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


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    Australia FIIG Securities has hired Anne-Marie Hunter-Brown to the role of markets business manage...

    Market moves    27 April 2018
  • Performance sparks RPL upgrades

    Many post-crisis RMBS reperforming (RPL) loan transactions have performed better than expected, lead...

    News    27 April 2018
  • ECB encourages action on NPLs

    Gifford West, md, international operations and business development at DebtX, examines the ECB's cal...

    At a recent NPL industry event, a banker credited with completing some of the largest European NPL s...

    Talking Point    26 April 2018
  • CRT issuance boost expected

    Total capital relief trade issuance this year should exceed 2017, believes alternative asset manager...

    News Analysis    25 April 2018
  • SCI Start the Week - 23 April

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

    Pipeline Auto ABS dominated the pipeline once again last week. A handful of other ABS, as well as C...

    News    23 April 2018
  • Market moves - 20 April

    Acquisitions BlackRock has acquired Tennenbaum Capital Partners (TCP), complementing its global cr...

    Market moves    20 April 2018
  • SCI Start the Week - 16 April

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

    Pipeline The newly-announced transactions remaining in the pipeline at the end of last week compris...

    News    16 April 2018
  • Market moves - 13 April

    Aircraft ABS on watch KBRA has placed the class A, B and C notes of the US$411m Prop 2017-1 ABS o...

    Market moves    13 April 2018
  • Mortgage 'institutionalisation' gains traction

    The Dutch mortgage market continues to receive high levels of interest from investors, but RMBS face...

    News Analysis    10 April 2018
  • SCI Start the Week - 9 April

    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 domin...

    News    9 April 2018
  • Market moves - 6 April

    Europe CSC has hired Robert Berry as chairman of its capital markets group in London and Debra Par...

    Market moves    6 April 2018
  • Market moves - 29 March

    Europe Man Group has hired Simon Finch as cio of credit at Man GLG, its discretionary investment m...

    Market moves    29 March 2018
  • Euro ABS/MBS busy

    European ABS/MBS secondary market activity has picked up this week. “It’s been...

    SCIWire    29 March 2018
  • LoanDepot RMBS debuts

    The first RMBS entirely backed by loans underwritten by marketplace lender loanDepot.com has hit the...

    News    28 March 2018
  • Market moves - 23 March

    CDS clearing developments Intercontinental Exchange has transitioned index CDS open interest from...

    News    23 March 2018
  • SCI Start the Week - 19 March

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

    Pipeline There was a somewhat more measured pace of pipeline additions last week. The final count...

    News    19 March 2018
  • Market moves - 16 March

    EMEA Citigroup has appointed Laura Coady to the newly created position of head of EMEA, structured...

    Market moves    16 March 2018
  • Issuers urge goodwill on STS

    European securitisation issuers are modelling new transactions and updating legacy deals, across a r...

    News Analysis    15 March 2018
  • Split-mortgage RMBS eyed

    Securitisations of split mortgages could emerge in Ireland, according to DBRS, given improving funda...

    News    14 March 2018
  • Mortgage ILS prepped

    Essent Guaranty is marketing a mortgage insurance securitisation, only the second such transaction t...

    News    12 March 2018
  • Servicing liquidity risk highlighted

    The spring 2018 edition of the Brookings Papers on Economic Activity includes a report exploring how...

    News    12 March 2018