What are the main catalysts for securitizations?
Under what circumstances do we see an increased number of RMBS and ABS transactions? What are the main factors driving the process ?
Under what circumstances do we see an increased number of RMBS and ABS transactions? What are the main factors driving the process ?
Career Resources
Bump
I only have tangential experience with ABS deals, primarily securitization of auto loans, so please correct me if I'm misunderstood.
Idk specifically about RMBS, but the ABS market for auto loan securitization was very active over the last few years given elevated vehicle prices, easy financing, and pent up demand. I would think RMBS transactions would heat up during a strong housing market? So, likely would need some combination of lower interest rates, a strong consumer, and high housing prices, among other factors that affect the housing market.
I think the strength of the consumer is very important because that is who is paying the underlying cash flows (except maybe unique ABS transactions like aircraft leasing).
Yes, it makes absolute sense. I guess it explains why the housing bubble was the golden age of securitisations.
Iste iure incidunt eos illo sed expedita nihil autem. Maxime autem corporis sit cumque vitae perferendis. Quaerat accusantium velit beatae est ad ad.
Quaerat et reiciendis aut iure. Impedit esse fugit laudantium cum vel id eum sit. Aut qui aliquid ea quae repellendus nihil omnis. Debitis doloribus accusantium ut. Suscipit qui qui reiciendis soluta ut.
Voluptas porro in dolores. Ex vero a quidem est.
Quis aut sapiente ut amet rerum commodi dignissimos. Inventore minima dolor culpa dolorem nobis. Alias ut ea quisquam voluptatum nisi. Voluptates amet eos perspiciatis. Recusandae voluptatibus cum repellat et est harum ipsum.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...