Any RMBS that cannot find a legit home on the free and open market, and needs to be mopped up by Central banks or pseudo gov.t dept's, is by judgement of the free market - SUB PRIME.
Of course, with interest rates as low as they are, more and more RMBS can't find a legit home on the open market, because they simply don't pay sufficient clip.
Low interest rates mean the derivatives market (securitisation of debt) is as defunct as ever. this CLF is designed to plug the holes .
I've no idea how for eg: the FED in tends to unwind these type of holdings.
