Trading Spikes in Non-Agency RMBS

According to an article from GlobalCapital on July 24th, last week experienced high trading volumes in non-agency RMBS, with a total of $3.7 billion in transactions. The article notes that there were more sellers than buyers, with Thursday's activity of $1.9 billion representing the highest single-day volume last week. According to Scott Buchta, head of fixed income strategy at Brean Capital, the market is currently "digesting" the recent developments wherein Wells Fargo, acting as trustee, withheld from the proceeds of clean-up calls over $90 million in twenty pre-crisis RMBS deals for legal expenses both incurred and anticipated.

For more background on this topic, please see this report from Moody's Investors Service.

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