RMBS

  • Call for clarity around GSE reform guidelines

    Following US Treasury Secretary Mnuchin's commitment to reform the GSEs, the Mortgage Bankers Association (MBA) has published proposals as to how this can be best executed. While the recommendations - entitled 'GSE Reform Principles and Guardrails' - may improve on the current system, further clarity on certain areas may be needed if they are to be successful.

    The MBA's proposals .......

    News 14 February 2017

  • Euro secondary unchanged

    Activity in the European securitisation secondary market is little changed from that seen in recent weeks.

    Flows remain light across all sectors as sellers remain largely absent amid continuing positive market sentiment. The few BWICs that do crop up are still met with very strong demand and secondary spreads are consequently holding tight.

    There is currently one BWIC on the .......

    SCIWire 14 February 2017

  • Positive start for Aussie issuance

    Bank of Queensland last week priced its upsized A$1bn Series 2017-1 REDS Trust prime RMBS, the first Australian securitisation to hit the market in 2017, with the senior tranche seeing significant demand. Four transactions from the jurisdiction remain in the pipeline, including a non-conforming RMBS and a consumer ABS (see SCI's pipeline).

    Rated by Fitch and S&P, the .......

    News 13 February 2017

  • High-balance RMBS marketing

    JPMorgan is tapping the RMBS market with a US$1.02bn transaction. Dubbed JPMorgan Mortgage Trust 2017-1, the deal is backed by 1,645 30-year fully-amortising fixed-rate mortgage loans with different origination characteristics to previous JPMMT RMBS.

    JPMMT 2017-1 differs from previous RMBS issued by JPMorgan because the pool consists of a large percentage (36.3% across 724 loans) of high-balance conforming fixed-rate mortgages .......

    News 13 February 2017

  • Second shelf brings non-prime deal

    Invictus Residential Pooler is in the market with its debut securitisation (see SCI's pipeline). Following preliminary ratings from S&P, Kroll Bond Rating Agency and Morningstar Credit Ratings, it is the second shelf to issue a rated transaction backed by non-prime mortgages since the financial crisis.

    The other shelf to have issued rated transactions backed by non-prime mortgages since .......

    News 10 February 2017

  • Risk retention trends emerging

    Different retention strategies have emerged for US CLOs and CMBS leading up to and since the implementation of risk retention rules on 24 December 2016, with varying benefits also arising, such as a perception of increased quality in such deals. For the broader ABS market, however, approaches are still taking shape.

    There are five main strategies for risk retention: a .......

    News Analysis 9 February 2017

  • Euro ABS/MBS lighter

    Volumes in the European ABS/MBS secondary market are lighter than last week.

    "Secondary activity has slowed down again this week thanks mainly to there being a few relatively complicated new deals marketing and occupying a lot of attention," says one trader. "At the same time, the latest Towd Point priced tight for what it was, so there's plenty of appetite .......

    SCIWire 9 February 2017

  • Euro secondary patchy

    Activity in the European securitisation secondary market continues to be patchy.

    Friday saw a relatively quiet session after a pick-up over the previous two days, but yesterday saw a flurry of activity and a couple of BWICs that traded strongly. Focus in ABS/MBS continues to surround peripheral paper, while CLOs remain most interested in lower mezz. Overall, sentiment is still .......

    SCIWire 7 February 2017

  • Boosting liquidity

    First post-crisis Irish NPL RMBS profiled

    Lone Star's Irish non-conforming RMBS, which it privately-placed in November (SCI 29 November 2016), was notable for its mixed pool of performing and non-performing mortgages. The €536.5m European Residential Loan Securitisation 2016-1 - Ireland's first post-crisis NPL RMBS - is expected to pave the way for further such mixed-pool issuances.

    The collateral comprises a rare mix of performing (accounting for .......

    News Analysis 3 February 2017

  • SFR operators change tack

    Single-family rental (SFR) transactions are benefitting from an improvement in sponsors' business models and strategies, says Moody's. Sponsors have moved away from the bulk purchases in depressed markets that started their businesses to strategies which improve the quality of the properties backing their transactions.

    "With the US housing market recovering from the financial crisis and the inventory of distressed homes .......

    News Round-up 2 February 2017

  • Securitisation prospects polled

    Fiscal policy uncertainty is the top concern cited by respondents to Morgan Stanley's 1Q17 global securitised products investor survey, accounting for 28% of the responses. Nevertheless, half of those polled expect their allocation to securitised products to stay in line with their current allocation, while 36% expect to increase their allocation, compared with 37% in 3Q16.

