Jumbo Market Improves, As for Securitizations...

In April when Redwood Trust came to market with a $238 million jumbo MBS deal—the first in almost two years—reports began to circulate that everyone and his brother would imitate the REIT's success and the world would be flooded with new product. Two months later the land rush of other issuers into jumbo and "super" jumbo MBS hasn't materialized, though the rumor mill continues to churn out the names of firms working on deals, including Goldman Sachs, PennyMac and even PIMCO. It's believed that once jumbo securitizations return in earnest, lending volume in these nongovernment-guaranteed loans will bloom, or at least improve dramatically.