RMBS

  • Cracks emerging in US housing

    A robust housing market has not prevented a number of 'minor' cracks from opening up within US housing, reports Fitch. Rising interest rates, demographics and employment growth point to a positive 2H16 and start to 2017, but challenges for the housing recovery include ongoing labour shortages and the potential for it to become more widespread. 

    Fitch believes that current trends have created a .......

    News Round-up 21 June 2016

  • Interest deferral supports Spanish RMBS

    Performance among S&P-rated Spanish RMBS has improved over the past 24 months, with the agency's index for 4Q15 showing the lowest level of delinquencies since 1Q13. While a subset of 2006 and 2007 vintage transactions continue to show weak performance, interest-deferral trigger mechanisms are positively influencing the ratings on their senior notes.

    As of 4Q15, severe delinquencies among 2006 and .......

    News Round-up 21 June 2016

  • Euro secondary solid

    The European securitisation secondary market remains solid ahead of Thursday's UK EU referendum.

    Thanks to negligible activity due to the Barcelona conference all sectors were insulated against wider market volatility driven by Brexit fears last week. Improving broader sentiment on Friday and yesterday has left ABS/MBS secondary spreads largely unchanged on the previous week albeit on the back of very .......

    SCIWire 21 June 2016

  • Trading head switches to rival

    Mehdi Kasani has joined BNP Paribas to head its European ABS trading team, based in London. He joins from RBC Capital Markets, where he was European head of ABS and structured credit trading. He has also held senior roles at Citi and Lloyds, trading ABS and RMBS for both banks.

    .......

    Job Swaps 20 June 2016

  • MERS set for 'modernisation'

    ICE is set to acquire a majority equity position in MERSCORP Holdings, owner of Mortgage Electronic Registrations Systems (MERS). In addition, the two companies have entered into a software development agreement to modernise and enhance the MERS platform.

    "This agreement brings the strengths of our organisations together to benefit the US residential mortgage finance market," comments Jeffrey Sprecher, ICE chairman .......

    Job Swaps 20 June 2016

  • NPL sale announced

    Fannie Mae has announced its latest sale of non-performing loans, including the fourth community impact pool that it has offered. The two larger pools of approximately 3,300 loans totalling US$526.1m in unpaid principal balance and the Miami-focused community impact pool of approximately 90 loans totalling US$20.1m in UPB are available for purchase by qualified bidders.

    Bids are due on the .......

    News Round-up 17 June 2016

  • MBIA Corp liquidity warning

    S&P has lowered its financial strength rating on MBIA Insurance Corp to triple-C from single-B, with a negative outlook. The move is due to the insurer's weak liquidity positon and, absent favourable developments, the expectation that it is unlikely to meet all of its insurance policy obligations in the next 12 months.

    Specifically, the insured notes issued by the Zohar .......

    News Round-up 17 June 2016

  • Risk transfer trio closed

    Fannie Mae last month completed three credit insurance risk transfer (CIRT) deals, continuing its efforts to reduce taxpayer risk by increasing the role of private capital in the mortgage market. The three deals - CIRT 2016-4, CIRT 2016-5 and CIRT 2016-6 - represent the largest cumulative CIRT transaction to date, shifting a portion of the credit risk on pools of .......

    News Round-up 17 June 2016

  • Director duo appointed

    New York Mortgage Trust has appointed Kevin Donlon and Michael Clement as directors, with the latter also serving as a member of the board's audit, compensation and nominating and corporate governance committees. Donlon was named president of the REIT last month, following its acquisition of RiverBanc, which he founded in 2010.

    Donlon was previously an md with BlackRock, following its .......

    Job Swaps 17 June 2016

  • Hatteras tender extended

    Annaly Capital Management has extended its previously announced exchange offer to purchase all of the outstanding shares of common stock of Hatteras Financial Corp (SCI 11 April). Under the offer, Hatteras common stockholders may elect to receive, in exchange for each share of Hatteras common stock they hold: US$5.55 in cash and 0.9894 shares of Annaly common stock; US$15.85 in .......

    Job Swaps 16 June 2016

  • BTL stampede

    Loan issuance surges ahead of tax deadline

    Buy-to-let (BTL) lending in the UK surged in the weeks leading up to the recent stamp duty changes, with implications for RMBS. Lending rose from £3.6bn in February to £7.4bn in March, although the loan approval figures actually fell slightly.

