In this month’s featured segment, Yehudah Forster of the Residential Mortgage-backed Securities team breaks down potential changes to the qualified mortgage rules, and what they mean for the credit quality of future RMBS. Plus, Aaron Johnson and Xhen Pisha draw on our 2021 outlooks to highlight the structured finance asset classes on the bumpiest roads as the economy recovers from a tumultuous 2020.

In this episode:

Yehudah Forster of the Residential Mortgage-backed Securities team breaks down potential changes to the qualified mortgage rules, and what they mean for the credit quality of future RMBS (begins at 4:57)

Featured content:

RMBS – US: New qualified mortgage rules will expand credit box for prime RMBS, increasing risk - The CFPB's new QM rules will allow some riskier loans to qualify, and also result in a non-QM market that is more akin to non-prime
 

Other related content:

Structured Finance – Global: 2021 Outlook – Speed and extent of recovery will vary by asset class and region, with pandemic weighing on performanceConsumer ABS – US 2021 Outlook – Weaker asset performance will weigh on deals as underwriting slowly normalizes from 2020 tighteningRMBS – US: 2021 Outlook – COVID-19 fallout will drive originators to uphold high standards, but weaken existing deals' performanceRMBS and ABS – EMEA: 2021 Outlook — Tight underwriting will aid new deal asset quality as coronavirus fallout spurs performance risksStructured Finance – China: 2021 Outlook - Economic recovery will support asset quality and performanceStructured Finance – Australia: 2021 Outlook - Asset quality will be sound, but uneven recovery will hurt performanceSFG – Europe: Significance of remaining pandemic-related risks to collateral vary by asset class and regionGovernment Policy – US: New administration's swift policy pivot on health, economy and climate will affect energy and consumer-related sectorsHousing and Housing Finance – US : Biden’s policy agenda, including home ownership and affordability, has varied credit effects for many sectors