RMBS

  • Korean issuance slows down

    South Korean ABS issuance in 1H16 was down year-on-year by 43.9%, with a total figure of just Won27trn. According to the country's Financial Supervisory Service (FSS), the decline from Won48.2trn a year earlier was due to the Korea Housing Finance Corporation (KHFC) scaling back on its MBS issuance.

    The KHFC issued Won14.6trn for the first half of the year, down .......

    News Round-up 29 July 2016

  • Single-family rents rising

    Tenant demand for US single-family properties remains robust, with rent increases in securitised properties approaching 6%. According to Morningstar Credit Ratings' analysis over the last 18 months, rents rose for most properties in 23 single-borrower, single-family rental securitisations.

    While deals backed by single-family rental properties have existed for less than three years, their performance so far has been in line .......

    News Round-up 28 July 2016

  • GSE loan data released

    Fannie Mae has released historical loan performance data in support of its reperforming loan securitisation programme. The data covers approximately 700,000 loans on the GSE's book that were modified due to delinquency.

    This includes loans that are either current, delinquent or liquidated post-modification. "We are pleased to share this data, which will enable investors to better understand the expected performance .......

    News Round-up 28 July 2016

  • Foreign policy

    US agency MBS picking up European, Asian demand

    A surge in foreign interest in US agency MBS over recent months is adding a broader dynamic to the sector. Asian and European accounts are leading the charge in demand, with the latter emerging as a new investor frontier.

    Indications of shifting demand began to surface in May when US Treasury International Capital (TIC) data revealed a spike in net .......

    News Analysis 27 July 2016

  • Mortgage portfolio acquired

    Delta Lloyd Leven has purchased a €500m portfolio of Dutch whole loans from Rabobank. The portfolio consists of individual residential mortgages with an average LTV of 80%.

    The firm says that the transaction fits within its strategic asset allocation, as the portfolio complements its own origination of mortgages. The impact of the transaction on the Delta Lloyd's solvency ratio (SII .......

    News Round-up 27 July 2016

  • Debut sale for structured loans

    Freddie Mac has completed its first-ever structured loan sale following the auction of a US$198.9m pool of 846 seasoned loans. Chimera Investment was the winning bidder for the JPMorgan-serviced loans, marking the beginning of Freddie's expansion of its re-performing loan securitisation and NPL sales programmes.

    The transaction is expected to settle in October, after Freddie began marketing the transaction to potential bidders on .......

    News Round-up 27 July 2016

  • MSR portfolio sold

    First South Bank has purchased a US$84.6m mortgage servicing rights portfolio from Freddie Mac and Fannie Mae. The portfolio comprises 452 high quality loans based in North Carolina. The purchase increases First South Bank's MSR book to approximately US$2.8m and also brings its total balance of mortgage loans serviced for others to approximately US$376.9m.

    .......

    News Round-up 26 July 2016

  • CRT ratings bolstered

    Fitch has taken various positive rating actions on 152 classes from 26 GSE credit risk-sharing (CRT) RMBS issued between 2013 and 2016. The agency reports that the reference mortgage pools of the affected deals have performed well to date, with no pool reporting more than 24bp of serious delinquency, as of the most recent remittance report.

    The transactions under review .......

    News Round-up 26 July 2016

  • Call for claims issued

    The administrator of the Credit Suisse Bulk Settlement Practice (BSP) Fair Fund has called for eligible claimants to submit a proof of claim form by 15 November 2016. Preliminary distribution calculations will then be made for all eligible claimants in each harmed RMBS trust on a pro-rata basis, determined by the claimant's investment in the harmed trust divided by the .......

    Job Swaps 26 July 2016

  • Euro secondary slow

    The summer slowdown is manifesting itself across the bulk of the European securitisation secondary market.

    "It's been very quiet in the past few days with flows down significantly and BWIC volumes subdued," says one trader. "That's all thanks to the lack of volatility and the start of the summer lull."

    However, the trader adds: "We have seen some enquiries in UK .......

    SCIWire 26 July 2016

  • Capital markets pro tapped

    LeaderOne Financial has hired Todd Leddon as svp of capital markets. In the role, he will focus on interest rate risk management, securitisation, loan pricing/best execution, margin management, financial modelling and negotiations.

    Leddon joins the mortgage lender from Skyline Financial, where he was vp in capital markets. He has also held senior roles at CS Financial, Bank of America and Countrywide.

