Securitization

Legacy RMBS structured to withstand challenging mortgage market

Delay refinancing two loans prompts drop to below investment-grade for one class of CMBS

New arrivals to the ABS market seek investors in less than stellar-rated bonds.

Top banks are underwriting the deal, but most of the securitization's loans lack documentation.

The proposal is one of several that aims to address difficulties managing early buyouts from mortgage-backed securities pools.

Aggregator counters the risk of loans' low starting rate with a strong borrower profile.

The new deal will increase the sponsor's 2024 issuance to more than $3 billion.

The second-lien loans face low recovery post-default, especially if home prices drop.

More than 90% of the loans were underwritten without full documentation, raising default probability.

Top retail-mall owner Taubman has approached the market with a $1 billion CMBS deal to refinance the existing debt that is collateralized by one of the highest volume shopping centers in the U.S.