RMBS
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Cliff edge looms
400,000 loans face forbearance expiry
The number of mortgages in active forbearance continued to tick down last week, but this month the market is set to be buffeted by the termination of plans that commenced at the beginning of the pandemic.
Some 400,000 mortgages hit the expiration date on September, based on the current allowable term lengths which were extended in June.
It is not clear what proportion .......
News 3 September 2021
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Libor worries
UK RMBS transition to leave ratings unshaken
The transition from sterling LIBOR to risk-free rates is unlikely to have negative rating consequences for UK RMBS transactions, a Standard & Poor's (S&P) report notes.
Even though the 31 December phase-out deadline is less than four months away and with mounting general uncertainty around transition plans, S&P estimates that current ratings will prove resilient.
Its analysis, centred around transition patterns and amended terms .......
News 3 September 2021
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Ready to launch
Norway readies SRT take off
The Norwegian banking market is getting ready for a pick-up in significant risk transfer (SRT) issuance next year following the pending incorporation into law of the new Securitisation Regulation, say market experts.
Nevertheless, the first deals are expected to be relatively simple vanilla structures, given the scepticism of local supervisors.
The Norwegian market has been slow to adopt the SRT mechanism for .......
News Analysis 3 September 2021
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Forward strides
Middle East Islamic finance market looks good into 2022
The Islamic finance Middle Eastern market has achieved notable progress over the last four or five years and sentiment remains very positive, say analysts.
"It's been a strong year so far - we have seen five years of growht in the sukuk markets. On the Islamic banking side, growth has continued to surpass conventional banks. We have seen the industry grow significantly, .......
News Analysis 2 September 2021
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Angel MBS
Angel Oak Mortgage completes first sole MBS at new low coupons
Angel Oak Mortgage REIT, the sister company of Angel Oak Capital, has closed a $316m RMBS offering, designated AOMT 2021-4, which represents the first sole securitization by the firm.
It placed notes with a face value of $306.4m at a weighted average cost of funding of 1.12%. This represents a sharp narrowing of pricing compared to recent deals, pointed out chief .......
News 26 August 2021
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Solar LDA partnership inked
Sector developments and company hires
Solar LDA partnership inked
dv01 has partnered with GoodLeap with the aim of further promoting data transparency and accountability within the solar ABS market. Through this partnership, dv01 will serve as loan data agent (LDA) for Carbon Level Mitigation Trust (CLMTE) pass-through certificates.The shelf currently comprises CLMTE 2021-1 and CLMTE 2021-2, with an aggregate notional value of US$53.6m .......
Market Moves 23 August 2021
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Pretium steps out
New hires signal new products and added depth to old ones
The three key hires that specialist mortgage and real estate investment manager Pretium announced earlier this month signal its intention to widen its footprint in the US residential mortgage space by adding depth in existing product ranges but also adding new instruments to the roster.
Sarah Kong joins the resi credit trading team as head of mortgage whole loan trading from .......
Provider Profile 20 August 2021
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APAC ILS issuance on the rise
Sector developments and company hires
APAC ILS issuance on the rise
Continued efforts from Asia Pacific reinsurers to source alternative capital through the ILS market is anticipated, following on the heels of the seven catastrophe bonds that were issued using Singapore-domiciled vehicles through July. Indeed, the first Hong Kong-domiciled catastrophe bond is being prepped.The Singapore cat bonds issued in 2021 comprise: Security First .......
Market Moves 20 August 2021
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Robust recovery
Bumper "summer" for Aussie securitisation
The Australian securitisation market has experienced a deluge of activity in the last few weeks. With a total of A$8bn placed in July, the sector experienced its busiest month since 2007.
Australia's effective management of the coronavirus and macro-policy response generally facilitated a robust economic recovery throughout 2020. “The securitisation market has obviously shown a dramatic recovery since .......
News Analysis 20 August 2021
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Corporate, PF businesses bolstered
Sector developments and company hires
Corporate, PF businesses bolstered
KBRA has enhanced its corporate and project finance businesses by forming new sector teams to focus on the intersection of infrastructure, energy, renewables and middle market lending. The aim of the sector-focused teams is to meet demand for KBRA’s thought leadership across these segments.Andrew Giudici, senior md and global head of corporate, project and .......
