RMBS

  • RMBS rating revision for trio

    S&P is requesting feedback on revisions it has made to rating RMBS and covered bonds backed by French, Belgian and German residential loans. The proposed changes aim to align the analytical framework with that applied for pools of residential loans in other jurisdictions globally, but will define adjustment factors that are specific to each country.

    The proposals consider a combination of .......

    News Round-up 22 March 2016

  • GSEs auctioning bulk MSRs

    Fannie Mae and Freddie Mac have put a US$6.2bn bulk mortgage servicing rights portfolio up for auction. MountainView Servicing Group, which is advising the GSEs on the sale, says that bids for the portfolio are due on 29 March.

    The portfolio comprises servicing rights on 26,180 fixed-rate and first-lien mortgages. The loans have a weighted average original credit score of 777, a .......

    News Round-up 22 March 2016

  • TRID error treatment progressing

    A SFIG industry working group focused on the treatment of TRID errors in the US RMBS secondary market has provided rating agencies with a draft proposal for the due diligence grading of the issues. The draft proposal reflects several months of collaborative discussions between third-party review (TPR) firms, attorneys, issuers and rating agencies.

    Initial due diligence sampling of prime jumbo .......

    News Round-up 22 March 2016

  • London calling

    GLA sets sights on RMBS

    The Greater London Authority (GLA) has announced its intention to invest in senior UK RMBS, signalling a move towards diversifying its investment outlook. The potential for further asset classes and other governmental authorities to follow this precedent hinges on the success of the scheme.

    The GLA's plans were outlined in a recent seminar hosted by the authority and its cio .......

    News Analysis 21 March 2016

  • Mortgage lender names leader

    Venn Partners has named Marc de Moor as head of Venn Hypotheken (SCI 10 March). Based in Breda, he has over 30 years of experience in residential mortgages, social housing funding, retail banking and insurance. He previously built a Dutch residential mortgage business for Argenta, including a €15bn residential mortgage portfolio and a €2.5bn savings and complementary life insurance business.

    Job Swaps 21 March 2016

  • Auto deals driving ABCP

    A recent surge in outstanding ABCP has been driven by increased auto issuance, according to S&P. However, the agency questions the durability of the sector's rally, suggesting that its growth has been overreliant on auto-related deals.

    The ABCP market has risen by 23% in issuance since September 2015, over three-fourths of which has come from auto securitisations. If growth continues on this recent trajectory, outstanding .......

    News Round-up 21 March 2016

  • FNMA completes largest CIRTs

    Fannie Mae has completed its latest set of Credit Insurance Risk Transfer deals, the largest cumulative transactions to date in the GSE's programme. The completion of CIRT 2016-1 and CIRT 2016-2 shifts a combined US$19.5bn of risk on pools from single-family loans to a group of insurers and reinsurers, with the loans acquired between December 2014 and April 2015.

    The .......

    News Round-up 21 March 2016

  • SFR exposure encouraged

    SFR transactions offer value to STACR, CAS, legacy RMBS and consumer ABS deals, argue Wells Fargo analysts. However, there is only limited upside when compared to single-borrower and large loan CMBS.

    "We believe that triple-A and double-A rated SFR bonds should be viewed as a diversifier within a portfolio containing non-agency CMBS or non-agency RMBS. However, we do not see .......

    News 18 March 2016

  • Euro secondary upswing

    The European securitisation secondary market is seeing an upswing in activity once again.

    Yesterday saw an uptick in activity after a quieter Wednesday, although focus remains very patchy. Peripherals fared well as did UK non-conforming, which began to reverse recent widening amid strong execution across the session's MBS BWICs. However, it was CLOs that once again led the way with .......

    SCIWire 18 March 2016

  • Aussie arrears push up

    The 30-plus day delinquency rate for Australian prime RMBS increased in from 1.14% in 3Q15 to 1.29% in 4Q15, according to Moody's latest index results for the sector. The increase reflected higher spending levels in the run-up to the holiday season.

    Moody's says that the rise was driven by the performance of prime RMBS issued by major banks, as well as non-authorised .......

    News Round-up 17 March 2016

  • Euro secondary partly pauses

    The bulk of the European securitisation secondary market took a pause yesterday, but CLOs continue to outperform.

