RMBS

  • UK risk over-represented

    Some €6.5bn of European ABS paper has traded off BWICs in the last nine months, according to JPMorgan figures, implying healthy secondary trading across the region. An analysis undertaken by European securitisation analysts at the bank shows that traded ratios remained above 70% for all bonds offered by sellers, with UK risk significantly over-represented in terms of collateral appearing on .......

    News 22 February 2016

  • Loan-level model introduced

    JPMorgan has developed a new loan-level transition model for GSE residential mortgage loans, which aims to help investors better understand the relative value in credit risk transfer fixed severity and actual loss RMBS. Actual loss deals are expected to look better under the framework.

    The Freddie Mac and Fannie Mae dataset contains loans issued from 1999 through 2014. Both datasets .......

    News Round-up 22 February 2016

  • Euro secondary solid

    The European securitisation secondary market remained solid on Friday despite broader market weakness.

    Volumes remained generally low as the week closed out, but tone remained firm and most spreads ended the session unchanged. Off-BWIC activity once again revolved around prime assets and eligible peripherals. Meanwhile, BWICs generated a flurry of activity in the afternoon and the bulk of line items .......

    SCIWire 22 February 2016

  • Russian bankruptcy law gauged

    A new Russian bankruptcy law that came into effect in October 2015 will only impact a limited number of ABS and RMBS in the country, Moody's reports. The law introduces a legal mechanism for individual debt restructuring and encourages lenders to devise repayment plans rather than sell the assets in the event of a borrower's bankruptcy.

    Moody's notes that the new law .......

    News Round-up 19 February 2016

  • Euro secondary fades

    Levels and activity are fading in the European securitisation secondary market as the broader market rally runs out of steam.

    Activity remained patchy across the board yesterday, with prime assets once again leading the way, albeit in lower volumes than in previous sessions. Meanwhile, the appetite for Portuguese paper of recent days has faded somewhat and kept spreads slightly off .......

    SCIWire 19 February 2016

  • SFR operating expenses up

    Net operating expenses for most single-family rental (SFR) securitisations issued in 2013 and 2014 are slightly above underwritten assumptions, which Moody's describes as slightly credit negative for the affected transactions. Exceptions to this trend are the Invitation Homes (IH) and Silver Bay deals.

    The first six months of operating cashflows for 2013 and 2014 SFR transactions suggest that non-contractual costs .......

    News Round-up 18 February 2016

  • Euro ABS/MBS split

    There continues to be a strong split in where activity is taking place in the European ABS/MBS secondary market.

    "Tone over the past few days has been much more positive in line with the macro trend," says one trader. "However, there is still a marked divergence over where activity is centred."

    The trader continues: "Most focus continues to surround prime .......

    SCIWire 18 February 2016

  • MAGEL tender offer unveiled

    Banco Comercial Português has launched separate tender offers for the respective €930m and €1.41bn class A notes of Magellan Mortgages No. 2 and No. 3. The bank says the purpose of the offers is to proactively manage its outstanding liabilities and capital base.

    The prices BCP will pay for validly tendered RMBS bonds will be determined pursuant to an unmodified .......

    News Round-up 17 February 2016

  • SF pro switches law firm

    Colleen McDonald has moved to Sheppard, Mullin, Richter & Hampton as partner, following the same role at Reed Smith. Working in the firm's finance and bankruptcy practice group in San Francisco, she will focus on securitisation, structured finance, commercial finance transactions and complex financial products.

    McDonald advises financial institutions regarding the acquisition and sale of assets primarily involving newly originated, .......

    Job Swaps 17 February 2016

  • Euro secondary improves

    Tone in many European securitisation secondary market sectors continues to improve in line with broader markets.

    "Yesterday, tone was bit better overall in our space as credit in general continued to improve," says one trader. "But the biggest story was Portugal."

    The trader continues: "The tender announcement from BCP for MAGEL 2  and 3 combined with rising sovereign bonds and .......

    SCIWire 17 February 2016

  • Euro secondary stalemate

    With the US absent and continuing improvements in broader markets, it was stalemate in the European securitisation secondary market yesterday.

    "Market tone is generally OK," says one trader. "But with the US holiday not a lot went on yesterday."

