MBS

ARMOUR Residential REIT, Inc. Names Sergey Losyev and Desmond Macauley as Co-Chief Investment Officers

Retrieved on: 
Monday, March 18, 2024
NatWest Markets, CIO, Risk management, ARR, University, Cornell University, Merrill (company), DWS Group, MBA, MBS, CFA, Agency, Strategy

VERO BEACH, Florida, March 18, 2024 (GLOBE NEWSWIRE) -- ARMOUR Residential REIT, Inc. (NYSE: ARR and ARR PRC) (“ARMOUR” or the “Company”) today announced the promotions of Sergey Losyev and Desmond Macauley to Co-Chief Investment Officers (CIO), effective March 18, 2024.

Key Points: 
  • VERO BEACH, Florida, March 18, 2024 (GLOBE NEWSWIRE) -- ARMOUR Residential REIT, Inc. (NYSE: ARR and ARR PRC) (“ARMOUR” or the “Company”) today announced the promotions of Sergey Losyev and Desmond Macauley to Co-Chief Investment Officers (CIO), effective March 18, 2024.
  • Mr. Losyev and Mr. Macauley succeed Mark Gruber, who stepped down.
  • Mr. Losyev joined ARMOUR in 2016 and has served as Deputy Chief Investment Officer since January 2020.
  • Mr. Macauley has served as the Director of Investment Strategies at ARMOUR since May 2013.

ARMOUR Residential REIT, Inc. Announces Retirement of Founder and Co-CEO Jeffrey J. Zimmer

Retrieved on: 
Friday, March 15, 2024
Culture, ARR, Growth, MBS, Management

Mr. Zimmer has agreed to serve as an ex-officio, non-voting special advisor to the Board of Directors of the Company.

Key Points: 
  • Mr. Zimmer has agreed to serve as an ex-officio, non-voting special advisor to the Board of Directors of the Company.
  • Jeff is a dear friend and has played a critical role in the development and success of ARMOUR.
  • "Building ARMOUR alongside Scott has been the highlight of my career,” Mr. Zimmer said.
  • “I especially want to thank our employees for helping elevate and shape ARMOUR and our culture from the beginning.

Verus Mortgage Capital was the Largest Non-Agency RMBS Issuer in 2023

Retrieved on: 
Friday, March 15, 2024
Other Professional Services, Professional Services, Finance, Invictus, JPMorgan Chase, MBS, VMC, Chase

Verus Mortgage Capital (VMC), a correspondent investor specializing in residential non-QM and investor rental programs, was the top issuer of non-agency mortgage-backed securities last year.

Key Points: 
  • Verus Mortgage Capital (VMC), a correspondent investor specializing in residential non-QM and investor rental programs, was the top issuer of non-agency mortgage-backed securities last year.
  • In 2023, the non-QM sector was the largest subsector of the non-agency space representing roughly 40% of total issuance.
  • A recent ranking by Inside Nonconforming Markets listed Invictus Capital Partners, Verus’ parent company which focuses on expanded-credit MBS, as the top issuer of non-agency mortgage-backed securities last year.
  • Since it was founded, Verus has financed approximately $28 billion through 54 rated securitization transactions, establishing itself as the predominant non-QM issuer since 2017.

Dynex Capital, Inc. Announces the Appointments of Andrew Gray and Alexander Crawford to Its Board of Directors

Retrieved on: 
Tuesday, March 12, 2024
Professional Services, Finance, Mechanical, Government, Organization, Risk management, DX, Goldman Sachs, Risk, University, Trustee, Merrill (company), Research, Artificial intelligence, Best Buy, Capital, AI, DTCC, Booz Allen Hamilton, Audit committee, Morgan Stanley, REIT, MBS, Publication, Partnership, Harvard University, Partner, Alec, Compensated emancipation, Data management, Clearing Corporation

Dynex Capital, Inc. (NYSE: DX) (the “Company”) announced today that its Board of Directors (the “Board”) has appointed Andrew Gray and Alexander Crawford as independent directors, effective March 6, 2024.

Key Points: 
  • Dynex Capital, Inc. (NYSE: DX) (the “Company”) announced today that its Board of Directors (the “Board”) has appointed Andrew Gray and Alexander Crawford as independent directors, effective March 6, 2024.
  • The Board also announced the resignation of Board members Michael Hughes, who served on the Board since 2010, and Robert Salcetti, who served on the Board since 2013, effective March 11, 2024.
  • Following the appointment of Mr. Gray and Mr. Crawford, the Board will comprise six directors, four of whom are independent.
  • Previously, Mr. Gray spent over a decade at Merrill Lynch in global roles across business management, strategy, finance and technology.

