RMBS

There continued to be some mixed signals in CMBS and RMBS markets last week but these still netted out to cautiously optimistic views of the sectors in some respects.

As Spanish savings banks known as cajas merge and create new private banks, covered bonds that pooled together the assets of several cajas will disappear, according to a recent report by Moody’s Investors Service.

European structured finance products continue to absorb elevated credit risks very well from a performance standpoint, according to Unicredit analysts.

The Federal Housing Administration (FHA) increased the annual mortgage insurance by 25 basis points for new mortgage loans starting April 18.

Fitch Ratings said that, based on the Obama’s administration confirmation of ongoing support for the GSEs, the rating agency will likely maintain its long- and short-term issuer default ratings at ‘AAA'/'F1+’ and the long-term senior debt ratings at ‘AAA’ for both Fannie Mae and Freddie Mac.

Freddie Mac announced its first offering of structured passthrough certificates or K certificates backed only by multifamily mortgages with a seven-year term.

Kondaur Capital Corp., an active player in the nonperforming loan market, Monday slashed its staff by 39%, saying it is having a hard time finding enough available product to purchase.

After a strong 2010 in Colombian structured finance — issuance grew more than 50% from 2009 — Fitch Ratings sees reasons for a repeat performance in 2011. Placements hit $7.8 billion last year, from a variety of companies in the corporate and financial sectors. The country’s Fannie Mae-esque Titularizadora Colombiana accounted for 28% of all issuance in 2010, turning out three peso-denominated RMBS and three inflation-indexed RMBS. The withdrawal of a tax credit for RMBS buyers should cut into volumes this year, but other asset classes are primed to pick up the slack, the agency said. Titularizadora itself may be involved in some of these as the agency has set up an offshoot to securitize non-housing ABS, such as auto loans, and expects to start issuing this year. Government-backed deals to fund infrastructure are also on the horizon, Fitch said.

In Brazil, talk of a more substantial RMBS market might be a step closer to reality, as banks will be able to use a portion of their securitized portfolios to meet a regulatory requirement that has been an impediment to RMBS issuance in the country, said Fitch Ratings in a report today. Under the rule, banks must keep 65% of savings deposits in real estate-related financings. With the change, “Fitch expects some large retail banks to debut new RMBS securitization platforms in 2011.”

The Securities and Exchange Commission (SEC) late Friday charged three former senior executives of IndyMac Bancorp with securities fraud for misleading investors about the Alt-A giant's deteriorating financial condition.