RMBS

  • 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

  • RMBS deal agent costs considered

    The rating implications of including a deal agent in a US RMBS transaction would likely be modest, says Fitch. Deal agents have not yet been included in any RMBS of newly originated loans, but the proposed responsibilities would include investor reporting reconciliation, servicer oversight, and representation and warranty enforcement.

    Fitch expects the cost of a deal agent to have a .......

    News Round-up 6 July 2016

  • Secondary markets advisors sought

    ESMA has published a call for candidates to form a consultative working group (CWG) for its secondary markets standing committee (SMSC). The two-year term of the existing CWG will expire shortly.

    The CWG mainly advises and assists the SMSC on technical standards to be submitted to the European Commission and on guidelines, Q&As and other guidance in relation to relevant .......

    Job Swaps 5 July 2016

  • GSE NPL programmes 'favourable'

    The US FHFA has released its first report covering the progress and results from Fannie Mae and Freddie Mac's NPL sales programmes. As of the end of May, the GSEs have sold over a combined 41,600 NPLs with a total unpaid principal balance of US$8.5bn.

    The NPLs had an average delinquency of 3.4 years and an average current LTV ratio .......

    News Round-up 4 July 2016

  • Florida NPLs sold

    Freddie Mac is continuing its bulk offloading of NPLs, with its latest auction seeing it sell a combined US$43.7m across 189 deeply delinquent loans. The loans were spread across two separate pools, both of which had Community Loan Fund of New Jersey as the winning bidder.

    The loans have been delinquent for almost five years, on average. Mortgages that were previously modified and .......

    News Round-up 4 July 2016

  • Countrywide cash benefits 'broad'

    Holders of 512 legacy Countrywide deals receiving allocated shares of US$7.7bn in settlement proceeds are not the only beneficiaries of that settlement, say Morgan Stanley analysts. The massive paydown has also put many more bondholders into better positions in terms of credit enhancement and outstanding principal balance.

    By the terms of the Countrywide settlement agreement, once investors have received their .......

    News 1 July 2016

  • Brexit MSR impact weighed

    The UK's vote to leave the EU last week could hurt valuations for some US residential mortgage servicers, says Fitch. The agency expects US mortgage rates to drop in the fall-out from the Brexit decision, which comes after mortgage servicer right (MSR) valuations already declined in 1Q16.

    MSR-holding entities with portfolios more exposed to interest rate movements are expected to .......

    News Round-up 1 July 2016

  • UK sovereign-linked deals downgraded

    Fitch has downgraded 18 tranches, and placed another two on rating watch negative, from six transactions which are credit-linked or have significant direct credit exposure to the UK sovereign. The rating actions follow the downgrade of the country's long-term issuer default rating to double-A earlier this week.

    Annington Finance No.1 and Sceptre Funding No.1 rely entirely on rental payments from .......

    News Round-up 1 July 2016

  • Freddie hits ACIS milestone

    Freddie Mac has recorded its largest purchase to date under its Agency Credit Insurance Structure programme, obtaining three policies that provide up to a combined maximum limit of US$788m for losses on single-family loans. The policies transfer much of the remaining credit risk associated with the GSE's three STACR issuances this year, STACR 2016-DNA2, STACR 2016-HQA2 and STACR 2016-DNA3.

    These transactions transfer a .......

    News Round-up 1 July 2016

  • Chinese RMBS announced

    Postal Savings Bank of China (PSB) is prepping a RMB3.82bn RMBS called Jiamei 2016-1. The transaction is backed by 9,441 first-ranking Chinese full-documentation mortgage loans with a weighted average loan-to-value ratio of 57.8%.

    Fitch has assigned expected ratings to the deal, which comprises: RMB500m single-A plus rated class A1 notes; RMB900m single-A plus class A2s; RMB1.91bn single-A plus class A3s; .......

    News Round-up 1 July 2016

  • New York foreclosure boost

    New York Governor Andrew Cuomo last week signed a series of laws that could have a sweeping impact on the foreclosure process in the state of New York, according to Morgan Stanley RMBS strategists. In particular, the legislation establishes a pre-foreclosure duty to maintain on mortgagees and creates an expedited foreclosure process for vacant and abandoned houses.

