RMBS

  • APAC ratings remain stable

    Fitch reports that ratings of structured finance (SF) tranches in Asia Pacific were generally stable in 3Q12, with negative rating actions confined to Japan. A total of eight tranches were upgraded in the region during the quarter.

    "The predominance of affirmations in 3Q12 again attests to strong asset performance, particularly in Australia and South Korea, across multiple asset classes," comments .......

    News Round-up 11 October 2012

  • REIT co-founder steps up

    Annaly Capital Management has appointed Wellington Denahan-Norris as co-ceo. She co-founded Annaly alongside ceo Michael Farrell, who is stepping aside temporarily for health reasons. Kevin Keyes has been promoted to president and James Fortescue becomes coo.

    .......

    Job Swaps 11 October 2012

  • Upping sticks

    Agency MBS crowding to boost esoteric ABS

    The New York Fed's announcement last month that Operation Twist will target solely agency MBS took many by surprise (SCI 14 September). While the ramifications for the RMBS market are fairly obvious, the knock-on effects for less frequented asset classes are just as significant.

    Structured credit consultant Dan Castro says the Fed's expected agency MBS purchases will force investors to .......

    News Analysis 11 October 2012

  • Secondary RMBS supply rockets

    US non-agency RMBS supply spiked yesterday. SCI's PriceABS BWIC data shows over 100 RMBS line items for the session, with volume reported to have comfortably exceeded US$1bn.

    Interactive Data figures put total non-agency supply at US$1.166bn for yesterday's session, largely driven by subprime CDO liquidations. All-or-none execution remains popular with sellers and levels have been holding steady, despite broader .......

    Market Reports 11 October 2012

  • Low take-up for Totta exchange

    The take-up for Banco Santander Totta's (BST) offer to exchange three RMBS bonds into a covered bond has been limited (SCI 28 September). HIPOT 1R A saw no bonds accepted, while only €3m of amortised principal was accepted across HIPOT 4 A and HIPOT 5 A2.

    This represents only 0.14% of the current amount outstanding and only 0.25% of bonds .......

    News Round-up 10 October 2012

  • Positive signs for shadow inventory

    S&P's estimate for the time it will take to clear the shadow inventory on the non-agency US mortgage market fell to 40 months in 2Q12, down from 46 months in the previous quarter. This is the biggest single-quarter improvement since the agency began tracking it in 2009 and is also the lowest estimate of months-to-clear since the beginning of 2010.

    News Round-up 10 October 2012

  • Rising prices seen in UK prime

    A slew of UK RMBS paper hit the secondary market yesterday, with a mixed bag of names out for the bid. Vintage prime senior bonds appear to be on a rising trend from summer levels, according to SCI's PriceABS BWIC data.

    The increases are most pronounced across Granite paper. A £8m slice of GRAN 2004-1 3A was covered during the .......

    Market Reports 10 October 2012

  • MBS finds favour among HFAs

    As US public finance issuers face increasing competition from commercial lenders for first-time low- to moderate-income homebuyers, they've branched out from traditional financing options to find alternatives to mortgage revenue bonds, according to S&P. To examine the shift in funding and its long-term credit implications for the housing finance agency (HFA) sector, the agency surveyed five state HFAs that have .......

    News Round-up 9 October 2012

  • Fitch warns on Portuguese tax proposal

    A proposed increase in Portuguese income tax would cut household income and could have a knock-on effect on arrears and default levels in the RMBS transactions, Fitch reports. The proposal would increase the average rate of income tax to 11.8% from 9.8% and introduce a 4% income tax surcharge for 2013.

    "The combination of the magnitude of the increase, the .......

    News Round-up 5 October 2012

  • Homeward impact likely to be muted

    Ocwen Financial has acquired Homeward Residential (formerly known as American Home Mortgage) for US$750m. The acquisition will increase Ocwen's portfolio by approximately 60%, but is expected to have a muted impact on non-agency RMBS investors.

    With the purchase, Ocwen will assume the servicing on all of Homeward's portfolios - including the Option One, Citi Residential Lending (Ameriquest) and Downey pools .......

    News 5 October 2012

  • RFC issued on mortgage 'shelf'

    The FHFA has released for public input a white paper on a proposed framework for a common securitisation platform and a model pooling and servicing agreement (PSA). The white paper seeks to identify the core components of mortgage securitisation that will be needed in the housing finance system going forward.

