RMBS

  • Asian delinquency trends to diverge

    Moody's forecasts that delinquency rates for structured assets in Asia (ex-Japan) will diverge in 2016. China and Singapore are generally expected to show rising delinquency trends, while performance in India and Korea should exhibit strength.

    "China's gradual economic slowdown will trigger a slight rise in delinquencies from current low levels across a range of asset classes in the country, while .......

    News Round-up 1 December 2015

  • Euro secondary lull continues

    The lull in activity seen at the end of last week in the European securitisation secondary market carried over to another quiet session yesterday.

    With most secondary market participants pre-occupied with month-end there was little investor activity and only very patchy and light flows from dealers, nor were there any European BWICs. However, market tone remained positive with spreads broadly .......

    SCIWire 1 December 2015

  • Property market sensitivity weighed

    A 20% decline in Australian property values would affect only a small proportion of triple-A rated prime RMBS, according to S&P. In a new report, the agency considers the sensitivity of Australian prime RMBS to a potential decline in property market values.

    "Strong property price growth has featured prominently in Australia's economic narrative during the past two decades," S&P notes. .......

    News Round-up 27 November 2015

  • Euro secondary slumbers

    The European securitisation secondary market is taking it easy through the US public holiday but market tone is staying strong.

    Despite low volumes yesterday spreads remained firm to slightly tighter across the board. UK non-conforming and buy-to-let bonds are still the most active areas and remain better bid, primarily from the Street. At the same time, peripherals continue to generate .......

    SCIWire 27 November 2015

  • Spanish repossession recovery to continue

    Moody's expects recoveries on repossessed Spanish properties to continue rising. Recovery rates have so far risen alongside an improving economy and a 5.8% increase in Spanish house prices since 2013.

    "Given the favourable economic backdrop, we consider that Spanish securitisation vehicles will be able to sell their repossessed properties more easily," says Moody's vp Carole Bernard. "So far, losses on .......

    News Round-up 26 November 2015

  • Aussie ABS, RMBS defaults to inch up

    The delinquency and default rates for Australian ABS and RMBS will rise slightly next year from their current low levels, Moody's projects. This is due to below-trend economic growth and an uptick in unemployment.

    "The credit quality of the mortgage collateral for new RMBS issued in 2016 will deteriorate - when compared with 2015 - owing to the inclusion of .......

    News Round-up 26 November 2015

  • Euro secondary activity fades

    Activity in the European securitisation secondary market is fading away thanks to the US public holiday, but sentiment remains positive.

    "We're quietening down now with Thanksgiving today," says one trader. "Also a lot of people are being distracted away looking at primary and the BMW deal in particular."

    Secondary tone appears to remain strong however. "UK non-conforming and buy-to-let seniors .......

    SCIWire 26 November 2015

  • NPL, RPL RFC issued

    Moody's is requesting feedback on proposed changes to its methodology for rating securities backed by non-performing loans (NPL) and re-performing loans (RPL). The proposed changes consolidate the approaches the rating agency has used to rate RMBS of NPLs and RPLs into a single methodology.

    The proposed methodology would not result in any rating changes, says Moody's. Market participants are invited .......

    News Round-up 25 November 2015

  • GE portfolio sold off

    GE Capital has agreed to sell a £3.8bn portfolio of first lien mortgage loans from its UK Home Lending business to an investment consortium consisting of Blackstone, TPG Special Situations and CarVal Investors. The transaction represents the sale of almost all of GE Capital's remaining UK mortgages and is expected to close in December.

    "We began this year with around .......

    News Round-up 25 November 2015

  • Bank's LatAm exit raises concerns

    Deutsche Bank's decision to close its operations in Argentina and Mexico is credit negative for the Argentine and Mexican securitisations for which it acts as trustee or common representative, says Moody's. Deutsche Bank Argentina acts as trustee in 36 securitisations, while Deutsche Bank México acts as common representative in 1,300 transactions.

    The bank's decision to close its operations in Argentina .......

    News Round-up 25 November 2015

  • Euro secondary stays strong

    Despite weaker global markets and reduced volumes the European securitisation secondary market is still showing some strong signs.

    "Yesterday was a bit quieter with flows minimal across most sectors as a result of weakness in broader credit thanks to increasing global political tension," says one trader. "However, we saw some strong activity and prints around BWICs."

