RMBS

  • 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

  • Sovereign-linked downgrades highlighted

    S&P reports that rating actions on banks and sovereigns were once again the major factors affecting its European structured finance ratings in 1Q12. Both downgrades and upgrades increased, with most downgrades affecting RMBS transactions.

    "We took 1,594 rating actions in the quarter, comprising 1,100 downgrades and 494 upgrades. This represents a significant increase from the previous quarter, which saw 393 .......

    News Round-up 19 June 2012

  • Korean financial shock warning

    Moody's says that Korean household loans have characteristics that make them vulnerable to financial shocks and tail risks arising from the European debt crisis and China's economic slowdown.

    "This can lead to a deterioration in loan performance in Korea; in turn, exerting pressure on ABS and RMBS transactions," says Marie Lam, a Moody's vp and senior credit officer.

    The agency .......

    News Round-up 19 June 2012

  • Tamweel sukuk marketing

    Tamweel is in the market with its second international Islamic RMBS - the US$235m Tamweel Residential RMBS (Cayman) IV. The first such transaction from the six countries of the Gulf Cooperative Council was issued in July 2007.

    The deal comprises a single class of notes, rated Aa3 by Moody's. Proceeds will fund the purchase of properties in Dubai and certain .......

    News 19 June 2012

  • MBS, rates team expanded

    Zachary Pace, Aaron Read and Tai Vu have joined Gleacher & Company Securities' MBS and rates group. The group provides structured finance, research, sales and trading services on RMBS, ABS, US Treasury and government agency securities, CLOs, CDOs and other securities.

    Pace and Read join as directors while Vu becomes vp. Pace joins from Bank of America where he was .......

    Job Swaps 18 June 2012

  • APAC ratings remain stable

    Fitch reports that Asia-Pacific (APAC) structured finance (SF) tranches remain largely stable, with 85% of the tranches maintaining their ratings in 2011, unchanged from 2010.

    Downgrades outnumbered upgrades for the fourth year in a row and by an eight-to-one margin in 2011. The low number of upgrades last year can be partially attributed to the fact that about 46% of .......

    News Round-up 18 June 2012

  • Weak credit demand forecast for Spain

    House prices in Spain have dropped by a nominal 22% since 1Q08. But fundamentals point to a further 25% decline, S&P says.

    "House prices in Spain are a key variable in the performance of the country's economy. The housing boom built up unsustainable imbalances, such as an oversupply of dwellings, which will need to fully correct before a sustainable recovery .......

    News Round-up 15 June 2012

  • Dutch house prices to fall further

    Fitch expects Dutch house prices to fall by around 7% further due to worsening macroeconomic factors. This would take house prices to about 18% below their 2008 peak levels and on par with prices in 2004.

    The agency has marginally increased its peak-to-trough house-price decline from 15% because of the continuing rise in unemployment in the country. Uncertainty surrounding the .......

    News Round-up 15 June 2012

  • ResCap moves to settle put-backs

    Residential Capital has moved for permission to settle put-back claims held by approximately 392 RMBS trusts, Lowenstein Sandler notes in a recent client alert. Under the proposed settlement, the securitisation trusts would drop potential breach of representation and warranty claims - which are worth an estimated US$221bn - and in return would receive a US$8.7bn bankruptcy claim against debtors Residential .......

    News Round-up 15 June 2012

  • Maiden Lane loans repaid

    The New York Fed says that its loans to the Maiden Lane and Maiden Lane III vehicles have been fully repaid with interest. The original amounts of these loans were US$28.82bn and US$24.3bn respectively. Maiden Lane II repaid all of its obligations earlier this year (SCI 29 February).

    The successful repayment of the Fed's loans to ML and ML III .......

    News Round-up 15 June 2012

  • Fannie, Freddie alignment encouraged

    Fannie Mae and Freddie Mac must align their operations as much as possible, SIFMA says. It has set out a strategic plan urging the FHFA to view the GSEs together, rather than as separate silos.

    The association believes that market performance indicates a crucial gap in the actual and perceived performance and liquidity of the MBS issued by the GSEs. .......

