A prominent capital markets fintech firm has announced a strategic partnership with Fitch Ratings, a globally respected authority in credit ratings and research, to enrich RMBS benchmark offerings. The Fitch-dv01 Non-Agency RMBS Benchmarks introduce two benchmarks focused on the Non-QM and Prime Jumbo markets, aiming to redefine market analysis with comprehensive representation. This announcement marks the second collaboration between dv01 and Fitch Ratings, following Fitch Group’s acquisition of the fintech company.
The benchmarks are accessible for free via the dv01 web app and incorporate loan-level data from transactions where dv01 serves as the Loan Data Agent (“LDA”), Fitch-rated RMBS transactions, and transactions where RMBS issuers have opted to provide their data in support of this initiative.
Traditionally opaque, the RMBS markets rely on replines and static data, but are now experiencing a paradigm shift. The Fitch-dv01 Non-Agency RMBS Benchmarks offer unprecedented transparency, providing stakeholders with intricate insights into the non-agency mortgage markets.
Key Features of the Fitch-dv01 Non-Agency RMBS Benchmarks:
- Comprehensive Market Representation: Providing a holistic view of market performance and trends through loan-level data, the benchmarks cover 75% of their respective sectors.
- Benchmarking and Performance Measurement: Offering precise benchmarks tailored to the unique landscape of non-agency RMBS, enabling evaluation and communication of performance against a recognized standard at the portfolio and security level.
- Transparency: Offering unparalleled granularity and understanding of market composition and dynamics to facilitate well-informed decisions.
“The level of granularity offered by these benchmarks is unparalleled,” stated Perry Rahbar, Founder and CEO at dv01. “By breaking through a historically opaque market and offering the benchmarks at no cost, we are making the non-agency RMBS sectors more accessible.”
Kevin Kendra, Managing Director and Head of North American RMBS at Fitch Ratings, highlighted the value of robust benchmarks in risk assessment and expressed confidence in the enhanced capabilities provided by the Fitch-dv01 collaboration.
The Fitch-dv01 Non-Agency RMBS Benchmarks offer unique opportunities for investors and issuers, serving as a crucial tool for comprehensive risk analysis, benchmarking against the broader market, and assessing risk factors at the loan level. Available for free, issuers onboarded with dv01 can benchmark their performance against the broader market, while dv01’s LDA clients can compare individual transactions against the benchmarks.
This collaboration represents a significant advancement in non-agency RMBS analysis, providing stakeholders with unparalleled insights and opportunities for informed decision-making. The benchmarks are accessible through dv01’s Market Surveillance offering.
