RMBS

  • European placements trending down

    Only €14.3bn of securitised product was placed in Europe in 1Q16, according to AFME's latest data snapshot on the market, as €42.5bn was retained.

    A total of €56.9bn was issued last quarter, a decrease of 20.3% from the €71.4bn issued in 4Q15. However, it was significantly up from the €35.3bn issued the same time last year - a 61.2% increase on 1Q15.

    News Round-up 28 April 2016

  • Towd debuts WAC cap

    Towd Point Mortgage Funding 2016-Granite 1 is the first European securitisation to place a cap on its net weighted average coupon (WAC) (see SCI 5 April). Moody's says that this could lead to less senior interest paid in the revenue waterfall than is suggested by the coupon on the notes.

    "Senior interest payments are exposed to the servicer's ability to reset mortgage .......

    News Round-up 28 April 2016

  • Rate floor ruling assessed

    A recent Madrid court ruling on interest rate floor clauses within retail mortgages should not pose a substantial threat to Spanish RMBS, according to Fitch. The court said that the clauses lacked transparency and were abusive, leaving the possibility that they could become obsolete.

    However, the court did not state that the clauses were illegal, so the implications for affected mortgages may depend .......

    News Round-up 27 April 2016

  • Euro secondary picks up

    The European securitisation secondary market saw an increase in activity yesterday to go with the improving tone of recent sessions.

    "After being quiet for the past few days flows picked up across the board yesterday," says one trader. "Volumes are still not huge, but we're now seeing a lot of enquiries from investors looking for paper."

    Notably, the trader adds: "That .......

    SCIWire 27 April 2016

  • Liquidity tops investor concerns

    While investor fears over China-related uncertainty have subsided, concerns regarding liquidity and central bank policies have grown, according to Morgan Stanley's latest global securitised products investor quarterly survey. Liquidity is the top concern for 21% of respondents.

    Central bank policies cause the most concern for 18% of investors while disappointing US economic growth is now the third greatest concern, at .......

    News 26 April 2016

  • FNMA to issue reperforming deals

    Fannie Mae will later this year begin securitising reperforming loans held on its balance sheet. Reperforming loans are mortgages on which the borrower was previously delinquent but has subsequently become current - either with or without utilising a mortgage modification plan.

    Potential sales of such securities are expected to begin in the second half of the year, but will be .......

    News Round-up 26 April 2016

  • South Korean issuance up again

    South Korean ABS issuance was up by 16.8% in 1Q16 from 1Q15, according to the country's Financial Supervisory Service. Issuance totalled Won13.4trn, which is a Won1.9trn increase from the Won11.5trn issuance figure a year earlier.

    A majority of the growth came from Won8.7trn in MBS issued by the Korea Housing Finance Corporation (KHFC). The increase was mostly because newly-issued MBS backed .......

    News Round-up 26 April 2016

  • Euro secondary steady

    The European securitisation secondary market continues to move steadily ahead.

    Tone continued to be positive across the board at the end of last week and into the start of this. However, lack of supply is still an issue and is causing sessions to be steady rather than spectacular.

    Nevertheless, many of the line items in for the bid are continuing .......

    SCIWire 26 April 2016

  • Record Philippines deal prepped

    8990 Holdings has mandated China Bank Capital to arrange and underwrite a PHP5bn securitisation, which will make it the largest-ever deal from the Philippines. The deal will securitise receivables from 8990's property development subsidiaries.

    The transaction will also be the first purely private sector securitisation in the country. Under the proposal, 8990 will sell up to PHP5bn in contract-to-sell receivables through .......

    News Round-up 25 April 2016

  • RMBS hit by error

    Moody's has downgraded an RMBS Mexican certificate after correcting an error in its cashflow modelling for the transaction. BRHSCCB 05U suffered the downgrade after the agency originally made an incorrect assumption that the deal was still protected through a partial credit guarantee (PCG).

    The PCG covers interest and principal payments, thus increasing the available credit enhancement on the deal. However, .......

    News Round-up 22 April 2016

  • China hurdles laid out

    Moody's says that the Chinese securitisation market could gain valuable traction once a number of hurdles are cleared. Barriers to the market's growth were at the centre of recent discussions between the agency and market players at the China Securitisation Forum in Beijing earlier this month.

