While the investment opportunities in the nonagency RMBS space are not what they were in 2008, there is still opportunity there, executives at an internally managed real estate investment trust investing in nonagency and agency RMBS told attendees at a REIT conference in New York.
When asked about the limited availability of new nonagency product and questions about the GSEs' futures, chairman and CEO Stewart Zimmerman told the National Association of Real Estate Investment Trusts annual convention that as far as the latter, "I do believe there will be a guaranteeing entity," of some kind to support the sizable agency MBS market that currently dominates the new issue space.
Executive vice president Craig Knutson noted that while there has only been one new issue nonagency RMBS in the past several months, resecuritizations continue to be done in the space on a private placement basis. MFA may do more of these in the future, he said.