Market Moves 18 August 2021
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The puzzling case of the disappearance of Fannie Mae
FNMA's absence from CRT investigated
Fannie Mae has not issued a CRT deal since 1Q20. This SCI CRT Premium Content article investigates the circumstances behind the GSE’s disappearance from the market and what might make it come back.
Fannie Mae, one of the co-founders of the ground-breaking GSE credit risk transfer market, has not issued a CAS or CIRT transaction since 1Q20. There is ......
News Analysis 18 August 2021Premium Content
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Unanswered questions
Mixed outlook for the UK RMBS market
The outlook for the UK RMBS market is mixed for the rest of the year. Indeed, questions remain over issuance volumes and performance once the furlough scheme ends on 30 September.
UK collateral has constituted 67% of total European RMBS issuance so far this year. At €12.3bn, UK non-conforming RMBS issuance year-to-date has already crossed Deutsche Bank’s full-year .......
News 16 August 2021
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DSW CMBS exposure gauged
Sector developments and company hires
DSW CMBS exposure gauged
Market Moves 13 August 2021
KBRA Credit Profile (KCP) has published a special report on CMBS exposure to footwear retailer Designer Brands, owner of the Designer Shoe Warehouse (DSW) store chain. The company reported EBITDA of negative US$316m in its fiscal year 2020, as sales plummeted in the wake of the Covid-19 pandemic. The company returned to profitability in 1Q21 after .......
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Debt servicing spin-off inked
Sector developments and company hires
Debt servicing spin-off inked
Credito Fondiario Banking Group has demerged its debt purchasing and servicing activities in favour of the newly established Gardant Group. As part of this reorganisation, it has redefined the bank's mission as a challenger bank, specialising in financing solutions for SMEs and corporates. The two companies will operate independently going forward.Panfilo Tarantelli has been .......
Market Moves 6 August 2021
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Pretium strengthens resi credit capabilities
Sector developments and company hires
Pretium strengthens resi credit capabilities
Market Moves 4 August 2021
Sarah Kong, Andrew Miller and Peter Morreale have joined Pretium as mds, based in New York. Kong will be responsible for mortgage whole loan trading at Pretium and joins from Goldman Sachs, where she spent 15 years in the firm's mortgage business. Miller was previously at Fortress Investment Group and will be responsible for the .......
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Ginnie in a hurry
Only 10 more days for market input on new capital rules
Ginnie Mae has blindsided the market with its new proposed capital rules for non-bank lenders, which it also appears to want to implement before the end of the year, say sources.
The government agency announced a request for input (RFI)from interested parties by August 9 in a six-page document released on July 7. Not only is this a relatively short period, it .......
News Analysis 30 July 2021
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BTL issuer acquired
Sector developments and company hires
BTL issuer acquired
Starling Bank has acquired specialist buy-to-let mortgage lender Fleet Mortgages in a £50m cash and share deal. To date, Fleet Mortgages has originated £2.3bn of mortgages and experienced zero credit losses. It currently has circa £1.75bn of mortgages under management and has executed nine RMBS.Starling will become the sole funder of future originations, with Fleet .......
Market Moves 29 July 2021
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Up, up and away
Recovery of GSE CRT/MILN deals from dark days of spring 2020 continues to impress
Although risks to performance remain, the recent impressive performance of GSE CRT and MILN transactions is set to continue, says Yash Shah, DBRS Morningstar vice president.
Shah was speaking yesterday (July 27) on a webinar organised by DBRS Morningstar, in which he was joined by Mark Fontanilla, founder of Mark Fontanilla and Company.
Improvement in collateral, high prepayment speeds and the fact .......
News Analysis 28 July 2021
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Risk on
Lower quality credit outperforms
The first half of 2021 has been universally positive for below-investment grade credit markets and for alternative credit funds. Indeed, stressed and distressed corporate credit generated the highest returns.
“If you fell asleep at the end of 2019 and woke up mid-way through 2021, you would look back and say these performance numbers don’t look too bad. Credit .......
News 28 July 2021
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Summer hiatus
European ABS/MBS market update
Tight spreads, significant supply and general optimism have epitomised the first half of the year in European ABS/MBS. Now, as the primary market finally comes to a halt for the summer with only one deal widely marketing – Taurus 2021-4 UK, see SCI’s Euro ABS/MBS Deal Tracker for more – the secondary market appears to be entering hiatus .......
News 27 July 2021