Browse articles from all of our Newsletters related to FRB.
December 2, 2016 - Inside MBS & ABS
Analysts at Wells Fargo Securities worry that the post-election rate shock is not a positive omen for bank and overseas investors in MBS. Since the U.S. presidential election, the 10-year yield has sold off by 55 basis points in a matter of two weeks, they said in a recent client note. Although banks and overseas investors are typically looking to buy on dips, large selloffs do not bode well for demand from these investors right after a rate shock. For banks, a large rate shock results in a hit on their regulatory capital. According to their calculations, during the week ending Nov. 9, 2016, the net realized gains on bank portfolios declined...
December 2, 2016 - