In the Jumbo Conduit Space, Talk is Cheap

Stop me if you’ve read one of these types of stories: So-and-so has teamed up with Brand X and plans to form a jumbo conduit. I’ve written a half-dozen of these myself over the past six months. I write them, and then nothing happens. And why does nothing happen? Answer: Because very few jumbo MBS deals are coming to market. As I noted recently, Redwood Trust has done three jumbo deals – over three years. Former C-BASS executives have been sniffing around the business, as well as former mortgage managers/traders and so on from Bear Stearns, Deutsche, Goldman, and UBS. Even Lew Ranieri is looking at the space. But when will the market take off? Or are accounting and regulatory issues and ‘reps and warranties’ standing in the way? Have an answer? Drop me a line at: Paul.Muolo@SourceMedia.com...