In the second article of our WIRE series focusing on Residential Mortgage Backed Securities (RMBS), we delve into some of the finer details of what matters for a RMBS transaction. For background, RMBS transactions are designed to cope with the worst conditions as envisaged, and yet the vast majority of the contractual provisions will never be used.
Residential Mortgage Backed Securities (RMBS) are a popular choice for wholesale investors as they can choose the risk and return they seek and the securities offer a yield premium over similarly rated corporate bonds.
Having gone through the key characteristics of RMBS notes and some of the key technical terms, we are looking now at how these notes have generally performed over time.
General
New issues update
The FIIG Research Team assesses the credit performance of industries that FIIG covers from the August 2024 reporting season.
A better diversified portfolio through the inclusion of bonds, can smooth out volatility, improve returns, and lower risk.
Trade opportunities
The current portfolio yields an indicative 5.39%* to the assumed maturity dates with an approximate $206k spend.
General
New issues update
The FIIG Monthly Income Fund delivers a comprehensive solution for pre-retirees and retirees, offering a steady stream of monthly income, reduced risk, and expert management.
Opinion
Diversification is the easiest way to smooth volatility in a portfolio and therefore it has been brought sharply to the forefront of investors’ minds. Now is the perfect time to assess both the make-up of your portfolio and risk exposure within the portfolio.