RMBS
Residential mortgage-backed securities, or RMBS, are bonds or notes created by securitisation that are backed by residential mortgages or residential real estate loans. RMBS originators are typically financial institutions that originate residential real estate or residential mortgage loans, including banks, building societies/savings & loans and mortgage finance companies. However, issuers could also include government-guaranteed securities issued following bank bailouts, such as TARP or TALF, and the Government Sponsored Enterprises Fannie Mae and Freddie Mac. To create residential mortgage-backed securities, or RMBS, institutions sell pools of their loans to a special-purpose vehicle, or SPV, which then sells the loans to a trust. The trust then repackages the loans as interest-bearing securities and issues them. This true sale of the loans to the SPV ensures that the RMBS is treated as bankruptcy-remote from the originator. Many different types of assets back RMBS, including prime, non-conforming, sub-prime, Alt-A (or Alternative-A), buy-to-let and single-family rental (SFR) mortgages. The financial crisis caused residential mortgage valuations to plummet, leading to severe losses/defaults in many RMBS transactions (and ABS CDOs), as well as efforts to begin modifying loan documentation and indeed the creation of many credit/dislocation/distressed opportunity/recovery funds to take advantage of opportunities in the RMBS sector. Post-crisis, the Government Sponsored Enterprises Fannie Mae and Freddie Mac have developed a credit risk transfer market, comprising synthetic RMBS structures (whereby the risk is transferred via CDS tranches).
-
SCI Start the Week - 14 October
A review of securitisation activity over the past seven days
SCI CRT Seminar The line-up for SCI's 5th Annual Capital Relief Trades Seminar on 17 October has be...
News 14 October 2019 -
Structured finance head appointed
Sector developments and company hires
EBA’s agenda released The EBA has published its 2020 agenda, detailing its work activiti...
Market moves 11 October 2019 -
Co-founder to depart
Company hires and sector developments
Co-founder moves on BlueMountain’s co-founder and co-president Stephen Siderow is set to...
Market moves 10 October 2019 -
Synthetic RMBS debut
Non-GSE CRT deal prepped
JPMorgan Chase Bank (JPMCB) is marketing what is believed to be the first rated synthetic mortgage r...
News 10 October 2019 -
Bank leaves CDS committee
Sector developments and company hires
Bank leaves CDS committee Societe Generale has decided to leave the Credit Determinations Committe...
Market moves 7 October 2019 -
SCI Start the Week – 7 October
A review of securitisation activity over the past seven days
Transaction of the week RMF is marketing its first private RMBS backed by jumbo proprietary reverse...
News 7 October 2019 -
Reverse mortgage RMBS prepped
First post-crisis deal backed by newly-originated reverse mortgage loans markets
RMF is marketing its first private RMBS backed by jumbo proprietary reverse mortgages loans and, acc...
News 4 October 2019 -
ILS acquisition announced
Company hires and sector developments
Acquisition announced Artex Risk Solutions has announced that it has reached agreement to acquire...
Market moves 3 October 2019 -
B-piece service bulks out
Sector developments and company hires
B-piece service bulks out Greystone, has added Paul Smyth, Cary Williams, and&am...
Market moves 30 September 2019 -
Development drive
Canadian private RMBS boost
Home Trust Company became the fourth issuer to tap the Canadian private RMBS market with its private...
News 30 September 2019 -
SCI Start the Week - 30 September
A review of securitisation activity over the past seven days
Transaction of the week FirstKey Mortgage is marketing the first securitisation backed by manufactu...
News 30 September 2019 -
US CLO firm leadership shake-up
Sector developments and company hires
CLO firm makes md appointment MidOcean Partners has hired Natalya Michaels as md, focusing on mark...
Market moves 25 September 2019 -
Ceo appointed
Sector developments and company hires
Ceo appointed CAC Specialty has appointed Michael Rice as ceo, bringing more than 25 years of expe...
Market moves 24 September 2019 -
First post-crisis MH deal prepped
Transaction largely backed by legacy securitisation loans
FirstKey Mortgage is marketing the first securitisation backed by manufactured homes (MH) since the...
News 24 September 2019 -
Master trust margins amended
Sector developments and company hires
Holmes Master Trust margins amended Moody’s comments that the proposed amendments to the...
Market moves 23 September 2019 -
SCI Start the Week - 23 September
A review of securitisation activity over the past seven days
Transaction of the week Deutsche Bank is marketing a £114m UK CMBS, dubbed Deco 2019-RAM....
News 23 September 2019 -
Law firm nabs SF vet
Sector developments and company hires
Law firm beefs up Orrick has hired structured finance lawyer Richard Hanson as a partner based in...
Market moves 20 September 2019 -
Credit-granting guidance outlined
"Bright-line" verification test still absent
The EBA recently published an answer to a question posed by AFME in relation to Article 9(3) of the...
News 19 September 2019 -
CMBS NOI slowing
Sector developments and company hires
Aircraft ratings review Moody’s has published a new overview which examines ABS issued i...
Market moves 19 September 2019 -
CLO downgrade announced
Sector developments and company hires
CDS hire announced Axiom Alternative Investments has appointed Bedis Gharbi as senior portfolio ma...
Market moves 16 September 2019 -
SCI Start the week - 16 September
A review of securitisation activity over the past seven days
Transaction of the week Alior Leasing has launched a 12 month revolving cash securitisation of aut...
News 16 September 2019