RMBS

  • Arrears overhang weighs on UK non-conforming

    Record low interest rates have seen the cure rate for UK non-conforming borrowers in milder arrears rise as they get their mortgage payments back on track. However, there is a large core of borrowers who remain in severe arrears, despite lower scheduled payments. This suggests that some borrowers' mortgage payments may be at the limit of what they can afford .......

    News Round-up 31 January 2011

  • Two-thirds of NCUA legacy assets securitised

    The latest National Credit Union Administration resecuritisation closed yesterday, bringing the total number of NCUA Guaranteed Note offerings to six with approximately US$19.3bn outstanding. The agency has now securitised 65% of the legacy assets originally targeted for securitisation in order to fund deposits assumed by the bridge corporate credit unions.

    The US$1.5bn senior NCUA Guaranteed Notes Trust 2011-R1 notes priced .......

    News Round-up 28 January 2011

  • Negative outlook for UK non-conforming

    Moody's reports that UK non-conforming RMBS performance improved in 2010, as demonstrated by decreasing arrears levels and an even more pronounced drop in repossession rates. Nevertheless, given the uncertain long-term performance trends, the agency maintains a negative outlook for the sector.

    The improved performance trend in the sector in 2010 coincided with: a stabilisation in unemployment levels; historically low interest .......

    News Round-up 26 January 2011

  • Months to clear shadow inventory increasing

    The volume of distressed non-agency residential mortgage properties in the US continues to fall, but at a slowing pace. S&P currently estimates that the principal balance of these distressed homes amounts to about US$450bn, representing nearly one-third of the non-agency RMBS market outstanding.

    The agency defines this 'shadow inventory' of distressed properties as outstanding properties whose borrowers are (or recently .......

    News Round-up 26 January 2011

  • Impact of GSE reform explored

    Moody's has released a report discussing a number of reform scenarios for Fannie Mae and Freddie Mac, as well as the potential impact of reform on the ratings of the GSEs' debt obligations.

    "Our triple-A ratings on the GSEs' debt obligations are based on the credit strength of the US sovereign and we believe the government will continue to support .......

    News Round-up 26 January 2011

  • PIMCO pair promoted

    PIMCO has promoted 20 staff to evp level, including two involved in structured credit.

    Yuri Garbuzov is a portfolio manager in PIMCO's Newport Beach office, focusing on structured credit products. He joined PIMCO in 1997 and has also managed credit portfolios, including bank loans, convertibles and structured bank paper, and developed quantitative analytics for the firm.

    Dan Hyman is a .......

    Job Swaps 25 January 2011

  • Aussie RMBS could withstand housing downturn

    Fitch has completed its Australian RMBS housing stress test report, concluding that overall the triple-A tranches of all the transactions tested were resilient to the stresses applied in the study, with only 0.14% of all triple-A tranches by balance experiencing a potential downgrade to the double-A category in the most severe stress scenario.

    The analysis was completed in response to .......

    News Round-up 24 January 2011

  • Full-year securitisation league tables released

    SCI has released its latest league tables for bank arrangers in the European and US structured credit and ABS markets. The figures show that in December JP Morgan in Europe and Barclays Capital in the US held on to their top spots. The leaders participated in over €28bn and US$77bn worth of qualifying deals throughout 2010.

    The tables are intended .......

    News Round-up 24 January 2011

  • Canadian mortgage rules reviewed

    S&P is reviewing the Canadian government's revised rules for Canadian mortgages and home equity lines of credit (HELOCs) to determine their potential impact on the transactions that the agency has rated. The Canadian government last week announced three major changes to rules for government-backed insured mortgages that are expected to go into effect over the next few months.

    First, the .......

    News Round-up 24 January 2011

  • Resecuritisation credit concerns outlined

    Moody's has outlined a number of credit concerns that have led to it increasingly declining to give the highest ratings to US RMBS resecuritisations. These include: the volatility of potential losses in the current environment, a lack of strong protections against bankruptcy risk, ambiguities in the legal documents and uncertainties resulting from foreclosure irregularities.

    Resecuritisations bifurcate the risk embedded in .......

    News Round-up 19 January 2011

  • Servicing compensation initiative launched

    The Federal Housing Finance Agency (FHFA), Fannie Mae and Freddie Mac are to work on a joint initiative with the Department of Housing and Urban Development (HUD). The initiative will consider alternatives for future mortgage servicing structures and servicing compensation for single-family mortgage loans.

