RMBS

  • 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

  • GSE risk model update praised

    Fannie Mae last week announced an update to its credit risk assessment model, Desktop Underwriter, as it seeks to better assess the credit risk of non-traditional mortgage borrowers. In its latest Credit Outlook, Moody's says that the GSE's existing technology will improve the credit assessment of loans with non-traditional credit by providing an objective and thorough standard for analysing the risk of the underlying .......

    News Round-up 27 June 2016

  • Single-tranche Russian RMBS debuts

    VTB Capital has completed the first-ever single-tranche Russian RMBS, sponsored by Metallinvestbank. The RUB3.28bn deal offers a 10.25% coupon and will allow the bank to further develop its mortgage business.

    VTB says that a number of innovative features were used in the issue, such as the excess mortgage collateral, reserve funds and issuer's expenses being funded by a loan from .......

    News Round-up 24 June 2016

  • Agency recruits trio

    Morningstar Credit Ratings has made a trio of new hires in New York, including Lea Overby as md, leading structured finance research. This position is a newly created role for the agency, which will see Overby head up structured finance initiatives and support its analytical team in MBS, ABS and CLOs.

    Prior to moving, her most recent role was as executive .......

    Job Swaps 24 June 2016

  • RMBS downgraded on correction

    Moody's has downgraded the rating of the Navigator Mortgage Finance No. 1 €10m class C notes from Ba1 to Ba2. The move reflects the correction of an assumption in the cashflow modelling for the Portuguese RMBS deal, as well as a reassessment of the mitigating factors in relation to counterparty risk.

    In its last rating action on the deal in .......

    News Round-up 24 June 2016

  • Euro secondary settles down

    After a flurry of activity over the past two sessions the European securitisation secondary market has settled down today to await news from the UK EU referendum.

    Following a quiet Monday volumes picked over the next two days sparked by the increase in BWIC activity noted on Tuesday and continuing improvement in wider markets. Flows were relatively healthy yesterday too .......

    SCIWire 23 June 2016

  • NPLs sold to repeat bidder

    Freddie Mac has sold its latest batch of NPLs, auctioning off an additional 2,879 in deeply delinquent loans. Previous successful bidder, Lone Star Funds 9 Mortgage Holdings, was successful in picking up four of the five pools this time around - at US$516.6m worth of loans - while Upland Mortgage Acquisition acquired the remaining US$189.7m pool.

    Three of the pools .......

    News Round-up 22 June 2016

  • 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
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