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RMBS

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  • Britannia Building Society is calling all outstanding tranches of Leek Twelve, a UK non-conforming RMBS issued in 2004, at their expected maturity date on June 22.
  • Absa Capital has closed the first South African securitisation to be offered to investors this year.
  • Two of Caja Madrid’s high loan to value RMBS issues are to defer interest on some subordinated notes after soaring arrears breached triggers in the documentation.
  • UK non-conforming RMBS was hit by further downgrades this week. Standard & Poor’s cut issues from Merrill Lynch and Oakwood and placed issues from Investec and GMAC RFC on CreditWatch Negative while Moody’s cut HVB’s Bluestone Securities 2007-1. Meanwhile Fitch reported that long-term arrears in the sector increased by nearly 30% during the first quarter to 21.17%, with repossessions reaching 3.71%. Five transactions rated by Fitch have exhausted their reserve funds.
  • The UK government launched its long awaited guarantee scheme for mortgage backed securities in the budget report on Wednesday. But while the £50bn plan was widely welcomed by participants in the mortgage market, its unexpected structure caused surprise and confusion and raised questions over how widely it will be used.
  • FIG
    The Moody’s downgrades this week of a number of UK building societies and some banks will have only a limited impact on RMBS.
  • UK non-conforming RMBS took another battering from the rating agencies this week and distressed mortgage investor Mars Capital warned that losses on 2007 deals would reach single-A tranche.
  • Holders of bonds guaranteed by MBIA have filed a class action lawsuit against the monoline insurer because of its business restructuring, requesting a trial by jury.
  • A survey of European financial institutions’ RMBS performance assumptions by Standard & Poor’s Valuation Services has thrown up some surprising results.