International Financing Review April 4 2020 51STRUCTURED FINANCEThis gap that mortgage servicers face
could be staggering, with particular strain
on non-bank operators which have less
capital cushions than banks.
)FûABOUTûAûQUARTERûOFûALLû53ûBORROWERSû
reduce or stop making their mortgage
payments for six months, mortgage
servicers are on the hook to come up
WITHûATûLEASTû53BNûTOûPAYû
bondholders.
4HATûTOTALûCOULDûRISEûTOûOVERû53BN û
according to the Mortgage Bankers
Association, an industry trade group.
Earlier this month, the government
granted forbearance on the trillions of
mortgages it backs and those guaranteed
by FANNIE MAE and FREDDIE MAC.
“We have heard from our issuer and
servicing partners that borrower
forbearance arrangements that are
nationwide in scope could place an
enormous strain on issuers,” Ginnie Mae
PRINCIPALûEXECUTIVEûVICE
PRESIDENTû3ETHû
Appleton said in a post on the agency’s
website on March 27.
“Please know that we are taking action
to address these concerns and potential
liquidity challenges faced by Ginnie Mae
issuers,” he wrote.
Within the next two weeks, Ginnie Mae is
expected to introduce a “Pass-Through
!SSISTANCEû0ROGRAMvûWHICHû'INNIEû-AEû-"3û
issuers with collection shortfalls can borrow
from, Appleton said.
This PTAP facility is expected to go into
EFFECTûlRSTûFORûLOANSûONûSINGLE
FAMILYû-"3û
backed by Ginnie Mae, with terms for
reverse mortgages and multifamily
securities to follow “shortly thereafter,” he
added.
'INNIEû-AEûISûPARTûOFûTHEû53û$EPARTMENTû
of Housing and Urban Department and
backs its securities with the full faith and
CREDITûOFûTHEû53ûGOVERNMENTû
The mortgage industry welcomed Ginnie
Mae’s move for mortgage servicers.“MBA commends Ginnie Mae for its
intention to create this programme, which
will allow many servicers to better help
consumers affected by the coronavirus via
mortgage payment forbearance,” MBA said
in a statement.
Ginnie Mae’s planned programme,
however, may not be enough for mortgage
companies which also securitise their
loans through Fannie Mae and Freddie
Mac.
'INNIEû-AEû-"3ûOUTSTANDINGûTOTALLEDû
53TRNûATûTHEûENDûOFû&EBRUARY û
COMPAREDûTOûTHEû53TRNûINû&ANNIEû-AEû
-"3ûANDû53TRNûINû&REDDIEû-ACû-"3
There is no immediate plan that Fannie
and Freddie will launch their own lending
programmes for mortgage servicing like
Ginnie Mae.
Fitch on March 27 downgraded its
outlook on mortgage servicers to Negative
on expected stresses on this sector from
forbearance reassures.
“The fallout from the pandemic is likely
to elevate loan delinquencies, increase
advancing requirements of delinquent
INTERESTûANDûDRIVEûSTAFlNGûCOSTSûHIGHER vû
the ratings agency said in a statement.MORE US MORTGAGE FUNDS SLASH
DIVIDENDS TO SAVE CASH-OREû53ûMORTGAGEûREALûESTATEûINVESTMENTû
trusts have reduced their dividends near to
zero or eliminated them in an effort to
preserve cash amid a coronavirus pandemic
that has roiled the mortgage credit market.
TREMONT MORTGAGE TRUST and NEW RESIDENTIAL
INVESTMENT last Tuesday became the latest
MORTGAGEû2%)4SûTOûIMPLEMENTûCASH
SAVINGû
moves to ensure liquidity in a sector hurt by
margin calls as the value of some mortgage
loans and securities sank. They came on the
heels of AG MORTGAGE INVESTMENT TRUST and
WESTERN ASSET MORTGAGE CAPITAL, which
eliminated their dividend on March 27.
!NOTHERûMORTGAGEû2%)4ûTWO HARBORS
INVESTMENT CORP suspended its dividends two
weeks earlier and shed most of its non-
agency mortgage-backed securities.
“Because of the current challenging
market conditions, we think it is prudent for
[Tremont] to take steps to preserve capital
and engage in regular dialogue with our
borrowers and our lender,” Tremont
0RESIDENTûANDû#HIEFû%XECUTIVEû/FlCERû$AVIDû
M Blackman said in a statement.ALL EUROPEAN ISSUERS
BOOKRUNNERS: 1/1/2020–31/3/2020
Managing No of Total Share
bank or group issues US$(m) (%)Includes securitisations, credit-linked notes (Euro, foreign, global and
domestics) and excludes CDOs.
