RMBS

  • Agency avoidance

    Originators set to turn to private market as fees rise

    The GSE footprint in the US MBS market is set to shrink, and even a minor diminution would have a dramatic impact upon volume seen in the private label RMBS market, say analysts.

    The potential reduction in MBS issued by Freddie Mac and Fannie Mae is due to two chief reasons. Firstly, the GSEs will increase the loan level pricing adjustments (LLPAs) in .......

    News Analysis 23 February 2022

  • Borrower beware

    Cost of living crisis to have 'unequal impact' on UK RMBS

    The fallout from the UK’s ‘cost of living crisis’ will hit lower-income mortgage borrowers hardest, according to a recent DBRS Morningstar analysis. However, while inflation may cause challenges for all consumers, RMBS portfolios will not all be impacted equally.

    The Bank of England anticipates that inflation rates will peak this spring, rising from the current level of 5.5% .......

    News 21 February 2022

  • Drifting wider

    European ABS/MBS market update

    The European ABS/MBS primary market continued to be impacted by macro volatility last week. However, while spreads drifted wider, the few deals that were done still generally managed to attract healthy investor demand.

    “The market has been very calm in the past few weeks,” notes one European ABS/MBS trader. “Spreads have without a doubt widened, however not at .......

    News 21 February 2022

  • Greater progression

    Sector developments and company hires

    Maples Group has announced the hire of two new structured finance professionals, expanding its offering in its London and Jersey offices. Emma Tighe will join the firm in its London office as vp, having spent more than 14 years working in structured finance and most recently serving as relationship manager on the US Bank CLO team. Tighe has expertise across .......

    Market Moves 17 February 2022

  • Continued growth

    Sector developments and company hires

    Briarcliffe has made two more new appointments as it continues the expansion of its private credit business. Kyle Abel joins the firm as new head of GP advisory from First Avenue, where he served as md and US head of project management. Additionally, Robert Molina has been promoted to head of origination, having previously worked as md of GP advisory, .......

    Market Moves 16 February 2022

  • Social mobility

    'Cultural progression' puts social bonds in focus

    Securitisations designated as social bonds are gaining traction, with the underlying asset classes expected to broaden. Indeed, at present, it is easier to define lending in a socially responsible way than defining it as ‘green’.

    Edward Baker, capital markets director at Prodigy Finance, attests to the reasons this may be. “I think it perhaps chimes with the broader ethical and .......

    News Analysis 15 February 2022

  • HKMC inks infrastructure MoUs

    Sector developments and company hires

    HKMC inks infrastructure MoUs
    The Hong Kong Mortgage Corporation (HKMC) has signed a memorandum of understanding on an infrastructure loans framework with 14 partner banks. The MoUs set out the principal terms for potential infrastructure loan cooperation between the HKMC and the partner banks on both primary participation and secondary sale bases, including the loan selection criteria, mode of participation .......

    Market Moves 11 February 2022

  • Increasing allocation

    Innovation, transparency attracting institutional investors

    The majority of institutional investors polled in a recent Aeon Investments survey have increased their allocation to structured credit investments across different asset classes over the past 18 months. When asked why there is growing interest in structured credit investment vehicles, the top three reasons were given as greater innovation in the sector, an improving regulatory environment and greater .......

    News Analysis 11 February 2022

  • Compounded calculations

    First RMBS tied to Sonia index issued

    The first RMBS to use the recently introduced Bank of England Sonia index to calculate the interest paid on sterling floating rate notes closed last month. Nationwide’s Silverstone Master Issuer Series 2022-1 is set to be the first of many securitisations to link to the new index because it simplifies the calculation of compounded Sonia.

    “The index method .......

    News Analysis 9 February 2022

  • Agencies win 'valid-when-made' cases

    Sector developments and company hires

    Agencies win ‘valid-when-made’ cases
    The US OCC and FDIC yesterday received favourable court rulings in cases challenging their ‘valid-when-made’ rules. In each case, the plaintiffs were three states – California, Illinois and New York – challenging the validity of the rulemakings.

    The states' attorney generals alleged that both federal agencies violated the Administrative Procedure Act. In particular, the plaintiffs .......

    Market Moves 9 February 2022

  • KIS embraces asset management

    Sector developments and company hires

    Kuvare Insurance Services (KIS) has launched a third-party asset management business. Over the past two years under the leadership of president and cio Brian Roelke, KIS has built a seasoned team of insurance industry professionals and asset class specialists to drive portfolio performance across Kuvare’s operating companies. The firm now plans to extend its experience across private asset-backed and structured .......

