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).

  • Job swaps weekly: ARC promotes two and appoints APAC chair

    People moves and key promotions in securitisation

    This week’s roundup of securitisation job swaps sees ARC Ratings making a number of senior structured-credit-focused appointments spanning Europe and Asia. Elsewhere, Cadwalader has added three fund finance partners in London, while CIFC Asset Management has named a new md overseeing CLO tranche investing in its New York office.

    ARC Ratings has promoted two Lisbon-based structured finance executives .......

    Market Moves 14 February 2025

  • Job swaps weekly: Haynes Boone poaches asset securitisation team

    Securitisation people moves and key promotions

    This week’s round-up of securitisation job swaps sees Haynes Boone strengthen its fund finance and asset securitisation practices with the hiring of seven attorneys from Seward & Kissel in New York. Elsewhere, several other law firms have added partners in Australia and Japan, while ARC Ratings has recruited a new Hong Kong-based ceo to spearhead its expansion in the .......

    Market Moves 7 February 2025

  • MA reforms set to boost UK securitisation

    PRA to deliberate on 'Matching Adjustment Investment Accelerator' in 1H25

    The UK securitisation sector is poised to see a steady increase in activity, following the implementation of Matching Adjustment (MA) reforms introduced in late 2024. While the reforms offer more flexibility in asset-backed investments – shifting the requirement from a fixed to a highly predictable (HP) cashflow for part of insurers’ portfolios – the market can expect a gradual .......

    News Analysis 7 February 2025

  • Job swaps weekly: Oaktree puts the boosters on ABF team build-out

    People moves and key promotions in securitisation

    This week’s roundup of securitisation job swaps sees Oaktree making a number of key appointments as it ramps up its asset-backed finance strategy. Elsewhere, Morgan Lewis has snapped up a structured finance partner from Akin Gump, while Blackstone has hired a former Atlas SP director as principal in its credit and insurance platform.

    Oaktree Capital Management has hired .......

    Market Moves 31 January 2025

  • EMEA RMBS strengthens following resilience in 2024

    Market forecast for stable to improving performance in 2025, supported by strong indicators

    The overall RMBS market in EMEA is expected to exhibit stable to improving performance in 2025, bolstered by a resilient macroeconomic environment. GDP growth and moderating inflation rates across Europe are anticipated to contribute positively to asset performance.

    Barbara Rismondo, associate md within Moody’s EMEA SF team notes: “In general, we do expect the overall ABS and RMBS .......

    News Analysis 27 January 2025

  • Strength prevails in European ABS

    European and UK ABS and MBS markets closed 2024 strong, over...

    European and UK ABS and MBS markets closed 2024 on a resilient note, weathering broader macroeconomic challenges, according to factsheets monitored by SCI. Insights from Aegon, Amundi and TwentyFour Asset Management provide a nuanced view of the market’s performance.

    Aegon European ABS Fund’s managers paint a picture of strength in the European ABS market, with issuance totalling €143bn .......

    News Analysis 20 January 2025

  • Australian ABS issuance primed for continued momentum

    Following record RMBS issuance and non-bank dominance in 202...

    It’s no secret that Australian ABS is coming off the back of a banner year in 2024, with RMBS having led the charge. As the market kicks back into gear following the new year, the signals are that momentum is likely to continue throughout 2025.

    RMBS issuance in Australia hit a record AUD61.1bn in 2024. According to Martin .......

    News Analysis 17 January 2025

  • Job swaps weekly: Axis hires structured credit lead

    People moves and key promotions in securitisation

    This week’s roundup of securitisation job swaps sees Axis appointing a new SRT-focused structured credit lead in its capital risk solutions team. Elsewhere, Orrick has promoted two securitisation lawyers to partner in New York, while Ares Management has elevated a partner to co–head of alternative credit.

    Insurance and reinsurance business Axis has hired Bryan Niggli as structured credit lead .......

    Market Moves 17 January 2025

  • A volatile road ahead?

    BofA's SF analysts discuss the state of structured finance markets in 2025

    Bank of America’s structured finance research team, led by Alexander Batchvarov, head of international SF research, discussed the state of the structured finance market at a roundtable last week. Key analysts of the European SF research team, including Altynay Davletova, who specialises in RMBS, and Mark Nichol, focusing on credit, share insights on market trends, challenges and forecasts for the .......

    News Analysis 16 January 2025

  • Packed pipeline

    Private credit riding a wave of optimism

    US private credit is set for a strong year, buoyed by post-election stability and less stringent antitrust regulations expected under the new Trump administration. At the same time, investor appetite for ABF is increasing in Europe, with strategies becoming more clearly defined within the broader private credit landscape.

    “We have a lot of deals coming to market in .......

