RMBS

  • 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

  • AnaCap makes Dutch purchase

    AnaCap Financial Partners and Arrow Global have acquired a portfolio of Dutch residential and commercial mortgages with a face value of €127m. AnaCap also recently acquired a pair of Italian NPL portfolios (SCI 4 March).

    The Dutch portfolio has been acquired by vehicles owned by AnaCap Credit Opportunities III and Arrow Capital. It is AnaCap's first such transaction in the .......

    News Round-up 10 March 2016

  • Italian tax exemption boosts market

    An Italian law decree introducing a flat tax on auction properties is credit positive for RMBS, ABS and covered bonds of secured loans to SMEs, says Moody's. The stamp duty exemption should attract a larger number of potential buyers, with a particular increase in short-term investors' appetite for auction properties.

    Moody's expects that real estate-owned companies and other asset managers, .......

    News Round-up 10 March 2016

  • Deleveraging drives UK RMBS

    Deleveraging will be the main driver of UK non-conforming RMBS in 2016, says Moody's. Collateral performance will be supported by the nation's economic recovery and robust housing market.

    "Deleveraging will drive the UK non-conforming sector's performance in 2016, cushioning against losses in a hypothetical severe recession scenario," says Moody's. Last year, 80% of UK non-conforming RMBS upgrades were due to .......

    News Round-up 10 March 2016

  • Dutch origination platform debuts

    Venn Partners has launched its own Dutch mortgage brand and origination platform. Called Venn Hypotheken, the firm says it is designed to be efficient, cost-effective and reliable, allowing Venn to offer competitively-priced mortgages in direct competition with banks.

    The new lender is expected to target an annual production volume of €2bn and offers annuity, linear and interest-only mortgage loans. Its .......

    News Round-up 10 March 2016

  • Euro secondary stable

    The European securitisation secondary market remains stable despite signs of an uptick in volume.

    "Yesterday the market was more or less stable despite an increased number of lists," says one trader. "Notably, the large prime RMBS list traded quite well with most of the 24 bonds involved going through in line with recent levels."

    At the same time, the trader .......

    SCIWire 10 March 2016

  • Russian law 'RMBS positive'

    A Russian law strengthening limited recourse and removing restrictions on repurchasing mortgages on securitised pools is credit positive, says Moody's. For future RMBS transactions which use the limited recourse feature, creditors' claims upon enforcement of the pledged collateral will be limited only to specific assets.

    The rating agency believes the new legal framework also provides more flexibility for the arrangers .......

    News Round-up 9 March 2016

  • Euro secondary sidelined

    The improving macro picture has so far failed to encourage the majority of participants back into the European securitisation secondary market.

    "Yesterday was mainly dominated by BWICs, which went through OK but a lot of clients are still on the sidelines," says one trader. "While market tone keeps improving in line with broader markets liquidity hasn't moved in tandem with .......

    SCIWire 9 March 2016

  • MBS REITs to merge

    ARMOUR Residential REIT is set to acquire JAVELIN Mortgage Investment Corp for a consideration to be paid in cash, which would value JAVELIN at 87% of its book value, including a reduction of US$1m for JAVELIN's transaction expenses. Under the terms of the merger agreement, a wholly-owned subsidiary of ARMOUR will commence a tender offer to acquire all of the .......

    Job Swaps 8 March 2016

  • Euro secondary pick-up?

    After a very slow start to the week yesterday European securitisation secondary market activity looks set to pick up today.

    A volatile day in wider markets kept most participants on the sidelines once more and meant flows were extremely light again yesterday, nor were there any BWICs. Consequently, secondary spreads were unchanged across the board.

    Nevertheless, market sentiment remains positive. .......

    SCIWire 8 March 2016

  • RFC issued on Indian RMBS

    Moody's has published a request for comment on its proposed approach to rating Indian RMBS. The agency proposes using its residential mortgage collateral analysis model MILAN, which is a key element of its approach to loan and portfolio level evaluation. In addition, it will publish a methodology supplement outlining the country-specific values for the assumptions and adjustments that the methodology .......