    However, he adds: "We did see a couple of BWICs come out in the afternoon and all but one 1.0 CMBS .......

    SCIWire 16 February 2016

  • FNMA aims for liquidity

    Fannie Mae has priced its latest credit risk sharing transaction under the Connecticut Avenue Securities series. To promote additional liquidity, the GSE for the first time sought a credit rating for the M2 bonds in a CAS transaction. It is also for the first time selling a portion of the first loss position, further reducing taxpayer exposure to credit losses.

    News Round-up 15 February 2016

  • P2P lender poaches ABS pro

    Dipesh Mehta has joined Funding Circle as a director in its capital markets team following a period of consulting for the P2P lender. In this role, he focuses on secured lending and serving institutional clients.  

    Mehta previously worked as an analyst in European ABS research strategy for Barclays. His core sector coverage was on consumer ABS, with a primary focus .......

    Job Swaps 15 February 2016

  • Euro secondary stronger

    After a relatively benign close to last week, today is opening with a stronger tone across the bulk of the European securitisation secondary market.

    Friday once again saw extremely thin liquidity across the board, but low beta paper continued to catch a bid and senior peripherals traded well on- and off-BWIC, especially Italian names, but even select Portuguese bonds tightened .......

    SCIWire 15 February 2016

  • Fourth set of FNMA NPLs sold

    Fannie Mae has revealed the winning bidders from its fourth NPL sale, which included 6,500 loans totalling US$1.32bn. The winners were Canyon Partners for the first pool, Pretium Mortgage Credit Partnerns I Loan Acquisition for the second pool and Goldman Sachs for both the third and fourth pools.

    The GSE began marketing the loans last month (SCI 14 January). The weighted average sale .......

    News Round-up 12 February 2016

  • Latest toxic MBS case settled

    Morgan Stanley has agreed to pay out on another settlement involving failed MBS assets that it sold in the lead-up to the financial crisis. According to New York Attorney General Eric Schneiderman, the bank will pay a total of US$3.2bn, US$550m of which will go to helping New York State residents repair mortgage issues.

    The lawsuit, headed by Schneiderman, accused Morgan Stanley of making .......

    Job Swaps 12 February 2016

  • Potential PMI boost for RMBS

    The recovery of the private mortgage insurance (PMI) industry suggests that there is value to be found in legacy non-agency RMBS. Even insurers in run-off are making payments and bond values are expected to improve significantly for legacy deals backed by loans with PMI underwritten by still-active insurers.

    The financial crisis devastated the PMI industry, with 2010 marking a trough .......

    News 12 February 2016

  • German loan terms decreasing

    Average German residential mortgage loan terms are falling as the amortisation portion of instalments increase in response to low interest rates, Fitch reports. An analysis of 310,800 loans in Fitch-rated covered bond and structured finance deals shows that average terms for new originations fell to 19 years in 2015 from just over 25 years in 2010.

    Average interest rates dropped .......

    News Round-up 12 February 2016

  • Euro secondary slides

    Activity and pricing levels are sliding across the European securitisation secondary market.

    Prime autos and RMBS finally succumbed to broader market downward pressure and edged wider on very light volumes yesterday. 2.0 CMBS is still offering some resistance, but elsewhere tone remains weak and liquidity is thin across the board.

    Street buyers are occasionally being seen in select names in .......

    SCIWire 12 February 2016

  • Right to return

    Non-prime mortgages set for US comeback?

    Attempts to reinvigorate the US non-prime RMBS market appear to be gaining traction. However, the sector still needs to overcome being tarnished by the subprime stigma.

    Angel Oak recently tapped the non-prime RMBS market when it completed its first deal in the sector - Angel Oak Mortgage Trust 2015-1 - in December via Nomura. The US$150.4m transaction comprises US$135.32m of senior and .......

    News Analysis 11 February 2016

  • Broker-dealer adds RMBS trader

    First Empire Securities has hired RMBS trader Richard Liao. He was most recently an agency RMBS trader at Société Générale. Liao has also previously worked at RBC Capital Markets and BNP Paribas.

    .......

    Job Swaps 11 February 2016
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