RMBS

  • Euro issuance constraints highlighted

    Weak economies, cheap central bank funding and regulatory uncertainty look set to constrain European securitisation issuance for the foreseeable future, according to S&P. The agency reports that investor-placed securitisation issuance in the region totalled €44bn in the first seven months of 2012 - down by about 10% from the same period in 2011.

    "We believe European securitisation issuance could end .......

    News Round-up 22 August 2012

  • Short sale guidelines streamlined

    Fannie Mae is set to implement new short sale guidelines for servicers to follow as part of the Federal Housing Finance Agency's servicing alignment initiative. The move aims to allow more homeowners qualify for short sales, remove barriers to completing short sales and make the process more efficient for both homeowners and servicers.

    The new guidelines streamline documentation requirements, waive .......

    News Round-up 22 August 2012

  • Country credit deterioration RFC issued

    Moody's is inviting market participants to comment on proposed adjustments to its modelling assumptions designed to account for the impact of rapid and significant country credit deterioration on structured finance transactions. The proposal would extend the sovereign ceiling concept to the entire capital structure and provide a mechanism to amend loss distribution when mezzanine and subordinate tranches are impacted.

    Moody's .......

    News Round-up 22 August 2012

  • RMBS bid-lists on the block

    The New York Fed is auctioning two non-agency RMBS bid-lists today, 21 August. One comprises 62 bonds with a combined face value of US$1.51bn and the other consists of three names worth US$1.77bn. Amherst, Barclays Capital, Cantor Fitzgerald, Citi, Cowen, Credit Suisse, CRT Capital, Deutsche Bank, Goldman Sachs, Guggenheim, Jefferies, JPMorgan, Keybanc, Bank of America Merrill Lynch, Morgan Stanley, Nomura, .......

    News Round-up 21 August 2012

  • HUD auction announced

    DebtX is hosting a US$1.7bn single-family loan sale on 12 September for the US Department of Housing and Urban Development. In addition to the standard competitive whole loan sale, there will be an offering for the Distressed Asset Stabilization Program.

    This enhanced programme features new neighbourhood stabilisation requirements to encourage investment in communities hit hardest by the foreclosure crisis. The .......

    News Round-up 21 August 2012

  • Core focus for Euro supply

    Technical drivers continue unabated in the European secondary ABS market. With few offers and low turnover, bids appear to be on a tightening trend for now.

    SCI's PriceABS BWIC data indicates that activity remains focused on the core UK and Dutch RMBS sectors. Among the bonds circulated on bid-lists yesterday, the GRAN 2003-2 1B (US$5m face value) and .......

    Market Reports 21 August 2012

  • Suits expected

    Libor-related litigation analyses prepped

    The impact of Libor rigging on the securitisation market is difficult to quantify, with the scandal representing yet another pause for the industry as it re-emerges post-financial crisis. Certainly, a wave of litigation activity is expected to be triggered in its wake.

    Indeed, preparatory litigation analyses are already being undertaken across all securitised asset classes as a result of the .......

    News Analysis 21 August 2012

  • Eurosail hedging agreement challenged

    The trustee for ESAIL 2007-5X looks set to seek determination by the Court in respect of a replacement hedging agreement, following a challenge by residual certificateholders.

    The class A1a and A1c noteholders passed an extraordinary resolution at a meeting on 7 August, which would see: Deutsche Bank appointed as the auction agent to manage the sale of the US$170m stipulated .......

    News Round-up 20 August 2012

  • Treasury moves to expedite GSE wind-down

    The US Treasury has modified its Preferred Stock Purchase Agreements (PSPAs) with the FHFA, with the aim of facilitating the wind-down of Fannie Mae and Freddie Mac, as well as support the continued flow of mortgage credit. The amendments are being seen as more of an expediting initiative versus a meaningful divergence from the original aspirations surrounding the GSEs' conservatorship.

    News Round-up 20 August 2012

  • RMBS vet joins as president

    Lisa Taylor has joined WCS Lending as president. It is a newly-created position within the company.

    Taylor has almost 30 years of experience in banking and mortgage lending. She was previously regional head in Western Europe of Deutsche Bank's RMBS origination and trading platform. She has also served as coo for MortgageIT, ceo at Sawgrass Partners and evp for Mortgage.com.

    .......

