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Re-REMICs Making A Comeback

CDOs may be vilified everywhere but the vastly different repackaging technology offered by re-REMICs is seeing a resurgence. Faced with potential widespread CMBS downgrades, issuers and investors are going back to the time honored tradition of repackaging decaying assets to create a new AAA-rated gem. If the CMBS TALF loans continue at their current rate of growth, namely zero, it's only a matter of time before re-REMICs get an invite to the party.
Commercial Mortgage Debt Rallies Amid New Securities Sales [Bloomberg]