RMBS

  • Innovative RMBS prepped

    Mars Capital is in the market with a non-standard multi-lender £271.055m UK RMBS, dubbed Trinidad Mortgage Securities 2018-1. The transaction is backed by three individual portfolios of new and legacy first- and second-ranking mortgages, secured by residential or part-commercial properties in England and Wales.

    DBRS and S&P have assigned provisional ratings to the transaction of AAA/AAA on the class A .......

    News 13 June 2018

  • Market moves - 8 June

    Acquisition

    Angel Oak Commercial Lending (AOCL) has acquired a controlling interest in Cherrywood Mortgage – a national, small-balance commercial mortgage lender based in Los Angeles, California. Cherrywood will serve as the wholesale small-balance commercial lending arm of (AOCL) and is led by ceo Bill Komperda and president Ed Resendez.

    Cat bond first

    SCOR has sponsored a new cat bond, dubbed Atlas .......

    Market Moves 8 June 2018

  • Older borrowers shaping UK mortgage market

    A shift is underway in the UK mortgage market regarding borrowers entering retirement, with a relaxation on retirement interest-only (RIO) mortgages and changes to maximum borrower ages at loan maturity. Furthermore, volumes of equity release-style lifetime mortgages tailored towards older borrowers are growing.

    S&P comments that a combination of increased life expectancy and the increasing age for first property purchases .......

    News 5 June 2018

  • Chinese issuance growing strongly

    Chinese securitisation issuance surged to a record high in 2017 but significant challenges remain. Overseas ABS market participants point to the need to develop the investor base and deepen market expertise, but are also showing increased willingness to dip their own toes in the water.

    The Chinese securitisation market is now the second-largest in terms of issuance, hitting CNY1.495trn in .......

    News Analysis 4 June 2018

  • Market moves - 1 June

    BTL RMBS planned
    UK Mortgages and TwentyFour Asset Management have acquired a high-quality pool of approximately £350m buy-to-let non-member mortgages originated by The Coventry Building Society Group through its Godiva brand. The portfolio comprises 2,077 recently-originated loans with an average balance of approximately £169,000 and an average LTV of 60.8%. The loans have approximately five years until the current fixed rate .......

    Market Moves 1 June 2018

  • Market moves - 25 May

    Analytics acquisition

    IHS Markit has signed a definitive agreement to acquire Ipreo for US$1.855bn from private equity funds managed by Blackstone and the Goldman Sachs merchant banking division. The acquisition is expected to close in 2H18, subject to customary closing conditions and regulatory approvals. Following a detailed review of its financial services businesses, the firm has also initiated a process .......

    Market Moves 25 May 2018

  • RMBS to follow Irish mortgage sale

    Barclays plans to securitise a €5bn legacy portfolio of Irish residential mortgages recently acquired from Lloyds. The deal follows hot-on-the-heels of the Durham RMBS transactions (SCI 11 May 2018), which priced last week.

    Cecile Hillary, head of asset finance solutions at Barclays, comments that the bank worked with M&G Prudential on the transaction, along with another firm. The portfolio comprises .......

    News Analysis 24 May 2018

  • Synthetic access welcomed

    The launch of the CRTx credit risk transfer index (SCI 11 May) has been welcomed by RMBS traders for the ability to put trades on in size and hedge credit events in the underlying. However, its introduction is also expected to precipitate new levels of price volatility in the sector and drive spreads wider.

    “A credit risk transfer .......

    News Analysis 21 May 2018

  • Split-mortgage securitisation mulled

    Permanent TSB has pulled €900m of split mortgages from its Project Glas portfolio sale of approximately €4bn of distressed Irish mortgages. The need to maintain borrower relationships and regulatory challenges over the treatment of split mortgages raise the prospect of the securitisation route for these loans.

    Following the withdrawal of the mortgages from the portfolio, Project Glas now .......

    News Analysis 18 May 2018

  • Market moves - 11 May

    Acquisitions

    Blackstone is set to acquire all outstanding common shares of Gramercy Property Trust for US$27.50 per share in an all-cash transaction valued at US$7.6bn. The transaction represents a premium of 23% over the 30-day volume-weighted average share price ending 4 May 2018 and a premium of 15% over the closing stock price on that date. Completion of the acquisition .......