    Market Moves 8 February 2022

  • Wider spreads coming

    European ABS/MBS market update

    The hawkish pivot of the ECB, combined with lingering inflation-driven volatility conspired to drive spreads wider and dampen activity in the European ABS/MBS primary market over the past week. The two transactions in the near-term visible pipeline will have to scramble to price against the currently strained market backdrop.

    Finnish auto ABS Tommi 2 (LT Autorahoitus) is due .......

    News 7 February 2022

  • MBS meltdown

    Fed ends MBS purchases, will reduce portfolio

    MBS yields have risen 15bp since the beginning of the year and are set to rise at least another 15bp and probably more, say market analysts.

    Mortgage securities have been buffeted by a combination of inflationary pressures and the rapidly attenuating Fed MBS purchase programme.

    Things could also turn a lot worse if the Fed decides to hike rates more often and to run .......

    News 3 February 2022

  • Big business

    Strategic shift favours alternative credit M&A activity

    The alternative credit industry might be at an inflection point in its development, with a decisive change anticipated in M&A activity in terms of the dominant acquirer from a financial to strategic buyer. Such a transition would inevitably benefit leading alternative credit managers.

    “After five years of real and incredible growth in alternative credit acquisitions, we have witnessed .......

    News Analysis 3 February 2022

  • Maltese SME guarantee inked

    Sector developments and company hires

    Bank of Valletta and the EIB Group have renewed their partnership to support the business needs of SMEs in Malta. Under this new agreement, the bank will provide an additional €28m to Maltese SMEs on favourable terms and with long tenors over the next two years.

    The favourable conditions on the loans are achieved through risk transfer, implemented by combining .......

    Market Moves 1 February 2022

  • Inflection Point?

    European ABS/MBS market update

    The European ABS/MBS primary market has been hit by macro volatility this week. While the previous week saw healthy investor demand and firm pricing (SCI 21 January), the current tense backdrop of central banks unwinding and major geopolitical tensions, appears to have affected spreads.

    “The primary market has generally been very volatile this week,” notes one ABS/MBS .......

    News 28 January 2022

  • Multi-family moves

    SitusAMC Insights speaks up on the US multi-family market

    Senior director and head of SitusAMC Insights Peter Muoio and svp Jennifer Rasmussen give their views on the multi-family scene and CMBS market heading into 2022 

    Q. What is the current picture in the multi-family MBS market and how do you expect it to look in 2022?

    PM: The apartment market is in good shape fundamentally with strong investor interest. Investors see .......

    The Structured Credit Interview 27 January 2022

  • New hires

    Sector developments and company hires

    Greystone has announced several new senior hires as it continues to grow its CMBS platform. Jared Noordyk and Natalie Grainger will be joining the firm as head of securitisation and cco, respectively, and will report to head of CMBS, Rich Highfield Noordyk will join the firm from SitusAMC, where he served in a senior role for its CRE Advisory group working .......

    Market Moves 26 January 2022

  • New members

    Sector developments and company hires

    DBRS Morningstar has appointed two new independent non-executive members to its board of directors – Joseph M. Donovan and Katherine L. Frey. Both industry veterans, Donovan presently serves in similar roles on the board of directors at STORE capital and Trip Rail Holdings. Frey previously held role of md at Moody’s, and before this worked on municipal finance, derivatives and .......

    Market Moves 24 January 2022

  • Mortgage marvel

    Sharp 2021 drop in foreclosure/delinquency - serious delinquency still elevated

    At the end of 2021, mortgage foreclosures had hit an all-time record low while the delinquency rate was only 0.10% higher than the historic low of 3.28% hit in February 2020 - just before the pandemic hit - according to data released this morning by Black Knight.

    This constitutes a dramatic turnaround from the early days of Covid 19. The delinquency rate, .......

    News 21 January 2022

  • Primary primary

    European ABS/MBS market update

    Focus remained on the primary market in European ABS/MBS this week. Another swathe of new issues on offer meant secondary had to again take a back seat.

    Five deals priced on the week. All were RMBS and all met with healthy investor demand ensuring support for continued tight levels throughout the stack.

    Yesterday saw two deals print – Elstree Funding .......

    News 21 January 2022
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