    Job Swaps 20 August 2012

  • Mammoth MBS supply seen

    MBS volume has spiked sharply over the last couple of days. Both CMBS and RMBS supply has been very strong, with the latter boosted by a rush of Countrywide bonds.

    From 122 CMBS line items displayed on SCI's PriceABS BWIC data on Monday, Tuesday saw 207 line items and supply was still elevated yesterday, with 174 items. RMBS .......

    Market Reports 17 August 2012

  • RMBS analytics vp appointed

    Gordon Crawford has joined DataQuick in San Diego as analytics vp. He will develop all models and analytics, including home price indices, automated property valuation models and loan performance models.

    Crawford has spent 20 years at Fannie Mae in various research functions, including most recently as mortgage research vp. He also served as credit research and HCD research and analytics .......

    Job Swaps 16 August 2012

  • Aussie RMBS stress tested

    Fitch's stress tests of Australian RMBS show the resilience of the ratings even through a severe sustained recession and house price deterioration. The agency conducted three scenarios stressing interest rates, unemployment and property price declines as the key drivers of defaults and losses.

    "Concurrent increases in all three were run over a three-year period, as well as removing the benefit .......

    News Round-up 16 August 2012

  • Legacy RMBS criteria hit

    S&P has announced various credit watch actions based on its updated criteria for monitoring the performance of existing US RMBS (SCI 10 August). The actions affect 16,872 ratings from 3,364 transactions with a par amount of US$253.95bn, accounting for approximately 25% of the agency's total rated US RMBS universe by both the number of classes and par amount.

    Overall, the .......

    News Round-up 16 August 2012

  • Conflict of interest?

    Rating agency reform proposals scrutinised

    Credit rating agency reform is still being determined on either side of the Atlantic. Concerns that current regulatory proposals will create conflicts of interest and increase the cost of securitisations remain, however.

    The rating agencies' apparent mis-rating of structured finance products was largely confined to subprime RMBS and ABS CDOs, SIVs and a subset of ABCP. Given that recent research .......

    News Analysis 16 August 2012

  • SEC CDO dispute continues

    Appointed counsel for the US District Court for the Southern District of New York has filed a brief in support of US District Judge Jed Rakoff's decision to reject a proposed US$285m settlement between the SEC and Citi. The dispute concerns SEC allegations that Citi sold the US$1bn Class V Funding III CDO without disclosing that the bank bet against .......

    Job Swaps 15 August 2012

  • Wide-scale PIA take-up unlikely

    The publication of the Irish Personal Insolvency Bill in late June has clarified certain operational elements of the Personal Insolvency Arrangement (PIA) process, which is expected to be implemented towards end-2012 (SCI passim), according to Fitch. The agency says it has gauged views from Irish banks on the impact the legislation would have on their mortgage portfolios and it believes .......

    News Round-up 15 August 2012

  • SEC's ABCP charge settled

    The SEC has charged Wells Fargo's brokerage firm and a former vp for selling ABCP structured with high-risk RMBS and CDOs without fully understanding their complexity or disclosing the risks to investors. Wells Fargo has agreed to pay more than US$6.5m to settle the charges.

    Wells Fargo sold the ABCP to municipalities, non-profit institutions and other customers without getting sufficient .......

    Job Swaps 15 August 2012

  • Tight CMBS market trading up

    Buyers outnumber sellers in the European CMBS secondary market at present. Given recent spread tightening, investors have started working harder for yield.

    "There is very good demand for CMBS senior second-pays and quality third-pays, but there are not very many sellers around. It feels very positive, but there is limited paper so trading has been less active than it could .......

    Market Reports 14 August 2012

  • Countrywide schedule agreed

    An agreed schedule for the US$8.5bn Countrywide RMBS case has been released. The final hearing is set for 2 May 2013, with fact discovery and depositions to begin on 14 December.

    The schedule has increased the certainty on timing somewhat, according to MBS analysts at Barclays Capital, who believe that the cash will most likely be paid out in late .......

    News Round-up 14 August 2012

  • Agency, non-agency take turns in spotlight

    US RMBS has been prominent on the week's early bid-lists. SCI's PriceABS data shows 119 RMBS line items for Monday, including a good number of non-agency bonds after supply had slowed last week.

    Both LMT 2007-5 3A4 and LMT 2007-8 2A1 were covered yesterday - at 94 handle and 80 handle respectively - at the upper-end of the .......

    Market Reports 14 August 2012
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