    "China's economy is gradually transforming into one that is driven by consumption rather than exports," .......

    News Round-up 22 April 2016

  • FNMA brings fresh CIRT transaction

    Fannie Mae has completed its tenth Credit Insurance Risk Transfer transaction. CIRT 2016-3 shifts a portion of the credit risk on a pool of single-family loans with an unpaid principal balance of approximately US$5.7bn to a single insurer.

    The covered loan pool consists of 30-year fixed rate loans with LTV ratios greater than 60% and less than or equal to .......

    News Round-up 22 April 2016

  • High costs hit non-bank servicers

    Of the three largest US non-bank mortgage servicers - Nationstar, Ocwen and Walter Investment Management - only Nationstar was profitable in 2015, Moody's reports in its latest Servicer Dashboard. With increased regulatory scrutiny set to keep operating costs high, the rating agency believes earnings will improve only marginally this year.

    Nationstar's net income was just US$43m in 2015. Moody's analyst Warren Kornfeld comments: .......

    News Round-up 22 April 2016

  • RMBS research head hired

    Vipul Jain has joined Wells Fargo's research and economics department as md and head of residential mortgage research. Based out of offices in New York and Charlotte, North Carolina, he will lead the bank's RMBS research team in developing strategy, publishing research and generating investment ideas for institutional investors.

    Jain reports to Marielle Jan de Beur, head of structured products .......

    Job Swaps 21 April 2016

  • Euro secondary scrappy

    Activity continues to be scrappy in the European securitisation secondary market.

    Sentiment remains very positive across the vast majority of securitisation sectors in line with wider markets. However, lack of supply is still hampering any sizeable cohesive trading.

    The closest to that yesterday came in Italian paper. There, following strong prints on the 11:00 Italian RMBS BWIC there was an .......

    SCIWire 21 April 2016

  • Special situations analyst added

    TCW Group has appointed Steven Purdy to its fixed income credit research group as md and special situations analyst. He will take responsibility for analysing and identifying credit opportunities with companies in stressed and distressed situations.

    Purdy is based in Los Angeles and reports to Jamie Farnham, director of credit research. He was previously based in London with TPG Capital .......

    Job Swaps 20 April 2016

  • Euro ABS/MBS picks up

    Tone and volumes are on the rise across the European ABS/MBS secondary market.

    "The market has been much stronger over the past few days," says one trader. "Now, at last, there is a bit more activity pretty much everywhere."

    The trader continues: "We're seeing buyers across every single sector except UK sterling, which remains a little difficult and Portuguese paper, but .......

    SCIWire 20 April 2016

  • ATR claims 'non-existent'

    Fitch says that borrower claims against major US residential mortgage servicershave been non-existent, two years after the Ability to Repay (ATR) rule was implemented. However, the agency says this trend could shift with certain non-qualifying mortgages (non-QM) becoming more commonplace.

    The ATR rule was brought in to help protect borrowers from harmful lending practices. Under the rule, mortgage lenders must .......

    News Round-up 19 April 2016

  • Euro secondary stable

    The European securitisation secondary market continues to be stable despite wider market vacillation yesterday.

    A buying bias across asset classes remains apparent, but limited secondary supply is keeping activity patchy. Bolstered by new issuance UK RMBS is seeing some action and spreads are holding up despite the evolving Brexit story. Selective trading in CMBS and some high profile prime names .......

    SCIWire 19 April 2016

  • UBS settlement pushed up

    The NCUA has had another of its recent successful RMBS settlements increased after UBS was ordered to pay the federal agency a post-interest total of US$69.8m. The decision was made by the US District Court for the Southern District of New York, after UBS recently agreed to dish out US$33m in compensation for its role in selling faulty deals to two failed corporate credit unions .......

    Job Swaps 18 April 2016

  • GSEs offer new mod programme

    Fannie Mae and Freddie Mac will offer principal reduction to certain seriously delinquent, underwater borrowers via its new Principal Reduction Modification programme. This will be a one-time offering for borrowers whose loans are owned or guaranteed by one of the two GSEs and who meet eligibility criteria.

    The modification will be available to owner-occupant borrowers who are 90 days or .......

    News Round-up 15 April 2016
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