    Under the new .......

    News 1 July 2016

  • Freddie starts RPL sales

    Freddie Mac is offering its first structured sale of seasoned loans by offloading a US$199m pilot deal from its mortgage-related investment portfolio. The collateral consists of option adjustable-rate mortgages or similarly originated loans that have since been modified under a HAMP or proprietary modification.

    The two-step process will first involve the sale upon the result of a competitive bidding process, subject .......

    News Round-up 30 June 2016

  • Rating agency increases reach

    Scope Corporation is set to acquire FERI EuroRating Services, effective from the start of August. The firm intends to establish itself as the European alternative to the US rating agencies.

    Scope Group intends to spread its business across three areas under Scope Corporation. Scope Ratings will be responsible for all credit rating activities; Scope Analysis will be in charge of .......

    Job Swaps 30 June 2016

  • RFC issued on front-end CRTs

    The US FHFA is seeking input in response to two new reports it has released on Fannie Mae and Freddie Mac's credit risk transfer (CRT) programmes. One of the reports sheds further light on single-family CRTs, in an attempt to assist the GSEs in their analysis of front-end transactions.

    The document seeks feedback from stakeholders on specific proposals to adopt additional .......

    News Round-up 30 June 2016

  • Euro ABS/MBS normalising

    European ABS and MBS have been quick to shrug off Brexit worries, with activity building up again this week and more BWICs scheduled for today.

    "The market seems to be over the shock of last week. There was a drop on Friday morning but things started trading again on Tuesday and yesterday was pretty much back to normal," says one .......

    SCIWire 30 June 2016

  • Settlement reinvestment options weighed

    Current holders of non-agency RMBS from 512 Countrywide deals have finally received almost US$8bn in cash payments, five years after the original settlement (SCI passim). As investors look to put the cash back to work, Morgan Stanley analysts believe other securitised products would make a natural destination for reinvestment.

    The Countrywide settlement covers breaches of certain representations and warranties as .......

    News 29 June 2016

  • SF upgrades keep momentum

    The global structured finance upgrade rate reached a record high in 2015, according to S&P. Although the downgrade rate was still higher at 11.2% last year, the upgrade rate increased to an all-time high of 9.8% in 2015 and a jump from 8.4% in 2014.

    Downgrades were up from 10% in 2014, but still presented a slow-down in growth for all but .......

    News Round-up 28 June 2016

  • Reps framework welcomed

    Fitch has commented on the proposed representations and warranties (R&Ws) included in the Structured Finance Industry Group's (SFIG) RMBS 3.0 initiative, noting that they would be an improvement to current practices, if accepted by the US RMBS market. The proposal includes up to four categories for each rep, with each category containing slight variations to reflect feedback from market participants .......

    News Round-up 28 June 2016

  • Countrywide ratings affirmed

    Fitch has reassured Countrywide bondholders that there will likely be no significant US RMBS rating actions as a result of the US$8.5bn in distributed payments from the Bank of America settlement made five years ago. Following the agreement back in 2011 and a series of litigation issues since then (SCI passim), this month finally saw bondholders from most of the 530 trusts receive .......

    News Round-up 28 June 2016

  • Euro secondary sidelined

    Most participants are waiting on the sidelines in the European securitisation secondary market amid broad market volatility.

    Two sessions on from the Brexit vote and liquidity remains thin across the board, but there is yet to be any sign of the tailspin seen in wider markets. Dealers in every sector widened their bids on Friday but other than some opportunistic .......

    SCIWire 28 June 2016

  • MBIA-wrapped RMBS hit

    S&P has lowered its ratings on 112 classes from 58 US RMBS transactions. The affected securities are insured by MBIA Insurance Corp, apart from six, which are re-REMIC notes that have their underlying bonds insured by MBIA.

    The rating actions follow the downgrade of S&P's financial strength rating on MBIA to triple-C from single-B (SCI 17 June). Based on the .......

    News Round-up 27 June 2016
×