    News Round-up 14 June 2012

  • Lending standards key for RMBS

    A low interest rate environment at the time an Australian mortgage loan is written is not a significant guide to future performance, says Fitch. The agency believes lending standards are a more relevant factor in determining a loan's performance over the long term.

    "Fitch analysis suggests there is little correlation between delinquency rates and the interest rate at loan origination. .......

    News Round-up 12 June 2012

  • Rating agency lowers Greek ratings cap

    S&P has taken various credit rating actions on the Greek RMBS and ABS notes it rates. All ratings are now capped at single-B minus as a result of the agency's updated assessment of Greece's country risk and the implications of the country leaving the eurozone.

    S&P says it previously considered structured finance transactions backed by Greek assets to have a low .......

    News Round-up 12 June 2012

  • Ambac motions approved

    Following a hearing held on 4 June, the Circuit Court for Dane County, Wisconsin approved the two motions submitted by the Wisconsin Commissioner of Insurance, acting as the rehabilitator of the Ambac Assurance segregated account (SCI 18 May).

    The first motion sought to allow the segregated account to begin paying in cash 25% of each permitted policy claim that has .......

    News Round-up 12 June 2012

  • CRA expands RMBS methodologies

    Morningstar Credit Ratings has released its new issue and surveillance rating methodologies for US non-agency, prime, alternative-A and subprime RMBS. The agency says that, in response to growing investor demand for greater rating agency transparency, it is providing investors with the economic scenarios that drive specific rating categories. Its RMBS analysts will use both the published rating scenarios and a .......

    News Round-up 12 June 2012

  • Mortgage credit md appointed

    Maureen Stewart has joined NewOak as mortgage credit and compliance services md. She specialises in mortgage credit underwriting and forensic analysis and will help build the firm's credit advisory services platform.

    Stewart has over 30 years of experience at major banking institutions across consumer mortgage loan products. She was most recently senior audit manager for Bank of America.

    .......

    Job Swaps 12 June 2012

  • Spanish ratings cap lowered

    Fitch has downgraded 234 tranches related to 156 Spanish structured finance (SF) transactions, following the downgrade of Spain's long-term foreign currency issuer default rating to triple-B from single-A. The affected tranches comprise 150 RMBS, 58 structured credit, 23 ABS and three CMBS classes from across 101 RMBS, 40 structured credit, 14 ABS and one CMBS deals. Additionally, the agency has .......

    News Round-up 11 June 2012

  • Mexican RMBS criteria updated

    S&P has published its revised criteria for rating Mexican RMBS, which are effective immediately but aren't expected to have any impact on outstanding ratings. The changes update the credit and liquidity assumptions for RMBS backed by Fovissste residential mortgage pools and clarify the application of foreclosure frequency curves in cashflow scenarios under certain conditions.

    The revised criteria address employer concentration .......

    News Round-up 8 June 2012

  • AG interventions granted

    New York state judge Justice Barbara Kapnick has granted a motion by the Attorneys General of New York and Delaware to intervene in the litigation relating to Bank of America Merrill Lynch's proposed US$8.5bn RMBS settlement with the Bank of New York Mellon (30 August 2011). The New York and Delaware AGs moved to intervene on the grounds that the .......

    News Round-up 8 June 2012

  • Investor perceptions surveyed

    JPMorgan has surveyed changes in investor perception of the consumer ABS market since September 2011. The results confirm that benchmark ABS asset classes - such as the auto loan and credit card sectors - enjoy the highest participation rates, while the more esoteric and riskier asset classes are less liquid.

    Banks generally invest in less esoteric and more triple-A rated .......

    News Round-up 7 June 2012

  • MILAN methodology updated

    Moody's has published updated assumptions and methodology used in its MILAN RMBS collateral analysis model, following its RFC on the proposals (SCI 9 December 2011). The ratings of 27 EMEA RMBS transactions are negatively affected as a result.

    Key changes to the methodology include: the introduction of a transaction minimum credit enhancement level; an updated approach to determine house-price stresses; .......

    News Round-up 7 June 2012
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