In his welcome address at the American Securitization Forum’s (ASF) ASF 2012, Ralph Daloisio, managing director at Natixis, referred back to 2011 as “the year of revival.”
He cited autos, CLOs and CMBS as the sectors where the market saw healthy deal activity last year, and where more transactions are expected this year.
Panelists also spoke about other growth areas such as investor loans. Ronald Mass, co-head of structured products at Western Asset Management Co., believes this asset class can experience growth given the conversion of many homeowners into renters.
There is an existing market for these types of loans currently from local banks, but the market can be characterized as fragmented.
The GSEs and the Federal Housing Administration have existing multifamily businesses, which this asset class can be patterned after. It would have the same cross collateralization and diversity as commercial real estate deals as well as are backed by higher-quality loans at 65% LTV.
Mass said these products, which have attractive yields, can be a good way to clear the current housing market inventory.