RMBS

  • Job swaps round-up - 7 July

    North America

    Mayer Brown has hired Jay Kallas as counsel in its Chicago office, focusing on structured insurance and reinsurance transactions. He was previously counsel at Drinker Biddle & Reath.

    Cadwalader has hired Peter Morreale as partner in the capital markets team in the Washington, DC office. He was previously at Goldman Sachs, where he was md and associate general .......

    Job Swaps 7 July 2017

  • BTL refinancing risk highlighted

    Tighter policy guidance is influencing the range of products that UK buy-to-let mortgage lenders are offering. Indeed, some lenders appear to be exploiting the differences in regulatory lending policies across mortgage products - which could lead to unintended risks within BTL RMBS, according to DBRS.

    Following changes in January to PRA guidance for affordability testing of UK BTL borrowers, lenders .......

    News 5 July 2017

  • Reserve uncertainty weighs on legacy RMBS

    It emerged last week that Wells Fargo withheld over US$90m in cashflow across 20 Bank of America-originated legacy non-agency RMBS, which resulted in losses across the capital structure. The move has introduced uncertainty due to legal complications to the sector, unrelated to ongoing collateral performance.

    Wells Fargo invoked its right as trustee to hold back funds to cover legal costs, .......

    News 3 July 2017

  • Subprime and non-QM compared

    Non-qualified mortgages (non-QM) are not equivalent to subprime mortgages made during the pre-crisis era and do not share the same characteristics, Morningstar comments. The rating agency adds that the QM designation outlined by the CFPB three years ago does not necessarily equate to strong credit quality and - conversely - non-QM mortgages do not necessarily equate to excessive risk.

    Unlike .......

    News 30 June 2017

  • Job swaps round-up - 30 June

    North America

    Alexander Popov has joined Carlyle Group as md to lead the credit opportunities business within the firm's global credit platform. Popov was previously md with HPS Investment Partners, formerly known as Highbridge Principal Strategies, and before that was svp at Oaktree Capital Management.

    Funding Circle has hired Joanna Karger as US head of capital markets. She has extensive .......

    Job Swaps 30 June 2017

  • GSE SFR deal 'first of its kind'

    The Fannie Mae Grantor Trust 2017-T1 single-family rental securitisation from April was the first transaction backed entirely by institutionally-owned SFR properties (see SCI's primary issuance database). The transaction has several features not found in typical private SFR securitisations, according to Moody's.

    Fannie Mae guarantees the US$944.5m class A notes on the transaction, which is backed by a 10-year US$1bn .......

    News 29 June 2017

  • Euro secondary solid

    The European securitisation secondary market remains solid despite distractions from primary and month-end.

    "As has been the case over the past few weeks people are focused on primary, but secondary is still ticking over this week," says one trader. "Over the past couple of days we've seen a number of bid lists going through and trading at decent to very good levels."

    The .......

    SCIWire 29 June 2017

  • Euro secondary steps up

    Activity has started to step up across the European securitisation secondary market following an extended series of relatively quiet sessions.

    Flows continue to be thin, though there have be patches of increased activity seen in a variety of sectors since the end of last week and into this. At the same time, rotation activity combined with month- and half-end positioning .......

    SCIWire 27 June 2017

  • UK non-standard RMBS debut prepped

    Optimum Credit is in the market with its first UK non-standard prime RMBS. The transaction is called Castell 2017-1 and is backed by a £242m pool of second lien mortgage loans (see SCI's deal pipeline).

    The class A notes have been rated Aaa by Moody's and triple-A by DBRS. The class Bs have been rated Aa1 and double-A .......

    News 22 June 2017

  • AIG's debut RMBS collateral 'among strongest'

    American International Group (AIG), which has not previously participated in the issuance of RMBS, is in the market with Credit Suisse Mortgage Capital 2017-HL1 Trust (CSMC 2017-HL1), sized at US$512m (see SCI's deal pipeline). The senior notes have been rated triple-A by Fitch and DBRS, with the collateral deemed to be among the strongest since the crisis.

    The .......

    News 20 June 2017

  • Time to taper?

