RMBS
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Lender charged for overstating returns
Sector developments and company hires
CRT analytics
dv01 has launched a credit risk transfer market surveillance offering, which adds US$1.8trn of Freddie Mac STACR and Fannie Mae CAS securitisations to its loan-level data analytics platform. The service allows investors to analyse historical performance of CRT deals individually or combined, perform whole market analysis and run cashflow scenarios.MPL platform charged
Market Moves 23 April 2019
The US SEC has ordered Prosper Funding .......
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CLO manager denied incentive fee
Sector developments and company hires
Incentive fee ruling
Market Moves 18 April 2019
The High Court in London has ruled that Barings (UK), as collateral manager, was not entitled to an incentive fee at the expense of junior bondholders following the optional redemption of the Duchess VI CLO. Part 8 proceedings were brought by Deutsche Trustee Company, to determine the correct interpretation of the bond documentation in which Barings (UK) .......
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BMF administration order filed
Sector developments and company hires
BMF 6 tender
Market Moves 16 April 2019
An application for an administration order in respect of Business Mortgage Finance 6 was presented in the London High Court of Justice last week, with a return date of 18 April. The application was presented by Greencoat Investments, which is understood to be in the process of carrying out a tender process for the acquisition of certain .......
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Sonia success
European ABS market update
The first UK STS RMBS – Nationwide’s Silverstone Master Issuer 2019-1 – priced yesterday, with substantial demand seen for both the sterling and US dollar tranches. The transaction is also the debut deal to publicly place a floating coupon referencing Sonia.
Silverstone 2019-1’s US$350m triple-A rated 1.95-year class 1A notes printed at three-month Libor plus 57bp (compared to .......
Market Reports 16 April 2019
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Inaugural non-QM RMBS prepped
Deal marks new phase for global investor
The first seasoned, non-qualified mortgage RMBS issued by a private fund managed by PIMCO is marketing. The US$382.45m transaction, dubbed BRAVO Residential Funding Trust 2019-1, is backed by 1,311 loans originated by Capital One and acquired by a PIMCO-run fund in a bulk sale.
The transaction has been assigned provisional ratings by Fitch of triple-A on the US$343.06m .......
News 12 April 2019
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BWIC boom
Quarterly SCI data update
The first quarter of a year is usually quieter than the previous quarter and, for the most part, 1Q19 saw reduced activity over 4Q18 (SCI 24 January 2019). The notable exception was CLO secondary markets, where BWIC volumes boomed for the second quarter in a row, according to SCI data.
....... News Analysis 11 April 2019
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Affordability test
'Mortgage prisoner' refi proposal unveiled
Around 60 legacy UK RMBS with a face value of £29bn could be positively affected by the UK FCA’s recent proposal to relax some affordability tests for so-called ‘mortgage prisoners’, according to Moody’s. If a significant number of borrowers are able to refinance under the new rules, some senior bonds could benefit from higher than expected increases in credit ......
News Analysis 2 April 2019
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Positive sentiment?
European ABS market update
European ABS primary issuance is gaining momentum, as the second quarter begins. Indeed, the variety of deals on offer appears to be boosting sentiment, with a newly announced marketplace lending securitisation joining the re-performing and non-conforming RMBS in the pipeline (see SCI’s deal pipeline).
“The European primary market is a lot busier than it was even a .......
Market Reports 2 April 2019
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CEO appointed
Sector developments and company hires
CEO appointed
Curtis Arledge has joined Mariner Investment Group as chairman and ceo. In addition to his role at Mariner, Arledge will serve as head of Mariner subsidiary, ORIX USA asset management, responsible for driving the company’s overall strategy in the space, including facilitating opportunities for growth across ORIX USA’s enterprise. A founding member of Mariner, Arledge has returned to .......
Market Moves 28 March 2019
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'Constant demand'
UK firms hiring across range of SF roles
Hiring in the UK structured finance space has been buoyant in the last 12 months, with recruitment across a range of roles and asset classes. While there has been a slight slowdown in the first quarter of this year, hiring is expected to pick up after March, once bonuses have been delivered.
Angel Valchev, consultant at Michael Page, comments that .......
News Analysis 28 March 2019
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Picking up pace
European ABS market update
European ABS secondary market activity has been relatively subdued so far this week. However, the primary market appears to be picking up pace, with a pair of CMBS in focus and a new UK RMBS mandated.
