RMBS

  • Euro secondary mixed

    The European securitisation secondary market is seeing mixed activity and results as the wider credit rally runs out of steam.

    "Overall, the secondary market continues to normalise, but it is highly sector-dependant," says one trader. "Yesterday was active, but that was mainly off the back of BWICs, while customer flows were slower thanks to softening in wider credit."

    Those BWICs yielded mixed .......

    SCIWire 16 March 2016

  • ECB suggests regulatory tweaks

    The ECB has suggested changes to the new securitisation package proposed by the European Commission and adopted by the European Council in December. The package contains the new overarching European securitisation regulation - including STS - as well as the CRR amendment that sets banks' risk weights to securitisation exposures.

    On the topic of supervision, Rabobank credit analysts note it .......

    News Round-up 15 March 2016

  • HPF reaping RMBS emergence

    S&P says that China's turn towards securitisation has supported economic and financial initiatives from alternative financiers, such as The Housing Provident Fund (HPF). HPF helps low to middle income households by extending cheaper home loans.

    "Six HPF centres issued RMBS or home loan associated rights in 2015," says S&P credit analyst Jerry Fang. "We expect more HPF-sponsored RMBS to come .......

    News Round-up 15 March 2016

  • Safe harbour RMBS debuts

    JPMorgan is in the market with what is believed to be the first US RMBS structured to comply with the FDIC's 'safe harbour' rule, which became effective on 30 September 2010 (SCI 6 October 2010). The US$1.89bn Chase Mortgage Trust 2016-1 transaction also represents the first post-crisis cash RMBS issuance by a large money-centre bank of its own assets.

    Unlike .......

    News 15 March 2016

  • Indian distressed opportunities targeted

    The Canada Pension Plan Investment Board (CPPIB) and Kotak Mahindra Group have signed an agreement to invest in stressed assets in India. The agreement allows for a total investment of up to US$525m, with CPPIB able to invest up to US$450m.

    The flexible investment mandate seeks to take advantage of the growing opportunity arising from the current stress in the Indian banking .......

    News Round-up 15 March 2016

  • Italian SPV rules amended

    The Bank of Italy has updated its supervisory instructions for banks and financial intermediaries concerning loans granted by securitisation vehicles. There are now six key requirements.

    First, borrowers must be selected by a bank or financial intermediary registered under article 106 of the Italian Banking Act. The securities issued are reserved for qualified investors only, and the bank or intermediary must .......

    News Round-up 14 March 2016

  • Euro secondary sluggish

    Despite last week ending strongly in wider credit the European securitisation secondary market remains sluggish.

    Market sentiment continues to be increasingly positive and there are selective buyers in evidence, but for the most part flows and BWIC supply are patchy and liquidity is thin as investors look likely to stay on the sidelines until the wider credit rally has been .......

    SCIWire 14 March 2016

  • Strategic review nears completion

    In its financial results for the three and twelve months ended 31 December, ZAIS Financial Corp disclosed that its strategic review continues and includes the exploration of merger or sale transactions or a liquidation of its assets. The company last November retained Houlihan Lokey Capital as financial advisor to assist it in evaluating potential strategic alternatives to enhance stockholder value.

    Job Swaps 11 March 2016

  • ECB looks to provide boost

    A new set of measures announced by the ECB could boost ABS supply. The central bank is launching a second TLTRO programme, expanding QE and cutting rates.

    The ECB's deposit rate has been cut by 10bp to -0.4%. Its main refinancing rate has been cut by 5bp to zero.

    The TLTRO 2 programme will - in contrast to the first TLTRO .......

    News 11 March 2016

  • AnaCap makes Dutch purchase

    AnaCap Financial Partners and Arrow Global have acquired a portfolio of Dutch residential and commercial mortgages with a face value of €127m. AnaCap also recently acquired a pair of Italian NPL portfolios (SCI 4 March).

    The Dutch portfolio has been acquired by vehicles owned by AnaCap Credit Opportunities III and Arrow Capital. It is AnaCap's first such transaction in the .......

    News Round-up 10 March 2016

  • Italian tax exemption boosts market

    An Italian law decree introducing a flat tax on auction properties is credit positive for RMBS, ABS and covered bonds of secured loans to SMEs, says Moody's. The stamp duty exemption should attract a larger number of potential buyers, with a particular increase in short-term investors' appetite for auction properties.

