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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    SCIWire    19 April 2016
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    The NCUA has had another of its recent successful RMBS settlements increa...

    Job Swaps    18 April 2016
  • SCI Start the Week - 18 April

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

    Pipeline Last week there were nine ABS deals added to the pipeline. A further three RMBS and two CM...

    News    18 April 2016
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    Fannie Mae and Freddie Mac will offer principal reduction to certain seriously delinquent, underwate...

    News Round-up    15 April 2016
  • RMBS settlement bumped up

    Credit Suisse will pay the NCUA a revised US$50.3m sum for a case settled last month surrou...

    Job Swaps    15 April 2016
  • SFR loan extensions expected

    During 2016, the operators for eight single-family rental transactions are likely...

    News Round-up    15 April 2016
  • Liquidity tool reaches Europe, APAC

    Interactive Data has launched its liquidity indicators services in Europe and Asia-Pacific, and has...

    News Round-up    15 April 2016
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    Kroll Bond Rating Agency has published an opinion that tackles some of the key concerns that are sur...

    News Round-up    14 April 2016
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    Fannie Mae has announced its latest sale of non-performing loans, including a third Community Impact...

    News Round-up    13 April 2016
  • Euro secondary selective

    Trading continues to be selective across the European securitisation secondary market. "Yesterday...

    SCIWire    13 April 2016
  • Goldman settles over deceptive practices

    US Attorney General Eric Schneiderman has announced a US$5bn settlement with Goldman Sachs over the...

    Job Swaps    12 April 2016
  • Euro secondary solid

    The European securitisation secondary market remains solid but fairly quiet. Tone remains firm acr...

    SCIWire    12 April 2016
  • SCI Start the Week - 11 April

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

    Pipeline Pipeline activity picked up again last week. There were 10 ABS additions, as well as an...

    News    11 April 2016
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    Rental yields for houses in Sydney and Melbourne have reached record lows, according to Moody's. Thi...

    News Round-up    11 April 2016
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    Annaly Capital Management is set to acquire Hatteras Financial Corp for a consideration to be paid i...

    Job Swaps    11 April 2016
  • CRT TRID impact gauged

    Credit risk transfer RMBS issued by Fannie Mae and Freddie Mac are likely to incur only small losses...

    News Round-up    11 April 2016
  • Special forces

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    News Analysis    8 April 2016
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    Macquarie Capital has appointed Warrick Booth as md in its European debt capital markets team. He wi...

    Job Swaps    7 April 2016
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    The UK's impending referendum on whether to remain in or exit the EU could dampen prospects for the...

    News Round-up    7 April 2016
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    There is something of a pick-up in the European securitisation secondary market but activity remains...

    SCIWire    7 April 2016
  • Euro secondary starts slowly

    The quarter has begun slowly in the European securitisation secondary market. "It's been a slow st...

    SCIWire    6 April 2016