Fannie Mae Receives 2024 ENERGY STAR Partner of the Year Award for Sustained Excellence

Retrieved on: 
Tuesday, March 26, 2024
Certification, Green, Capital market, MBS, Housing, EPA, Water, OTCQB, Fannie Mae, Renewable energy

WASHINGTON, March 26, 2024 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) today announced it has received the 2024 ENERGY STAR Partner of the Year – Sustained Excellence Award from the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Energy. This is the 10th consecutive year for Fannie Mae's Multifamily business and the fourth consecutive year for the company's Single-Family business for outstanding contributions to increasing adoption of energy-efficiency improvements in housing.

Key Points: 
  • WASHINGTON, March 26, 2024 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) today announced it has received the 2024 ENERGY STAR Partner of the Year – Sustained Excellence Award from the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Energy.
  • Fannie Mae, an ENERGY STAR partner since 2011, is committed to creating positive environmental, social, and economic outcomes through mortgage finance.
  • "Fannie Mae is proud to support ENERGY STAR's efforts to reduce the environmental impact of multifamily housing," said Karyn Sper, Senior Director, Multifamily Green and Duty to Serve, Fannie Mae.
  • "We continue to increase partnerships with lenders, builders, and energy raters to help encourage more ENERGY STAR certified homes."

The National Eczema Association Approved for $250,000 Engagement Award from PCORI

Retrieved on: 
Monday, March 18, 2024
CER, Communication, Eugene Washington, Patient, Research, Quality of life, Nature, Dermatitis, MBS, Investment, MPH, Way, NEA, FDA, Nursing

NOVATO, Calif., March 18, 2024 /PRNewswire/ -- The National Eczema Association (NEA) has been approved for a $250,000 funding award through the Eugene Washington PCORI Engagement Award Program, an initiative of the Patient-Centered Outcomes Research Institute (PCORI). The award will support a project titled "Paving the Way towards Meaningful Partnerships: Fostering Regional PCOR to Enhance Eczema Outcomes." The award period spans two years, from February 1, 2024 through Jan 31, 2026.

Key Points: 
  • NOVATO, Calif., March 18, 2024 /PRNewswire/ -- The National Eczema Association (NEA) has been approved for a $250,000 funding award through the Eugene Washington PCORI Engagement Award Program, an initiative of the Patient-Centered Outcomes Research Institute (PCORI).
  • The award will support a project titled "Paving the Way towards Meaningful Partnerships: Fostering Regional PCOR to Enhance Eczema Outcomes."
  • The PCORI Engagement Award will be directed by co-project leads Wendy Smith Begolka, MBS, chief strategy officer at NEA and Jessica K. Johnson, MPH, director of community engagement at NEA.
  • For more information on the PCORI Engagement Award and NEA's funded project, visit here .

The impact of regulatory changes on rating behaviour

Retrieved on: 
Tuesday, April 2, 2024
Długosz, Disagreement, Pi bond, Direct lending, Key, Research Papers in Economics, Finance Secretary (India), University of Oxford, STS, Journal of Economic Perspectives, International, American Economic Review, Life, Columbia Business School, British Academy of Management, Risk assessment, ABS, Rating, EBA, Development, Reputational damage, OBS, CRA, Bond credit rating, Cras, Journal of Monetary Economics, CDO, Becker, Paper, 2007–2008 financial crisis, Raja, University, Environment, Journal of Financial Economics, Perception, H3, Website, Securitization, Working paper, Market, Collection, Total, European Banking Authority, Quarterly Journal of Economics, BBB, Whetten, Column, ESMA, European Journal, Issuer, Asset quality, Information revolution, Federal Reserve Bank, OLS, Statistics, PDF, Private, ECB, Surety, Weighted-average life, CCC, European Commission, Social science, Journal of Financial Stability, JEL, Real, Bias, Journal, Research, Classification, Certification, Commission, Credit, The Journal of Finance, Literature, Karel Škréta, European Central Bank, AA, Finance Research Letters, Origination (telephony), Monetary economics, Section 5, Xia, Kraft Foods, Government, AAA, Mukherjee, Finance, Deku, DOI, White, Risk, IOSCO, MBS, OECD, Wang, Section 4, University Challenge 2013–14, Section 3, Ashcraft, Financial management, Accounting, Financial economics, Fannie Mae, Conference, Pressure, Central bank, Griffin, University of Michigan, Systematic review, EPRS, Freddie Mac, Loan, BCBS, Palgrave Macmillan, R2, Microeconomics, Quarterly Journal, Financial statement analysis, The Japanese Economic Review, Christian Social Union (UK), Green, University of Huddersfield, PSM, Management, Security (finance), Security, Civil service commission, Private placement, American Economic Journal, GFC, Reproduction, IMF, Small business, Trustee, Data

