Market participants often classify subprime mortgage-backed securities as part of the RMBS market and classify agency mortgage-backed securities and private label mortgage-backed securities as part of the market for asset-backed securities.

Question

Quizplus · Accepted Answer

Subprime mortgage-backed securities are indeed part of the Residential Mortgage-Backed Securities (RMBS) market, but agency mortgage-backed securities and private label mortgage-backed securities are also classified under the RMBS market, not under the broader market for asset-backed securities (ABS). ABS typically refers to securities backed by non-mortgage assets.

Market Participants Often Classify Subprime Mortgage-Backed Securities as Part of the RMBS