RMBS

  • Clean-up call volume rising

    US non-agency RMBS amounting to more than US$1bn in UPB was called in 1Q17, making it one of the busiest quarters for calls in many years. There is no longer such a clear skew towards prime collateral backing deals being called, while a greater variety in vintages being called is expected to develop.

    New Residential Investment Corp (NRZ) has been .......

    News 20 April 2017

  • Euro ABS/MBS picks up

    Activity in the European ABS/MBS secondary market is picking up after the Easter break.

    Yesterday saw a flurry of both bilateral trading and BWICs primarily driven by rotation activity. Secondary spreads remain firm for now given the recent paucity of supply, but the possibility of some weakening in higher beta paper is emerging.

    There are currently four BWICs on the .......

    SCIWire 20 April 2017

  • Ocwen may target MSR purchases again

    Ocwen Loan Servicing has reached a settlement with the New York Department of Financial Services (NYDFS) which brings closer the prospect of the company being able to acquire MSRs again. The California Department of Business Oversight (DBO) has already lifted its own prohibition against Ocwen purchasing MSRs (SCI 24 February).

    The servicing company has been unable to acquire new MSRs .......

    News 19 April 2017

  • Debut Canadian RMBS prepped

    The first RMBS sponsored by a major Canadian bank is marketing. Dubbed Bicentennial Trust 2017-1, the C$1.96bn deal is backed by 6,364 prime fixed-rate Canadian residential mortgage loans originated by Bank of Montreal (BMO).

    Moody's and DBRS have assigned provisional ratings of Aaa/AAA to the C$1.86bn class A notes, Aa2/AA to the C$39.21m class Bs, A1/A to the C$19.6m class .......

    News 18 April 2017

  • Floating-rate ABS lacks support for growth

    Lack of demand will likely limit the growth of floating-rate ABS and CMBS in the US, despite rising interest rates. Investors may instead hedge against interest rate exposure or invest in floating-rate products with a long performance history, such as corporate CLOs.

    Fitch recently suggested that floating-rate CMBS conduits may re-emerge in the US due to rising interest rates and .......

    News Analysis 13 April 2017

  • Euro secondary ebbs and flows

    Activity in the European securitisation secondary market continues to ebb and flow.

    Trading patterns continue unchanged across ABS/MBS and CLO sectors - from time to time volumes begin to build before dissipating once again amid positive market sentiment. Last week reflected that as activity fizzled out towards the end of the week, while yesterday saw a flurry of auctions and .......

    SCIWire 11 April 2017

  • Today's RMBS opportunity deconstructed

    US RMBS continue to rally, supported by robust labour and housing markets, cheap credit and increasingly high-quality collateral. In this Q&A article, WyeTree ceo and cio Judith Sciamma explains that since RMBS also have several portfolio characteristics that institutional investors continue to search for in today's investment environment, the sector offers compelling value.

    Q: Why are real money investors looking .......

    Talking Point 10 April 2017

  • Job swaps round-up - 7 April

    North America

    KeyBanc Capital Markets has hired Chris O'Neill and Jeffrey Tucker to its securitised products team. O'Neill will act as md and Tucker as director and both will report to Keith Newman and Michael Corsi, co-heads of securitised products. O'Neill was previously md at RBC, focusing on non-agency and agency MBS and ABS. Tucker was previously director in the .......

    Job Swaps 7 April 2017

  • Irish NPL RMBS 'could start wave'

    Lone Star is back in the market with another Irish RMBS. It is currently marketing European Residential Loan Securitisation 2017-NPL1, which securitises non-performing loans.

    Lone Star priced an Irish non-conforming RMBS, European Residential Loan Securitisation 2017-PL1, last month (see SCI's new issue database). For its latest transaction, the private equity house is offering the senior three tranches, making .......

    News 6 April 2017

  • Deephaven debuts non-conforming deal

    Deephaven Mortgage is in the market with an RMBS backed primarily by non-QM loans extended to non-conforming borrowers. Dubbed Deephaven Residential Mortgage Trust 2017-1, the US$219.82m transaction features a double true sale structure and an atypical cashflow waterfall.

    The DRMT 2017-1 pool consists of 715 fixed rate (31.7% by balance), adjustable interest-only (6.1%) and five- and seven-year hybrid adjustable-rate fully .......

    News 6 April 2017

  • Euro ABS/MBS active

    The European ABS/MBS secondary market is once again active without yet fully taking off.

