8.12.21
This week’s Research Corner depicts how non-agency RMBS issuance is on track for a new post-2008 record. Year-to-date, new issue has reached $119 billion, surpassing 2020’s full-year volume and just 12% below 2019’s record year. Building that momentum, strong contributions come from prime jumbo non-QM ($39.1 billion) and re-performing/non-performing non-QM loans ($23.6 billion). Securitization backed by non-QM loans has added $13.4 billion to the non-agency RMBS volume and is currently on track to set its own new high over pre-pandemic levels. RMBS backed by single family rentals (SFR RMBS) is also on pace for a record year as “work from home” pandemic impacts, cultural shifts, and economic pressures combine to push up demand for this alternative to the traditional ‘starter home’.