Though the subordination levels for senior classes in the prime jumbo residential arena have dropped steadily since 1999, improvements in the collateral quality of recent prime non-agency deals can justify the reduction, said a recent report by Salomon Smith Barney.

For the study, analysts compared trends and changes in credit support levels as well as collateral characteristics on 30-year and 15-year jumbo mortgage transactions by selected major issers. The sample covered similar periods in 1999, 2000 and 2001 and includes deals issued by Wells Fargo/Nascor, Chase and RFC's RFMSI shelf.

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.