RMBS

The Swiss banking giant is expected to set aside $850 million for litigation costs stemming from a long-running dispute with bond issuer over the sale of mortgage-backed securities.

Deals, trends and research in structured finance and asset-backed securities for the week of Dec. 18-23

The availability of financing hasn’t been an issue to date, but it still could be.

The nonbank lender is co-sponsoring a $258.4 million residential mortgage pool comprised entirely of wealthy borrowers with 15-year term contracts.

But existing deals are likely to experience issues resulting from higher defaults, faster prepayment speeds.

The single-family, duplex and multi-unit condo properties have an average age of 60 years, more than double the age of other rated SFR securitizations.

The transaction involving 345 high-balance mortgages is just the third sponsored by Morgan Stanley's mortgage acquisition and trading arm since the financial crisis more than a decade ago.

Even government-sponsored enterprise loans, which have seen forbearance rates drop for 24 weeks in a row, saw a slight uptick.

Citigroup's realty arm is sponsoring a $1.06 billion RMBS of highly seasoned mortgage loans with troubled histories. All of the loans were acquired via a Fannie whole-loan auction.

The insurance company has previously sponsored three securitizations of reperforming/nonperforming loans since 2017.