If the second half of this year is near as good as the first half was, then 2015’s volume of jumbo securitizations is likely to be better than each of the past two years.
Issuers of residential mortgage-backed securities completed around eight prime jumbo transactions for $7.1 billion during the first-half 2015, based on transactions rated by Fitch Ratings.
That puts full-year 2015 jumbo RMBS issuance on pace to reach $14.2 billion — more such activity than during either of the prior two years.
In all of 2014, $8.3 billion in prime jumbo RMBS were issued, while the number in 2013 was $13.1 billion.
Growth in jumbo RMBS volume is being driven by “more issuers willing to tap the market,” Fitch Director Sean Nelson said in the news release.
But despite the strong pace, New York-based Fitch noted that second-quarter volume slowed from the first quarter.
The ratings agency called the performance of post-crisis RMBS “exceptional.”
“Only eight borrowers out of roughly 32,000 are more than three months behind on their mortgage,’ Nelson said. “In addition, mortgage rates have dropped about 50 basis points from the start of 2014, resulting in a modest increase in prepayment speeds.”
