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

    Pipeline There were eight ABS additions to the pipeline last week. These were joined by three RMBS...

    News    20 February 2017
  • Job swaps round-up - 17 February

    EuropeWells Fargo has hired Steve Hulett as head of credit and ABS sales EMEA. He was previously co-...

    Job Swaps    17 February 2017
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  • Euro RMBS volume builds

    Crédit Agricole has priced a rare publicly placed French prime RMBS named FCT Créd...

    News    16 February 2017
  • Euro ABS/MBS drifts

    The European ABS/MBS secondary market appears to be drifting along this week. Trading activity con...

    SCIWire    16 February 2017
  • Call for clarity around GSE reform guidelines

    Following US Treasury Secretary Mnuchin's commitment to reform the GSEs, the Mortgage Bankers Associ...

    News    14 February 2017
  • Euro secondary unchanged

    Activity in the European securitisation secondary market is little changed from that seen in recent...

    SCIWire    14 February 2017
  • SCI Start the Week - 13 February

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

    Pipeline The recent trend of ABS and RMBS dominating pipeline additions continued last week. There...

    News    13 February 2017
  • Positive start for Aussie issuance

    Bank of Queensland last week priced its upsized A$1bn Series 2017-1 REDS Trust prime RMBS, the first...

    News    13 February 2017
  • High-balance RMBS marketing

    JPMorgan is tapping the RMBS market with a US$1.02bn transaction. Dubbed JPMorgan Mortgage Trust 201...

    News    13 February 2017
  • Second shelf brings non-prime deal

    Invictus Residential Pooler is in the market with its debut securitisation (see SCI's pipeline). Fol...

    News    10 February 2017
  • Risk retention trends emerging

    Different retention strategies have emerged for US CLOs and CMBS leading up to and since the impleme...

    News Analysis    9 February 2017
  • Euro ABS/MBS lighter

    Volumes in the European ABS/MBS secondary market are lighter than last week. "Secondary activity h...

    SCIWire    9 February 2017
  • Euro secondary patchy

    Activity in the European securitisation secondary market continues to be patchy. Friday saw a rela...

    SCIWire    7 February 2017
  • SCI Start the Week - 6 February

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

    Please noteFrom today, we will be sending out stories as soon as they are published. They will appea...

    News    6 February 2017
  • Boosting liquidity

    First post-crisis Irish NPL RMBS profiled

    Lone Star's Irish non-conforming RMBS, which it privately-placed in November (SCI 29 November 2016),...

    News Analysis    3 February 2017
  • SFR operators change tack

    Single-family rental (SFR) transactions are benefitting from an improvement in sponsors' business mo...

    News Round-up    2 February 2017
  • Securitisation prospects polled

    Fiscal policy uncertainty is the top concern cited by respondents to Morgan Stanley's 1Q17 global se...

    News    2 February 2017
  • Euro ABS/MBS rising

    Volumes and pricing levels are rising in the European ABS/MBS secondary market this week. "In the...

    SCIWire    2 February 2017
  • Split B tranches placed

    Freddie Mac has priced the US$802m STACR Series 2017-DNA1, its first low-LTV risk-sharing RMBS of th...

    News Round-up    1 February 2017
  • Repurchase plan

    Italian bridge banks complete resolution process

    Nuova Banca delle Marche has completed the NPL repurchases from its securitisations in accordance wi...

    News Analysis    31 January 2017