    The goals in this initiative are to improve service for borrowers, reduce financial risk to servicers .......

    News Round-up 19 January 2011

  • Private label RMBS losses to increase

    Losses on US private label RMBS are set to increase this year as the foreclosure backlog continues to drive down housing prices, says Moody's. The agency expects RMBS issuance to remain limited in 2011, but also says the rate at which loans in securitisations become delinquent should decline.

    The exposed flaws in foreclosure practices could delay foreclosures by three to .......

    News Round-up 12 January 2011

  • Charges determined for Schwab fund

    The US SEC has charged Charles Schwab Investment Management (CSIM) and Charles Schwab & Co (CS&Co) with making misleading statements regarding the Schwab YieldPlus Fund. The SEC has also charged the firms with failing to establish, maintain and enforce policies and procedures to prevent the misuse of material and non-public information, while deviating from the YieldPlus Fund's concentration policy.

    Further, .......

    Job Swaps 12 January 2011

  • Promotion for MBS vet

    Fortress Investment Group has promoted Greg Finck as head of its newly created mortgage and asset-backed portfolio strategies team (MAPS). In his new role, Finck will move over to Fortress' asset management arm, Logan Circle Partners, and will report to Logan Circle ceo and cio Jude Driscoll. Based in New York, he will lead Logan Circle's structured product activities, focusing .......

    Job Swaps 12 January 2011

  • Fed set to streamline agency MBS portfolio

    The New York Fed's open market trading desk will next week begin streamlining the administration of agency MBS held in the system open market account (SOMA) portfolio by consolidating some of the securities via Fannie Mae and Freddie Mac CUSIP aggregation. Through this process, aggregated CUSIPs are formed by consolidating existing agency MBS with similar characteristics into larger pass-through securities.

    News Round-up 11 January 2011

  • MBS trio recruited

    Amherst Securities Group has recruited Peter Davidson, Chris Heaney and Chris O'Neill to help expand its MBS sales and client base.

    Davidson assumes the role of md in Amherst's New York office, covering insurance companies, money managers and hedge funds. Previously, he was md in the mortgage-backed sales group at RBS and a director in mortgage-backed sales at Merrill Lynch.

    Job Swaps 10 January 2011

  • Retail broker-dealer launched

    Former co-heads of Morgan Stanley Smith Barney's capital markets division, Kevin Morano and Tom O' Brien, have launched SumRidge Partners - a fixed income broker-dealer catering to the wealth management industry.

    SumRidge's core business is market marking in investment grade corporate and municipal bonds, US treasuries and agency securities, including CMOs. The firm - which will specialise in trades sized .......

    Job Swaps 10 January 2011

  • Promotion for SF attorney

    Lowenstein Sandler has promoted attorney Jonathan Wishnia to become a member of the firm in its corporate department. Wishnia advises on mortgage and structured finance matters, including the trading and financing of whole loans and servicing rights. He also works in coordination with the capital markets litigation group, providing forensic analysis services in connection with MBS, ABS, CDOs, ABCP conduits, .......

    Job Swaps 10 January 2011

  • Prime Dutch RMBS rated

    Moody's has assigned provisional ratings to six classes of the Dutch RMBS, ARENA 2011-I, totalling €700m. The transaction, which references Dutch prime mortgage loans, is backed by residential properties located in the Netherlands and is originated by Amstelhuys. Rabobank is arranging the transaction.

    The capital structure includes €147m triple-A rated class A1 notes as well as €497m triple-A class A2s. .......

    News Round-up 7 January 2011

  • Annaly eyes MBS purchases

    Annaly Capital Management has priced an underwritten public offering of 75 million shares of its common stock. The shares are priced at US$17.20 for expected gross proceeds of approximately US$1.3bn. Annaly expects to use the proceeds of this offering to purchase MBS for its investment portfolio and for general corporate purposes.

    Credit Suisse is acting as the lead book-running manager .......

    News Round-up 5 January 2011

  • Securitisation trust units acquired

    US Bancorp's lead bank, US Bank National Association, has completed the acquisition of the domestic and European-based securitisation trust administration businesses of Bank of America. After conversion - expected to complete by the end of the third quarter of 2011 - the acquired US and European trust businesses will operate under the US Bank trade name and will open offices .......

    Job Swaps 5 January 2011
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