RMBS

  • MBS market buffeted

    'Unsustainable' hedges called out

    MBS spreads to Treasuries widened again yesterday (1 April), giving those hedging margin calls on TBA shorts a breather. But it is not thought that the US Fed has been frightened off by the MBA’s letter on Sunday admonishing its actions in the previous week.

    Agency MBS spreads have backed up again, but volatility continues to be the .......

    News Analysis 2 April 2020

  • CRR compliance for NHG guarantee

    Sector developments and company hires

    EMEA
    Addleshaw Goddard has hired structured finance partner Rachel Kelly from McDermott Will & Emery. Kelly has three decades of experience at major international law firms, including as a partner at both Clifford Chance and Macfarlanes. Her work has been across the full spectrum of structured finance and debt capital markets transactions, public and private, national and international, advising the full .......

    Market Moves 1 April 2020

  • Advancing assistance programme prepped

    Sector developments and company hires

    Advancing assistance mooted
    Ginnie Mae is tailoring the existing disaster pass-through assistance programmes to more suitably scale to the needs of mortgage issuers in response to the Covid-19 liquidity squeeze (SCI 30 March). The GSE anticipates implementing within the next two weeks - via an All Participants Memorandum (APM) - a Pass-Through Assistance Program (PTAP), through which issuers with .......

    Market Moves 31 March 2020

  • CECL delayed

    EU banks await IFRS 9 relief

    The US Fed, the FDIC and the OCC last week approved an extension of the new credit loss accounting standard CECL until 2022. No equivalent action has been taken for IFRS 9 on the EU side, however.

    According to the US regulators’ joint statement, banking organisations that are required under US accounting standards to adopt CECL this year .......

    News 31 March 2020

  • Basel 3 implementation deferred

    Sector developments and company hires

    APAC fund launch
    Pierfront Capital Fund Management has been awarded its capital market services license for fund management by the Monetary Authority of Singapore. It has also announced the first close of the Keppel-Pierfront Private Credit Fund, which aims to provide debt solutions to corporates or projects predominantly in the real asset sectors of the Asia-Pacific region. Sponsored by Pierfront .......

    Market Moves 30 March 2020

  • Capacity constraints

    Covid-19 not yet posing solvency issues

    Government and central bank actions have kept both the financial system and the real economy afloat in the short-term, amid the coronavirus disruption. The severity of this crisis for company and household finances will depend on the length of the current outbreak and political will, however.

    According to Rabobank credit analysts: “Covid-19 is now an imminent issue for .......

    News Analysis 30 March 2020

  • Systemic risk?

    Servicing capacity concerns for non-bank lenders

    Fitch has revised its US RMBS servicer ratings outlooks to negative, due to evolving economic stresses and operating conditions caused by the coronavirus pandemic. Concern around servicing capacity in the US is rising as non-bank mortgage lenders come under increasing pressure, given their limited funding profiles.

    “The fallout from the pandemic is likely to elevate loan delinquencies, increase .......

    News Analysis 30 March 2020

  • PPIP call

    CRT and non-agency MBS still in need of purchasing power

    Non-agency MBS and CRT deals in particular are still in need of government support, according to securitised product research analysts at JPMorgan. They suggest it could come in the form of a Public Private Investment Programme (PPIP) similar to that introduced in 2009 to support MBS through combining Treasury and private capital to buy legacy assets.

    “While the .......

    News 27 March 2020

  • UK WBS hit expected

    Sector developments and company hires

    APAC
    Frontier Advisors has appointed Joe Clark as senior consultant in its alternatives and derivatives research team, based in Melbourne, Australia. Clark was previously senior portfolio manager in QIC’s global multi-asset team and has also worked at Suncorp Investment Management. He has experience in ILS manager and investment research.

    North Dock debuts
    Barclays Private Bank has closed North Dock No. .......

    Market Moves 26 March 2020

  • Forced selling

    REITs struggling to meet margin calls

    US MBS rallied yesterday (25 March) in the wake of the announcement that Congress has agreed the terms of a US$2trn stimulus package. However, they remain well down on the week, say dealers.

    “The Fed announcement has firmed things up. It has stabilised the market but not taken away all the spread widening,” says one. But the market .......

    News Analysis 26 March 2020

  • Cloudy outlook

    RMBS perseveres amid market volatility

    LendInvest last week closed Mortimer BTL 2020-1, a £285m UK buy-to-let RMBS, in the face of unprecedented levels of volatility in credit markets. Virus-related uncertainties are not the only concern for UK RMBS this year, however.

