RMBS

  • 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

  • BoA settles GSE buy-back claims

    Bank of America has announced agreements with Freddie Mac and Fannie Mae to resolve repurchase claims involving certain residential mortgage loans sold to them by entities related to Countrywide Financial Corporation. The payouts are a result of the GSEs' drive to exercise their put-back options on certain loans (see SCI issue 198).

    The agreement with Freddie Mac extinguishes all outstanding .......

    News Round-up 4 January 2011

  • Downgrades for Option ARM RMBS

    Moody's has downgraded four tranches totalling US$6bn from four RMBS issued by Wachovia due to deteriorating collateral. The collateral backing these transactions consists primarily of first-lien, adjustable-rate, negative amortisation and Alt-A residential mortgage loans.

    In these transactions Wells Fargo - as master servicer - is obliged to repurchase loans that are more than 90 days past their due date. Delinquent .......

    News Round-up 4 January 2011

  • RMBS default backlog continues to grow

    The growing volume of residential defaults continues to have a notable effect on the US housing market, according to S&P. The time it will take for the market to absorb newly-distressed properties has continued to grow in 3Q10, with the growing volume of distressed properties remaining one of the primary factors hindering a full recovery, the agency says.

    "At the .......

    News Round-up 4 January 2011

  • Eurosail deals downgraded on FX risk

    Moody's has downgraded the ratings of 19 classes of notes issued in four Eurosail transactions exposed to foreign exchange risk, following the review of its loss assumptions for the underlying mortgage portfolios. It has also updated its loss assumption in another UK non-conforming RMBS transaction exposed to foreign exchange risk, but has taken no action on the ratings of the .......

    News Round-up 24 December 2010

  • GSE portfolio rules implemented

    The Federal Housing Finance Agency (FHFA) has sent to the Federal Register a final rule pertaining to Fannie Mae and Freddie Mac portfolio holdings. The final rule implements section 1109 of the Housing and Economic Recovery Act of 2008 (HERA) and adopts without change FHFA's interim final rule on portfolio holdings, which was effective on 30 January 2009.

    The final .......

    News Round-up 24 December 2010

  • RMBS data integrated

    BlackBox Logic has partnered with Thetica Systems to improve its RMBS forecasting. Under the agreement, the Thetica platform will integrate BBx Data, thereby offering a high-speed analytics module capable of running multiple bonds simultaneously under various scenarios.

    The tool allows for the most precise RMBS forecasting, the two firms say, utilising BBx's dataset and client or third-party credit and default .......

    News Round-up 21 December 2010

  • Hermes XVII restructured

    Fitch has affirmed HERMES XVII Dutch RMBS, following a restructuring of the transaction. The changes made include an improvement to the credit risk of the portfolio due to the removal of arrears and some high loan-to-value loans, as well as additional mechanisms to support the unrated class E notes.

    Following the restructuring, the substitution period will end immediately with the .......

    News Round-up 17 December 2010

  • Securitisation arranger numbers released

    SCI has released its latest league tables for bank arrangers in the European and US structured credit and ABS markets. The figures show JP Morgan has eased in to top spot in Europe, while in the US Barclays Capital has extended its lead for 2010 to the end of November. The leaders participated in an impressive €7.26bn and US$13.5bn worth .......

    News Round-up 17 December 2010

  • Indian RMBS maintain stable performance

    The performance of Indian RMBS transactions has remained stable throughout 2010, according to Fitch, with all 16 transactions that it rates maintaining their initial ratings with stable outlooks. The strong performance is a result of low average defaults of less than 1.5% of original principal outstanding across all vintages, the agency says.

    The usage of credit enhancement has also been very .......

    News Round-up 16 December 2010

  • RMBS re-REMICs on review following error

    S&P has placed its ratings on 1,196 classes from 129 US RMBS re-REMIC transactions issued in 2002-2010 on credit watch with negative implications. The actions primarily reflect the agency's revised analysis of timely interest, including consideration of the impact of pro rata allocation of interest among senior and subordinate classes.

    S&P says that previously it incorrectly analysed timely interest payments and .......

    News Round-up 16 December 2010

  • RMBS loss severities to increase

    Fitch's latest RMBS performance metrics results indicate that loss severities on distressed US residential mortgage loans are likely to increase by an additional 5%-10% from current levels. This, the agency says, is due to higher loss mitigation, foreclosure expenses and weakening home values.

    The anticipated increases for average loss severities for prime loans are expected to increase from 44% to 49%-54%. .......

    News Round-up 16 December 2010

  • Refinancing Register criteria updated

    Fitch has updated its rating criteria for analysing the securitisation transactions that use the German Refinancing Register. In particular, the updated report contains the agency's view on and criteria aspects for transactions that use the register to accept loans instead of only mortgage liens.

    The refinancing register is a file in which an originator can record the loans and mortgage .......

    News Round-up 16 December 2010

  • Pressure to continue for US mortgage servicers

    The intense spotlight placed on US mortgage servicers after the disclosure of irregularities in foreclosure documentation will continue into 2011, according to Moody's. However, although the scope of irregularities should become better defined over the next few months, the scrutiny may lead to fresh controversies about additional servicing practices.

    Moody's expects that more clarity will come as servicers complete their .......

    News Round-up 15 December 2010

  • Mortgage-related litigation on the rise

    The Mortgage Litigation Index, a collaboration between Patton Boggs and Mortgage Daily, indicates that legal actions tied to mortgage-lending rose by over 40% in the third quarter of the year. The index tracked activity on more than 100 civil and criminal mortgage-related cases between 1 July and 30 September 2010.

    Activity in this period leapt from the second quarter's 75 cases .......

    News Round-up 13 December 2010
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