RMBS

  • UKAR tender results in

    Bradford & Bingley and Northern Rock Asset Management have disclosed the results for their tender offers on Aire Valley, Granite and Whinstone subordinate bonds (SCI 20 June). UK Asset Resolution accepted bonds equivalent to an outstanding nominal value of £534m, out of the approximately £1.19bn tenders received, for a total cost of around £400m.

    The triple-B rated Aire Valley class .......

    News Round-up 6 July 2012

  • Walnut Place dismissal upheld

    The New York Appellate Division last week affirmed the lower court's dismissal of claims by investor group Walnut Place against Bank of America, concerning the bank's handling of US$1.1bn in RMBS. Walnut Place filed its complaint in February 2011, alleging that Countrywide Financial misrepresented the quality of loans backing the RMBS and that Bank of New York Mellon - the .......

    News Round-up 4 July 2012

  • Review prompts HMI rating changes

    Santander last week released a new prospectus for its Holmes Master Issuer RMBS programme that contains a number of changes to the trust's required ratings. The move comes as Moody's reviews for downgrade the lender's long- and short-term ratings, which currently stand at A/A2/A and A-1/P-1/F1 respectively.

    Among the changes made to the prospectus, ABS analysts at JPMorgan note that .......

    News Round-up 4 July 2012

  • Single agency disagreements highlighted

    The ASF has released a white paper on the single securitisation platform proposal outlined by the FHFA in its Strategic Plan (SCI 22 May, 2012). The paper outlines ASF members' views on a single agency security, which is potentially the first step toward the FHFA's longer-term single platform goal.

    Securitisation strategists at Barclays Capital comment that the white paper indicates .......

    News Round-up 3 July 2012

  • Spanish deals hit

    Moody's has downgraded to A3(sf) the ratings of 583 securities across 328 structured finance transactions, including ABS, RMBS and CDOs. Moody's has also placed or maintained on review for downgrade the ratings of most Spanish ABS, RMBS and CDOs.

    There are three drivers for themost recent downgrades. The first relates to Moody's decision on 26 June to lower the Spanish country .......

    News Round-up 3 July 2012

  • Irish insolvency bill published

    The Irish government has published its draft Personal Insolvency Bill (SCI 14 March). The bill proposes to reform the existing bankruptcy regime and introduce three formalised non-judicial negotiated debt arrangements.

    Under the proposals, automatic discharge will drop from 12 to three years, more in line with European norms. A new independent body, the Insolvency Service, will be responsible for overseeing .......

    News Round-up 3 July 2012

  • SF trading head named

    Laila Kollmorgen has joined Raymond James Financial as head of European structured finance trading. She was previously md and head of European ABS/CDO trading at Cohen & Company and head of secondary ABS trading at BNP Paribas.

    .......

    Job Swaps 29 June 2012

  • MBS vet recruited

    Bryan Caisse has joined Performance Trust Investment Advisors (PTIA) as senior portfolio manager. He will be responsible for running a mortgage-backed fixed income portfolio and help oversee the risk of the portfolios for PTIA, while executing the company's current business strategy, including raising additional assets and building out the product lines. He will team up with PTIA president Douglas Rothschild .......

    Job Swaps 28 June 2012

  • Aurora servicing transfer reviewed

    The expected servicing transfer date for 160 US RMBS from Aurora Loan Services to Nationstar Mortgage is 1 July. Moody's confirms that the move won't result in a reduction or withdrawal of the current ratings on the affected transactions.

    In determining the credit impact of the transfer of servicing to Nationstar, Moody's reviewed: the firm's servicing practices and compared them .......

    News Round-up 28 June 2012

  • Pelican calls anticipated

    The likelihood of the Pelican 2 and 3 transactions being called has jumped, following Caixa Economica Montepio Geral's recent tender offer. The bank offered to purchase up to €300m across 10 Portuguese RMBS bonds and one bank capital security via an unmodified Dutch auction.

    In total, it repurchased €144.4m of RMBS bonds and €41.3m of the bank capital security. Of .......

