Structured Credit Investor SCI’s 5th Annual Capital Relief Trades Seminar 17 October 2019, London
LOGIN
 

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 - 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
  • SCI Start the Week - 23 July

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

    Pipeline The pipeline returned to full flow last week. Unusually, CMBS accounted for the majority o...

    News    23 July 2018
  • SCI Start the Week - 16 July

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

    Pipeline Marketing of new securitisations continued to gain momentum last week, following the Indep...

    News    16 July 2018
  • Market moves - 13 July

    A weekly breakdown of recent hires and company developments in the structured finance industry.

    Acquisitions and investments Alantra has acquired KPMG UK’s portfolio solutions group bu...

    Market moves    13 July 2018
  • Lender looks to bolster defences

    Private transactions may 'resemble securitisations'

    With a change in the credit cycle anticipated, some UK real estate lenders are adopting a more cauti...

    Provider Profile    12 July 2018
  • SCI Start the Week - 9 July

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

    Pipeline With 4 July having a typically big impact on the issuance calendar, the pipeline was ligh...

    News    9 July 2018
  • SCI Start the Week - 2 July

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

    Pipeline The pipeline has been dominated by UK transactions ahead of the Independence Day holiday....

    News    2 July 2018
  • Green ABS branches out

    Commercial PACE and renewables gain traction as green ABS expands

    PACE is catching on in both the US and Europe. An April whitepaper from the New York State Energy Re...

    News Analysis    29 June 2018
  • Market moves - 29 June

    CLO manager acquired THL Credit Advisors has acquired the collateral management business of Kramer...

    Market moves    29 June 2018
  • SCI Start the Week - 25 June

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

    Pipeline The securitisations remaining in the pipeline at the end of last week were fairly evenly s...

    News    25 June 2018
  • Fastnet refi completed

    Permanent TSB has completed a €1.44bn RMBS, dubbed Fastnet Securities 14. The collateral pr...

    News    25 June 2018
  • Market moves - 22 June

    Europe Axa Investment Managers has hired Hans Stoter to global head of fixed income and interim he...

    Market moves    22 June 2018
  • Questions remain over insurer participation

    The European Commission recently published the Delegated Act on Solvency 2, which improves the capit...

    News Analysis    21 June 2018
  • PE players driving growth

    Australian ABS and RMBS issuance saw record volumes of over A$8bn and A$37bn respectively in 2017, a...

    Talking Point    19 June 2018
  • SCI Start the Week - 18 June

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

    Pipeline A mixed bag of securitisations remained in the pipeline at the end of last week. ABS once...

    News    18 June 2018
  • Market moves - 15 June

    CLO name change The name of Babson Euro CLO 2014-1 has been changed to Barings Euro CLO 2014-1. Th...

    Market moves    15 June 2018