    These core components are linked to two cornerstone operational features: .......

    News Round-up 5 October 2012

  • Credit Suisse next for NCUA

    The NCUA has filed suit in Federal District Court in Kansas against Credit Suisse Securities. The suit alleges misrepresentations in connection with the underwriting and sale of RMBS to US Central Federal Credit Union, Western Corporate Federal Credit Union (WesCorp) and Southwest Corporate Federal Credit Union.

    The three credit unions paid over US$715m for the RMBS and each subsequently failed. .......

    Job Swaps 5 October 2012

  • NAIC methodology changes due

    NAIC has released additional details about the proposed changes to its methodology of calculating risk-based capital requirements on legacy RMBS and CMBS positions held by insurance companies. Its valuation of securities task force (VOSTF) has advised that the economic scenarios used in the 2012 year-end modelling process remain similar to last year, albeit with less stringent assumptions in some of .......

    News Round-up 4 October 2012

  • Pre-2005 RMBS reviewed

    Fitch has downgraded 6% of the US prime RMBS tranches it rates, following a review of the sector. Adverse selection and structural features vulnerable to tail risk have increased negative rating pressure for seasoned prime RMBS, the agency says.

    Delinquency rates continue to increase in pre-2005 prime pools, even while performance has improved for Alt-A, subprime and recent vintage prime .......

    News Round-up 4 October 2012

  • Servicer cashflow efficiencies improving

    Subprime residential mortgage servicers improved their cashflow efficiencies in the 2Q12, according to a new metric introduced by Moody's in the latest edition of its Servicer Dashboard publication. Foreclosure timelines continued to extend, while collections metrics for jumbo and Alt-A loans improved and cure and cashflow rates worsened for most servicers.

    Moody's Cash Flow Efficiency Metric increased in the second .......

    News Round-up 4 October 2012

  • ESAIL 2007-5 stalemate continues

    The extraordinary resolution to appoint Deutsche Bank as auction agent has been approved by Eurosail UK 2007-5NP class B1c, C1c and D1c noteholders, having been passed by the class A1a and A1c noteholders on 7 August. However, the trustee is unable to agree to the implementation of the proposal in its current form.

    The extraordinary resolution sanctions Deutsche Bank to .......

    News Round-up 3 October 2012

  • Working Group lodges lawsuit

    New York Attorney General Eric Schneiderman has announced a lawsuit against JPMorgan Securities, JPMorgan Chase Bank and EMC Mortgage. It is the first lawsuit to be brought by the RMBS Working Group, of which Schneiderman is co-chair.

    The suit relates to fraudulent misrepresentations and omissions in the sale of RMBS by Bear Stearns, which was bought by JPMorgan during the .......

    Job Swaps 3 October 2012

  • Rate cuts boost Aussie RMBS

    Australian mortgage performance is expected to improve in the third and fourth quarters, following a series of interest rate cuts, the most recent being a 25bp cut yesterday (2 October). In a sign of that mortgage performance is benefiting from the rate cuts from end-2011, delinquencies in the Australian prime RMBS sector have already decreased to 1.54% in 2Q12 from .......

    News Round-up 3 October 2012

  • FGIC rehab plan filed

    FGIC's court-appointed rehabilitator, the New York state insurance regulator, last week filed a proposed rehabilitation plan with the New York Supreme Court. The proposal involves a portion of the monoline's policy claims - initially set at 15%, but potentially increasing to 30.4% - being paid in cash.

    The remaining claim amount would be reimbursed in the form of a deferred .......

    News Round-up 2 October 2012

  • Delay expected for Rescap recoveries

    Rescap secured bondholders have ended an agreement to support Ally Financial's reorganisation plan. The ad-hoc steering committee - representing US$2.2bn of junior secured Rescap noteholders - has withdrawn its support for the plan, given the protracted nature of the legal proceedings thus far and the chance to improve its negotiating position in future disputes with other creditors.

    According to Ally, .......

    News Round-up 2 October 2012

  • REIT adds jumbo specialist

    Dan Koch has joined Two Harbors Investment Corp as md. He was previously responsible for sourcing jumbo prime loan acquisitions at Redwood Trust.

    Koch has also previously worked at Morgan Stanley, where he was responsible for executing agency and non-agency loan sales and securitisations. Before that he was at Charter One Bank and US Bancorp.

    .......

    Job Swaps 2 October 2012
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