Source: Refinitiv SDC code: B16n1 BofA Securities 8 2,360.10 13.3
2 Citigroup 8 2,268.68 12.7
3 Lloyds Bank 9 2,050.56 11.5
4 BNP Paribas 5 1,763.92 9.9
5 JP Morgan 5 1,756.37 9.9
6 Credit Agricole 2 1,514.09 8.5
7 Morgan Stanley 3 850.78 4.8
8 Barclays 5 790.89 4.4
9 Commerzbank 1 576.20 3.2
10 ING 1 576.20 3.2
Total 30 17,808.57GLOBAL STRUCTURED FINANCE IN EUROS
BOOKRUNNERS: 1/1/2020–31/3/2020
Managing No of Total Share
bank or group issues €(m) (%)Includes securitisations, credit-linked notes (Euro, foreign, global and
domestics) and excludes CDOs.
Source: Refinitiv SDC code: B16g1 Credit Agricole 2 1,352.56 18.3
2 BofA Securities 2 942.53 12.8
3 Goldman Sachs 2 791.39 10.7
4 JP Morgan 2 574.63 7.8
5 Morgan Stanley 2 547.58 7.4
6 Commerzbank 1 521.35 7.1
7 ING 1 521.35 7.1
8 Coop Rabobank 1 500.00 6.8
9 BNP Paribas 1 327.17 4.4
10 UniCredit 1 321.93 4.4
Total 13 7,392.41ALL INTL ISSUERS (EXCLUDING SELF-FUNDED)
BOOKRUNNERS: 1/1/2020–31/3/2020
Managing No of Total Share
bank or group issues US$(m) (%)Includes securitisations, PFI bonds and credit-linked notes. Excludes US
global ABS/MBS, CDOs and self funded issues.
Source: Refinitiv SDC code: J10d1 Goldman Sachs 25 5,912.70 9.2
2 JP Morgan 28 5,803.18 9.1
3 Citigroup 25 5,416.63 8.5
4 Wells Fargo 20 4,887.03 7.6
5 BofA Securities 23 4,637.85 7.2
6 Barclays 26 4,573.60 7.1
7 Credit Suisse 23 4,471.22 7.0
8 Morgan Stanley 15 3,397.01 5.3
9 Deutsche Bank 21 3,174.66 5.0
10 Nomura 18 2,933.04 4.6
Total 126 64,092.09GLOBAL SECURITISATIONS IN STERLING
BOOKRUNNERS: 1/1/2020–31/3/2020
Managing No of Total Share
bank or group issues £(m) (%)Including Euro, foreign, global and domestics, excluding CDOs.
Source: Refinitiv SDC code: B16i1 Citigroup 7 1,656.24 22.2
2 Lloyds Bank 9 1,576.08 21.1
3 BNP Paribas 4 1,049.43 14.0
4 BofA Securities 6 970.48 13.0
5 JP Morgan 3 883.95 11.8
6 Barclays 2 325.00 4.3
7 NAB 2 305.23 4.1
8 Goldman Sachs 1 242.30 3.2
9 Morgan Stanley 1 183.19 2.5
10 Wells Fargo 1 183.19 2.5
Total 16 7,475.08SECURITISATIONS – ALL EUROPEAN RMBS
BOOKRUNNERS: 1/1/2020–31/3/2020
Managing No of Total Share
bank or group issues €(m) (%)Including Euro, foreign, global and domestics, excluding CDOs.
Source: Refinitiv SDC code: B10a1 Citigroup 7 1,805.32 16.7
2 JP Morgan 4 1,516.89 14.0
3 Credit Agricole 2 1,352.56 12.5
4 BNP Paribas 4 1,319.08 12.2
5 Lloyds Bank 6 1,301.83 12.0
6 BofA Securities 5 1,027.14 9.5
7 Barclays 4 639.43 5.9
8 Coop Rabobank 1 500.00 4.6
9 Morgan Stanley 2 480.40 4.4
10 NAB 2 359.30 3.3
Total 17 10,813.956 IFR Bonds 2327 p 25 - 65 .indd 51 03 / 04 / 2020 20 : 29 : 01