RMBS

  • Agency activism

    Divided Congress means greater agency intervention

    The split US Congress, as a result of the recent mid-term elections, is likely to lead to the agencies responsible for the housing market to steer a course which will be both more independent and more interventionist, say analysts.

    News Analysis 1 December 2022

  • Don't panic!

    Vadim Verkhoglyad, vp and head of research publication at dv...

    Concerns of a recessionary impact on US consumer markets, and comparisons to the global financial crisis, are rampant across the media. This fearmongering is not accurate, is harming the market and is not in our best interest.

    Widespread media analysis suggests that we are in a crisis: headlines focus on the increase in subprime auto delinquencies, the downturn .......

    Talking Point 29 November 2022

  • RMBS becalmed

    2023 may be no better while FHFA adds to pressure on GSEs

    The RMBS market has been in the doldrums for the second half of this year and analysts suggest that there will be no immediate rebound. While some are cautiously optimistic that next year will witness a return to liquidity, others suggest that we will have to wait until 2024.

    This is particularly true of the non-QM space, which has been suffering particularly .......

    News Analysis 28 November 2022

  • Encouraging activity

    European ABS/MBS market update

    The UK and European ABS/MBS primary market saw some signs of recovery this week, with eight deals pricing. Further, following weeks of volatile market conditions and a lengthy trend of exclusively fully privately/pre-placed deals, the UK market finally welcomed a public transaction.

    Yesterday, Nationwide priced the £750m 1A class of its RMBS securitisation Silverstone 2022-2. In an impressive .......

    News 25 November 2022

  • Sell-side specialisms

    SRT bank relationships, technical knowledge transferred

    SRT arranger/structurer departures from Citi have been notable over the last year, with Olivier Renault (SCI 1 December 2021), Mark Kruzel (SCI 11 May) and Alexis De Vrieze (SCI 8 September) all moving to the buy-side, for example. Capital relief trade sell-siders bring specialisms – including technical knowledge and bank relationships – that can be particularly .......

    News 24 November 2022

  • Irish, UK NPE disposals inked

    Sector developments and company hires

    Irish, UK NPE disposals inked

     

    The Bank of Ireland has reached agreements to dispose of portfolios of Irish and UK non-performing exposures, through two .......

    Market Moves 9 November 2022

  • New landscape

    ABS litigation 'rules of engagement' explained

    US subprime RMBS disputes could impact ABS deal structures and related litigation in five pivotal ways. Against this backdrop, it is incumbent on parties to plan accordingly to navigate the new ABS litigation landscape.

    “A lot of the changes over the years and more recently have been in favour of defendants, who have been gaining momentum,” says .......

    News Analysis 8 November 2022

  • British buffer

    UK RMBS set to weather recession

    The outlook for UK RMBS remains uncertain - despite optimism over borrower wealth buffers - as the country enters into its third government in three months. Amid such a rapidly changing policy environment, monetary policy and inflation rates – which continue to rise – are expected to be the two chief trends determining prospects for the housing market as .......

    Talking Point 7 November 2022

  • Call for Och 'feud' to end

    Sector developments and company hires

    Call for Och ‘feud’ to end
    Sculptor Capital Management’s independent board members and Jimmy Levin, the firm’s current cio and ceo, have issued statements in response to a recent court filing related to a dispute brought by former chairman and ceo Daniel Och. The filing mentions a “personal issue” from Levin’s past, which was thoroughly reviewed at the time and .......

    Market Moves 3 November 2022

  • Stress-testing resilience

    Climate-change risk assessment approach debuts

    Scope has introduced a stress-testing methodology to assess climate-change impacts on securitisations. The objective is to help gauge the resilience of a transaction to transition and physical risks.

    “We have introduced a quantitative and scenario-based stress-testing approach to assessing climate change impacts on the credit risk of securitisation transactions. The climate-change scenarios identified offer a range of outcomes for .......

    News 2 November 2022

  • Chinese CMBS 'structural deficiencies' eyed

    Sector developments and company hires

    Chinese CMBS ‘structural deficiencies’ eyed
    The recent near-default of a Chinese CMBS issued by Yango Group - together with the two previous defaults of PKU TechPark and Hongbo Exhibition Center - expose several structural deficiencies in Chinese CMBS transactions, according to Fitch. Such deficiencies include low DSCR and collateral quality - due to weak underlying cashflow - limited protection through .......

