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).


  • Securitised products head retires

    Sector developments and company hires

    Bank SPG head retires Lloyds Bank is making several changes to leadership positi...

    Market moves    19 June 2019
  • Ratings slip-up leads to downgrade

    Company hires and sector developments

    Acquisitions PERILS has acquired Toronto-based Catastrophe Indices & Quantification (CatIQ...

    Market moves    18 June 2019
  • Risk firm in international ILS hiring spree

    Sector developments and company hires

    BD appointed IHS Markit has appointed Sandrine Markham director, business development for Debtdoma...

    Market moves    17 June 2019
  • 2018 best post-crisis year for Australia

    RMBS dominates but unsecured ABS growing

    2018 was the best year for Australian securitisation activity since the financial crisis and while i...

    News    14 June 2019
  • Law firm expands SF expertise

    Company hires and sector developments

    Clean energy firm names cfo Renew Financial has named Mary Kathryn Lynch cfo, having previously se...

    Market moves    14 June 2019
  • Releasing potential?

    Equity release mortgages generating interest

    Expectations for the return of meaningful equity release mortgage (ERM) securitisation volumes remai...

    News Analysis    13 June 2019
  • Slow but steady

    Sentiment around STS warms, although issuance forecasts remain muted, say Global ABS panellists.

    Extention of the STS regime to more asset classes would benefit the European ABS market, according t...

    News    12 June 2019
  • CLO firm boosts originations expertise

    Company hires and sector developments

    CLO firm boosts originations team Monroe Capital has expanded its direct originations team with th...

    Market moves    12 June 2019
  • Advisor boosts SF expertise

    Sector developments and company hires

    Acquisitions Greensill has acquired receivables securitisation specialist Finacity which will now...

    Market moves    11 June 2019
  • Europe sees 1Q issuance dip

    Sector developments and company hires

    ABS vet nabbed Angelo, Gordon & Co has hired Sunil Kothari as md, responsible for originat...

    Market moves    10 June 2019
  • Livestock first inked

    Sector developments and company hires

    Australian livestock deal debuts StockCo has launched the first securitisation warehouse transacti...

    Market moves    7 June 2019
  • MRT potential

    Reinsurer opportunities eyed

    The mortgage risk transfer (MRT) programme in the US has the potential to rival natural catastrophe...

    News Analysis    6 June 2019
  • 'Significant divergence' in Libor preparations

    Libor transition still 'choice rather than necessity' for some firms

    There are still a “number” of firms in the UK that view the transition from Libo...

    News    5 June 2019
  • New P2P platform rules announced

    Sector developments and company hires

    ABS facility expands Amigo Holdings has increased its securitisation facility to £300m....

    Market moves    5 June 2019
  • Option boost?

    Conditions ripe for UK RMBS calls

    Ten UK RMBS transactions have call dates during the remainder of the year and the refinancing of the...

    News    5 June 2019
  • Easing up

    European ABS market update

    Activity levels have been high across European ABS/MBS and CLOs of late, but appear to be easing up...

    Market Reports    5 June 2019
  • Agri-linked note prepped

    Company hires and sector developments

    Agri-linked note prepped The African Development Bank has approved a €100m partial credit...

    Market moves    4 June 2019
  • Bank bulks up commodities expertise

    Company hires and sector developments

    Bank bulks out commodities unit Credit Agricole has hired Aude Sauty de Chalon as directo...

    Market moves    3 June 2019
  • STS not yet 'embraced'

    Ambiguity stifling STS label success

    Uptake of the STS label has been tentative and cannot be credited with the current strong momentum i...

    News Analysis    31 May 2019
  • Pillar prepped

    Public Greek NPL ABS debuts

    DBRS has provided the first public rating for a non-performing loan securitisation in Greece as the...

    News Analysis    31 May 2019
  • Indian RMBS market in the works?

    Sector developments and company hires

    Alt sales head hired Schroders has hired Peter Arnold to lead its alternative sales unit, which wa...

    Market moves    30 May 2019