Redwood returns despite bank bid

摘要

The sway of better economics of whole-loan mortgage sales may still not be a strong enough reason to keep originators away from the US private-label securitisation market, which has suffered this year from a lack of issuance. The proven ability of private label RMBS as an effective tool to augment investment portfolios is pushing some originators to revisit the market after lengthy pauses. Last week, California REFT redwood trust, one of the most prolific issuers of post-crisis non-agency RMBS, announced a securitisation after almost four months of focusing largely on whole-loan sales, and a matter of weeks after saying it achieved better execution with whole-loan sales than securitisations.