RMBS

  • Euro ABS/MBS ticks over

    The European ABS/MBS secondary market continues to tick over.

    As with the previous week it's been a solid if unspectacular start to this. BWICs continue to drive the action and trade well. For now, sentiment remains positive, albeit with some softening of tone in weaker peripherals, especially Portuguese names.

    There are currently three BWICs on the European ABS/MBS schedule for .......

    SCIWire 13 December 2016

  • RMBS trader accused of fraud

    A federal grand jury in New Haven has returned an indictment charging former Cantor Fitzgerald bond trader, David Demos, with six counts of securities fraud. Demos was a trader and md at Cantor Fitzgerald from November 2011 until his employment was terminated in February 2013.

    Demos is accused of defrauding customers by fraudulently inflating the purchase price at which Cantor Fitzgerald .......

    Job Swaps 12 December 2016

  • Odd-lot strategies

    Price exploitation likely more widespread

    The US SEC recently fined PIMCO US$20m for misleading investors about the value of MBS odd lots in its BOND Total Return ETF. Valuing odd lots - particularly MBS - can be somewhat of a grey area and it is likely that PIMCO is not the only firm to have misused evaluated prices in this situation.

    "It's common knowledge within .......

    News Analysis 12 December 2016

  • First CSP release rolled out

    Freddie Mac has implemented the Common Securitization Platform (CSP) for certain single-family fixed-rate MBS. Dubbed Release 1, the development paves the way for Release 2, which will enable a combined Freddie Mac and Fannie Mae US$3.5trn market of to-be-announced (TBA) MBS.

    The successful implementation of the CSP's core infrastructure and operations is a critical milestone on the path to the .......

    News Round-up 9 December 2016

  • RMBS proposals praised

    A new R&W form and a common communication platform between investors and issuers proposed by SFIG are 'credit positive' for RMBS, according to Moody's. The ideas are outlined in SFIG's latest RMBS 3.0 fifth edition green papers.

    This edition includes SFIG's Deal Agent Agreement, Recommendations on Bondholder Communications, MISMO/SFIG Data Standardization Recommendations, and Considerations for Materiality Standards and Enforcement in .......

    News Round-up 8 December 2016

  • Disease insurance 'credit positive'

    A growing proportion of mortgages backing Japanese bank-issued RMBS include specified disease insurance, in addition to group life insurance. Moody's says the trend is credit positive for such transactions.

    Specified disease insurance covers mortgage borrowers for serious illnesses - such as cancer, heart attack and stroke - thereby negating the risk that borrowers will default on their loans if they .......

    News Round-up 8 December 2016

  • Euro secondary keeps positive

    Tone across the European securitisation secondary market continues to be positive.

    After a quiet start to the week, yesterday saw a flurry of BWICs from a range of sectors driving activity, most of which were easily absorbed and traded in line with expectations. Consequently, the bulk of secondary spreads remain unmoved.

    Today sees more supply from a variety of sectors, .......

    SCIWire 8 December 2016

  • Mortgage-linked ABS prepped

    The £292.4m Towd Point Mortgage Funding 2016-Granite 3 has hit the market. The transaction represents the term take-out of the warehouses that were put in place to finance the acquisition of the assets by Cerberus.

    The portfolio comprises 27,212 unsecured personal loans to borrowers in the UK, which were initially originated by Landmark Mortgages (formerly Northern Rock) under the 'Together' .......

    News Round-up 7 December 2016

  • RMBS 'to perform well' in 2017

    US RMBS will continue to perform well in 2017, with several trends from 2016 continuing into next year, according to Moody's. The agency believes there will be more diversified collateral and some structural changes in new deals, while existing deals will remain strong or improve.

    The rating agency says that the GSEs will encourage broader access to credit and so the credit quality .......

    News Round-up 7 December 2016

  • Arrow enters Italian market

    Arrow Global Group is entering the Italian market with the acquisition of Zenith Service. It will purchase the servicing business for €17m, subject to regulatory approval by the Bank of Italy.

    Zenith is a leading master servicer in the €168bn Italian structured finance market and also services salary assignment loans (CQS). As of June 2016, the estimated stock of the .......

