RMBS

  • Stable outlook for APAC

    Fitch expects the ratings and asset sector performance of Asia-Pacific structured finance (SF) transactions to remain stable over the course of 2015. Most public long-term ratings for the sector are likely to remain at their current level throughout next year, largely similar to the situation in 2014. Of the 12 outlooks that were not stable at end-3Q14, six were positive .......

    News Round-up 17 December 2014

  • US RMBS remains active

    Monday's quiet US non-agency RMBS session threatened to set the tone for a slow week, but bid-list activity picked up sharply yesterday across nearly all collateral segments to inject life back into the market. Tuesday's session saw almost US$750m of BWIC volume, with SCI's PriceABS data capturing a variety of pre-crisis names.

    The contrast between the .......

    Market Reports 17 December 2014

  • Mortgage settlement progress reviewed

    Joseph Smith - monitor of the US national mortgage settlement (NMS), the Ocwen national servicing settlement and JPMorgan RMBS settlement - has released updates on six mortgage servicers' compliance with the NMS servicing standards, as well as Ocwen's and JPMorgan's progress towards fulfilling their consumer relief requirements. The report indicates that the servicers failed three tests, while internal review issues .......

    News Round-up 17 December 2014

  • Strong outlook for US RMBS

    Strong underwriting standards, third-party reviews and the implementation of risk retention rules will bolster the credit quality of new post-crisis US private-label RMBS in 2015, says Moody's. In addition, single-family rental (SFR) securitisations could expand into more markets and new multi-borrower and smaller single-borrower SFR issuers will likely bring deals to market.

    "New regulations setting strict standards for origination of .......

    News Round-up 16 December 2014

  • Adjustment cap 'credit negative'

    The Low Chamber of the Mexican Congress last week approved a bill aimed at capping loan-balance adjustments to mortgages originated by Infonavit and Fovissste. Moody's notes in its latest Credit Outlook that these changes are credit negative for RMBS sponsored by the institutions because they will reduce the collateral value backing transactions.

    "The cap on the mortgage balance adjustment creates .......

    News Round-up 16 December 2014

  • Euro secondary slows further

    European secondary markets are getting ever closer to a Christmas standstill.

    "It's definitely slowed right down today," says one trader. "There's nothing going on in the Street and no real client activity - there are a couple of BWICs due today, but that's it."

    Spreads have largely stayed steady. However, the trader notes: "On the few BWICs we've seen of .......

    SCIWire 16 December 2014

  • ABSPP volume drops again

    The ECB has announced its latest total settled ABSPP volume as €788m .

    Last week's drop in volume to only €187m is likely to increase traders' complaints over the pace of ABS purchasing by the central bank. However, some market participants remain less surprised at ECB activity levels given the internal approval difficulties that ABS purchases present, as well as .......

    SCIWire 15 December 2014

  • BAML pair tapped for Japan

    Wells Fargo Securities has added Tomomi Kikuchi as md and head of Asia RMBS trading and Japan sales. He will report to newly appointed director and president of Wells Fargo Securities Japan, Raymond Wong, and head of RMBS trading for Wells Fargo Securities US, Ari Kavour.

    Kikuchi joins from Bank of America Merrill Lynch, where he headed the non-yen sales .......

    Job Swaps 15 December 2014

  • Lehman placeholder reserve decided

    A US bankruptcy judge has ruled against increasing the US$5bn placeholder reserve that covers Lehman's potential RMBS rep and warranty claims (SCI passim), based on case law that regards the February 2012 Reserve Order as final. Judge Shelley Chapman also appears to have determined that all 209,000 mortgages underpinning the bonds must be reviewed individually, rather than allowing for statistical .......

    Job Swaps 15 December 2014

  • RFC issued on Irish RMBS

    S&P is requesting comments on its proposed methodology and assumptions for rating Irish RMBS. The proposal aligns the methodology and assumptions for Irish RMBS closely with its global RMBS criteria.

    An S&P comment explaining the move discusses two fundamental principles of structured finance ratings and criteria: the credit quality of the securitised assets, and the payment structure and cashflow mechanics. .......

    News Round-up 15 December 2014

  • European secondary continues to wind down

    The European ABS, MBS and CLO markets look set for another quiet day today.

