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: Accunia bolsters Copenhagen team

    People moves and key promotions in securitisation

    This week’s roundup of securitisation job swaps sees Accunia Credit Management adding two structured finance pros to its Copenhagen office. Elsewhere, Pallas Partners has snapped up two partners from Kasowitz Benson Torres, while fintech firm Inbank has elected a senior structured finance executive from Spectrum Principal Asset Management to its supervisory board.

    Accunia Credit Management has hired two .......

    Market Moves 7 March 2025

  • FT snaps up Global ABS and ABS East

    Sale of Invisso by Delinian sees structured finance conferences come under FT Live banner

    The Financial Times has acquired Invisso, parent company of structured credit conferences Global ABS and ABS East, from Delinian. The deal will see the transfer of Invisso’s full portfolio – also including the Central & Eastern European Forum, the Covered Bond Congress and the Global Borrowers and Bond Investors Forum – to the FT Group.

    The transaction comes .......

    News 5 March 2025

  • Israel prepares for market growth

    Recently proposed law to provide certainty for securitisation

    Israel is laying the groundwork for an increase in securitisation transactions, with the recent publication of a proposed law in the Official Gazette to regulate deals. The intention is to bring legal, regulatory and tax certainty to the asset class and follows a ministerial report explicitly aimed at the promotion of securitisation in the country. 

    As a new .......

    News Analysis 3 March 2025

  • Job swaps weekly: Santander rings changes in structured finance division

    People moves and key promotions in securitisation

    This week’s roundup of securitisation job swaps sees Santander making a number of appointments as part of a major reshuffle of its structured finance advisory and lending platform. Elsewhere, DLA Piper has appointed a new co-head of its structured finance practice, while Piper Sandler has snapped up a new md and co-head of its structured finance group.

    Santander has reorganised its structured .......

    Market Moves 28 February 2025

  • EIB inks Spanish resi deal

    Green and sustainable mortgages targeted

    The EIB Group has signed a new synthetic securitisation operation with Santander to provide financing for energy efficiency investments in the Spanish real estate sector, including the construction of new near zero-emission buildings and the renovation of existing residential properties to meet sustainability standards. The investment is being executed in a single securitisation, optimally structured to provide Santander with .......

    News 28 February 2025

  • Europe's solar ABS market plays catch-up

    Continent's solar ABS market trails the US, though potential Italian deal may spark growth

    The European solar ABS market is exploring innovative routes to accelerate issuance, with market insiders anticipating increased activity following last year’s debut public transaction for the continent. Yet, while the European market shares similarities with its glowing US counterpart, key structural differences and macroeconomic volatility continue to cast shade on its emergence.

    The solar ABS market is still .......

    News Analysis 26 February 2025

  • Job swaps weekly: Reckoner launches with backing from RedBird

    People moves and key promotions in securitisation

    This week’s roundup of securitisation job swaps sees the launch of Reckoner Capital Management, an alternative credit asset manager led by a former Panagram Structured Asset Management ceo and cio. Elsewhere, a former Goldman Sachs partner and securitisation specialist has joined One William Street Capital Management as deputy cio and partner, while Chorus Capital has snapped up a former senior exec .......

    Market Moves 21 February 2025

  • European and UK ABS: strong start, mixed views

    January saw €8.1bn in ABS issuance, with strong de...

    The European ABS market has delivered a dynamic start to the year, with strong issuance activity and robust investor demand, according to monthly European and UK factsheets monitored by SCI.

    TwentyFour AM Momentum Bond Fund’s managers note that January witnessed significant issuance volumes, with €8.1bn in ABS transactions coming to market. The ABS market was particularly diverse, with .......

    News Analysis 20 February 2025

  • Balance sheet expansion eyed

    ABF commoditisation set to boost sector adoption

    Regulatory clarity will be a major theme this year as banks adapt to new capital rules under Basel 4. Investors are closely watching whether banks expand their balance sheets or shift assets into the non-bank sector, particularly in the asset-backed finance (ABF) space.

    Alongside broader regulatory clarity, the potential lifting of Wells Fargo’s US$1.95trn asset cap - .......

    News Analysis 20 February 2025

  • 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
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