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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 - 1 June

    BTL RMBS planned UK Mortgages and TwentyFour Asset Management have acquired a high-quality pool o...

    Market moves    1 June 2018
  • Market moves - 25 May

    Analytics acquisition IHS Markit has signed a definitive agreement to acquire Ipreo for US$1.855bn...

    Market moves    25 May 2018
  • RMBS to follow Irish mortgage sale

    Barclays plans to securitise a €5bn legacy portfolio of Irish residential mortgages recentl...

    News Analysis    24 May 2018
  • Synthetic access welcomed

    The launch of the CRTx credit risk transfer index (SCI 11 May) has been welcomed by RMBS traders for...

    News Analysis    21 May 2018
  • SCI Start the Week - 21 May

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

    Pipeline The transactions remaining in the pipeline by the end of last week were spread fairly even...

    News    21 May 2018
  • Split-mortgage securitisation mulled

    Permanent TSB has pulled €900m of split mortgages from its Project Glas portfolio sale of a...

    News Analysis    18 May 2018
  • SCI Start the Week - 14 May

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

    Pipeline ABS accounted for the majority of the deals remaining in the pipeline at the end of last...

    News    14 May 2018
  • Market moves - 11 May

    Acquisitions Blackstone is set to acquire all outstanding common shares of Gramercy Property Trust...

    Market moves    11 May 2018
  • RMBS double follows UKAR disposal

    Barclays is prepping two RMBS - dubbed Durham 1 and 2 - of Bradford & Bingley legacy mortgage lo...

    News Analysis    11 May 2018
  • NPL recovery boost expected

    Greek systemic banks are teaming up to create a platform that will manage and settle mortgage and re...

    News Analysis    4 May 2018
  • Market moves - 4 May

    Acquisitions Five Oaks Investment Corporation has acquired 100% of the equity interests of Hunt CM...

    Market moves    4 May 2018
  • Investor-led start-up targets capital market niches

    Travis Miller, co-founder and joint md of iPartners, answers SCI’s questions Q: How did...

    The Structured Credit Interview    30 April 2018
  • SCI Start the Week - 30 April

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

    Upcoming event SCI NPL Securitisation Seminar – 9 May, London SCI’s NPL Secu...

    News    30 April 2018
  • Market moves - 27 April

    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