    "The markets are coasting as people check out for year end," says one trader. "That combined with continued frustration over the lack of speed of ECB purchases makes for a very quiet market - there are only a couple of BWICs in ABS and CLOs today .......

    SCIWire 12 December 2014

  • US RMBS boosted by vol

    The US non-agency RMBS secondary market has been boosted by the broad market volatility seen this week.

    "It's been a very busy week with $600-$700m on BWIC every day after Monday," says one trader. "Those aren't exorbitant levels, but it's rare for each day to be so consistently busy."

    The trader attributes the volumes to the volatility seen in broader .......

    SCIWire 11 December 2014

  • Euro ratings outlook positive

    Fitch says that its rating outlook for European structured finance (SF) transactions is stable, with 86% of its rating outlooks across the region being stable or positive. Performance in the large majority of asset market sectors across the region also has a stable outlook.

    Fitch's expectations for stability for both SF ratings and the underlying asset markets have improved substantially .......

    News Round-up 11 December 2014

  • Trustee litigation gaining traction?

    Progress appears to be being made in the latest US RMBS litigation front - lawsuits against trustees (SCI 8 August). The first-ever settlement between investors and trustees was reached last month in the US district court in Manhattan, when Bank of America and US Bank settled a US$69m class action challenging their conduct as trustees overseeing Washington Mutual deals.

    The .......

    News Round-up 11 December 2014

  • Ratings hit on Genworth downgrade

    S&P has lowered its ratings on 61 tranches of Australian and New Zealand RMBS and affirmed the ratings of a further 82 tranches. All 143 tranches have been removed from credit watch with negative implications, where they had been placed last month (SCI 12 November). An additional five tranches remain on watch negative, pending further assessment.

    The rating actions follow .......

    News Round-up 11 December 2014

  • European ABS/MBS patchy

    European ABS/MBS secondary continues to see patchy trading as year-end and broader macro concerns reduce risk appetite.

    Major UK and European names continue to see two-way interest, but elsewhere bids are weaker. Even Italian RMBS is generally quiet despite the talk of ABSPP buying in the sector.

    Meanwhile, the highlight of the BWIC schedule today is a four line €119.5m .......

    SCIWire 11 December 2014

  • RMBS supply on the rise

    US non-agency RMBS bid-list supply picked up strongly yesterday to more than US$800m. Subprime and Alt-A collateral led the way, although several pieces did fail to trade.

    SCI's PriceABS data captured a long list of names out for the bid, all from pre-crisis deals. Among the earliest of these was the MSAC 2003-NC10 M3 tranche, which .......

    Market Reports 10 December 2014

  • Dutch prime outperforms

    The European ABS/MBS markets are remaining quiet with Dutch prime the only highlight.

    "Client activity is close to zero and that may be it for the year," says one trader. "There are a few sellers here and there and consequently some BWICs, but volumes and liquidity are quite low."

    Except for ECB-eligible assets prices are weaker across deal types, with .......

    SCIWire 10 December 2014

  • LMI assessment criteria unveiled

    S&P has published its methodology for assessing lenders' mortgage insurance (LMI) and similar guarantees as a form of credit enhancement in global RMBS, global covered bonds and debt ratings in the US municipal housing sector. The agency believes the new framework will provide additional transparency to its ratings, while also enhancing comparability across sectors and geographies.

    S&P expects the rating .......

    News Round-up 9 December 2014

  • Make-whole payments received

    The Merrill Lynch RMBS MANA 2007-A2 and MLMI 2007-MLN1 respectively saw over US$8m and US$15m of subsequent recoveries in November's remittance. Most of the recoveries comprised make-whole loss payments, according to Barclays Capital RMBS analysts, and were made on only one of the collateral groups - group 2 for MLMI 2007-MLN1 and group 3 for MANA 2007-A2. Bank of America .......

    News Round-up 9 December 2014

  • GSEs offer lower down payment loans

    The GSEs have released guidelines for offering 95%-97% LTV mortgages. The product is expected to pull loans away from the FHA, resulting in adverse selection for FHA loans.

    FHFA director Mel Watt originally announced in October that the loan limit for the GSEs would increase (SCI 21 October). For Fannie Mae, the product will be available from 13 December, while .......

    News 9 December 2014
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