    News Round-up 28 June 2012

  • QRM concern highlighted

    Fitch believes that continued uncertainty relating to aspects of the Dodd-Frank Act has caused many traditional RMBS issuers to delay their issuance plans. Of particular concern are the details surrounding the definition and creation of an exemption from the risk retention requirements for qualified residential mortgages (QRMs). Some further clarity on the matter is hoped for in the third quarter .......

    News Round-up 27 June 2012

  • SF natural hedging examined

    The number of European structured finance deals that use swaps to hedge interest rate mismatches may decrease as hedging costs rise and the number of eligible counterparties drops, Fitch suggests. This reduces the counterparty risk but can place more emphasis on credit enhancement if the resulting interest rate risk is not adequately mitigated, for example through natural hedges.

    Various techniques .......

    News Round-up 27 June 2012

  • Competitive ResCap auction expected

    The process to approve the stalking-horse bidder for the auction of ResCap's loan origination and servicing business suggests that it will be a fairly competitive final auction, likely in October. Berkshire Hathaway and Fortress Investment Group submitted multiple bids during the process, with Fortress finally approved last week after it raised its original offer by US$125m and cut its break-up .......

    News Round-up 26 June 2012

  • ECB repo eligibility broadened

    The ECB is set to reduce the rating threshold and amend the eligibility requirements for certain ABS, thereby broadening the scope of the measures to increase collateral availability that were introduced on 8 December 2011.

    Auto loan, leasing and consumer finance ABS and CMBS that have a second-best rating of at least single-A at issuance and at all times subsequently .......

    News Round-up 26 June 2012

  • Picking sides

    Challenges and opportunities in search for relative value

    Ongoing speculation about the future of Greece has dominated the market's attention, but it is not the only concern weighing on participants' minds. Nevertheless, European ABS still offers great value for those who know where to look.

    "We are at a place where trading is gradually reduced. Secondary activity is down in Europe and the US as everybody watches Greece. .......

    News Analysis 22 June 2012

  • Mixed blessings

    Action needed to attract European investors

    Some ABS traders in Europe are expecting to use their balance sheets more over the coming months to support clients. While the rise of BWICs is aiding execution for sellers, more needs to be done to attract a broader investor base to the market.

    Increasingly heavy use of BWICs has been a mixed blessing for European ABS traders. While the .......

    News Analysis 22 June 2012

  • Euro CMBS sees spread recovery

    After softening earlier in the month, the European CMBS market has recovered over the last week. The Global ABS conference seems to have marked a turning point, but events in the RMBS market also appear to be having an effect.

    "Activity has definitely picked up lately, especially in senior CMBS. The real money guys have been looking for paper and .......

    Market Reports 21 June 2012

  • Operation Twist extended

    Operation Twist is set to last through to year-end, having been slated to end this month (SCI 22 September 2011). The FOMC yesterday directed the New York Fed's Open Market Trading Desk to continue its programme to extend the average maturity of the Federal Reserve's holdings of Treasury securities.

    Specifically, the desk was directed to purchase Treasury securities with remaining .......

    News Round-up 21 June 2012

  • Granite, Aire Valley buy-backs announced

    Northern Rock Asset Management (NRAM) and Bradford & Bingley (B&B) have announced tender offers for Granite, Whinstone 1 and 2 and Aire Valley subordinate notes. The two firms aim to strengthen their capital base by purchasing the notes at a discount to par. They intend to purchase approximately £500m of notes via a modified Dutch auction by 3 July.

    Given .......

    News Round-up 20 June 2012

  • Pepper gains Irish foothold

    Pepper Home Loans Group has agreed to purchase GE Capital Woodchester Home Loans, the Irish residential mortgage business of GE Capital, as it expands into Europe. Pepper will also take over the servicing of GE Capital's Irish portfolio of personal, small enterprise and auto loans.

    The newly-acquired company will be renamed Pepper Ireland and Pepper will hold all of the .......

    Job Swaps 19 June 2012

  • Irish RMBS rating drift examined

    Underlying collateral performance has deteriorated sharply, arrears management practices have become increasingly 'borrower-friendly' and sovereign creditworthiness has declined over the past four years in Ireland. All of these trends have contributed to a downward drift in ratings on Irish RMBS, according to S&P.

    While the Irish RMBS market accounts for only about 5% of total European RMBS issuance, the sector .......

    News Round-up 19 June 2012
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