{"id":1084,"date":"2017-04-18T13:40:24","date_gmt":"2017-04-18T17:40:24","guid":{"rendered":"http:\/\/newviewadvisors.com\/commentary\/?p=1084"},"modified":"2017-04-18T13:40:24","modified_gmt":"2017-04-18T17:40:24","slug":"hremic-issuance-first-quarter-2017-record-pace-continues","status":"publish","type":"post","link":"https:\/\/newviewadvisors.com\/commentaries\/2017\/04\/18\/hremic-issuance-first-quarter-2017-record-pace-continues\/","title":{"rendered":"HREMIC Issuance First Quarter 2017:  Record Pace Continues"},"content":{"rendered":"<p>HREMIC issuance for 2017Q1 was $2.91 billion, surpassing 2016\u2019s first quarter issuance total of $2.84 billion, and on pace to set a third consecutive annual record. First quarter volume was just $89 million shy of the record quarterly issuance of $3.0 billion set in 2015Q4.<\/p>\n<p>There were 8 transactions underwritten by three sponsors, Nomura, Bank of America Merrill Lynch, and Citigroup. Nomura remains the #1 issuer, with $1.7 billion, Bank of America Merrill Lynch was second with $756 million, and Citigroup was third with $453 million. Life-to-date BAML has issued $18.5 billion of all HREMICs for a 39% market share, and Nomura has issued $11.9 billion for a 25% market share.<\/p>\n<p>Approximately 85% of outstanding HMBS securities have been resecuritized into HREMICs, up from 80% at the end of 2016. A stronger and broader bid for the Interest-Only HREMIC classes emerged, and the seasoned HMBS pools we\u2019ve referenced in past blogs are also contributing to increased HREMIC volume. The HREMIC structure, which allows issuers to create bond classes such as these \u201cIO\u201d securities, is increasingly the most profitable option.<\/p>\n<p>HREMIC collateral consists of HMBS, which are Ginnie Mae guaranteed pass-through securities. HMBS are backed by pools of participations of HECMs, which are FHA-insured reverse mortgages. This double layer of government guarantee, combined with the relatively high coupon and favorable prepayment patterns of the underlying loans, results in very favorable execution, even when compared to other Ginnie Mae \u201cforward mortgage\u201d securities.<\/p>\n<p>New View Advisors compiled these rankings from publicly available Ginnie Mae data.<\/p>\n<p><a href=\"http:\/\/newviewadvisors.com\/commentary\/wp-content\/uploads\/2017\/04\/HREMIC-Rankings-2017Q1-2.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-1090\" src=\"http:\/\/newviewadvisors.com\/commentary\/wp-content\/uploads\/2017\/04\/HREMIC-Rankings-2017Q1-2.png\" alt=\"\" width=\"375\" height=\"172\" srcset=\"https:\/\/newviewadvisors.com\/commentaries\/wp-content\/uploads\/2017\/04\/HREMIC-Rankings-2017Q1-2.png 606w, https:\/\/newviewadvisors.com\/commentaries\/wp-content\/uploads\/2017\/04\/HREMIC-Rankings-2017Q1-2-300x138.png 300w\" sizes=\"auto, (max-width: 375px) 100vw, 375px\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>HREMIC issuance for 2017Q1 was $2.91 billion, surpassing 2016\u2019s first quarter issuance total of $2.84 billion, and on pace to set a third consecutive annual record. First quarter volume was just $89 million shy of the record quarterly issuance of $3.0 billion set in 2015Q4. There were 8 transactions underwritten by three sponsors, Nomura, Bank [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"class_list":["post-1084","post","type-post","status-publish","format-standard","hentry","category-hremic"],"_links":{"self":[{"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/posts\/1084","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/comments?post=1084"}],"version-history":[{"count":5,"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/posts\/1084\/revisions"}],"predecessor-version":[{"id":1095,"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/posts\/1084\/revisions\/1095"}],"wp:attachment":[{"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/media?parent=1084"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/categories?post=1084"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/tags?post=1084"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}