Mortgage-Backed Securities
Market Description
Mortgage-backed securities (MBS) are debt obligations that are backed by the cash flows from pools of mortgage loans on residential and commercial property. SecondMarket's MBS Market facilitates transactions primarily in two areas of the mortgage-backed space: non-agency Residential Mortgage-Backed Securities (RMBS) and Commercial Mortgage-Backed Securities (CMBS), together representing approximately $2.5 trillion in securities. The agency RMBS market, due to a combination of implicit and explicit government guarantees, continues to function in an orderly manner, with tight bid-ask spreads and a significant number of market participants. Non-agency RMBS, however, have come under significant pressure not only from the downturn in housing prices and the fallout from the sub-prime mortgage crisis but also from a variety of legal and regulatory changes/proposals that have caused considerable uncertainty regarding the future performance of the underlying loans. The CMBS Market has seen increased stress and dislocation as well with deteriorating economic trends. SecondMarket has leveraged its technology and deep buyer base, adding MBS data and analytical tools to centralize price discovery and trading in a wide variety of CMBS as well as RMBS backed by prime (jumbo), subprime, alt-A, option ARMs and home equity loans.
Read More
Market News
Jan 28 2010
New Valuation Challenges — www.structuredcreditinvestor.com
- The FED plans to end the Term Asset-Backed Loan Facility as of June 30 of 2010
- Purpose of program was to increase credit availability and help economic activity while increasing renewed issuance of consumer and business ABS at normal spread levels
- After 18 months of no new CMBS deals, new deals are finally happening
- Subscription to publication required
Jan 20 2010
S&P Revises Method For Estimating Losses On RMBS From 2005-07 — online.wsj.com
- S&P Revised method of projecting losses for US residential mortgage-backed securities issued from 2005-2007
- It is expected that the recent changes will have largest impact on ratings of prime RMBS transactions
- Subscription to publication required
Jan 14 2010
Fed’s Plosser: Fed Should End MBS-Buying at $1.25T in 1Q — online.wsj.com
- Federal Reserve Bank of Philadelphia President Plosser said Fed should continue plan to end purchases of mortgage-backed securities this quarter
- Plosser said that Fed will need to increase benchmark federal funds rate as economy recovers
- Subscription to publication required
The SecondMarket Ecosystem is an extensive gathering of product and service providers for illiquid assets. All accessible from right here on SecondMarket! Sign up for free and gain access to:
-
- Analytics
- Data
- Legal Services
-
- Private Placements
- Third Party Research
- Valuations
