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RMBS

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  • FIG
    JP Morgan CIO stepped up to back prime European ABS once again on Wednesday, buying €1.28bn of Orange Lion 2011-6, a Dutch prime RMBS. The deal marks the return of the US bank to large-scale buying in Dutch prime — and the return of ING to the securitisation market.
  • Liquidity in Europe’s secondary asset-backed securities markets has been lower in recent days.
  • Australian bank Suncorp returned to the residential mortgage-backed securities market at the end of last week, raising A$1.25bn ($1.214bn) from a deal that was increased heavily after big demand from investors.
  • A steep drop in the Mortgage Bankers Association’s index tracking mortgage refinancing week over week has analysts at Morgan Stanley on alert for a trend.
  • Santander U.K. has privately placed a $1.73 billion equivalent issue from its U.K. residential mortgage-backed securities program Fosse with a handful of investors, as the flow of new public deals in Europe slows ahead of year-end.
  • FIG
    ING and Santander UK have sold some €2.66bn equivalent of RMBS in private placements this week, squeaking home as the market prepares to close for the Christmas break.
  • Trading in the residential mortgage-backed securities space was unaffected by the U.S. District Court rejection of a $285 million settlement between the U.S. Securities and Exchange Commission and Citigroup over charges the bank had committed fraud during the financial crisis.
  • The traditional year-end slowdown in Europe’s securitization market is emerging two-three weeks early, according to some London-based asset-backed securities officials.
  • U.S. District Judge Rakoff of Manhattan has rejected aproposed $285 million settlement between the U.S. Securities and Exchange Commission and Citigroup over the bank’s alleged failure to inform investors about its role in selecting underlying loans in mortgage-backed securities.