    News Round-up 7 March 2016

  • AnaCap increases Italian NPL holdings

    AnaCap Financial Partners has purchased two Italian NPL portfolios with a face value of more than €2bn. The portfolios were acquired by AnaCap Credit Opportunities III from SPVs whose securities were majority owned by GE Capital Real Estate and RBS.

    The portfolios each have a gross book value of around €1bn and include secured and unsecured SME loans, with the .......

    News Round-up 4 March 2016

  • Investment loan performance examined

    Morningstar reports that recently it has been presented with a new type of underwriting for loans made to landlords backed by single properties. Typically, these loans are underwritten as consumer loans, with the borrower's income, assets and credit taken into consideration. The new loans, however, are underwritten as business-purpose loans and, as such, rely more on the rental income of .......

    News Round-up 3 March 2016

  • Associations confirm STS support

    AFME, the European Fund and Asset Management Association (EFAMA), the International Capital Market Association (ICMA) and Insurance Europe have issued a joint paper backing EU efforts to develop a robust and successful STS framework. The associations believe that STS and the associated CMU could play a pivotal role in enabling non-bank funding alternatives across the region.

    The joint paper affirms .......

    News Round-up 3 March 2016

  • Euro secondary slows

    This week's recovery in the European securitisation secondary market slowed yesterday.

    Despite increasingly positive market sentiment the anticipated continued uptick failed to materialise yesterday and flows thinned once more. Nevertheless, the wider market story was sufficient to keep most secondary spreads flat to slightly tighter.

    While a few buyers are in evidence sellers are now more elusive and BWICs are largely absent .......

    SCIWire 3 March 2016

  • RMBS upgraded on model error

    Fitch has upgraded five tranches of the Eurohome UK series 2007-1 and 2007-2 transactions, following the discovery of an inconsistent calculation in its UK RMBS surveillance model. The inconsistency had resulted in weighted average foreclosure frequencies that were too high.

    Specifically, the class B1 and B2 notes from Eurohome UK Mortgages 2007-1 have been upgraded to single-B (from triple-C), while .......

    News Round-up 2 March 2016

  • Ocwen faces further investigation

    Ocwen has disclosed that it is the subject of a fresh investigation by the US SEC. The news comes after the servicer recently settled a US$2m penalty with the regulator for misstating financial results, following its use of a flawed methodology to value complex mortgage assets (SCI 21 January).

    In its annual report, Ocwen revealed that it received a letter from the SEC .......

    Job Swaps 2 March 2016

  • Euro secondary improves

    The European securitisation secondary market continues to improve as broader markets remain stable.

    "The market is improving although yesterday was quiet overall," says one trader. "Tone is definitely better, but we're not yet seeing that much volume."

    At the same time, the trader adds: "Prices are picking up albeit quite slowly. We're noticeably lagging wider credit in that respect."

    Improvement was .......

    SCIWire 2 March 2016

  • SFR rent trends examined

    Property managers in single-family rental securitisations appear to have been steadily driving rents higher, according to a recent Morningstar Credit Ratings analysis. The study shows that these increases have come from renewals more often than new tenants for vacant properties.

    "It is in the interest of single-family rental securitisations for property managers to keep properties occupied by maintaining high renewal .......

    News Round-up 1 March 2016

  • Deal agent principles issued

    The Association of Institutional Investors has released a set of principles promoting a 'deal agent framework', which it believes would significantly enhance the governance protocols built into current US RMBS structures. The proposal seeks to reform private label RMBS contracts by providing fair investor protections, increased transparency and a flexible framework for adapting to unexpected events.

    "I believe the deal .......

    News Round-up 1 March 2016

  • Freddie enhances disclosures

    Freddie Mac has expanded its disclosures for its single-family credit transfer initiatives to help provide investors with additional information to analyse. The GSE has also released details of its second STACR offering of the year, STACR 2016-HQA1.

    The enhanced disclosures include quarterly updates on credit scores for outstanding loans in all transactions and mark-to-market LTVs that leverage the estimated property .......

    News Round-up 1 March 2016
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