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Home » Store » Taxable » Nomura Says Credit Enhancement Getting Too Thin on Recent Jumbo MBS Issues

Nomura Says Credit Enhancement Getting Too Thin on Recent Jumbo MBS Issues

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The senior tranches of many newly issued jumbo mortgage securitizations seem to have too little credit enhancement to merit AAA ratings, according to a new report from Nomura Securities. Reiterating observations it has made before, the Wall Street firm said that jumbo deals may still look quite strong, but they are clearly weaker than AAA-rated MBS of the past. “Jumbo MBS investors who
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