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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).


  • Market moves - 21 September

    All the latest company developments and new hires in the structured finance sector

    Acquisitions HPS Investment Partners has acquired Tålamod Asset Management. HPS will ret...

    Market moves    21 September 2018
  • Aussie slow-down

    Australian RMBS primary market update

    Activity in the Australian RMBS primary market is slowing down due to overcrowding. Four Australian...

    Market Reports    19 September 2018
  • Irish RMBS focus

    European ABS market update

    A rare Irish non-conforming RMBS has caught the attention of European ABS market participants, follo...

    Market Reports    18 September 2018
  • SCI Start the week - 17 September

    A look at the major activity in structured finance over the past seven days

    Pipeline ABS is still dominating the pipeline, with several deals coming from the auto space. Th...

    News    17 September 2018
  • Market moves - 14 September

    New hires and company developments in the structured finance sector

    CDS ETF Launched Tabula has launched a European CDS ETF which offers passive exposure to European...

    Market moves    14 September 2018
  • Euro ABS activity surges

    Investors finding value across asset classes

    The ABS secondary market has been very BWIC driven with large volumes coming through. A Greek RMBS i...

    Market Reports    14 September 2018
  • Euro RMBS picks up

    Markets moving again after summer lull

    In the first week of September the market seems to be coming back to life after the lull of August a...

    Market Reports    10 September 2018
  • Market moves - 7 September

    New hires and company developments in the structured finance industry

    CRT expert wanted Banca IMI is hiring a senior risk transfer solutions structure for its Milan off...

    Market moves    7 September 2018
  • Increased obligations weighed

    ESMA outlines expanded reporting requirements

    ESMA last month published final draft technical standards on the new reporting requirements to be im...

    News Analysis    6 September 2018
  • SCI Start the Week - 3 September

    A look at the major activity in structured finance over the past seven days

    Pipeline A small handful of deals remained in the pipeline ahead of the Labor Day holiday in the US...

    News    3 September 2018
  • Market moves - 24 August

    The week's structured finance hires and company developments, all in one place.

    Consent solicitation NN Bank has issued a consent solicitation seeking investor approval for th...

    Market moves    24 August 2018
  • Firms favour floating rate

    Investors find value in range of SF asset classes

    US investors are seeing relative value in a number of pre- and post-crisis securitised asset classes...

    News Analysis    22 August 2018
  • SCI Start the Week - 20 August

    A look at the major activity in structured finance over the past seven days

    Pipeline The pipeline was quite sparse by the end of last week. A handful of ABS were still marketi...

    News    20 August 2018
  • Market moves - 17 August

    Company developments and new hires in the structured finance sector

    Acquisitions Vistra has completed the acquisition of the corporate services business of Deutsche B...

    Market moves    17 August 2018
  • SCI Start the Week - 13 August

    A look at the major activity in structured finance over the past seven days

    Pipeline The pipeline remained subdued last week, albeit a good mix of asset classes were represent...

    News    13 August 2018
  • Market moves - 10 August

    Company developments and new hires in the structured finance sector

    CDOs transferred Dock Street Capital Management has replaced Deerfield Capital Management as collat...

    News    10 August 2018
  • Project Glas completed

    PTSB disposal raises prospects for private dwelling house transactions

    Permanent TSB has completed the sale of Project Glas - a €2.1bn (GBV) portfolio of Irish bu...

    News    7 August 2018
  • SCI Start the Week - 6 August

    A look at the major activity in structured finance over the past seven days

    Pipeline The pipeline was once again dominated by ABS deals last week. A handful of CMBS and RMBS w...

    News    6 August 2018
  • Market moves - 3 August

    Company developments and new hires in the structured finance sector

    Acquisitions Savills Investment Management is set to acquire a 25% interest in DRC Capital. In ad...

    News    3 August 2018
  • SCI Start the Week - 30 July

    A look at the major activity in structured finance over the past seven days

    A fairly broad range of transactions are in the pipeline although new issuance is leaning towards th...

    News    30 July 2018
  • Testing time

    European ABS succumbs to widening pressures

    Poor new issue execution has seen the European securitisation market finally succumb to widening pre...

    News Analysis    24 July 2018