    Moody's expects that real estate-owned companies and other asset managers, .......

    News Round-up 10 March 2016

  • Deleveraging drives UK RMBS

    Deleveraging will be the main driver of UK non-conforming RMBS in 2016, says Moody's. Collateral performance will be supported by the nation's economic recovery and robust housing market.

    "Deleveraging will drive the UK non-conforming sector's performance in 2016, cushioning against losses in a hypothetical severe recession scenario," says Moody's. Last year, 80% of UK non-conforming RMBS upgrades were due to .......

    News Round-up 10 March 2016

  • Dutch origination platform debuts

    Venn Partners has launched its own Dutch mortgage brand and origination platform. Called Venn Hypotheken, the firm says it is designed to be efficient, cost-effective and reliable, allowing Venn to offer competitively-priced mortgages in direct competition with banks.

    The new lender is expected to target an annual production volume of €2bn and offers annuity, linear and interest-only mortgage loans. Its .......

    News Round-up 10 March 2016

  • Euro secondary stable

    The European securitisation secondary market remains stable despite signs of an uptick in volume.

    "Yesterday the market was more or less stable despite an increased number of lists," says one trader. "Notably, the large prime RMBS list traded quite well with most of the 24 bonds involved going through in line with recent levels."

    At the same time, the trader .......

    SCIWire 10 March 2016

  • Russian law 'RMBS positive'

    A Russian law strengthening limited recourse and removing restrictions on repurchasing mortgages on securitised pools is credit positive, says Moody's. For future RMBS transactions which use the limited recourse feature, creditors' claims upon enforcement of the pledged collateral will be limited only to specific assets.

    The rating agency believes the new legal framework also provides more flexibility for the arrangers .......

    News Round-up 9 March 2016

  • Euro secondary sidelined

    The improving macro picture has so far failed to encourage the majority of participants back into the European securitisation secondary market.

    "Yesterday was mainly dominated by BWICs, which went through OK but a lot of clients are still on the sidelines," says one trader. "While market tone keeps improving in line with broader markets liquidity hasn't moved in tandem with .......

    SCIWire 9 March 2016

  • MBS REITs to merge

    ARMOUR Residential REIT is set to acquire JAVELIN Mortgage Investment Corp for a consideration to be paid in cash, which would value JAVELIN at 87% of its book value, including a reduction of US$1m for JAVELIN's transaction expenses. Under the terms of the merger agreement, a wholly-owned subsidiary of ARMOUR will commence a tender offer to acquire all of the .......

    Job Swaps 8 March 2016

  • Euro secondary pick-up?

    After a very slow start to the week yesterday European securitisation secondary market activity looks set to pick up today.

    A volatile day in wider markets kept most participants on the sidelines once more and meant flows were extremely light again yesterday, nor were there any BWICs. Consequently, secondary spreads were unchanged across the board.

    Nevertheless, market sentiment remains positive. .......

    SCIWire 8 March 2016

  • RFC issued on Indian RMBS

    Moody's has published a request for comment on its proposed approach to rating Indian RMBS. The agency proposes using its residential mortgage collateral analysis model MILAN, which is a key element of its approach to loan and portfolio level evaluation. In addition, it will publish a methodology supplement outlining the country-specific values for the assumptions and adjustments that the methodology .......

    News Round-up 7 March 2016

  • AnaCap increases Italian NPL holdings

    AnaCap Financial Partners has purchased two Italian NPL portfolios with a face value of more than €2bn. The portfolios were acquired by AnaCap Credit Opportunities III from SPVs whose securities were majority owned by GE Capital Real Estate and RBS.

    The portfolios each have a gross book value of around €1bn and include secured and unsecured SME loans, with the .......

    News Round-up 4 March 2016

  • Investment loan performance examined

    Morningstar reports that recently it has been presented with a new type of underwriting for loans made to landlords backed by single properties. Typically, these loans are underwritten as consumer loans, with the borrower's income, assets and credit taken into consideration. The new loans, however, are underwritten as business-purpose loans and, as such, rely more on the rental income of .......

    News Round-up 3 March 2016
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