“Given the lack of new issuance this year, we are expecting the two CMBS currently in the market – Kanaal CMBS Finance 2019 [ Market Reports 28 March 2019
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STS firm announces debut deal
Transaction marks second deal to receive STS label
Prime Collateralised Securities (PCS) has announced its inaugural transaction to be verified as STS-compliant by the firm, marking the second European securitisation to receive the STS label. The transaction, dubbed Storm 2019-1, is a €1.1bn Dutch RMBS from Obvion – a wholly-owned subsidiary of Rabobank - and is expected to close on 12 April 2019.
The transaction will have five classes .......
News 26 March 2019
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Opening the box
Non-QM sector continues to evolve
The non-qualified mortgage RMBS sector has expanded faster than the other US RMBS sectors over the last few years. At the same time, as more issuers have tapped the market, a broader representation of borrowers along the credit spectrum has emerged.
Around US$11.9bn in non-QM RMBS deals was issued last year, up by 256% from US$3.3bn the previous .......
News Analysis 26 March 2019
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Granite refinancing
Sector developments and company hires
Europe
Muzinich & Co has hired Laurence Kubli as structured credit specialist with immediate effect. Based in Zurich, Laurence will focus on creating the firm’s first structured credit strategies in this newly-created role. Laurence joins from GAM Investments, where she was senior pm, structured finance and corporate credit for 11 years. Prior to that, she held various roles at .......
Market Moves 25 March 2019
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Purchase option to be exercised
Sector developments and company hires
EMEA
Market Moves 22 March 2019
Capzanine has appointed Renaud Tourmente as head of business development, effective from 6 May 2019. Tourmente will join the firm as partner and will be part of its executive committee. In this newly created role, he will support the firm’s international development, pursue the diversification of its debt products and contribute to strengthening relationships with its investors. He brings .......
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Majority stake acquired
Sector developments and company hires
Balance sheet normalisation
Market Moves 21 March 2019
The US Fed has confirmed it intends to continue to allow its holdings of agency debt and agency MBS to decline, consistent with the aim of holding primarily Treasury securities in the longer run. Beginning in October 2019, principal payments received from agency debt and agency MBS will be reinvested in Treasury securities, subject to a maximum .......
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ERM debut
Seniors Money preps its return
The first publicly rated securitisation of Irish and Spanish equity release mortgages (ERMs) has hit the market. The €256.4m SMI Equity Release 2018-1 RMBS is backed by 2,233 loans originated by Seniors Money Ireland and Seniors Money Spain (collectively known as SMI).
The loans are generally seasoned more than 10 years and the properties are predominantly located in ......
News 20 March 2019Premium Content
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Holding tight
Freddie Mac seeks to nurture investor base
Retaining its European investor base, while capturing a broader range of institutional investors, is seen as a key goal for Freddie Mac in 2019 and ahead. Alongside this, the GSE is facing growing concerns from investors surrounding deteriorating factors in US housing market.
Mike Reynolds, vp, credit risk transfer at Freddie Mac, highlights that 2018 was a year of marked .......
News 20 March 2019
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Latest podcast now available
CRT themes and a Dutch RMBS first discussed
In this month's podcast, we explore some interesting themes within the CRT market: namely, eligibility criteria and replenishment conditions, as well as control rights within transactions. Additionally, we take a closer look at Domivest's debut securitisation of buy-to-let loans - a first for the Dutch market.
Click here to listen to the whole thing on our site. Alternatively, you .......
News 15 March 2019
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Unencumbered value
Equity release RMBS on the cards?
The UK mortgage market is changing, with an ageing population driving increased issuance of equity release mortgages (SCI 5 June 2018). Speculation that a post-crisis iteration of equity release securitisations could soon appear in the UK has been fuelled by UKAR’s sale of an equity release portfolio last year.
Equity release mortgages allow borrowers to access the .......
News Analysis 15 March 2019
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Benchmark Sonia deal prepped
Unique UK RMBS transaction adds momentum to IBOR transition
The first third party hedged UK RMBS with Sonia-linked notes has been prepped by Principality Building Society. The £523.08m transaction, dubbed Friary 5, is a static cash securitisation of residential mortgage loans to 4,472 borrowers in the UK.
The transaction is unique in using Sonia as a reference rate for the note coupons, rather than sterling Libor. As a result, on ......
News 15 March 2019Premium Content