RMBS

  • REIT eyes further purchases

    Two Harbors Investment Corp intends to use share sales proceeds to make further RMBS purchases. It has generated around US$763m by offering 57,500,000 shares and will also target prime jumbo residential mortgage loans, credit sensitive residential mortgage loans and mortgage servicing rights.

    Credit Suisse Securities is acting as the lead book-running manager for the offering. Barclays Capital, Bank of America .......

    News Round-up 25 March 2013

  • Subprime RMBS placed on review

    Moody's has placed 16 tranches from nine RMBS transactions issued by Renaissance and Delta Funding on review for downgrade. The collateral backing these deals primarily consists of first-lien, subprime residential mortgages.

    The affected tranches are one class of DFC HELTrust 2001-2, one class of Renaissance Home Equity Loan Trust 2004-2, one class of Renaissance Home Equity Loan Trust 2004-4, three .......

    News Round-up 25 March 2013

  • Subprime supports secondary RMBS

    Overall US non-agency RMBS BWIC volume rose slightly yesterday, with subprime supply in particular shooting up. SCI's PriceABS data shows 143 US RMBS line items for Thursday's session, based on an estimated US$565m in total non-agency volume.

    "BWIC volume is up slightly from the prior session, driven mainly by an increase in subprime line items. Synthetics are mixed .......

    Market Reports 22 March 2013

  • Stifel snaps up fixed income group

    Stifel Financial is set to acquire Knight Capital's US institutional fixed income sales and trading business. Stifel will also hire Knight's European institutional fixed income sales and trading team.

    The combined teams have around 100 sales and trading professionals covering high-yield and investment-grade corporate bonds, ABS and RMBS. The acquisition of the US business and hiring of the European team .......

    Job Swaps 21 March 2013

  • Negative equity remains a risk

    The FHFA last week announced that over one million borrowers were able to refinance into lower interest rate loans through the Home Affordable Refinance Program (HARP) in 2012. Despite marked improvements in the US housing market, negative equity remains a significant credit risk in private-label RMBS, Fitch warns.

    The FHFA made several revisions to HARP last year that significantly increased .......

    News Round-up 21 March 2013

  • Spanish RMBS assumptions revised

    Fitch has revised its criteria assumptions for Spanish residential mortgage portfolios in response to changing property market circumstances and the performance outlook. In particular, the agency says that recoveries on defaulted mortgages have continued to decline, while the prospect of changes in the mortgage enforcement framework has increased the uncertainty surrounding defaults and recoveries in the longer term.

    Following the .......

    News Round-up 21 March 2013

  • Canadian ABCP performance still strong

    Performance across Canadian ABCP remains strong, according to Moody's first quarterly report for the sector, which covers 4Q12. The rating agency has also launched a new web page dedicated to Canadian structured finance.

    Of the new transactions added to the Canadian ABCP programmes in the fourth quarter of 2012, 40% were used to finance residential mortgages, 34% financed auto loans .......

    News Round-up 19 March 2013

  • Ally offloads MSRs

    Ally Bank is set to sell a portfolio of agency mortgage servicing rights (MSR) to Ocwen Financial Corp. The transaction comprises MSRs related to mortgage loans with an unpaid principal balance of approximately US$85bn, as of 31 January, as well as an estimated US$5bn of agency MSR created based on commitments made through the end of February. The purchase price .......

    News Round-up 19 March 2013

  • NCUA's claims dismissed as time-barred

    The US District Court for the Central District of California has dismissed as time-barred claims based on seven out of eight certificates in the NCUA's US$491m lawsuit against Goldman Sachs concerning RMBS (SCI 11 August 2011). The NCUA alleges that Goldman violated federal and state securities laws and made material misrepresentations about the quality of RMBS it sold to now-failed .......

    Job Swaps 18 March 2013

  • Tunisian RMBS ratings lowered

    Moody's has downgraded the global and national scale ratings of the senior notes in FCC BIAT-CREDIMMO 1 and FCC BIAT-CREDIMMO 2, as well as the global scale ratings of the junior notes in FCC BIAT-CREDIMMO 2. The agency has also affirmed the global and national scale ratings of the junior notes in FCC BIAT-CREDIMMO 1 and the national scale ratings .......

