RMBS
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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
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Disposals pending
Irish NPL activity set for rebound
The Irish non-performing loan market is set for a rebound in the second half of the year, following a hiatus due to the coronavirus crisis. Indeed, owner-occupied residential mortgages are expected to be a major area of focus for banks as they develop their future strategies against the backdrop of a post-Covid economy.
Ireland has been one of .......
News 23 July 2021
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Credit events
US moratoria challenges highlighted
The capital relief trades market has adapted to the existence of payment holidays by either excluding them from portfolios or limiting their presence in them. Nevertheless, payment holidays have raised challenges for US synthetic securitisations - although their removal isn’t expected to have a negative impact on US deals, given that the bulk of take-up rates occurred last year .......
News 23 July 2021
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Angel eyes
Angel Oak Capital Advisors' Sam Dunlap talks value in non-agency MBS
Atlanta-based Angel Oak Capital Advisors’ flagship multi-strategy income fund (ANGLX), this year celebrates its 10-year anniversary. The ANGLX is a dedicated structured credit mutual fund, focussing chiefly on US non-agency residential MBS, and was launched after the Financial Crisis of 2007/2008. In the last decade, ANGLX has achieved average annualised returns of 5.66%, as of 6/30/21, and now has approximately $7bn .......
The Structured Credit Interview 20 July 2021
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Six STACRs - UPDATE
Freddie's sixth STACR of 2021 prints inside previous two
Freddie Mac late yesterday (July 19) priced its sixth STACR deal of the year, designated STACR 2021-DNA5, at levels inside recent DNA and HQA trades.
“Freddie Mac’s single family CRT programme continued to attract strong investor demand, with 66 unique investors participating in the STACR 2021-DNA5 transaction, the most since 2017. The B1 tranche drew 39 investors, the most in programme history. .......
News 20 July 2021
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Euro CLO BWICs down, but staying strong
Sector developments and company hires
Euro CLO BWICs down, but staying strong
European CLO 2.0 BWIC activity contracted sharply in the first half of 2021 versus 1H20. However, secondary liquidity remains more sustained compared to pre-pandemic levels, reflecting the market's maturity and expansion in recent years, according to Bank of America European CLO research analysts.BofA estimates overall BWIC volumes of €5.3bn for 1H21, .......
Market Moves 19 July 2021
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Minor deterioration
Spanish payment holidays buck the trend
The end of payment holidays for Spanish mortgages could lead to a minor deterioration in the collateral performance of Spanish RMBS. However, an impact on credit ratings is not expected.
“The collateral performance has experienced a very minor deterioration and the impact on credit ratings is unlikely. Once payment holidays schemes have ended, no ratings impact should happen .......
News 19 July 2021
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Foreclosure fears
CFPB's new rule curtailing foreclosures complicates mortgage market
The final rule on foreclosures introduced this week by the Consumer Financial Protection Burea (CFPB) is unlikely to interrupt MBS issuance in the short term but problems likely lie round the corner, say experts.
At the moment, record refinancing are contributing to healthy MBS issuance but if rates rise - as looks likely - then refinancing will become less popular and the .......
News Analysis 15 July 2021
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New CLO committee to tackle 'greenwashing'
Sector developments and company hires
New CLO committee to tackle ‘greenwashing’
Market Moves 15 July 2021
The European Leveraged Finance Association (ELFA) has created a new committee to establish industry best practice and serve investors in the CLO market. The CLO Investor Committee will provide a forum for members to identify CLO investors’ requirements, facilitate discussion on general market progress and key issues, and contribute to the regulatory dialogue on .......
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Back in vogue?
Reverse equity to test market appetite
Another UK RMBS backed predominantly by legacy Northern Rock assets has hit the market. The Towd Point Mortgage Funding 2021-Hastings 1 transaction marks the first public securitisation of UK equity release mortgages since the financial crisis.
Acquired by Cerberus in 2018, the £215.68m portfolio comprises 86.5% Northern Rock loans and 12.9% Legal & General loans, with the remainder .......
News 15 July 2021
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ILS efforts beefed up
Sector developments and company hires
ILS efforts beefed up
Market Moves 14 July 2021
AXIS Capital Holdings has appointed Chris Caponigro as global head of AXIS ILS, as its third-party capital unit has been rebranded. Caponigro will oversee the company’s activities related to third-party capital under management, supporting ILS efforts across its reinsurance and insurance segments. He will report to AXIS Re ceo Steve Arora and be based out of .......
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Endless cash
European ABS/MBS market update
As the pre-summer flow comes to a close, optimism still prevails across the European ABS/MBS primary market. Despite strong execution from the four widely marketed deals last week and three still in the pipeline (see SCI’s Euro ABS/MBS Deal Tracker for more), further tight pricing levels are expected.
“The ABS-RMBS space has been exceptionally strong during these .......
News 14 July 2021
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Positive story?
Mortgage performance eyed as support ends
European RMBS performance has remained robust in the face of unprecedented stresses brought about by Covid-19, supported by a number of government schemes. However, questions remain over how the withdrawal of these measures will affect the market.
“The structures have done what they have been designed to do and they have been robust – that is a positive .......
News Analysis 13 July 2021
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EU monetary policy to reflect carbon transition
Sector developments and company hires
EU monetary policy to reflect carbon transition
The ECB has published its new monetary policy strategy, which includes what it describes as “an ambitious climate-related action plan”. The central bank states that climate change has profound implications for price stability through its impact on the structure and cyclical dynamics of the economy and the financial system.As such, it .......
Market Moves 9 July 2021