RMBS

  • Second CRA takes MBIA action

    Moody's has placed on review for downgrade the ratings of 148 classes of US structured finance securities wrapped by MBIA Insurance Corporation and its affiliated insurance companies. The securities impacted include certain RMBS, ABS and CDOs.

    S&P recently lowered ratings on a raft of RMBS insured by MBIA (SCI 18 March) and Moody's placed the ratings of MBIA Corp itself .......

    News Round-up 27 March 2013

  • Basel Committee proposes exposure controls

    The Basel Committee on Banking Supervision has published a proposed supervisory framework for measuring and controlling large exposures, including securitisations. It aims to ensure greater consistency in the way banks and supervisors measure, aggregate and control exposures to single counterparties.

    The proposed standard would supplement the existing risk-based capital framework by protecting banks from substantive losses caused by the sudden .......

    News Round-up 27 March 2013

  • Fitch makes Alt-A rating changes

    Fitch has taken various rating actions on 10,133 classes in 772 US Alt-A RMBS transactions. The vast majority of tranches - 9,735 - have been affirmed, but there were also 49 classes upgraded, 346 downgraded and three classes with ratings withdrawn.

    The rating upgrades reflect the improving performance of the seasoned collateral, driven by positive selection on the remaining borrowers .......

    News Round-up 26 March 2013

  • Structural flaws limit RMBS ratings potential

    JPMorgan's first post-crisis RMBS, JPMMT 2013-1, would not be rated Aaa by Moody's. The rating agency explained last month that US RMBS with weak structural frameworks would not achieve top ratings (SCI 26 February 2013) and says this transaction contains several structural weaknesses that expose investors to risk of losses.

    The collateral in JPMMT 2013-1 consists of high quality loans .......

    News Round-up 26 March 2013

  • UK scheme is RMBS positive

    The UK government's plan to stimulate mortgage lending is credit positive for RMBS, argues Moody's. The government has announced a three-year scheme aimed at boosting high-LTV residential mortgage lending.

    The Help to Buy scheme starts in January 2014. It will involve the government partially guaranteeing up to £130bn of high-LTV loans for home purchases, which is 2.8 times the total .......

    News Round-up 25 March 2013

  • Fitch downgrades distressed bonds

    Fitch has downgraded 704 distressed bonds in 285 US RMBS transactions to single-D. They were all previously rated double-C or single-C and have either incurred a principal write-down or are interest-only classes that have a notional balance off a class that incurred a principal write-down.

    Of the 704 affected classes, 428 are Alt-A, 249 are prime, and 15 are subprime, .......

    News Round-up 25 March 2013

  • 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
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