RMBS

  • Euro secondary slow

    It's been slow start to the week so far for the European securitisation secondary markets.

    Participants look to have taken the opportunity of the US public holiday yesterday to catch their breath and there was little movement in terms of trading or levels. However, tone remains very strong across the board and volumes are likely to pick up as the .......

    SCIWire 17 January 2017

  • Ratings suits settled

    The US Department of Justice, 21 states and the District of Columbia have reached a nearly US$864m settlement agreement with Moody's, Moody's Analytics and their parent Moody's Corporation. The settlement resolves allegations arising from Moody's role in providing credit ratings for legacy RMBS and CDOs, including pending state court lawsuits in Connecticut, Mississippi and South Carolina, as well as potential .......

    Job Swaps 16 January 2017

  • Flawed logic

    Regulators' confidence in extra ratings 'misplaced'

    The regulatory drive to require multiple ratings for European structured finance products may not achieve its intended aims, despite necessarily adding costs. The findings of a recent Finance Research Letters study suggest that the regulatory initiative is based on an understanding of market practices that is not borne out by facts.

    Conventional wisdom states that investors gain comfort from additional .......

    News Analysis 13 January 2017

  • Dutch non-conforming refi readied

    Morgan Stanley is in the market with the €157.7m Delft 2017, a Dutch non-conforming RMBS backed by loans originated by Lehman Brothers subsidiary ELQ Portefeuille I. The portfolio in its entirety is currently securitised in EMF-NL 2008-1.

    On the closing date, EMF-NL 2008-1 will sell the portfolio to Morgan Stanley Principal Funding. In turn, Morgan Stanley Principal Funding will sell .......

    News 12 January 2017

  • Aussie auto outlook negative

    The performance of assets backing Australian auto ABS is negative, while the performance of mortgage assets backing Australian RMBS is stable, according to Moody's in a 2017 outlook. The rating agency adds that mortgage delinquencies may increase, but only moderately and from low levels, while auto ABS will generally see higher losses and delinquencies through 2017.

    Moody's says that several .......

    News Round-up 11 January 2017

  • Investment chief named

    Semper Capital Management has promoted Zach Cooper from deputy cio to cio, replacing Jay Menozzi, who has retired from the industry. Cooper will continue as one of the firm's senior portfolio managers. He has over 20 years of structured credit investment experience, having previously worked at Treesdale Partners, PrinceRidge, Highland Financial and Deutsche Bank.

    .......

    Job Swaps 11 January 2017

  • FHA snips MIP

    The FHA will reduce the annual mortgage insurance premium (MIP) most borrowers must pay for 30-year mortgages by 25bp for loans up to US$625,000 and by 45bp for larger loans. The new premium rates will affect most new mortgages with a closing/disbursement date on or after 27 January.

    The ongoing MIP was reduced by 15bp for 15-year FHA mortgages with .......

    News 10 January 2017

  • Japan, China outlooks stable

    Moody's outlook for the performance of assets backing consumer-related ABS and RMBS in Japan is stable, with defaults and delinquencies to remain low and the credit quality of loans backing new deals expected to be strong. The credit quality of new ABS and RMBS in China should also be good, although there are grounds for concern.

    For Japanese ABS, low unemployment .......

    News Round-up 10 January 2017

  • Euro secondary sporadic

    Activity remains sporadic across the European securitisation secondary market.

    ABS/MBS continues to be as quiet as it was into year-end with only a few flash BWICs and patchy bilateral trading in major names being seen over the past week. However, positive sentiment and pent-up demand mean that spreads remain flat to slightly narrower in the year so far.

    CLOs have .......

    SCIWire 10 January 2017

  • STACR designations assigned

    All but six Freddie Mac STACR credit risk transfer bonds have received NAIC 1 designations for the 2016 filing year. The STACR 2015-HQA2, 2016-HQA1, 2016-DNA2 and 2016-DNA3 M3 tranches received NAIC 2 designations, while the STACR 2016-HQA2 and 2016-HQA3 M3s received NAIC 3 designations. All Fannie Mae CAS RMBS, except two, have also been assigned NAIC designations (SCI 6 January).

    .......

    News Round-up 9 January 2017

  • Insurer inks rival buyout

    Arch Capital has completed its acquisition of United Guaranty Corporation (UGC) from American International Group (AIG) (SCI 16 August 2016). The acquisition of UGC expands Arch's existing mortgage insurance businesses by combining UGC's position as the market leader in the US private mortgage insurance industry and helps to diversify its business profile and customer base.

