Federal Reserve Ends Balance Sheet ReductionAfter 42 straight months of allowing its security holdings to run off, the Federal Reserve finally said “enough.” The central bank’s current balance sheet: $6.134 trillion.
Federal banking regulators issued a final rule to adjust the enhanced supplementary leverage ratio that applies to large banks. The directive aims to increase bank investments in low-risk assets, including Ginnie Mae MBS.
Trade groups suggested improvements to Ginnie Mae’s reverse-mortgage securitization program, many of which were already included in a planned update the agency has gone quiet on.
Home equity investment securitization deal sizes increased with issuance in November and activity is expected to remain elevated in 2026 thanks to strong demand from investors.
Bill Ackman’s plan calls for Treasury to forgive its senior preferred shares, a strategy that some industry observers say would be politically risky for President Trump.
2025 has been a banner year for CLO issuance, mostly from refinance and reset transactions, but bank investment in the sector declined in the third quarter. (Includes data table.)
The $3.46 billion issuance is one of the largest-ever commercial MBS. The data center deal has 10 co-originators including Citi Real Estate Funding, which funded 15.00% of loans in the CMBS.
Impairments on unsecured consumer loans increased the most in Washington, DC, Maryland, and Virginia during October, with borrowers impacted by the partial shutdown of the federal government.
The Fed established the Bank Term Funding Program to help alleviate pressure faced by depository institutions holding MBS and other assets with large unrealized losses. Tracking usage of the BTFP in real-time was limited.
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