    Participants at IMN's Global ABS conference recently suggested that quantitative easing is likely to ease off in Europe soon, coinciding with a potential tapering of programmes like the Europe-wide ABSPP and TLTRO in the UK. While the view that tapering should begin was widely held, panelists were uncertain about how government support for the securitisation market should - and would .......

    Talking Point 19 June 2017

  • Job swaps round-up - 16 June

    Acquisitions

    The Competition and Markets Authority (CMA) has announced an initial decision in relation to the anticipated acquisition by Heineken UK of Punch Taverns, including Punch Securitisation A. The CMA has decided that the merger may result in a substantial lessening of competition within markets in the UK. The merger will be referred for a Phase 2 investigation, unless the .......

    Job Swaps 16 June 2017

  • Treasury reports on regulatory impact

    The US Treasury has issued a first report in a series regarding regulation of the financial system in a manner consistent with an executive order issued by President Trump back in February. The report addresses the regulation of the depositary system and makes several findings and recommendations which could impact the future regulation of securitisations.

    The report criticises certain regulatory .......

    News 15 June 2017

  • China innovation paves way for securitised products

    US dollar-denominated notes backed by Chinese regional and local government (RLG) bonds have debuted in China and provide a new opportunity for offshore investment in securities traded on China's interbank bond market. Moody's believes further similar deals backed by Chinese collateral could follow, including CLOs, ABS and RMBS.

    Such US dollar-denominated bonds issued by Chinese RLGs are the first of .......

    News 15 June 2017

  • Euro ABS/MBS unchanged

    Trading patterns in the European ABS/MBS secondary market remain unchanged.

    The lack of primary supply across all sectors continues to stifle flows and discourage BWIC activity. Nevertheless, tone remains positive and demand strong, consequently secondary spreads are flat to slightly tighter on the week.

    There is currently one BWIC on the European ABS/MBS schedule for today. It is a five line .......

    SCIWire 15 June 2017

  • Prosecutors probe valuations process

    US prosecutors, after years spent studying the sell-side, appear to be turning their attentions to the buy-side, as investigations have begun into whether structured credit hedge funds inflated the value of debt securities for their portfolios. The probe is particularly concerned with whether brokers were encouraged to give dishonest valuations for month-end marks.

    The reasons for a fund to seek .......

    News Analysis 14 June 2017

  • Euro secondary flickers

    The European securitisation secondary market is slowly flickering back to life.

    Overall, all ABS/MBS and CLO sectors remain insulated from broader market moves with tone and secondary spreads still solid. Nevertheless, flows have been thin over the past two sessions as the market slowly finds its feet post the Barcelona conference and UK election.

    There has, however, been a flurry .......

    SCIWire 13 June 2017

  • CHOICE Act passes in House

    The US House of Representatives has passed the Financial CHOICE Act. The legislation aims to replace much of the Dodd-Frank Act, specifically criticising Dodd-Frank's "one size fits all" approach to securitisation and doing away with risk retention requirements for all asset classes except RMBS.

    The Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs (CHOICE) Act (SCI passim) intends to provide .......

    News 9 June 2017

  • NPL RMBS redemptions spike

    US non-performing loan RMBS early redemption activity has hit record levels this year. US$5.3bn of bonds have been called since the beginning of 2017, compared to about US$2.4bn in 2016, according to Wells Fargo figures.

    Last month alone saw issuers calling 14 deals, amounting to almost US$2.5bn in current balance. This total easily surpassed the previous record from April, when .......

    News 8 June 2017

  • WAC caps not deterring RMBS investors

    Since early 2016 a number of European RMBS have been issued featuring net WAC caps, which alter the normal function of the revenue waterfall. While these deals may present worse value for mezzanine noteholders, lack of supply is enabling issuers to structure deals more aggressively in the knowledge that paper will be absorbed by yield-hungry investors.

    Seven European RMBS transactions .......

    News Analysis 6 June 2017

  • European market growth predicted

    European securitisation market participants expect the number of investors to grow and participation by investors to increase. Increased investor support is identified in a recent DBRS survey as one of the most important changes required in order to grow the securitisation market, while regulatory concerns once again dominate.

    The DBRS survey was conducted before the European regulatory changes were announced last week .......

    News 6 June 2017
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