The Maiden Lane and Sequoia transactions may not herald the return of a vibrant RMBS market anytime soon, but they do indicate significant demand for bonds at nearly opposite ends of the RMBS market. 

On Jan. 19, the New York Federal Reserve Bank sold RMBS from its Maiden Lane II portfolio that contains subprime and Alt-A RMBS purchased from AIG's subsidiaries as a part of the insurer's government bailout. A day later, Redwood Trust successfully completed its fourth Sequoia transaction, which securitizes "pristine" Jumbo loans made mostly to affluent borrowers.

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