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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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Heavy supply?
European primary ABS market update
A new RMAC UK non-conforming RMBS has been announced, while the BPCE Home Loans 2018 deal is expecte...
Market Reports 5 October 2018 -
ABS lull
European ABS primary market update
The European ABS primary market is seeing a lull in activity, which is leaving some traders uncertai...
Market Reports 3 October 2018 -
Automated validation
Mobile app streamlines RMBS underwriting
Atom Bank is readying its debut UK prime RMBS. Dubbed Elvet Mortgages 2018-1, the £571.58m...
News 2 October 2018 -
SCI Start the Week - 1 October
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News 1 October 2018 -
Market moves - 28 September
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Market moves 28 September 2018 -
Funding options
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News 28 September 2018 -
Primary focus
European ABS and RMBS market update
Few BWICs were out for the bid in the European secondary ABS market this week, with light trading ac...
Market Reports 28 September 2018 -
SCI Start the Week - 24 September
A look at the major activity in structured finance over the past seven days
Pipeline RMBS dominated the newly-announced deals remaining in the pipeline by the end of last week...
News 24 September 2018 -
Market moves - 21 September
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Acquisitions HPS Investment Partners has acquired Tålamod Asset Management. HPS will ret...
Market moves 21 September 2018 -
Aussie slow-down
Australian RMBS primary market update
Activity in the Australian RMBS primary market is slowing down due to overcrowding. Four Australian...
Market Reports 19 September 2018 -
Irish RMBS focus
European ABS market update
A rare Irish non-conforming RMBS has caught the attention of European ABS market participants, follo...
Market Reports 18 September 2018 -
SCI Start the week - 17 September
A look at the major activity in structured finance over the past seven days
Pipeline ABS is still dominating the pipeline, with several deals coming from the auto space. Th...
News 17 September 2018 -
Market moves - 14 September
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CDS ETF Launched Tabula has launched a European CDS ETF which offers passive exposure to European...
Market moves 14 September 2018 -
Euro ABS activity surges
Investors finding value across asset classes
The ABS secondary market has been very BWIC driven with large volumes coming through. A Greek RMBS i...
Market Reports 14 September 2018 -
Euro RMBS picks up
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Market Reports 10 September 2018 -
Market moves - 7 September
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Market moves 7 September 2018 -
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News 3 September 2018 -
Market moves - 24 August
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Market moves 24 August 2018 -
Firms favour floating rate
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News Analysis 22 August 2018 -
SCI Start the Week - 20 August
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News 20 August 2018