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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    Sector developments and company hires

    EMEA Capzanine has appointed Renaud Tourmente as head of business development, effective from 6 M...

    Market moves    22 March 2019
  • Majority stake acquired

    Sector developments and company hires

    Balance sheet normalisation The US Fed has confirmed it intends to continue to allow its holdings o...

    Market moves    21 March 2019
  • ERM debut

    Seniors Money preps its return

    The first publicly rated securitisation of Irish and Spanish equity release mortgages (ERMs) has hit...

    News    20 March 2019
  • Holding tight

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    Retaining its European investor base, while capturing a broader range of institutional investors, is...

    News    20 March 2019
  • Latest podcast now available

    CRT themes and a Dutch RMBS first discussed

    In this month's podcast, we explore some interesting themes within the CRT market: namely,&a...

    News    15 March 2019
  • Unencumbered value

    Equity release RMBS on the cards?

    The UK mortgage market is changing, with an ageing population driving increased issuance of equity r...

    News Analysis    15 March 2019
  • Benchmark Sonia deal prepped

    Unique UK RMBS transaction adds momentum to IBOR transition

    The first third party hedged UK RMBS with Sonia-linked notes has been prepped by Principali...

    News    15 March 2019
  • Inaugural online auto ABS prepped

    Sector developments and company hires

    Online auto ABS debuts Carvana, an online platform for buying used cars launched in 2012 by DriveT...

    Market moves    15 March 2019
  • UMBS trades to be accepted

    Sector developments and company hires

    UMBS trades to be accepted In support of the Single Security Initiative, Fannie Mae will begin acc...

    Market moves    12 March 2019
  • Bright spot

    European ABS market update

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    Market Reports    12 March 2019
  • R-PACE rulemaking proposals outlined

    Sector developments and company hires

    Credit line secured Foundation Home Loans has entered into a new £350m warehouse credit...

    Market moves    11 March 2019
  • Stronger tone

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    Market Reports    8 March 2019
  • CDS reforms proposed

    Company hires and sector developments

    Australia Mortgage House has hired Steven Mixter as head of securitisation and structured finance....

    Market moves    7 March 2019
  • Dutch BTL debut in the works

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    News Analysis    5 March 2019
  • 'Long term solution needed'

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  • Structured finance 'well positioned' for downturn

    Second day at SFIG Vegas sees continued optimism

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    News    26 February 2019
  • Exit complete

    Irish RPL RMBS refinanced

    Ellington Residential Holdings Ireland is in the market with a €620m Irish re-performing RM...

    News    26 February 2019
  • Law firm boosts derivatives capability

    Company hires and sector developments

    CLO firm promotions Churchill has announced the promotion of Mat Linett, md, from deputy head of u...

    Market moves    22 February 2019
  • Tough stance

    ESMA insists on private securitisation disclosures

    On 31 January, ESMA published a document that amends its draft regulatory technical standards (RTS)...

    News Analysis    22 February 2019
  • Stand-out performer

    Systematic role for structured credit

    Funds focused on structured credit were, as a whole, stand-out performers in 2018. Of the 50 US stru...

    News Analysis    21 February 2019
  • UK paper on the block

    European secondary ABS market update

    The European secondary ABS market has rallied since the beginning of the year. However, activity now...

    Market Reports    21 February 2019