Re-REMIC epidemic

Re-REMIC epidemic


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Issuance set to move into new asset classes as economic concerns mount

An uptick in interest in the re-REMIC space has resulted in a three-fold increase in the number of such RMBS-backed deals coming to the market year-on-year. But the technique is also expected to be adopted by the structured credit sector over the next few months.

While investors with exposure to US RMBS have been looking to free themselves of housing market-related risk and rating volatility, investment banks have been picking up assets that face downgrade at a knocked-down price and transferring them into re-REMICs that can then be sold on at a profit.

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