Favors new-issue floating-rate CMBS over seasoned deals due to the adverse selection phenomenon and concerns over the refinanceability of remaining loans that have exhausted their extension options, particularly if rates rise and real estate fundamentals soften further. Triple-A floaters offer attractive spread pickups to competing sectors. Views the fixed-rate CMBS credit curve (AAA/BBB) as not sufficiently rewarding investors for venturing out the curve into lower rated investment-grade credits. Those searching for yield should focus on certain CMBS IO sectors, for which the optionality is valued at worst-case scenarios. In particular, seasoned WAC IO with high levels of yield-maintenance represents an attractive yield play.
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The fixed-rate loans are divided into three sub-pools that relied on rating methods from the RMBS, CMBS and ABS sectors to assess their risks.
3h ago -
The House Financial Services Committee also sent to the full House two bipartisan bills, including one that would prevent large banks from opting out of having to recognize Accumulated Other Comprehensive Income in regulatory capital.
9h ago -
The portfolio does not have any meaningful originations that have completed a full repayment cycle, making the company's performance data thin.
10h ago -
Formerly of Wells Fargo, she will coordinate several key units to create a structure for a sustained capital markets program that capitalizes on recent innovation and growth in home equity finance.
April 17 -
The Structured Finance Association questions whether funding closed-end seconds is an appropriate role for the government-sponsored enterprise, while newer lenders welcome the liquidity support.
April 17 -
The CFPB has dissolved the Office of Supervision, Enforcement and Fair Lending and eliminated the job of associate director in a move that impacts how it designates nonbanks for supervision.
April 17