Abstract

Key Points: 
    • Abstract
      We examine rating behaviour after the introduction of new regulations regarding Credit Rating
      Agencies (CRAs) in the European securitisation market.
    • There is empirical evidence of rating catering in the securitisation market in the pre-GFC period (He et al.,
      2012; Efing and Hau, 2015).
    • Competition among
      CRAs could diminish ratings quality (Golan, Parlour, and Rajan, 2011) and promotes rating shopping by
      issuers resulting in rating inflation (Bolton et al., 2012).
    • This paper investigates the impact of the post-GFC regulatory changes in the European
      securitisation market.
    • In 2011, in addition to the creation of
      European Securities and Markets Authority (ESMA), a regulatory and supervisory body for CRAs was
      introduced.
    • We examine how rating behaviours have changed in the European securitisation market after the
      introduction of these new regulations.
    • We utilise the existence of multiple ratings and rating agreements between
      CRAs to identify the existence of rating shopping and rating catering, respectively (Griffin et al., 2013; He
      et al., 2012; 2016).
    • We find that the regulatory changes have been effective in tackling conflicts of interest between issuers
      and CRAs in the structured finance market.
    • Rating catering, which is a direct consequence of issuer and
      CRA collusion, seems to have disappeared after the introduction of these regulations.
    • There is empirical evidence of rating catering in the securitisation market in
      the pre-GFC period (He et al., 2012; Efing and Hau, 2015).
    • Competition among CRAs could diminish ratings quality (Golan, Parlour,
      and Rajan, 2011) and promotes rating shopping by issuers resulting in rating inflation (Bolton et
      al., 2012).
    • This paper investigates the impact of the post-GFC regulatory changes in the European
      securitisation market.
    • In 2011, in addition
      to the creation of European Securities and Markets Authority (ESMA), a regulatory and
      supervisory body for CRAs was introduced.
    • We find that the regulatory changes have been effective in tackling conflicts of interest
      between issuers and CRAs in the structured finance market.
    • Rating catering, which is a direct
      consequence of issuer and CRA collusion, seems to have disappeared after the introduction of
      these regulations.
    • Investors who previously demanded higher spreads for rating agreements for a
      multiple rated tranche, did not consider the effect of rating harmony as a risk in the post-GFC
      period.
    • Regarding rating shopping, we find that the effectiveness of the changes has been limited,
      potentially for two reasons.
    • Additionally, we also find that rating over-reliance might still be an issue, especially
      Rating catering is a broad term and it can involve rating shopping.
    • They re-examine the rating shopping and rating
      catering phenomena in the US market by looking at the post-crisis period between 2009 and 2013.
    • Using 622 CDO tranches, they also observe the existence of rating shopping and the diminishing
      of the rating catering.
    • Firstly, our main focus is the EU?s CRA Regulation and its effectiveness in reducing
      rating inflation and rating over-reliance.
    • To the best of our knowledge, this paper is the first to
      examine the effectiveness of the EU?s CRA regulatory changes on the investors? perception of
      rating inflation in the European ABS market.
    • Hence, the coverage and quality of our dataset constitutes significant addition
      to the literature and allows us to test the rating shopping and rating catering more authoritatively.
    • The following section reviews the literature
      on securitisation concerning CRAs and conflicts of interest, and outlines the regulatory changes
      introduced in the post-GFC period.
    • Firstly, ratings became ever more important as the Securities and
      Exchange Commission (SEC) 5 began heavily relying on CRA assessments for regulatory purposes
      (i.e.
    • the investment mandates that highlight rating agencies as the main benchmark for investment
      eligibility) (SEC, 2008; Kisgen and Strahan, 2010; Bolton et al., 2012).
    • issuers) as one of the main explanations for the rating inflation (He et al., 2011; 2012; Bolton
      et al., 2012; Efing and Hau, 2015).
    • Bolton et al., (2012) demonstrate that competition
      promotes rating shopping by issuers, leading to rating inflation.
    • The last phase, CRA III, was implemented in mid-2013 and involves an additional
      set of measures on reducing transparency and rating over-reliance.
    • As mentioned above, rating inflation can be caused by rating shopping
      In order to be eligible to use the STS classification, main parties (i.e.
    • The higher the difference in the number of ratings for a
      given ABS tranche, the greater the risk of rating shopping.
    • Alternatively, the impact of the new
      regulations could be limited when it comes to reducing rating shopping.
    • This is because, firstly,
      the conflict of interest between securitisation parties is not necessarily the sole cause for the
      occurrence of rating shopping.
    • L is a set of variables (Multiple ratings, CRA reported, Rating agreement) that
      we utilise interchangeably to capture the rating shopping and rating catering behaviour.
    • Hence, issuers are incentivised to report the highest possible rating and
      ensure each additional rating matches the desired level.
    • All in all, our results suggest that
      the new stricter regulatory measures have been effective in tackling conflicts of interest and
      reducing rating inflation caused by rating catering.
    • Self-selection might be a concern in analysing the impact of the
      new measures and investors? response with regard to the rating inflation.
    • This
      result is in line with the earlier findings suggesting that regulatory changes have reduced investors?
      suspicion of rating inflation and increased trust of CRAs.
    • Conclusion
      Several regulatory changes were introduced in Europe following the GFC aimed at tackling
      conflicts of interest between issuers and CRAs in the ABS market.
    • Utilising a sample of 12,469
      ABS issued between 1998 and 2018 in the European market, this paper examined whether these
      changes have had any impact on rating inflations caused by rating shopping and rating catering
      phenomena.
    • We find that the
      effectiveness of the changes has been more limited on rating shopping potentially for two reasons.
    • Tranche Credit Rating is the rating reported for a tranche at launch.

