Investors fear jumbo RMBS despite strong collateral

By Ryan Bolger
03 Dec 2014

Jumbo RMBS issuance has picked up with new and repeat issuers coming to market with deals backed by strong collateral. However, while regular pre-crisis issuers are beginning to come back, the same cannot be said on the demand side where institutional investors are still wary of representations and warranties for new deals.

A lack of standardised representations and warranties for recent jumbo RMBS issuance by large bank issuers like JP Morgan and Credit Suisse, as well as for new non-bank issuers like FirstKey and WinWater, has made it difficult for investors to weigh the quality of notes, even when they ...

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