    Market Moves 11 May 2018

  • RMBS double follows UKAR disposal

    Barclays is prepping two RMBS - dubbed Durham 1 and 2 - of Bradford & Bingley legacy mortgage loans, after acquiring the remaining £5.3bn portfolio from UKAR (SCI 27 April), although they're likely to be preplaced. The asset sale and securitisation pay off the remainder of the FSCS loan, which was partially repaid by the previous sale of legacy mortgages .......

    News Analysis 11 May 2018

  • NPL recovery boost expected

    Greek systemic banks are teaming up to create a platform that will manage and settle mortgage and retail non-performing loans to borrowers who have filed for protection under a much-abused law providing favourable restructuring terms (SCI 8 December 2016). Greek lenders have used this procedure for corporate loans, but not for mortgages, consumer and SME loans.

    The arrangement .......

    News Analysis 4 May 2018

  • Market moves - 4 May

    Acquisitions

    Five Oaks Investment Corporation has acquired 100% of the equity interests of Hunt CMT Equity from hunt Mortgage Group for US$68m. Assets of Hunt CMT Equity include the junior retained notes and preferred shares of a commercial real estate CLO, a licensed commercial mortgage lender and eight loan participations. The assets of the CLO consist of performing transitional floating .......

    Market Moves 4 May 2018

  • Investor-led start-up targets capital market niches

    Travis Miller, co-founder and joint md of iPartners, answers SCI’s questions

    Q: How did iPartners become involved in the market?

    A: We were observing a broad range of fintech firms launching with a technology and product focus which struck us as a “build it and they will come” approach; it was not obvious that any were investor focused.

    The driver .......

    The Structured Credit Interview 30 April 2018

  • Market moves - 27 April

    Australia

    FIIG Securities has hired Anne-Marie Hunter-Brown to the role of markets business manager, Australia. She was previously at Deutsche Bank as IB markets coo and business manager across global credit including structured credit.

    Assured Guaranty rebuttal

    Hedge fund manager David Einhorn recently stated that he is betting on Assured Guaranty’s stock falling, and that it .......

    Market Moves 27 April 2018

  • Performance sparks RPL upgrades

    Many post-crisis RMBS reperforming (RPL) loan transactions have performed better than expected, leading Fitch to upgrade 171 classes from 18 RPL deals. A dozen subordinate bonds were upgraded from double-B to investment grade, while 486 RPL ratings were affirmed.

    The upgrades follow a review of RPLs, seasoned performing loans and one REMIC transaction, spanning 657 loans over 44 deals issued .......

    News 27 April 2018

  • ECB encourages action on NPLs

    Gifford West, md, international operations and business deve...

    At a recent NPL industry event, a banker credited with completing some of the largest European NPL sales observed: “The Irish and UK banks were distressed sellers. Now their banks are on the path to recovery. The Italian banks refused to be distressed sellers. Now they are mostly distressed banks.”

    The ECB’s guidance published on 15 March 2018 is .......

    Talking Point 26 April 2018

  • CRT issuance boost expected

    Total capital relief trade issuance this year should exceed 2017, believes alternative asset manager PAG Asia, one of the sector’s major investors. Issuance is expected to be accelerated by an end to accommodative central bank monetary policies, underlining the importance of investing experience and expertise.

    James Parsons, portfolio manager at PAG Asia, says: “This year may be a pivotal year .......

    News Analysis 25 April 2018

  • Market moves - 20 April

    Acquisitions

    BlackRock has acquired Tennenbaum Capital Partners (TCP), complementing its global credit business at a time when clients are increasingly turning to private credit as a higher-yielding alternative to traditional fixed income allocations. A key element of the transaction – which is expected to close in Q3 - is the continuity of TCP's senior management team, including all five partners .......

    Market Moves 20 April 2018

  • Market moves - 13 April

    Aircraft ABS on watch
    KBRA has placed the class A, B and C notes of the US$411m Prop 2017-1 ABS on watch for downgrade. The ABS represents the first securitisation from Elix Aviation Capital, with the proceeds being used to buy 63 aircraft on lease to 17 airlines in 12 countries. KBRA notes that one aircraft was not delivered to .......

    Market Moves 13 April 2018

  • Mortgage 'institutionalisation' gains traction

    The Dutch mortgage market continues to receive high levels of interest from investors, but RMBS faces stiff competition from other funding options like covered bonds and whole loan strategies. However, securitisation remains well-suited to funding the development of the fast-growing buy-to-let sector in the Netherlands, due to its lack of homogeneity and current light-touch regulatory regime.

    Hans Starrenburg, .......

    News Analysis 10 April 2018
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