The private-label RMBS market may experience a quadrupling in volume in 2013 over 2012 as issuers see more favorable terms and at least two major banks are expected to regularly issue deals backed by pristine jumbo loans. Even so, no one's expecting to see much deterioration in the quality of collateral.
There has been much talk about at least two major banks as well as additional real estate investment trusts (REITs) approaching the market even before the end of this year. According to John Sim, head of non-agency MBS research at JPMorgan Securities, not only will JPMorgan and Bank of America start issuing private-label RMBS soon, but they are likely to issue them regularly throughout 2013."I suspect you'll probably see something every other month, maybe every month, starting in January or maybe sooner," Sim said, adding that the deals are likely to be between $500 million and $1 billion each in size.