Jumbo deals weather regulatory storm

JP Morgan yacht
By Ryan Bolger
22 Oct 2014

JP Morgan and Citi announced jumbo RMBS deals this week, bucking a trend in which many would-be issuers have opted to retain jumbos on balance sheet rather than launch securitizations.

Market participants said that banks have been discouraged from issuing RMBS because of low yields and onerous regulatory changes, including heightened capital requirements and five percent risk retention, which was finalised by US regulators on Thursday.

JP Morgan’s deal marks the fifth jumbo RMBS from its JPMMT ...

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