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).


  • Job swaps round-up - 7 April

    North America KeyBanc Capital Markets has hired Chris O'Neill and Jeffrey Tucker to its securitise...

    Job Swaps    7 April 2017
  • Irish NPL RMBS 'could start wave'

    Lone Star is back in the market with another Irish RMBS. It is currently marketing European Resident...

    News    6 April 2017
  • Deephaven debuts non-conforming deal

    Deephaven Mortgage is in the market with an RMBS backed primarily by non-QM loans extended to non-co...

    News    6 April 2017
  • Euro ABS/MBS active

    The European ABS/MBS secondary market is once again active without yet fully taking off. "Secondar...

    SCIWire    6 April 2017
  • Largest STACR to date prices

    Freddie Mac has priced its largest STACR deal to date. The US$1.32bn STACR 2017-DNA2 is also Freddie...

    News    5 April 2017
  • B&B portfolio sale to bring new RMBS

    UK Asset Resolution (UKAR) has sold two asset portfolios comprising performing buy-to-let loans tota...

    News    4 April 2017
  • Euro secondary restarts

    The turn of the quarter has restarted activity in the European securitisation secondary market. Fl...

    SCIWire    4 April 2017
  • SCI Start the Week - 3 April

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

    Pipeline The pipeline comprised a mixed bag of issuers last week. ABS deals once again dominated th...

    News    3 April 2017
  • Job swaps round-up - 31 March

    EMEA EJF Capital is to float its closed-ended investment fund on the London Stock Exchange. Dubbed...

    Job Swaps    31 March 2017
  • Value seen in jumbo 2.0 and RPL deals

    US non-agency issuance volumes are inching up on the back of the housing market recovery. Re-perform...

    News Analysis    31 March 2017
  • Euro ABS/MBS unchanged

    Spreads and activity levels remain unchanged across the European ABS/MBS secondary market. A combi...

    SCIWire    30 March 2017
  • Euro secondary unmoved

    The European securitisation secondary market remains unmoved by wider market volatility. The see-s...

    SCIWire    28 March 2017
  • CSP's second phase delayed

    The FHFA has postponed the implementation of Release 2 of the Common Securitization Platform (CSP) u...

    News    27 March 2017
  • Kensington prepping 'recycled' RMS deal

    Kensington Mortgage Company (KMC) is in the market with a £538.7m UK non-conforming RMBS. D...

    News    27 March 2017
  • SCI Start the Week - 27 March

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

    PipelineInsurance-linked securities dominated the transactions remaining in the pipeline last week,...

    News    27 March 2017
  • Job swaps round-up - 24 March

    North America Alcentra has hired Brandon Chao as svp in New York, joining from Omega Advisors, whe...

    Job Swaps    24 March 2017
  • SFR strategy raises RMBS questions

    American Homes for Rent (AH4R) announced this week an additional public equity offering, expecting t...

    News Analysis    24 March 2017
  • Irish RMBS recaptures attention

    The recent resurgence in primary issuance is not the only way to tap Irish RMBS value, as further re...

    News    21 March 2017
  • Euro secondary ticks over

    The European securitisation secondary market continues to tick over. Activity remains pat...

    SCIWire    21 March 2017
  • Spanish RPL RMBS marketing

    Blackstone affiliate Spain Residential Finance is in the market with its second Spanish re-performin...

    News    20 March 2017
  • SCI Start the Week - 20 March

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

    Pipeline Last week's additions to the pipeline took a slightly heavier skew towards ABS. There were...

    News    20 March 2017