    While the net lending figure for March is the highest since October 2007, lending is expected to dip now that .......

    News Analysis 10 June 2016

  • Non-prime RMBS debuts

    Caliber Home Loans is in the market with the first post-crisis RMBS backed by newly originated non-prime mortgage loans. Dubbed COLT 2016-1 Mortgage Loan Trust, the US$161.71m transaction is backed by 368 loans with credit scores (701) similar to legacy Alt-A collateral.

    The pool comprises fixed- and adjustable-rate, prime and non-prime first-lien residential mortgages originated under five programmes: Jumbo Alternative .......

    News 10 June 2016

  • REMIC guidance provides clarity

    REMICs have long operated with only limited tax guidance, but two significant pieces of guidance have come out this month. The first is a Second Circuit Court of Appeals ruling concerning certain RMBS and the second is an IRS private letter ruling.

    The application of the REMIC rules to mortgages that have a high probability of default or credit-based restructuring .......

    News 9 June 2016

  • Euro secondary stable

    The European securitisation secondary market continues to show stability.

    Secondary spreads across the board are flat to slightly tighter this week as the vast majority of securitisation sectors remain insulated from headline volatility surrounding Brexit and US rates. CLOs continue to lead the way in terms of demand across the capital structure, while ABS/MBS is seeing more two-way flows.

    However, overall .......

    SCIWire 9 June 2016

  • Euro secondary liquidity 'healthy'

    Around 80% of European ABS BWICs have successfully traded over the last year, a sign that liquidity in the market remains healthy, according to TwentyFour Asset Management. The asset manager notes that €9.9bn worth of bonds has hit the BWIC market since June 2015, with an additional €5bn when European CLO bonds are included.

    TwentyFour says that misconceptions about the liquidity of .......

    News 8 June 2016

  • Vacancy decline supporting SFR deals

    Nationwide rental vacancy in the US is presently 7%, down from 11% in 2009, according to the US Census Bureau. Moody's believes that this drop in vacancy bodes well for the single-family rental securitisations it rates, especially regarding anticipated future enhanced rental revenue, as Generation Y renters are a large component of SFR renters. It also portends higher liquidation proceeds .......

    News Round-up 8 June 2016

  • Russian regs choking issuance

    S&P expects Russian structured finance issuance to dampen for the rest of the year due to recent regulatory changes. Financial market turbulence, a decrease in origination of underlying loan assets, asset deterioration and diminishing state support for investor demand have already hit issuance in the country this year.

    As of 1 January, the Central Bank of Russia increased the risk .......

    News Round-up 8 June 2016

  • Brazilian trustees feeling squeeze

    Smaller trustees will have to exit the Brazilian securitisation market or merge with larger competitors, says Fitch. This is because of markedly decreased issuance, high operating costs and low profitability.

    Smaller, lower-capitalised companies which rely on non-recurring structuring fees to cover ongoing operating expenses are expected to feel the most pressure. The rating agency notes that companies which only act .......

    News Round-up 8 June 2016

  • UK BTL portfolio sale planned

    UKAR plans to follow last year's £13bn Granite portfolio sale (SCI 15 November 2015) with the offloading of a further £16bn in mortgages, understood to be the pool backing Bradford & Bingley's outstanding Aire Valley master trust securitisation programme. The sale process is expected to start this year.

    B&B launched Aire Valley in 2004 and issued around £8.7bn of securitised .......

    News 7 June 2016

  • REIT pro snapped up

    Hunton & Williams has hired Robert Smith as a partner to its real estate capital markets practice. His practice focuses on REITs, with a focus on the mortgage REIT space, including publicly traded mortgage REITs on securities offerings and corporate and securities law reporting matters.

    The law firm adds that Smith's experience will include significant contributions to securitisation. Prior to .......

    Job Swaps 7 June 2016

  • Euro ABS/MBS defies concerns

    Steady primary supply and a firm European ABS/MBS secondary market are providing cause for optimism.

    "Despite the perceived increase in likelihood of a vote for Brexit, the market feels pretty firm. Those referendum concerns were shrugged off pretty quickly yesterday and prices are continuing to go up with spreads grinding down," says one trader.

    He adds: "There have been a .......

    SCIWire 7 June 2016
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