SFA Research Corner: From Revival to Scale: Second-Lien RMBS Moves Into a New Phase

Second-lien RMBS has moved from a niche corner of non-agency RMBS into a rapidly growing market, fueled by a combination of mortgage-rate lock-in and substantial homeowner equity. Our latest Research Corner looks at the growth of HELOC and closed-end second-lien securitizations, how today’s market differs from the pre-GFC era, and what early credit performance tells us as the sector moves from revival to scale.