Freddie Mac Announces $120 Million Non-Performing Loan Sale

Retrieved on: 
Wednesday, March 6, 2024
Transfer, OTCQB, SLST, EXPO, Sale, MBS, FMCC, SPO, RPL, Organization, Freddie Mac, BofA Securities, Economics, Consumer, Minority, Housing, NPL, Auction

MCLEAN, Va., March 06, 2024 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) announced today it will offer approximately $120 million in non-performing loans (NPL) for sale via auction.

Key Points: 
  • MCLEAN, Va., March 06, 2024 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) announced today it will offer approximately $120 million in non-performing loans (NPL) for sale via auction.
  • Advisors to Freddie Mac on the transaction are BofA Securities, Inc. and First Financial Network, Inc., a woman-owned business.
  • Freddie Mac’s seasoned loan offerings focus on reducing less-liquid assets in the company’s mortgage-related investments portfolio in an economically sensible way.
  • Freddie Mac undertakes no obligation, and disclaims any duty, to update any of the information in those documents.

Ready Capital Corporation Reports Fourth Quarter 2023 Results

Retrieved on: 
Tuesday, February 27, 2024
Transfer, Acquisition, Total, ASC, Small business, Small Business Administration, REIT, Calendar, MBS, GAAP, LMM, RC, Microsoft, Bank

NEW YORK, Feb. 27, 2024 (GLOBE NEWSWIRE) -- Ready Capital Corporation (“Ready Capital” or the “Company”) (NYSE: RC), a multi-strategy real estate finance company that originates, acquires, finances, and services lower-to-middle-market (“LMM”) investor and owner occupied commercial real estate loans, today reported financial results for the quarter ended December 31, 2023.

Key Points: 
  • NEW YORK, Feb. 27, 2024 (GLOBE NEWSWIRE) -- Ready Capital Corporation (“Ready Capital” or the “Company”) (NYSE: RC), a multi-strategy real estate finance company that originates, acquires, finances, and services lower-to-middle-market (“LMM”) investor and owner occupied commercial real estate loans, today reported financial results for the quarter ended December 31, 2023.
  • “We continue to make progress on our business strategy of repositioning the capital acquired in our merger with Broadmark Realty Capital into our core lending strategies despite current challenges in the commercial real estate sector,” said Thomas Capasse, Ready Capital’s Chairman and Chief Executive Officer.
  • Certain MBS positions are considered to be non-distributable due to a variety of reasons which may include collateral type, duration, and size.
  • Servicing rights relating to the Company’s small business commercial business are accounted for under ASC 860, Transfer and Servicing.

Ellington Residential Mortgage REIT Reports Fourth Quarter 2023 Results

Retrieved on: 
Wednesday, March 6, 2024
REIT, Finance, Professional Services, Commercial Building & Real Estate, Construction & Property, Investment, EARN, FDIC, MBS, CLO, Federal, Lisp (programming language), Treasury, RMBS, TBA, Security (finance)

Ellington Residential Mortgage REIT (NYSE: EARN) ("we", "us," or "our") today reported financial results for the quarter ended December 31, 2023.

Key Points: 
  • Ellington Residential Mortgage REIT (NYSE: EARN) ("we", "us," or "our") today reported financial results for the quarter ended December 31, 2023.
  • Book value of $7.32 per share as of December 31, 2023, which includes the effects of dividends of $0.24 per share for the quarter.
  • Net mortgage assets-to-equity ratio of 6.5:14 as of December 31, 2023.
  • The following table summarizes our portfolio of long investments(1) as of December 31, 2023 and September 30, 2023: