RMBS

  • Dutch RMBS performance reviewed

    Moody's has undertaken a performance review of the Dutch RMBS market and updated its portfolio loss assumptions in 36 transactions and MILAN CE in four transactions out of the 106 transactions reviewed.

    The agency has increased its lifetime loss assumption as the performance of the underlying mortgage portfolios to date has been worse than previously assumed and pressure on loss .......

    News Round-up 29 April 2013

  • FLS set to depress RMBS issuance further

    S&P believes that the extension of the Funding for Lending Scheme (FLS) will be at best neutral for investor-placed UK securitisation issuance, but will more likely depress it further (SCI 24 April). No investor-placed UK prime RMBS transaction has priced so far in 2013, despite previously being the largest European securitisation sector (see also separate article).

    UK RMBS placed with .......

    News Round-up 26 April 2013

  • Issuance awaited

    UK RMBS spreads tighten as investors lack options

    No prime UK RMBS has been issued this year and that lack of issuance is helping to drive secondary spreads in the sector ever tighter. Issuance is expected to resume over the summer, but investors receiving redemption proceeds in the meantime face a shortage of investment options.

    Paratus AMC launched Virgil Mortgage No.1, the first investor-placed UK RMBS of the .......

    News Analysis 26 April 2013

  • RBA unveils final reporting templates

    The Reserve Bank of Australia (RBA) last week published the final reporting templates for issuers of RMBS under its repo eligibility criteria, following a consultation period (SCI 22 October 2012). The templates modify the initial draft by adding a requirement for issuers to supply a cashflow waterfall template, while removing a requirement for mandatory pool-level reporting.

    Issuers will be required .......

    News Round-up 25 April 2013

  • Residential mortgage vet enlisted

    Five Oaks Investment Corp has appointed David Akre to the senior management team of its external manager, Oak Circle Capital Partners. Akre joins as md and will lead the company's strategic development in non-agency residential mortgage investments, securitisation and origination.

    Akre's residential mortgage experience also encompasses whole loan acquisition, credit underwriting, hedging and financing. He was previously co-ceo and co-founder .......

    Job Swaps 25 April 2013

  • Patriarch adds CDO specialist

    Guillaume Fillebeen has been made vp at Patriarch Partners in New York. He was most recently at PF2 Securities Evaluations, where he co-headed the team responsible for CDO evaluations and structured finance litigation consulting.

    Fillebeen's areas of expertise are CDOs, CMBS and RMBS. Before joining PF2 he was associate at RBS, structuring CDOs backed by RMBS, and associate analyst at .......

    Job Swaps 24 April 2013

  • 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

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