    Arch Capital comments that the expansion of .......

    Job Swaps 6 January 2017

  • NAIC designations for actual loss CAS

    The NAIC has assigned designations to all of Fannie Mae's CAS risk transfer transactions for its 2016 filing year, except for two. It is the first time that actual loss CAS deals have received NAIC designations.

    All M1 bonds received the highest NAIC 1 designation. In fixed-loss transactions, all M2 bonds also received a designation of NAIC 1, whereas by .......

    News 6 January 2017

  • Issuance estimates revised upwards

    Most structured finance markets and their credit conditions seem favourable and in some cases ideal going into 2017, according to S&P's 2017 outlook. The agency has therefore increased its issuance forecast since October, projecting US$365bn-US$375bn total issuance for the US, with China expected to see the second largest issuance at an estimated US$140bn. The global total for 2017 is expected .......

    News Round-up 5 January 2017

  • Early redemption proposed

    Trustees of Arena 2012-I are seeking investor consent for early redemption of the A2 tranche. The bonds were publicly placed and pay a relatively high coupon of three-month Euribor plus 115bp (see SCI's new issuance database).

    The offer on the table is a redemption price of 101, according to Rabobank credit analysts. While the original call date of .......

    News Round-up 4 January 2017

  • Extra ACIS from Freddie Mac

    Freddie Mac last month issued one last ACIS transaction of 2016. It was the second ACIS not linked to STACR debt note bonds and attracted a record number of reinsurers.

    The ACIS transaction provides up to a combined maximum limit of US$285m of credit losses on single-family loans and transfers a significant portion of mortgage credit risk on a US$16bn .......

    News Round-up 4 January 2017

  • Law firm nabs SF vet

    Norton Rose Fulbright has hired Patrick Dolan as a partner to the firm, joining from Dechert. He focuses his practice on ABS and MBS - often with innovative structures - representing warehouse lenders, issuers, underwriters, investors and multi-seller commercial paper conduits. Dolan has worked on financings and securitisations of various asset types, including PACE bonds, tax liens, structured settlements, marketplace .......

    Job Swaps 4 January 2017

  • Firm acquires NPL portfolio

    Bain Capital Credit has acquired a €364m portfolio of Spanish non-performing loans. It comprises defaulted first lien Spanish loans to hotel operators, real estate developers, retail centres and residential real estate assets.

    Fabio Longo, md and head of Bain Capital Credit's European NPL and real estate business, says: "We continue to find Spain one of the most attractive markets in .......

    News Round-up 3 January 2017

  • PHH MSR sale agreed

    PHH Corporation has agreed to sell its entire portfolio of mortgage servicing rights and related servicing advances, excluding the Ginnie Mae MSRs and related servicing advances that were part of a sale transaction announced last November, to New Residential Investment Corp. Total sale proceeds are expected to be approximately US$912m, with the transaction expected to close in 2Q17.

    Of the .......

    News Round-up 3 January 2017

  • Opus completes multifamily Freddie deal

    Opus Bank has securitised US$509m of its multifamily loans through a Freddie Mac-sponsored 'Q-deal' securitisation. One class of Freddie-guaranteed notes was issued and purchased by Opus.

    Opus says the deal is "a novel transaction that reduces Opus' commercial real estate concentration, lowers its risk weighted assets, increases its total risk-based capital ratio, lowers its loan-to-deposit ratio and improves its liquidity". .......

    News Round-up 3 January 2017

  • Non-conforming comfort

    Aussie non-conforming RMBS thrives as wider sector stalls

    Until this year, the Australian securitisation market had been recovering gradually from the depths of the global financial crisis, albeit not yet coming close to pre-crisis levels of activity. Issuance has stalled this year, although non-conforming RMBS volume has surged.

    RMBS continues to account for the largest slice of the Australian securitisation market, with CMBS and ABS issuance both remaining .......

    News Analysis 23 December 2016

  • Flex mod programme 'credit neutral'

    The Flex modification programme announced by Fannie Mae and Freddie Mac last week (SCI 15 December) will have a neutral credit impact on the GSEs' credit risk transfer securitisations, says Moody's. The rating agency believes the volume of modifications and re-default performance under the Flex programme will be comparable to current levels and performance.

    The Flex programme has a formal .......

    News Round-up 23 December 2016
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