ReREMICs Tell the ABS Story

November 17, 2008

Resecuritizations or ReREMICs are following the trajectory of the ABS market pretty closely. ABS participants initially turned to this structure because it was a path to market liquidity. It was good way for dealers to try to move inventory around. In fact, in October, there were a few ReREMICs that came to market, most of which were driven by liquidity needs. However - since they are still part of the volatile market that we are all experiencing - sources said that bid lists for these transactions have been revised daily as a result of pricing and supply considerations. For now, the market for these deals has dried up.

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