Kroll Bond Rating Agency (KBRA) releases an update on the key RMBS market and performance themes of early 2021 as well as issuance volume trends and forecasts, collateral performance trends, surveillance outcomes, and our rating and research activity through the end of April 2021. The report also comments on our evaluation of the Consumer Financial Protection Bureau’s (CFPB) recent steps to address the final Qualified Mortgage (QM) Rule reform and note other relevant regulatory changes.

Key Takeaways

• 2020 Recap: The year closed at over $56 billion, slightly lower than our revised post-pandemic estimate, but no less impressive considering the pandemic-related challenges in the RMBS sector.
• 2021 Issuance Volume: Even with the slow opening month of the new year, Q1 meet our estimated $18 billion projection. We expect Q2 to surpass the previous quarter, with almost $20 billion (est.).
• 2021 Issuance Expectation: KBRA believes full-year (FY) 2021 expected issuance volume could reach $73 billion, despite smaller average deal sizes and third-party diligence timelines.

Click here to view the report.

Related Publications

• RMBS Credit Indices
• IMN 2021 Virtual Non-QM Forum Recap
• The Price of Uncertainty: Final General QM Rule and Potential Credit Implications
• 2021 Sector Outlook: Will RMBS Get Back on Track?

About KBRA

KBRA is a full-service credit rating agency registered in the U.S., the EU and the UK, and is designated to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.

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