RMBS

  • Japanese dependence

    European ABS market update

    European ABS markets have effectively closed for the year. Deals in the pipeline are now expected to price in early 2019.

    Looking ahead to 1Q19, one trader comments: “For UK buy-to-let and non-conforming RMBS, activity will depend 100% on what happens with Brexit. Unless we have more clarity about how Brexit will play out, investors are going to be .......

    Market Reports 19 December 2018

  • Cerberus explores RMBS options

    Sector developments and company hires

    Granite alternatives

    Cerberus European Residential Holdings is exploring strategic alternatives with respect to the mortgage loans held in the Towd Point Mortgage Funding 2016-Granite1 and 2016-Granite2 RMBS, which will become eligible for optional redemption from April and May of 2019 respectively. The firm has engaged Morgan Stanley and Bank of America Merrill Lynch as its financial advisors to .......

    Market Moves 17 December 2018

  • Landmark transaction launched

    UK RMBS is first securitisation tied to SONIA rate

    The first securitisation with liabilities tied to the Sterling Overnight Index Average (SONIA) rate has been issued by Lloyd’s Bank, which is opting to retain the deal. The £7.6bn transaction, dubbed Elland RMBS 2018, is backed by owner-occupied residential mortgages in England and Wales, originated by Bank of Scotland under the Halifax brand.

    While the assets in the transaction are .......

    News 17 December 2018

  • STS guidelines published

    Sector developments and company hires

    P2P head hired

    Dynamic Credit has hired Giles Andrews as chairman of its supervisory board. The board will have three members and serves to strengthen the corporate governance of Dynamic Credit Group (DCG), which comprises of the asset manager and direct lender Dynamic Credit and the investor servicing platform LoanClear. Andrews is co-founder of Zopa and, in addition to his .......

    Market Moves 13 December 2018

  • Bid scarcity

    European ABS market update

    A major UK bank is focusing efforts of European NPLs in the coming weeks, as spreads continue to widen in the CLO and ABS primary markets.

    “We are running a few private processes, which are keeping us busy, and we will hopefully conclude them over the next couple of days,” says a trader.

    The trader comments that .......

    Market Reports 7 December 2018

  • BTL securitisation planned

    Sector developments and company hires

    Europe

    Accunia has promoted Mads Romild as head of Accunia’s CLO platform. Romild will continue as cio and head all Accunia investment strategies. Andres Garcia Bartolome and Rajiv Thaker are also promoted to senior portfolio managers and will be responsible for the portfolio management of the three existing and all new Accunia CLOs. Romild previously held a position as chief portfolio .......

    Market Moves 6 December 2018

  • Split-mortgages securitised

    PTSB completes second NPL transaction

    Permanent TSB last week completed its second major transaction to reduce its non-performing loan ratio. The bank disposed of Irish mortgage loans with a €1.31bn GBV (€910m NBV) linked to 6,272 borrowing relationships via the Glenbeigh Securities 2018-1 RMBS.

    The majority of the borrowing relationships are secured by private dwelling home loans, with 133 secured by buy-to-let loans. ......

    News 5 December 2018

  • Enforcement uncertainty

    Set-back for STS-eligible issuance

    The recent statement issued by the Joint Committee of the ESAs (SCI 4 December) is unlikely to be sufficient to assuage securitisation market concerns on its own. Such regulatory uncertainty is expected to further delay the emergence of STS-eligible securitisations in the pipeline.

    “The statement by the Joint Committee of the ESAs acknowledges the concerns about the .......

    News 5 December 2018

  • Proportional approach

    ESAs tackle delay in transparency requirements

    The joint European Supervisory Authorities (ESAs) - which consist of the EBA, ESMA and the European Insurance and Occupational Pensions Authority - have published a letter reiterating market concerns over ESMA’s disclosure requirements (SCI 5 October) and Article 14 (SCI 9 July) of the CRR. The authorities have also called on EU national regulators to apply a ......

    News 4 December 2018

    Premium Content

  • Funding boost for online lender

    Sector developments and company hires

    Alesco CDOs transferred

    The collateral management agreements for the Alesco Preferred Funding X to XVII Trups CDOs have been assigned to Hildene Collateral Management Company (HCMC), an affiliate of Hildene Capital Management. Under the terms of the assignments, HCMC agrees to assume all the responsibilities, duties and obligations of the current collateral manager (ATP Management) under the agreements and under .......

    Market Moves 29 November 2018

  • Term leveraging

    European ABS market update

    The European primary ABS market is still drifting wider, due to concentration of supply.

