The landscape for non-agency RMBS has dramatically changed and, given the variables that banks must contemplate, it is unlikely that 2011 will see the clarity needed to drive origination volumes in the non-agency space.

"It's really a tale of two markets," said Paul Jablansky, managing director and senior non-agency MBS and consumer ABS strategist at the Royal Bank of Scotland (RBS), at last month's American Securitization Forum (ASF) sunset seminar on the future of the RMBS market. "We have the best of times in the secondary and, in a sense, the worst of times in the primary market."

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.