Spreads in utility rate reductions bonds (RRBs) widened on the news that California is considering introducing legislation to "re-regulate" its utility industry. The proposed legislation will likely introduce some kind of "price" controls of energy from power suppliers, and not target or undo the legislation that authorized the levying of a "transition charge" to utility consumers and issuance of RRBs in 1997. The firm believes the proposed legislation should have no impact on RRBs and recommends their purchase at wider levels once negative headlines dissipate.
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The RMBS notes benefit from geographic diversity and credit enhancement.
10h ago -
The RMBS transaction is backed by first-lien, fixed- and adjustable-rate, fully amortizing residential mortgage loans, some with interest-only periods, to prime and non-prime borrowers.
10h ago -
Refinance apps made up more than 40% of all mortgage applications last week, driving an uptick as consumers seek out cheaper mortgage payments.
July 2 -
After passing the Federal Reserve's stress tests with high marks, large banks announced dividend increases. In some cases, they also said the Fed had conceded that certain prior calculations needed to be revised.
July 2 -
The prime jumbo RMBS transaction is collateralized by 402 residential mortgage loans.
July 1 -
Diversity and metropolitan focus could provide resiliency in economic downturns
July 1