Freddie Mac announced a new bond that sells off some of the default risk of its residential mortgage holdings to private investors willing to gamble on its pool of loans. From Reuters:
The so-called "risk-sharing" residential mortgage-backed securities (RMBS) are now being marketed to investors, with US$400 million of the bonds to be closed next week.
Introduction As part of our ongoing discussion on the concept of movement in the mortgage industry, it is readily apparent that the failure of mortgage companies to pivot or tweak their business models to satisfy changing market and other conditions has resulted in consolidation based on liquidity, buyback, financial and other concerns. Regardless of whether […]
