RMBS

  • 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

  • RMBS originator pays to settle

    Syncora Guarantee has settled a dispute with an originator of an RMBS for a cash payment of US$40m. The dispute concerned an insured RMBS-related transaction which was not the subject of litigation.

    The settlement is expected to increase Syncora Holdings' GAAP net income and shareholders' equity by US$40m and is expected to have the same effect on Syncora Guarantee's statutory-basis .......

    News Round-up 19 July 2016

  • FNMA completes NPL sale

    Fannie Mae has completed its sixth NPL sale, this time consisting of around 9,300 loans totalling US$1.5bn in unpaid principal balance, divided among six pools. The winning bidders are LSF9 Mortgage Holdings and PRMF Acquisition, with each submitting winning bids for three pools.

    The loan pools consist of Group 1 and Group 2 pools. The Group 1 pools have an .......

    News Round-up 15 July 2016

  • Euro secondary stays light

    Flows in the European securitisation secondary market continue to be light though sentiment remains positive.

    "It's been pretty quiet in general with little end-user activity and BWICs few and far between," says one trader. "However, everyone for choice is still a better buyer and looking for assets."

    The trader continues: "As with wider credit the tone across ABS/MBS is strong. .......

    SCIWire 14 July 2016

  • Progress 2014-SFR1 to prepay

    Progress Residential plans to prepay the US$465.9m loan that serves as collateral for the Progress 2014-SFR1 securitisation, with the deal becoming the first single-asset single-family rental transaction to pay off in full as a result. The prepayment will be funded by a portion of the proceeds from the US$462.7m Progress 2016-SFR1 transaction that is currently marketing.

    Progress 2014-SFR1 is collateralised .......

    News Round-up 12 July 2016

  • Hatteras acquisition completed

    Annaly Capital Management has completed its exchange offer for all of the outstanding shares of common stock of Hatteras Financial Corp (SCI passim). The former's acquisition of the latter is consequently expected to be consummated today (12 July).

    A total of 70,066,823 shares of Hatteras common stock, representing approximately 74.12% of Hatteras' outstanding common stock, were validly tendered in the .......

    Job Swaps 12 July 2016

  • Ginnie Mae RMBS chief named

    Ginnie Mae has added Nancy Corsiglia as evp and coo, reporting to president Ted Tozer. She will administer Ginnie's RMBS and REMIC programmes and be responsible for managing daily operations, including all RMBS operations.

    Corsiglia replaces Mary Kinney, who retired in February. She brings more than 25 years of financial services and mortgage industry experience, and was previously md at .......

    Job Swaps 12 July 2016

  • Euro secondary strengthens

    Supported by the wider market rally the European securitisation secondary market is strengthening and spreads are edging in.

    This week has again started with light flows, but many sectors are now back to around pre-Brexit levels as sentiment continues to improve in line with seeming greater political/central bank certainty. Once more, CLOs are leading the way in terms of both .......

    SCIWire 12 July 2016

  • MUFG poaches ABS head

    Mitsubishi UFJ Securities has brought in Haan Ti as head of ABS for Australia and New Zealand. He joins from Westpac Institutional Bank, where he was director in structured finance and syndicate.

    Ti has also held senior roles at HSBC and Rinker Holdings. His past duties include origination of ABS and RMBS term transactions, as well as origination of structured .......

    Job Swaps 11 July 2016

  • Freddie factor change announced

    Freddie Mac is implementing a new factor methodology for its single-family and multifamily MBS. The GSE says it will now round, rather than truncate, the last digit of the factors for all such MBS issued on or after 25 July.

    The change is being made primarily in preparation for the single security, where Freddie will match Fannie Mae's current factor .......

    News Round-up 11 July 2016

  • Brexit ratings outlook 'unchanged'

    Fitch has reassured the market that no more UK structured finance rating actions are expected in the near term following the country's vote to leave the EU. However, terms of the exit could present tail risks, including mortgages and leveraged loans experiencing longer-term underperformance.

    Fitch says that the elevation in risk premiums following the UK vote to leave the EU will weaken private .......

    News Round-up 8 July 2016

  • Global issuance trends diverging

    S&P reports that that there is a clear divide in recent structured finance issuance trends, with the US, Europe and Australia all seeing recent declines and countries such as Brazil, Argentina, China and Canada witnessing increases. The agency attributes declines in the former group to both broader volatility and a host of recent regulations governing capital charges and liquidity ratios.

    Amid strong underlying .......

    News Round-up 8 July 2016

  • Single security, CSP update provided

    The FHFA has released an update on the implementation of the single security and common securitisation platform. The update includes expected milestones that Fannie Mae, Freddie Mac and Common Securitization Solutions (CSS) expect to meet to achieve the stated goals of the projects.

    The 2016 conservatorship scorecard for Fannie, Freddie and CSS calls for the three to implement the first .......

    News Round-up 8 July 2016

  • RMBS upgraded on CIFG merger

    Moody's has upgraded 11 classes of structured finance securities as a result of Assured Guaranty Corporation's (AGC) acquisition of CIFG. The securities impacted by the move include Alt-A, option ARM, subprime, second lien and resecuritised RMBS.

    Moody's notes that the action is solely driven by AGC's assumption of securities formerly wrapped by CIFG. The former insurer's insurance financial strength (IFS) .......

    News Round-up 6 July 2016
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