finance transactions it rates were mostly affirmed in the first quarter, with Japan being the only country that witnessed downgrades. Japan saw 11 tranches from four CMBS downgraded during the quarter, all from already distressed levels (triple-C and below).

    Australia saw 256 affirmations from 73 transactions in 1Q13, most of which were from .......

    News Round-up 17 April 2013

  • Macro weakness skews rating transitions

    By end-2012, only 1.37% by original issuance volume of European structured finance notes outstanding in mid-2007 had defaulted, according to S&P's latest quarterly ratings transition study.

    "Consumer-related securitisations in particular have seen solid credit performance through the crisis, with a cumulative default rate since mid-2007 of only 0.04%," confirms S&P credit analyst Arnaud Checconi. "In addition, we estimate that more .......

    News Round-up 16 April 2013

  • ResCap creditors seeking suit

    Unsecured creditors of ResCap are seeking permission from the bankruptcy court to sue Ally on the basis that the US$750m it has offered to settle all its ResCap liabilities is not enough (SCI 12 February). The creditors claim that Ally has exploited its control over ResCap and, as such, may be responsible for all of ResCap's unsecured liabilities - which .......

    News Round-up 16 April 2013

  • EU ruling 'credit neutral' for Spanish RMBS

    The EU Court of Justice last month ruled that the current Spanish mortgage foreclosure process is not in line with current EU laws in terms of consumer rights, as Spanish borrowers have limited grounds to stay the foreclosure process, even if they claim that there are "unfair terms" in the mortgage loan. Spain plans to incorporate the EU ruling into .......

    News Round-up 16 April 2013

  • Spanish mortgage arrears hit highs

    Fitch reports that the Spanish mortgage market is deteriorating across many performance measures. According to its latest index reading, 1Q13 represented a record high for the proportion of securitised mortgages that are in serious arrears or default. At the same time, lenders that have taken properties into possession have had to accept lower prices as a proportion of the original .......

    News Round-up 16 April 2013
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