    Market Moves 31 October 2022

  • Apollo, PIMCO set to acquire Credit Suisse SPG

    Sector developments and company hires

    Apollo, PIMCO set to acquire Credit Suisse SPG
    Credit Suisse has unveiled its new strategy and transformation plan, following a strategic review of the bank’s businesses (SCI 28 July). The bank says it is taking “extensive measures” to deliver a more integrated business model, with the goal of creating value for shareholders.

    Over the next three years, Credit .......

    Market Moves 28 October 2022

  • Irish reperforming RMBS stress tested

    Sector developments and company hires

    Irish reperforming RMBS stress tested
    S&P has conducted a scenario analysis of seven of the Irish reperforming RMBS it rates, to investigate the impact of the rising cost of living, since legacy mortgage loans are particularly vulnerable to rate increases as the borrowers in these transactions predominantly (94%) pay variable interest rates. The combination of an expected increase in debt .......

    Market Moves 26 October 2022

  • CMBS hedging agreements eyed

    Sector developments and company hires

    CMBS hedging agreements eyed
    DBRS Morningstar has raised concerns that the current DSCRs of three European CMBS it rates - Sage AR Funding No 1, Sage AR Funding 2021 and Taurus 2021-4UK - will be insufficient to enable the borrowers to use excess cash to purchase new interest rate cap agreements, without cash injections from the sponsors, as the respective .......

    Market Moves 25 October 2022

  • Reaching milestones

    John Beacham, ceo and founder of Toorak Capital Partners, answers SCI's questions

    Q: Toorak recently hit a US$10bn milestone in whole loan funding for housing rehab and construction since its inception in 2016. What does this mean to your company? 
    A: We’re extremely proud of hitting this milestone and excited for many more to celebrate in the future. When we first started Toorak, we saw an opportunity to provide stable, long-term capital to .......

    The Structured Credit Interview 24 October 2022

  • Regional bank CRT pipeline builds

    New SCI Global Risk Transfer Report published

    A couple more US regional bank capital relief trades are in the pipeline for late 2022 or early 2023, according to SCI’s new Global Risk Transfer Report. In terms of reference pools, a current area of focus is relatively high-quality assets that have a good credit story and are available in some depth.

    “I can think of .......

    News 12 October 2022

  • Non-calls to continue?

    Extension risk on the rise, particularly for non-bank issuers

    Following the announcement that buy-to-let RMBS Towd Point Mortgage Funding 2019 - Auburn 13 will not be called at its first call date this month, “given current market conditions”, extension risk in the European ABS/MBS market is expected to increase. Indeed, noting continued rate volatility, Barclays European securitised research analysts have revised their earlier opinion (SCI 31 August) .......

    News 10 October 2022

  • Testing the waters

    European ABS/MBS market update

    Following last week’s record €4bn securitisation BWIC volume, European and UK ABS/MBS secondary market activity is fading. At the same time, the primary market is still not completely shut, with a few deals out and testing market conditions.

    “The real action has certainly been for the most part in the secondary market with undeniably elevated volumes,” notes one .......

    News 7 October 2022

  • Primary stutters as secondary swamped

    European ABS/MBS market update

    In what has been a week of political and financial turmoil since last Friday’s UK mini-budget, two deals were pulled, though two more made it over the line. At the same time, the secondary market was flooded with BWICs, driving some hefty volumes.

    “This week has been all the about the secondary market,” notes one European ABS/MBS trader. .......

    News 30 September 2022

  • SCI In Conversation podcast is now live!

    We discuss the hottest topics in securitisation today...

    In this inaugural episode of the SCI In Conversation podcast, Angela Sharda chats to KBRA European research head Gordon Kerr about a European securitisation investor survey the rating agency undertook in June and the implications of the findings today. We also discuss a couple of new SCI Premium Content articles, one of which tracks the evolution of the STS synthetic .......

    News 30 September 2022

  • Split opinion

    Recession considerations discussed

    The jury is still out on the likely impact of next year’s forecast recession on the securitisation market. However, panellists at S&P’s European Securitisation Conference earlier this month did concur that the situation is likely to get worse for the sector before it gets better.

    While the forecast for the European securitisation market appears somewhat bleak, the majority .......

    News Analysis 27 September 2022
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