Private RMBS steps up as government sells risk

mel watt
By Ryan Bolger
26 Mar 2015

The US government may have failed to reduce its stake in the RMBS market, even seven years after buying out Fannie and Freddie, but the private market is finally starting to do more in the product.

Transaction sponsors have already brought around $8bn in private label issuance this year, and hedge funds are expected to bring securitizations of non-performing loans that they can purchase from the GSEs through their risk transfer programs.

However, market participants say a private label securitization market of meaningful size ...

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