    The Morgan Stanley survey .......

    News 2 February 2017

  • Euro ABS/MBS rising

    Volumes and pricing levels are rising in the European ABS/MBS secondary market this week.

    "In the first few weeks of the year there was very little client selling, but that's changing and it's been getting busier this week," says one trader. "We saw some Italian auctions Monday and Tuesday, Spanish yesterday and it's primarily Spanish and Portuguese today."

    Nevertheless, the .......

    SCIWire 2 February 2017

  • Split B tranches placed

    Freddie Mac has priced the US$802m STACR Series 2017-DNA1, its first low-LTV risk-sharing RMBS of the year. The GSE has followed Fannie Mae's recent structural enhancement to its CAS programme in issuing a split B tranche (SCI 26 January).

    However, unlike Fannie - which retained the subordinate B tranche issued by CAS 2017-C01 - Freddie's class B2 notes were publicly .......

    News Round-up 1 February 2017

  • Repurchase plan

    Italian bridge banks complete resolution process

    Nuova Banca delle Marche has completed the NPL repurchases from its securitisations in accordance with the Italian state's resolution plan. The €74.3m sale proceeds from this latest repurchase will be used to repay the Marche Mutui 4 RMBS notes on the next interest payment date in February.

    Four small lenders were placed under special administration with the Bank of Italy, .......

    News Analysis 31 January 2017

  • More MSRs for New Residential

    New Residential Investment Corp is set to acquire US$97bn unpaid principal balance of mortgage servicing rights and related servicer advances from CitiMortgage, for approximately US$950m and US$32m respectively, through its subsidiary New Residential Mortgage. The acquisition of the MSRs is expected to close in 1Q17 and Citi will continue to subservice the portfolio on behalf of New Residential.

    New Residential .......

    News Round-up 31 January 2017

  • FNMA loan to pay down SFR deals

    Invitation Homes last week filed a preliminary prospectus with the US SEC in which it notes that it has secured a US$1bn 10-year loan commitment from Fannie Mae and Wells Fargo and that it will use these proceeds to pay down all or a portion of the loans backing a pair of single-family rental securitisations. Moody's says this loan commitment .......

    News Round-up 31 January 2017

  • Global MBS fund launches

    PIMCO has launched a global MBS fund. GIS Mortgage Opportunities Fund is an absolute-return oriented, securitised asset-focused fund designed to capitalise on dislocations across agency RMBS, non-agency RMBS and CMBS markets.

    PIMCO says the fund has the ability to allocate across all subsectors of the global securitised market and seeks to efficiently manage interest rate and credit risk across different .......

    Job Swaps 31 January 2017

  • Academy adds structured products pair

    Academy Securities has made two additions to its structured products group, poaching Steve Kenney and Pierce Derkac from CapRok Capital. They will focus on multiple asset classes within structured products, including RMBS, CMBS, ABS, CDOs and CLOs.

    Kenney and Derkac join as svps. Kenney was a senior member of the sales and trading team within securitised products and special situations .......

    Job Swaps 31 January 2017

  • Euro secondary sluggish

    Activity across the European securitisation secondary market remains sluggish.

    After a small pick-up in activity on Wednesday and Thursday, last week closed with volumes easing and has opened this in similar fashion thanks to a combination of wider market volatility and month-end. Nevertheless, sentiment remains positive across securitisation secondary and BWICs when they do appear continue to trade strongly, which .......

    SCIWire 31 January 2017

  • New worlds

    South American securitisation markets opening up

    The Latin American structured finance markets are changing, with significant shifts in Argentina and Brazil, as well as changes in the Mexican market. Regulatory initiatives are opening up new possibilities, with deal structures adapting and new markets on the horizon.

    In particular, there has been substantial change in Argentina since the new government took power at the end of 2015. .......

    News Analysis 30 January 2017

  • Rate rises threaten RMBS performance

    Increased default risk for US RMBS is a potential result of the reduced mortgage prepayments expected to follow the Federal Reserve's decision to raise interest rates. Mortgages with LTVs under 60% and interest rates under 6% could see the biggest drop in prepayments.

    Morningstar Credit Ratings estimates the concentration of borrowers in this most highly affected group to be 2.5x .......

    News 27 January 2017
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