The GSE CRT market reopens post COVID-19 disruption: A new normal? Or more troubles on the horizon?

This article takes a closer look at the COVID-19 disruption’s impact on the GSE CRT market—including subsequent changes to new issuance deal structure, pricing, and capital markets versus reinsurance allocation. Post-COVID-19 GSE CRT issuances have featured increased credit enhancement for issued tranches, increased pricing levels, tightened reinsurance versus capital markets pricing, and some changes in the reinsurance versus capital markets allocation.