    "Secondary is now chugging along," says one trader. "There's enough going on to keep us occupied, but nothing major."

    The trader continues: "There are selective opportunities, but there's no real stand-out activity. One possible exception to that is some of the racier positions from the big .......

    SCIWire 6 April 2017

  • Largest STACR to date prices

    Freddie Mac has priced its largest STACR deal to date. The US$1.32bn STACR 2017-DNA2 is also Freddie Mac's second low-LTV deal of the year.

    The M1 class has priced at one-month Libor plus 120bp, while the M2s priced at plus 345bp. The B1 class priced at plus 515bp and the B2s at plus 1125bp.

    STACR 2017-DNA2 has a reference pool .......

    News 5 April 2017

  • B&B portfolio sale to bring new RMBS

    UK Asset Resolution (UKAR) has sold two asset portfolios comprising performing buy-to-let loans totalling £11.8bn to Blackstone and Prudential (SCI 31 March). The loans come from the old Bradford & Bingley portfolio and are set to be securitised in two deals, including potentially the largest post-crisis European RMBS to date.

    The two RMBS are Ripon Mortgages and Harben Finance 2017-1 .......

    News 4 April 2017

  • Euro secondary restarts

    The turn of the quarter has restarted activity in the European securitisation secondary market.

    Flows and BWIC supply are picking up across the board this week. So far execution levels remain strong as long-standing pent up demand gets some release.

    As a result, secondary spreads remain firm amid positive market sentiment. However, the growing secondary and primary calendars are yet .......

    SCIWire 4 April 2017

  • Job swaps round-up - 31 March

    EMEA

    EJF Capital is to float its closed-ended investment fund on the London Stock Exchange. Dubbed EJF Investments, it will aim to invest in long-term, cashflow generating assets in three identified target investment areas - risk retention, capital solutions, ABS and specialty finance. Liberum Capital is acting as financial advisor on the admission and it's expected that dealings in the .......

    Job Swaps 31 March 2017

  • Value seen in jumbo 2.0 and RPL deals

    US non-agency issuance volumes are inching up on the back of the housing market recovery. Re-performing (RPL) and post-crisis prime jumbo RMBS, in particular, are tipped as offering value in the current environment.

    Jason Merrill, structured specialist at Penn Mutual Asset Management, says that non-agency legacy RMBS issuance is very tight, without the ratings to support it. This has prompted .......

    News Analysis 31 March 2017

  • Euro ABS/MBS unchanged

    Spreads and activity levels remain unchanged across the European ABS/MBS secondary market.

    A combination of month-end and benign wider markets has made for another couple of quiet sessions. Consequently, strong market tone and limited supply continue to hold secondary spreads in.

    The pricing of a number of new issues this week could yet shake out some sellers before month-end. However, .......

    SCIWire 30 March 2017

  • Euro secondary unmoved

    The European securitisation secondary market remains unmoved by wider market volatility.

    The see-saw in equities and broader credit over the past two sessions has not been reflected in secondary spreads, which continue to hold firm. Indeed, sentiment remains positive and demand continues to outstrip supply.

    Nevertheless, activity overall remains light with only some rotation activity and patchy flows in key .......

    SCIWire 28 March 2017

  • CSP's second phase delayed

    The FHFA has postponed the implementation of Release 2 of the Common Securitization Platform (CSP) until 2Q19. The agency says that additional time is required for the development, testing and validation of controls and governance processes necessary to "have the highest level of confidence that the implementation will be both smooth and successful".

    Under Release 2, Fannie Mae and Freddie .......

    News 27 March 2017

  • Kensington prepping 'recycled' RMS deal

    Kensington Mortgage Company (KMC) is in the market with a £538.7m UK non-conforming RMBS. Dubbed Residential Mortgage Securities 29, the transaction is backed by seasoned collateral from five legacy deals that are scheduled to be called on their next IPDs.

    The legacy deals are RMS 19, RMS 20, MPS 1, MPS 2 and MPS 3, which were originally issued between .......

    News 27 March 2017

  • Job swaps round-up - 24 March

    North America

    Alcentra has hired Brandon Chao as svp in New York, joining from Omega Advisors, where he was a senior analyst for structured products and corporate credit. He will report to the firm's global head of structured credit, Hiram Hamilton, who is relocating to the New York office in April. Hamilton was previously executive director and head of the .......

    Job Swaps 24 March 2017
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