    News Analysis 15 January 2025

  • SCI in focus: Risk transfer at the ready

    CRT an invaluable tool in GSE march to privatization – and beyond

    Privatisation of the GSEs is back on the cards, but this time around CRT could play a crucial role not only in accelerating the route out of conservatorship but also in maintaining capital requirements once the exit has been made, say market experts.

    News Analysis 14 January 2025

  • Job swaps weekly: Aperture expands into structured credit

    People moves and key promotions in securitisation

    This week’s roundup of securitisation job swaps sees Aperture Investors hiring a senior executive to lead its newly launched structured credit division. Elsewhere, JPMorgan is fleshing out its global CLO primary team with a number of senior promotions and new hires, while two industry veterans have co-founded capital markets service provider Altius Advisors.

    Aperture Investors has hired Vladimir .......

    Market Moves 10 January 2025

  • European SF to maintain 2024 levels

    S&P forecasts €135bn issuance in 2025 with...

    S&P Global Ratings forecasts a promising yet complex year ahead for European structured finance markets. With issuance projected to reach €135bn, matching the record set in 2024, the outlook reflects a mix of economic resilience and emerging sectoral challenges.

    According to S&P, the ABS sector, which achieved €43.5bn in issuance in 2024, is poised for continued activity in .......

    News Analysis 6 January 2025

  • Bank bid back

    Agency MBS enjoy renewed bank demand, boding well for 2025

    News Analysis 17 December 2024

  • Muted ABS reflects mixed sentiment

    European ABS slowed in November, reflecting seasonal trends...

    November marked a quieter month for the European ABS market compared to the preceding months of 2024, according to European and UK factsheets monitored by SCI. While consensus emerged on the slowdown in primary issuance and market activity, asset managers TwentyFour Asset Management, Aegon and Amundi presented nuanced perspectives on the sector’s outlook, risks and opportunities.

    Across the .......

    News Analysis 17 December 2024

  • Job swaps weekly: Dentons elects Europe board members

    People moves and key promotions in securitisation

    This week’s roundup of securitisation job swaps sees Dentons elect new members to its Europe board and hire a new partner in London. Elsewhere, Deutsche Bank has appointed a former Citi executive as lead structurer, while fintech company Intain has lured a structured credit, derivatives and mortgages veteran to its board.

    Dentons has elected its European and Italian .......

    Market Moves 13 December 2024

  • Job swaps weekly: HPS leaders to join BlackRock following acquisition deal

    People moves and key promotions in securitisation

    This week’s roundup of securitisation job swaps sees HPS Investment Partners’ ceo and governing partners joining BlackRock following the latter’s acquisition of the former. Meanwhile, Pemberton has appointed the former head of the secured funding and ABS team at Alantra as head of origination for its risk sharing strategy, while Encina Lender Finance (ELF) has added two structured credit .......

    Market Moves 6 December 2024

  • Cruise control: Stable outlook for ABS and MBS in 2025

    JP Morgan strategists predict stable European, UK and Austra...

    As we approach 2025, strategists at JP Morgan foresee a year of steady performance for the ABS and MBS markets across Europe, UK and Australia. While 2024 set records for issuance volumes, the outlook for 2025 reflects a cautiously optimistic tone amid global uncertainties.

    JP Morgan’s research highlights that 2024 was a landmark year, with European ABS issuance .......

    News Analysis 5 December 2024

  • Job swaps weekly: Weil names new partners

    People moves and key promotions in securitisation

    This week’s roundup of securitisation job swaps sees Weil Gotshal & Manges promoting three structured finance and derivatives specialists to partner. Meanwhile, Kirkland & Ellis has snapped up a veteran fund finance specialist as partner, while White & Case has made a number of promotions to local partner and counsel.

    Weil Gotshal & Manges has promoted three structured .......

    Market Moves 29 November 2024

  • Job swaps weekly: BBB elevates two to co-chief banking officer

    People moves and key promotions in securitisation

    This week’s roundup of securitisation job swaps sees The British Business Bank appointing two co-chief banking officers. Meanwhile, Latham & Watkins has poached an experienced White & Case structured credit executive as partner, while Centralis Group has hired a new Ireland Country head.

    The British Business Bank has appointed Richard Bearman and Reinald de Monchy as co-chief banking .......

    Market Moves 22 November 2024

  • Variety rules in European ABS

    October saw strong momentum in the European and UK ABS and MBS markets, fuelled by diverse issuance

    European and UK ABS and MBS markets maintained momentum in October, building on the robust issuance pace set in September, according to monthly European and UK factsheets monitored by SCI.

    TwentyFour AM Momentum Bond Fund’s managers state that October witnessed over €17.5bn in ABS and €9.5bn in CLO issuance, pushing the YTD total to over €130bn. Both TwentyFour .......

    News 20 November 2024
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