    News Round-up 18 March 2013

  • MBIA-wrapped RMBS hit

    S&P has lowered its ratings on 145 classes from 72 US RMBS that are insured by MBIA Insurance Corp. The move comes after the agency lowered its financial strength rating on MBIA to triple-C from single-B (SCI 5 March). The outlook on the monoline remains negative.

    The underlying collateral for the affected transactions consists of Alt-A, prime jumbo, subprime, closed-end .......

    News Round-up 18 March 2013

  • Varied SF impairments seen in 2012

    Global structured finance (SF) rating and impairment activity varied widely by sector and rating category in 2012, according to Fitch. Downgrades overall remained in line with those seen in 2011; however, the number of active ratings declined year-over-year by close to 20% and this contributed to a higher overall SF downgrade rate of 37% versus 31% in 2011. Upgrades remained .......

    News Round-up 18 March 2013

  • Cajamar brings first tender of the year

    Cajamar Caja Rural has announced a tender offer for nine RMBS bonds and one SME CLO bond, launching the first ABS/RMBS tender of the year. No maximum purchase amount has been disclosed, with €1.6bn currently outstanding across the 10 tranches, according to Barclays Capital figures.

    All of the bonds offered in the latest tender were previously offered in March 2012. .......

    News Round-up 14 March 2013

  • Peripheral ratings on review

    Moody's has placed on review for downgrade the ratings of 60 classes of notes in 41 RMBS and seven ABS transactions from Spain, Italy and Ireland due to potentially insufficient credit enhancement. The determination of the applicable credit enhancement that drives the rating actions reflects the introduction of additional factors in the agency's analysis to better measure the impact of .......

    News Round-up 14 March 2013

  • Servicer loan sales eyed

    One lawsuit that grabbed the market's attention last week is the KIRP versus Nationstar Mortgage case, in which Nationstar is alleged to have harmed investors by selling non-performing loans via the auction.com platform. Bank of America Merrill Lynch MBS analysts suggest that the issue is similar to the eminent domain challenge (SCI passim), where the key question likely will be .......

    News Round-up 13 March 2013

  • Portfolio management suite offered

    DataQuick has launched a portfolio management intelligence suite that aims to provide configurable solutions to meet clients' specific portfolio requirements, solve their portfolio management problems and identify high-return opportunities. The offering identifies credit, collateral, lien and transaction risks found within each lender's or investor's portfolio - enabling users to identify and capitalise on credit, collateral and portfolio opportunities to support .......

    News Round-up 13 March 2013

  • FHFA files against HSBC

    The FHFA has filed a lawsuit in the New York Supreme Court against HSBC Finance Corporation and Decision One Mortgage Company, alleging that defendants breached their representations and warranties, and failed to repurchase certain residential mortgage loans pursuant to agreements with Decision One. Decision One is said to have agreed to buy back defaulting residential mortgage loans that were part .......

    Job Swaps 13 March 2013

  • ED adds central bank economist

    The European DataWarehouse (ED) has appointed José Manuel González-Páramo as chairman. He will oversee the direction of the ED as it seeks to provide full disclosure and transparency for investors in ABS.

    González-Páramo was a member of the ECB's executive board until 2012, with responsibility for market operations and monetary policy implementation. Before that he was a member of the .......

    Job Swaps 13 March 2013

  • UK non-conforming arrears plummet

    S&P has published its 4Q12 UK RMBS index report, which shows that UK non-conforming mortgage arrears fell to their lowest level since 2008 during the quarter.

    The level of severe and total arrears has decreased in mortgages that back UK non-conforming RMBS transactions that the agency rates. It attributes this to a combination of persistently low interest rates and the .......

    News Round-up 12 March 2013

  • Italian ratings cap lowered

    Fitch has downgraded 103 tranches - 69 RMBS, 15 ABS, 12 CMBS and seven structured credit assets - related to 69 Italian structured finance transactions (50 RMBS, 11 ABS, five CMBS and three structured credit deals) and four CLNs that reference Italian government bonds. The agency has also revised the outlook on 13 tranches of nine Italian RMBS transactions to .......

    News Round-up 12 March 2013

  • Post-crisis RMBS prepays examined

    Prime mortgage borrowers in US RMBS pools issued since the start of 2010 are still prepaying at rapid rates, reflecting the refinance incentives driven by low mortgage rates, Fitch says. Historically, high refinance activity has left poorer quality borrowers in mortgage pools, which in turn has increased performance volatility. For recent RMBS, however, the credit implications have been modest to .......

    News Round-up 12 March 2013
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