    The triple-A rated senior tranche of Mortimer BTL 2020-1 priced at Sonia plus 1.07%, 23bp tighter than LendInvest’s previous deal, Mortimer BTL .......

    News Analysis 26 March 2020

  • Fed revives the TALF programme

    Sector developments and company hires

    Return of the TALF
    The US Fed announced a slew of new measures to support the credit markets this morning, including the revival of the Term Asset-Backed Securities Loan Facility (TALF), first seen in the wake of the global financial crisis. Under the TALF, the New York Fed will commit to lend to an SPV on a recourse basis and .......

    Market Moves 23 March 2020

  • CRT deals disclosed

    Intesa publishes capital management strategy

    Intesa Sanpaolo has released details of its capital management strategy, following the release of its 2019 annual report on Friday (20 March). The lender has revealed the details of four capital relief trades that were completed last year. 

    Intesa Sanpaolo’s 2018-2021 business plan includes initiatives for credit portfolio management that fall within the remit of the active credit portfolio steering .......

    News 23 March 2020

  • NPL supervisory flexibility introduced

    Sector developments and company hires

    Canadian purchase programme
    The Canadian government has launched a revised Insured Mortgage Purchase Program (IMPP), under which it will purchase up to US$50bn of insured mortgage pools through the Canada Mortgage and Housing Corporation. The move aims to provide stable funding to banks and mortgage lenders in order to ensure continued lending to Canadian consumers and businesses. The first purchase .......

    Market Moves 20 March 2020

  • Economically efficient

    Study supports reduction of PD estimates

    A new study undertaken by Open Source Investor Services (OSIS) suggests that capital relief trades are a good alternative to traditional issuance of new capital in the majority (75%) of cases reviewed and in 40% of cases the instrument works well during a downturn scenario, even if investors are compensated for higher losses. The research investigates whether and when .......

    News Analysis 20 March 2020

  • Further central bank support unveiled

    Sector developments and company hires

    Bridging loan deal inked
    UK challenger lender Glenhawk has closed a private revolving securitisation of bridging loans, with senior funding provided by JPMorgan. Glenhawk offers short-term property development and homeowner loans, and has recently been authorised by the FCA. The new capital will support Glenhawk’s growth into the UK homeowner market. The facility represents the first time that JPMorgan has .......

    Market Moves 19 March 2020

  • Risk off

    Securitisation markets seize up

    Amid a global sell-off, securitised asset classes where liquidity is scarce and asymmetry of positions particularly acute have suffered grievously. The FOMC decision to increase TBA purchases has so far eased only the agency RMBS sector (SCI 17 March).

    “I spoke to an executive committee about a month ago and you know what I told them? I .......

    News 19 March 2020

  • Even playing field?

    Reg AB relaxation set to release RMBS

    The relaxation of FDIC rules regarding bank compliance with SEC Regulation AB when issuing RMBS (SCI 4 March) evens the playing field between bank and non-bank issuers. The move is expected to clear the way for greater bank-sponsored issuance to emerge.

    The FDIC’s decision to drop the requirement for banks to comply with Regulation AB was underpinned .......

    News Analysis 18 March 2020

  • Fed rolls out CPFF

    Sector developments and company hires

    CMB purchase programme
    The Bank of Canada has announced that it stands ready, as a proactive measure, to provide support to the Canada Mortgage Bond (CMB) market to ensure that it continues to function well. This would include, as required, purchases of CMBs in the secondary market through a competitive tender process. As a starting point, the bank will target .......

    Market Moves 17 March 2020

  • Liquidity concerns

    European ABS pipeline coming to a halt

    The European ABS primary market is grinding to a halt amid coronavirus-related volatility, with many transactions postponed. Among the relief measures implemented by the Bank of England and the ECB last week, the new UK Term Funding Scheme for SMEs (TFSME) could inhibit UK RMBS volumes further.

    “Spread levels are difficult to predict in the current environment,” says .......

    News Analysis 17 March 2020

  • Greencoat liquidator appointed

    Sector developments and company hires

    EMEA
    Ocorian has appointed Abigail Holladay as director of transaction management. Based in London, Holladay will manage restructuring transactions across Europe. She has previously held senior positions at Law Debenture and Deutsche Bank. Holladay has experience covering waivers, defaults, delegate/successor trusteeships and complex debt restructurings.

    Greencoat winding up
    In connection with the BUMF 4, 5, 6 and 7 CMBS, the .......

    Market Moves 16 March 2020
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