RMBS

  • Deal agent principles issued

    The Association of Institutional Investors has released a set of principles promoting a 'deal agent framework', which it believes would significantly enhance the governance protocols built into current US RMBS structures. The proposal seeks to reform private label RMBS contracts by providing fair investor protections, increased transparency and a flexible framework for adapting to unexpected events.

    "I believe the deal .......

    News Round-up 1 March 2016

  • Freddie enhances disclosures

    Freddie Mac has expanded its disclosures for its single-family credit transfer initiatives to help provide investors with additional information to analyse. The GSE has also released details of its second STACR offering of the year, STACR 2016-HQA1.

    The enhanced disclosures include quarterly updates on credit scores for outstanding loans in all transactions and mark-to-market LTVs that leverage the estimated property .......

    News Round-up 1 March 2016

  • UBS settlement welcomed

    The president and ceo of the National Association of Federal Credit Unions (NAFCU), Dan Berger, has described UBS' agreement last week to pay US$33m in compensation over faulty pre-crisis RMBS as "welcome news". The settlement is meant to provide recovery on toxic assets, which the NCUA says caused losses to corporate credit unions that invested in the products based on untrue statements. The NCUA also accepted .......

    Job Swaps 1 March 2016

  • Euro secondary positive

    The European securitisation secondary market continues to stay positive in line with sentiment in wider markets.

    "Market tone is pretty constructive after a few stable sessions in broader markets," says one trader. "Consequently we're seeing a few people now looking to add."

    However, the trader continues: "Liquidity remains pretty thin and we're not seeing many BWICs. What action there is .......

    SCIWire 1 March 2016

  • Fannie NPL pool purchased

    New Jersey Community Capital (NJCC) is the winning bidder for Fannie Mae's second community impact pool of non-performing loans. NJCC purchased the loans through its affiliate, the Community Loan Fund of New Jersey.

    The transaction is expected to close on 21 April and includes 53 loans on properties in the Miami area with an unpaid principal balance of approximately US$13.2m. .......

    News Round-up 29 February 2016

  • Apollo merger questioned

    Apollo Commercial Real Estate Finance (ARI) is set to buy Apollo Residential Mortgage (AMTG) for a combination of cash and stock which values AMTG at US$14.59 per share, representing a premium of around 44%. The transaction values AMTG at approximately US$641m.

    The transaction has been approved by both boards of directors, but law firm Harwood Feffer is investigating potential claims .......

    Job Swaps 29 February 2016

  • Foreclosure precedent set

    A recent ruling by the California Supreme Court affirming the right of mortgage borrowers to continue challenging foreclosures years after a securitisation has closed will be credit negative for pre-crisis RMBS, says Moody's in its latest Credit Outlook. The rating agency warns that the ruling leaves an open door for other borrowers to press similar claims of void mortgage assignments and .......

    News 29 February 2016

  • Credit policy tightening welcomed

    Investors in future Australian RMBS are expected to benefit from the tighter credit policies set out by the country's regulators. Lenders now have to apply interest rate buffers on a borrower's existing debt in serviceability calculations, whereas previously it had been common practice not to stress interest rates on existing debt.

    The Australian Prudential Regulatory Authority and Australian Securities and .......

    News Round-up 29 February 2016

  • MBS trading team formed

    Mitsubishi UFJ Financial Group is building a US MBS trading team and hired Dave Cannon in 4Q15 to lead the effort. Cannon arrived from RBS, where he was co-head of ABS and MBS trading. The new trading team will focus on agency MBS and began trading in US mortgage securities this month.

    .......

    Job Swaps 29 February 2016

  • Euro secondary flurry

    The European securitisation secondary market saw a flurry of activity on Friday.

    After declining volumes throughout the week the final session saw an uptick thanks to impending month-end and anticipation of a quiet week ahead. The sectors that saw most activity were the usual suspects - prime assets and higher quality peripherals - with trades going through both on- and .......

    SCIWire 29 February 2016

  • Mortgage movers

    Non-bank lenders reshaping UK RMBS

    Tough capital constraints are weighing on the incentive of large incumbent lenders to maintain a strong presence in the UK RMBS market. This has paved the way for a variety of new lenders - including asset managers - to enter the sector, prompting a shift in its landscape.

