Jumbo Flop in Second Half of 2013 Throttled Budding Recovery, Redwood Pioneered and Dominated Market
January 24, 2014
Non-agency MBS issuance declined by 30.6 percent from the third to the fourth quarter of 2013 as the plucky jumbo securitization sector ran out of gas. The market produced $4.94 billion of new non-agency MBS during the fourth quarter, according to a new Inside MBS & ABS analysis and ranking, the weakest output of the year. Although there were some gains in the scratch-and-dent and re-securitization sector markets that are almost all private placements production of jumbo MBS fell by 71.4 percent. Even with the late fizzle, 2013 produced...[Includes three data charts]