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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    Yesterday was primarily about consolidating recent gains in the European securitisation secondary ma...

    SCIWire    14 October 2015
  • Subprime loan losses compared

    Loans that are serviced by banks experience higher losses than those serviced by non-bank entities w...

    News Round-up    13 October 2015
  • GSE remedies clarified

    Fannie Mae and Freddie Mac have released a selling representation and warranty remedies framework, w...

    News Round-up    13 October 2015
  • Euro ABS/MBS keeps impetus

    Despite a quiet day yesterday thanks to the US holiday, the European ABS/MBS secondary market is sti...

    SCIWire    13 October 2015
  • Third NPL batch up for sale

    Fannie Mae is marketing its third set of NPLs as part of its programme to offload severely...

    News Round-up    12 October 2015
  • Cross-asset conviction

    Renaud Champion, head of credit strategies for La Française Global Investment Solutions, an...

    Q: How and when did La Française Global Investment Solutions (LFGIS) become involved in the...

    The Structured Credit Interview    12 October 2015
  • SCI Start the Week - 12 October

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

    PipelineABS accounted for the majority of transactions joining the pipeline last week, including a n...

    News    12 October 2015
  • Euro secondary settled

    The European securitisation secondary market is continuing in the settled pattern seen of late. Th...

    SCIWire    12 October 2015
  • Euro secondary stays on track

    Ever-improving broader markets are driving increasingly positive sentiment in the European securitis...

    SCIWire    9 October 2015
  • US RMBS stabilises

    The US non-agency RMBS secondary market has stabilised and activity is slowly increasing again. "I...

    SCIWire    8 October 2015
  • Lack of action puts RMBS on watch

    S&P has placed 22 tranches of 11 European RMBS on creditwatch negative. The move follows var...

    News Round-up    8 October 2015
  • Vice chair steps up

    Walter Investment Management has appointed Denmar Dixon ceo and president, effective from 10 October...

    Job Swaps    8 October 2015
  • Euro secondary return continues

    Activity and prices in the European securitisation secondary market continue to return to normal, bu...

    SCIWire    8 October 2015
  • Euro secondary accelerates

    The pick-up in activity and pricing levels in the European securitisation secondary market is accele...

    SCIWire    7 October 2015
  • SEC raps HLSS over accounts

    The US SEC has charged Home Loan Servicing Solutions (HLSS) for making material misstatements about...

    Job Swaps    6 October 2015
  • Euro secondary slowly improves

    Tone and activity are slowly picking up in the European securitisation secondary market. Bolstered...

    SCIWire    6 October 2015
  • SCI Start the Week - 5 October

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

    Pipeline The number of deals joining the pipeline picked up again last week, with CMBS leading the...

    News    5 October 2015
  • Euro secondary mixed

    Activity in the European securitisation secondary market continues to be mixed. For the most part...

    SCIWire    5 October 2015
  • ESMA reports on rating agencies

    ESMA has published two sets of technical advice and a report on the regulation of credit rating agen...

    News Round-up    2 October 2015
  • RMBS settlement progress tracked

    JPMorgan paid US$3.555bn in consumer relief to 158,107 borrowers through 31 March 2015, according to...

    News Round-up    2 October 2015
  • Agency seeks above-currency comments

    S&P is requesting comments on proposed changes to its methodology for assigning ratings abov...

    News Round-up    2 October 2015