RMBS issuance on track to generate $12 billion in 2013
Residential mortgage-backed securitization issuance is on track to generate $12 billion in 2013, according to Standard & Poor’s.
Contributing to this trend is Stanwich Mortgage, which announced a $260 million non-agency RMBS deal backed by nonperforming loans in February, the credit rating agency said.
Wells Fargo Securities (WFC) is the lead on the deal.
The deal brings the year-to-date total for all nonagency RMBS issuance to $1.7 billion, Standard & Poor’s said.
The deal securitizes prime, jumbo mortgages purchased as part of a mortgage portfolio acquired for structured finance purposes by subsidiary DLJ Mortgage Capital.
In December, S&P noted that total RMBS issuance was expected to hit $15 billion in 2013.
Total private-label RMBS was roughly $6 billion in 2012, compared to $2.8 billion in 2011, S&P noted.
"Agency issuance continues to dominate the market, but several issuers are accumulating collateral," according to industry reports.