    Last year saw Kensington Mortgages become the largest securitiser of UK RMBS, .......

    News Analysis 26 February 2016

  • Euro secondary slips

    Activity and pricing levels have slipped further in the European securitisation secondary market.

    Yesterday saw further weakness in Portuguese paper as the aftermath of the BCP tender pushed bonds out further during the session after they had opened wider on the previous day's close. Also in peripherals, yesterday's Spanish seniors BWIC only partially traded.

    Meanwhile in core assets spreads are .......

    SCIWire 26 February 2016

  • Brexit implications weighed

    The UK will hold a referendum on 23 June to decide whether to stay within the EU. Uncertainty about a potential 'Brexit' is expected to cause technical weakness in UK securitisation markets in the meantime.

    JPMorgan European ABS analysts expect investors to demand increased risk premia to hold UK risk between now and June. Benchmark anchor markets are already pricing .......

    News 25 February 2016

  • Dispute framework benefits outlined

    The new independent dispute resolution (IDR) process recently adopted by Fannie Mae and Freddie Mac could be particularly helpful for more quickly resolving representation and warranty (R&W) issues surrounding credit risk transfers (CRT), according to S&P. The agency says the process could expedite the determination of underwriting defects on reference obligations in CRT deals.

    This could result in payments to investors that .......

    News Round-up 25 February 2016

  • Euro ABS/MBS softens

    Weaker wider markets have softened the tone across the European ABS/MBS secondary market.

    Broader market volatility continues to keep liquidity thin and investors for the most part are only appearing as sellers. Consequently, secondary tone weakened again yesterday. Nevertheless, light flows and selective buying from the Street, albeit in very low volume, was enough to keep most secondary spreads unchanged.

    SCIWire 25 February 2016

  • Drifting out

    High-beta spread dislocation continues

    As markets sell off and become increasingly volatile, European high-beta securitised paper has widened considerably. This has been driven by several factors - not least regulation - and has concerning implications for liquidity and the future health of the market.

    Bank of America Merrill Lynch European ABS analysts note that the €888m Driver Espana Three auto ABS, which priced earlier .......

    News Analysis 24 February 2016

  • Euro secondary mixed

    The European securitisation secondary market continues to experience mixed fortunes.

    "Liquidity remains very thin overall," says one trader. "However, there is still demand in the prime area, particularly in Dutch paper and yesterday we also saw some for Italian bonds."

    At the same time, the trader adds: "Sterling sellers have started coming in. There wasn't a big incidence in UK .......

    SCIWire 24 February 2016

  • Resi oil exposure eyed

    The credit performance of oil and gas-focused metropolitan areas has worsened on a relative basis within several major residential securitisation types, Moody's reports. The deterioration correlates with rising unemployment and declines in home prices in those areas and affects legacy RMBS, single-family rental transactions and GSE credit risk transfer transactions.

    "The weakening in credit performance is limited so far, but .......

    News Round-up 23 February 2016

  • Mortgage portfolio sale agreed

    OneSavings Bank subsidiary Rochester Mortgages has entered into a mortgage sale agreement to acquire approximately £396m of UK residential mortgage loans from Deutsche Bank subsidiary DB UK Bank. Completion of the acquisition is conditional upon OneSavings Bank establishing an off-balance sheet securitisation vehicle, which will acquire approximately £374m of the portfolio. The bank will retain approximately £22m of the portfolio .......

    News Round-up 23 February 2016

  • Negative Euribor risks highlighted

    A continued decline of Euribor rates poses a number of risks to euro-denominated Australian RMBS and ABS, says Moody's. Deals that could be impacted are those that have no mitigants in place to withstand a negative interest rate scenario.

    "As Euribor rates move further into negative territory - beyond the buffer provided by the note margins - such deals will need .......

    News Round-up 23 February 2016

  • Euro secondary starts slowly

    It was a slow start to the week for the European securitisation secondary market, but today looks likely to see something of a pick-up.

    "Yesterday was for the most part pretty slow," says one trader. "Primarily there was a just a lot of chatter around Brexit and its broader implications including the potential for people to step away from sterling .......

    SCIWire 23 February 2016
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