Coronavirus Disease (COVID-19) Fallout and the Credit Risk Exposure Mapping of U.S. RMBS Sectors



As the Coronavirus Disease (COVID-19) continues to spread, all aspects of the economy, including both consumers and businesses, are undergoing extraordinary pressure. Many government agencies have and/or continue to enact never-before-seen measures to combat the negative effects being caused by the outbreak. These negative effects have included significant trading and issuance disruptions in the U.S. residential mortgage-backed securities (RMBS) market, and each respective RMBS sector could see upcoming credit performance impacts based on the magnitude and duration of any subsequent deterioration to the mortgage and housing markets during this still-developing situation.