    The trader continues: "Italian .......

    SCIWire 25 November 2015

  • US RMBS restricted

    Activity and transparency in the US non-agency RMBS secondary market is restricted in this shortened week.

    "As expected for this holiday week it's pretty quiet - today is likely to be the busiest day and there's $2-300m in for the bid," says one trader. "Overall, it's hard to get a sense of real pricing levels with trading sessions essentially restricted .......

    SCIWire 24 November 2015

  • Marketing head brought in

    Clayton Holdings has hired Mark Hughes as evp of sales and marketing. He will be responsible for sales, business development and marketing for Clayton, as well as subsidiaries Green River Capital, Red Bell Real Estate, ValuAmerica and Clayton Euro Risk.

    Prior to joining Clayton, Hughes was president of LenderLive's due diligence division, assisting lenders and investors in diligence and underwriting .......

    Job Swaps 24 November 2015

  • Euro secondary UK focused

    The heightened focus on UK RMBS is continuing in the European securitisation secondary market.

    "Overall, secondary is somewhat quiet," says one trader. "With Thanksgiving coming, today will be another day to get a few things done but away from UK RMBS there's not much broad-based trading."

    The trader continues: "Both UK prime and buy-to let were very busy yesterday. It's .......

    SCIWire 24 November 2015

  • Largest ACIS deal inked

    Freddie Mac has obtained the largest insurance policy to date under its Agency Credit Insurance Structure (ACIS) programme. The transaction transfers much of the remaining credit risk associated with the fourth actual loss STACR offering, STACR Series 2015-DNA3.

    The policy transfers up to a combined maximum limit of approximately US$702.4m of losses on a pool of single-family loans acquired from .......

    News Round-up 23 November 2015

  • Aussie affordability deteriorating

    Moody's reports that housing affordability in Australia has deteriorated significantly over the 12 months to October 2015. The agency suggests that this increases the risk of delinquency and default for Australian RMBS.

    "Nationally, Australian households with two income earners spent an average of 29.3% of their monthly income on monthly mortgage repayments as of 30 October 2015, up from 28.2% .......

    News Round-up 23 November 2015

  • Euro secondary undented

    A typically quiet Friday has failed to dent the positive tone in the European securitisation secondary market.

    After a pick-up in activity earlier in the week, Friday was typically quiet across most sectors. Nevertheless, market sentiment remained strong and spreads closed the day broadly unchanged.

    Continued trading around the Granite redemption means UK prime remains the main focus. Friday again .......

    SCIWire 23 November 2015

  • Fighting Irish

    RMBS fundamentals trending up

    The performance of Irish RMBS continues to improve against the backdrop of a stable economy. A potential slowdown in the recovery and lingering NPLs point to a number of challenges, but a dramatic downturn is not anticipated.

    "Clearly, the level of new issuance is still relatively low, but there are a number of positive factors - particularly the rise in .......

    News Analysis 23 November 2015

  • GSEs continue risk transfer innovation

    Fannie Mae and Freddie Mac have both priced innovative risk transfer deals. The deals build on plans outlined earlier in the year (SCI 20 August).

    Fannie Mae has completed two more credit insurance risk transfer (CIRT) transactions, one of which has, for the first time, been completed directly with a multi-line insurer. Also for the first time, the covered loan pools of .......

    News Round-up 20 November 2015

  • RMBS uses new servicing fee structure

    Mill City Mortgage Loan Trust 2015-1 has introduced a fee-for-service structure which is unique to rated re-performing loan (RPL) securitisations, notes Moody's. This new structure will see Shellpoint Mortgage Servicing charge a base free that increases as a loan becomes more delinquent.

    The rating agency notes that this fee structure provides monetary incentives for the servicer to work out delinquent loans .......

    News Round-up 20 November 2015

  • HECM deal rated

    Nationstar Mortgage is marketing an RMBS backed by inactive home equity conversion mortgages (HECM), believed to be the first deal of its kind to be rated. Moody's has assigned provisional ratings to three classes of Nationstar HECM Loan Trust 2015-2.

    The class A tranche in the deal has been rated Aaa by the agency. The M1 tranche has been assigned an A3 .......

    News Round-up 20 November 2015
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