Fitch Virtual Investor Meeting: What Will Reignite U.S. RMBS?
NEW YORK--(BUSINESS WIRE)--Private label U.S. RMBS issuance has been disappointing so far this year, though signs of life are emerging and GSE related issuance has been a bright spot, according to Fitch Ratings in its latest U.S. structured finance virtual investor video series that was launched today.
The RMBS recovery has been very slow and somewhat disappointing, according to Managing Director Rui Pereira. In fact, the majority of the 50 RMBS deals securitized post-crisis came to market last year. However, issuance has picked up in the past few weeks and GSE risk-sharing transactions have become routine, a sign that there is still investor demand for mortgage related products. Investors are also recognizing the extremely strong performance of post-crisis RMBS collateral quality. Greater investor demand could lead to increased incentive for banks to securitize the assets they are currently holding on balance sheet.
One pertinent question investors are posing is whether final QM rules will help. Pereira said the impact so far has been very limited as lenders are still adjusting their underwriting guidelines to conform to the new rules. As to whether non-QM loans will make their way into new deals, Pereira said it is not really a question of when, but rather what type of non-QM loans we will see in new deals. Further, investors are seeking perspective on the securitization of non-traditional mortgage assets including non-performing or re-performing loans and single-family rental receivables which could provide a shot in the arm to the somewhat dormant private label RMBS market.
As part of Fitch's new investor video series, the rating agency's U.S. structured finance group heads discuss hot topics on investors' minds and how Fitch is addressing these topics, be it on specific deals, regulatory issues or even ways to enhance Fitch's research products. The video series will be available on Fitch's 'Multimedia' page at 'www.fitchratings.com'. Questions can be emailed to 'email@example.com'
Additional information is available on the following page: 'http://info.fitchratings.com/VirtualInvestorMeetings/'
Additional information is available at 'www.fitchratings.com'.