    "Yesterday was a bit quieter after the pick-up in activity that followed the ECB last week and into the start of this," says one trader. "BWICs have been the main focus but supply dropped as many people used the excuse of the FOMC .......

    SCIWire 17 March 2016

  • Resi, CRE auction platforms launched

    Ten-X, formerly known as Auction.com, has launched two new transaction platforms for buying and selling residential and commercial real estate. Ten-X Homes has been created for move-in ready homes, while Ten-X Commercial is the next iteration of the firm's CRE offering.

    Ten-X Homes will offer homes from a wide range of sellers, including banks, investors, institutions, homebuilders and agents. It .......

    News Round-up 16 March 2016

  • Euro secondary mixed

    The European securitisation secondary market is seeing mixed activity and results as the wider credit rally runs out of steam.

    "Overall, the secondary market continues to normalise, but it is highly sector-dependant," says one trader. "Yesterday was active, but that was mainly off the back of BWICs, while customer flows were slower thanks to softening in wider credit."

    Those BWICs yielded mixed .......

    SCIWire 16 March 2016

  • ECB suggests regulatory tweaks

    The ECB has suggested changes to the new securitisation package proposed by the European Commission and adopted by the European Council in December. The package contains the new overarching European securitisation regulation - including STS - as well as the CRR amendment that sets banks' risk weights to securitisation exposures.

    On the topic of supervision, Rabobank credit analysts note it .......

    News Round-up 15 March 2016

  • HPF reaping RMBS emergence

    S&P says that China's turn towards securitisation has supported economic and financial initiatives from alternative financiers, such as The Housing Provident Fund (HPF). HPF helps low to middle income households by extending cheaper home loans.

    "Six HPF centres issued RMBS or home loan associated rights in 2015," says S&P credit analyst Jerry Fang. "We expect more HPF-sponsored RMBS to come .......

    News Round-up 15 March 2016

  • Safe harbour RMBS debuts

    JPMorgan is in the market with what is believed to be the first US RMBS structured to comply with the FDIC's 'safe harbour' rule, which became effective on 30 September 2010 (SCI 6 October 2010). The US$1.89bn Chase Mortgage Trust 2016-1 transaction also represents the first post-crisis cash RMBS issuance by a large money-centre bank of its own assets.

    Unlike .......

    News 15 March 2016

  • Indian distressed opportunities targeted

    The Canada Pension Plan Investment Board (CPPIB) and Kotak Mahindra Group have signed an agreement to invest in stressed assets in India. The agreement allows for a total investment of up to US$525m, with CPPIB able to invest up to US$450m.

    The flexible investment mandate seeks to take advantage of the growing opportunity arising from the current stress in the Indian banking .......

    News Round-up 15 March 2016

  • Italian SPV rules amended

    The Bank of Italy has updated its supervisory instructions for banks and financial intermediaries concerning loans granted by securitisation vehicles. There are now six key requirements.

    First, borrowers must be selected by a bank or financial intermediary registered under article 106 of the Italian Banking Act. The securities issued are reserved for qualified investors only, and the bank or intermediary must .......

    News Round-up 14 March 2016

  • Euro secondary sluggish

    Despite last week ending strongly in wider credit the European securitisation secondary market remains sluggish.

    Market sentiment continues to be increasingly positive and there are selective buyers in evidence, but for the most part flows and BWIC supply are patchy and liquidity is thin as investors look likely to stay on the sidelines until the wider credit rally has been .......

    SCIWire 14 March 2016

  • Strategic review nears completion

    In its financial results for the three and twelve months ended 31 December, ZAIS Financial Corp disclosed that its strategic review continues and includes the exploration of merger or sale transactions or a liquidation of its assets. The company last November retained Houlihan Lokey Capital as financial advisor to assist it in evaluating potential strategic alternatives to enhance stockholder value.

    Job Swaps 11 March 2016

  • ECB looks to provide boost

    A new set of measures announced by the ECB could boost ABS supply. The central bank is launching a second TLTRO programme, expanding QE and cutting rates.

    The ECB's deposit rate has been cut by 10bp to -0.4%. Its main refinancing rate has been cut by 5bp to zero.

    The TLTRO 2 programme will - in contrast to the first TLTRO .......

    News 11 March 2016
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