    .......

    Job Swaps 25 July 2016

  • Indian lending risks outlined

    The underwriting practices of lenders will be vital to controlling credit risk in Indian affordable housing loans, reports Moody's. The agency explains that the underprivileged status of many borrowers under the initiative will present unique risks to RMBS.

    The Indian government is seeking to increase home ownership among lower income earners in the country through an affordable housing scheme. These loans are .......

    News Round-up 25 July 2016

  • Placed issuance up

    €74.5bn of securitised product was issued in Europe in 2Q16, according to AFME's latest data snapshot. This represents an increase of 30.9% from 1Q16 (€56.9bn) and an increase of 49.3% from 2Q15 (€49.9bn).

    Of this volume, €29.1bn was publicly placed (representing 39.1%), compared to €14.3bn placed in 1Q16 (representing 25.1% of that quarter's total) and €28.4bn placed in 2Q15 (56.9%). .......

    News Round-up 22 July 2016

  • Negative coupon impact examined

    About 190 rated European RMBS and ABS tranches had coupons at negative levels, as of 1Q16, Moody's reports. Almost half of these tranches are concentrated in Spain, while RMBS accounts for 80% of them.

    Moody's estimates that by year-end, the number of rated RMBS and ABS tranches with negative coupons may increase to about 550 tranches. "The immediate impact has .......

    News Round-up 21 July 2016

  • Deal agents to benefit weaker RMBS

    The inclusion of deal agents is credit positive for future US RMBS transactions, Moody's says. Deal agents should strengthen the integrity and servicing quality of all transactions, but deals with weak collateral will benefit the most.

    Under the Private Label Securitization (PLS) Initiative working group's proposal, deal agents would have a broader role and higher standard of care than other .......

    News Round-up 21 July 2016

  • Volume growing

    ABS issuance heading up Down Under

    Australian primary ABS issuance has climbed steadily since 2008 - with a brief dip in 2012, when banks favoured covered bond issuance - and despite a slow start to 2016, this year is also expected to yield a healthy total. Full-year volume is predicted to reach A$20bn, with even more issuance likely in the future as the regulatory environment settles .......

    News Analysis 21 July 2016

  • Euro secondary firm

    Spreads across the European securitisation secondary market are remaining firm.

    Wider market positivity is feeding in to European ABS/MBS and generating improving market sentiment. While activity remains sporadic with volumes varying significantly from session to session spreads are flat to slightly tighter across the board this week so far.

    In CLOs, limited supply is continuing to support spreads across the .......

    SCIWire 21 July 2016

  • Granite sale examined

    The UK National Audit Office (NAO) has praised the British government for its £13.3bn sale of Northern Rock assets late last year to Cerberus, describing it as "value for money". The disposal of the assets in November 2015 was the government's largest ever financial asset sale.

    The sale, which was conducted by UK Asset Resolution (UKAR), comprised of £11.9bn of mortgages .......

    News Round-up 20 July 2016

  • Spanish full-recourse eyed

    Conditions that guarantee the payment of a Spanish mortgage loan if the sale of the property at auction yields an amount that is lower than the outstanding debt are being weakened, according to Moody's. However, the rating agency says that the full-recourse feature of the Spanish market remains strong.

    "Our loss assumptions for Spanish residential mortgages heavily rely on full .......

    News Round-up 20 July 2016

  • Aussie merger agreed

    Homeloans has entered into a scheme implementation agreement (SIA) with RESIMAC, which provides for the implementation of a merger between the two Australian mortgage lenders and securitisers. Under the transaction, RESIMAC shareholders will receive all scrip consideration, through the issue of 285,380,042 new ordinary Homeloans shares. It is expected that upon completion, existing RESIMAC shareholders will hold 72.5% of the .......

    Job Swaps 20 July 2016

  • Clydesdale braves Brexit uncertainty

    Clydesdale is in the market with the UK's first post-Brexit vote RMBS. The Lanark 2016-1 transaction securitises Clydesdale and Yorkshire Bank Home Loans prime residential owner-occupied mortgages.

    The deal comprises a single tranche of class 1A sterling-denominated notes with expected triple-A ratings from Fitch, Moody's and S&P. Approximately £770m of new loans is expected be added to the master trust pool, .......

    News Round-up 20 July 2016
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