    Job Swaps 6 December 2016

  • North American outlook 'stable'

    Stability will likely remain for structured finance ratings in the US and Canada next year, although some modest asset-level deterioration is likely as performance in many sectors has peaked, says Fitch. The rating agency adds that annualised net losses for subprime auto ABS could reach 12% in 2017, particularly for less established sub-prime issuers Fitch does not rate.

    The rating agency .......

    News Round-up 6 December 2016

  • CAS listings heading east

    Fannie Mae has listed all of its previously-issued Connecticut Avenue Securities on the Singapore Exchange. It expects that all future CAS offerings will also be listed in Singapore.

    Fannie Mae is also delisting from the Irish Stock Exchange, as fellow GSE Freddie Mac has announced it will do with its STACR transactions (SCI 1 December). Fannie Mae has not given .......

    News Round-up 6 December 2016

  • LatAm outlook 'stable'

    Latin American structured finance transactions should enjoy a stable credit environment next year, despite subdued economic growth, says Fitch. Around 86% of the agency's rating outlooks for the sector are stable or positive, compared to 80% at the end of last year.

    Fitch's sector outlook is stable for consumer ABS, where adequate credit enhancement and structural features continue to protect .......

    News Round-up 6 December 2016

  • Euro secondary quiet

    The European securitisation secondary market has had another quiet start to the week.

    Italy was unsurprisingly the main focus yesterday, but as with broader markets securitisation secondary was little moved and flows were light. Italian paper has edged out a few basis points and there was some softening of tone in other peripherals, but for the most part ABS/MBS secondary .......

    SCIWire 6 December 2016

  • Chinese CLO outlook 'negative'

    The performance of assets backing Chinese auto loan ABS and RMBS will be stable throughout 2017, but negative for CLOs, according to Moody's. The rating agency adds that future deals with high exposures to China's lower-tier cities or industries facing overcapacity issues will underperform.

    Chinese auto ABS collateral is expected to be of good credit quality, so delinquencies will remain .......

    News Round-up 5 December 2016

  • New entrants to boost issuance

    Moody's anticipates a slight increase in issuance of European ABS and RMBS next year. The agency expects new entrants to take a larger share of the market, amid increasing appetite for non-performing loan transactions and marketplace lending ABS.

    "Our key credit considerations would focus on differing origination criteria from traditional banks and the lack of historical data. Auto ABS will .......

    News Round-up 2 December 2016

  • STACR listings to be pulled

    Freddie Mac will request that its STACR debt notes, as well as debt securities and mortgage securities, no longer be admitted to trading on the relevant markets in Luxembourg and Ireland. It expects to formally initiate the delisting process with the Luxembourg and Irish stock exchanges by 1Q17.

    As a result of the listings on the European stock exchanges, Freddie .......

    News Round-up 1 December 2016

  • CIRT pricing detail provided

    Fannie Mae is now making additional disclosures for its Credit Insurance Risk Transfer (CIRT) programme. Effective immediately, the GSE is disclosing pricing information for all of its deals dating back to 2014, when the CIRT programme began.

    The additional information complements the disclosures that Fannie Mae has already been providing on its website, including copies of final insurance documents and .......

    News Round-up 1 December 2016

  • RPL RMBS characteristics surveyed

    Re-performing loan (RPL) RMBS issuance has remained steady since the launch of the first transaction, Towd Point Mortgage Trust 2015-1, last year. Moody's expects volumes in the sector to increase, given the steady supply of non-performing loans and RPLs from ongoing sales by the US Department of Housing and Urban Development (HUD), the GSEs and various banks.

    As of 30 .......

    News Round-up 1 December 2016

  • Euro ABS/MBS distracted

    New deals are continuing to keep focus way from the European ABS/MBS secondary market.

    "Primary is still distracting most players, with a couple of new deals in particular drawing most attention right now," says one trader. "The Red & Black autos deal is pretty straightforward, but the next Towd Point issue is more complex and it's taking a bit of .......

    SCIWire 1 December 2016

  • Recovery analysis RFC issued

    S&P is requesting feedback on its structured finance recovery analysis of US RMBS, US and Canadian CMBS and global CLOs. The rating agency's intention is to provide information that looks beyond its first-dollar-of-loss credit ratings in cases where its credit ratings are limited because of timeliness of payments, and to facilitate greater credit differentiation within its existing credit rating categories.

    News Round-up 30 November 2016

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