    “Investors are using their leverage to dictate terms and push deals as wide as possible. That’s one of the reasons why the pipeline has been brought forward,” says one trader.

    He adds: “If a deal is struggling, an investor can offer to push .......

    Market Reports 29 November 2018

  • Green wave

    International RMBS market update

    A pair of RMBS bid-lists comprising mostly senior non-conforming and prime collateral are set to hit the market tomorrow at 2pm GMT. One list consists of 16 euro-denominated line items, while the other has 15 sterling bonds, including a chunky £34.25m slice of the WARW 2 A tranche.

    “The question is where the appetite is going to come .......

    Market Reports 27 November 2018

  • Italian RMBS sell-off 'unlikely'

    Uncertainty ahead may see pan-European issuance drop

    A widespread sell-off of Italian RMBS is ‘unlikely’, despite a recent comment from a UK investment manager that there is no longer a case for investing in Italian RMBS now spreads are trading within Italian government bonds. The statement, from 24 Asset Management (24AM), adds that Dutch and UK RMBS are now a more sensible option, although some investors question .......

    News Analysis 26 November 2018

  • UK SLABS slated

    Sector developments and company hires

    EMEA

    Eurocastle Investment has appointed Hammad Khan to its board as a non-executive director, increasing its number of directors to six. Khan is a representative of Eurocastle’s largest shareholder, an affiliate of EJF Capital, where he is a senior md and a senior member of the EJF Investments Manager investment team. He joined EJF in March 2013 and is responsible .......

    Market Moves 23 November 2018

  • Bloodbath blues

    European ABS market update

    The European ABS market has repriced, after taking a hit yesterday when the S&P 500 index plunged by 1.8%. The tone has improved this morning, as traders cautiously return to the market.

    “We’re seeing the market repricing after the bloodbath that happened yesterday,” says one trader. “A lot of paper hit the shelf and nobody wanted to trade it; mezz ......

    Market Reports 21 November 2018

    Premium Content

  • Long goodbye

    First non-Libor linked ABS anticipated

    Lloyds became the first bank to issue a benchmark covered bond tied to the sterling overnight index average (SONIA) in September. The move has sparked predictions that the first securitisations tied to alternative reference rates will emerge next year.

    Libor is set to be phased out from 2021 and it remains unclear what will replace it as a .......

    News Analysis 20 November 2018

  • Credit clutch

    European ABS market update

    The European ABS slow-down continues, with prices drifting wider and subdued credit growth across the board. In particular, an aversion to duration risk has emerged this week.

    “Credit is headed for the worst year since 2008,” one trader explains. “ABS traders are not used to showing negative figures to their clients. People are reassessing the market.”

    In .......

    Market Reports 20 November 2018

  • Double Dutch

    Dutch RMBS market sees surge of activity

    The Dutch RMBS market has seen a surge of activity with two new Dutch RMBS transactions marketing, both of which are backed by prime Dutch residential mortgages and touted as STS compliant. NIBC is back on the scene after a five-year hiatus with the €476.2m Dutch MBS 19 deal, while also marketing is the Goldman Sachs-mandated €337m EDML 2018-2 transaction from .......

    News 16 November 2018

  • Selling stagnation

    European ABS market update

    Activity in the European ABS primary and secondary markets has slowed this week, with volumes generally stabilising across both segments.

    “It feels a little softer on the secondary market,” says one trader. “There has been between a 5bp to 10bp drop in spreads across the board, although a decent bid remains for 2.0 paper. There are fewer sellers .......

    Market Reports 16 November 2018

  • Dry powder

    International ABS market update

    Pepper Group is prepping an Australian RMBS that is expected to be sized at A$500m-equivalent and include a short US dollar tranche and a Euro-denominated pass-through tranche. Elsewhere in the European primary securitisation market, Tesco’s Delamare Cards MTN Issuer Series 2018-1 deal – the senior tranche of which is being talked at one-month Libor plus 70bp – is expected .......

    Market Reports 15 November 2018

  • Diverging dynamics

    Aussie non-banks driving change

    Around A$30bn of Australian RMBS issuance is expected for full-year 2018, over 50% of which will be originated by non-bank lenders. A confluence of demand and regulatory factors is driving growth in non-bank issuance and changing the shape of the market.

    Jordan Batchelor, director, structured capital markets at ANZ, says that a divergence is emerging between RMBS originated .......

    News Analysis 15 November 2018
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