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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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    National Economic Research Associates submitted their allocable share calculations earlier this mont...

    News Round-up    26 January 2016
  • First jumbo RMBS 2.0s called

    The US prime jumbo RMBS sector has seen its first three post-crisis transactions called, none of whi...

    News Round-up    26 January 2016
  • Euro secondary similar

    Patterns in the European securitisation secondary market remain similar despite the continuing volat...

    SCIWire    26 January 2016
  • SCI Start the Week - 25 January

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

    Pipeline ABS deals accounted for more than half of last week's pipeline additions. There were six n...

    News    25 January 2016
  • Virginia reaches RMBS settlement

    Eleven banks have agreed on a US$63m settlement with the Commonwealth of Virginia and the Virginia R...

    Job Swaps    25 January 2016
  • Euro secondary strengthens

    Tone in the European securitisation secondary market continued to strengthen into the last week's cl...

    SCIWire    25 January 2016
  • More scrutiny on SFR managers

    Certain operational risk fundamentals for property managers in the single-family rental space are on...

    News Round-up    22 January 2016
  • Small balance RMBS RFC issued

    S&P is requesting feedback on proposed changes to its surveillance of US RMBS backed by smal...

    News Round-up    22 January 2016
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    The European Economic and Social Committee (EESC) has added its voice to calls for the introduction...

    News Round-up    22 January 2016
  • Euro secondary improves

    Better wider markets have improved European securitisation secondary tone once more. A combination...

    SCIWire    22 January 2016
  • EBA consults on 'implicit support'

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    News Round-up    21 January 2016
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    News Round-up    21 January 2016
  • Euro ABS/MBS turns

    After two weeks of insulation from broader market volatility the positive tone in the European ABS/M...

    SCIWire    21 January 2016
  • Euro secondary story unchanged

    Yesterday's improvement in broader markets did not change the story in the European securitisation s...

    SCIWire    20 January 2016
  • FHLB rule impact gauged

    The FHFA has released a final rule which amends its guidelines for Federal Home Loan Bank (FHLB) mem...

    News    19 January 2016
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    Cross-currency swaps that mitigate the effect of foreign exchange controls have enabled Moody's to a...

    News Round-up    19 January 2016
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    Oil prices last week hit their lowest mark for 12 years, with significant implications for CRT deals...

    News    19 January 2016
  • Euro secondary hesitant

    It was an unsurprisingly quiet day yesterday in the European securitisation secondary market as part...

    SCIWire    19 January 2016
  • SCI Start the Week - 18 January

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

    Pipeline The pipeline continued to build last week as a number of new deals were added. At the fina...

    News    18 January 2016
  • Euro secondary resilient

    The European securitisation secondary market remained resilient into Friday's close despite broader...

    SCIWire    18 January 2016
  • Finalised FRTB 'still punitive'

    The Basel Committee has released the final version of its fundamental review of the trading book (FR...

    News    15 January 2016