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RMBS

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  • Yorkshire Building Society’s Brass No.2 RMBS is set to be the tightest UK RMBS since the financial crisis. The fall in absolute yields of new issues over the past two months could force RMBS back into more borrowers’ plans — though the buy-side is already lamenting the loss of absolute value.
  • The Dutch RMBS pipeline grew further on Thursday, as NIBC announced a new issue from its Dutch MBS shelf, joining SNS Bank in preparing primary issuance.
  • Angel Oak Capital Advisors, an Atlanta-based investment and advisory company, has launched a fund specializing primarily in private label legacy mortgage-backed securities and also commercial mortgage-backed securities.
  • Secondary market activity in European securitization continues to be dominated by bids-wanted-in-competition, with several lists emerging midweek from hedge funds looking to lighten up books and take some profit.
  • After toying with the idea of structuring a swap-free deal, SNS Bank’s new Hermes RMBS not only includes a swap but it has also been structured with a fixed rate ‘A3’ tranche designed to ensure investors are fully paid before the bonds are called.
  • Investec’s legacy non-conforming RMBS, Residential Mortgage Securities 26, has been priced at par and comfortably inside its Gemgarto non-prime deal in April, demonstrating investors’ greater risk appetite in ABS.
  • Europe’s securitization market could be edging a step closer to seeing non-AAA rated senior tranches in some deals.
  • A flurry of Dutch primary residential mortgage-backed securities is expected to follow on the heels of SNS Bank’s forthcoming issue from its HERMES program.
  • Investec Capital Markets will launch and price its widely watched securitization of non-conforming U.K. mortgages, Residential Mortgage Securities 26, on Wednesday.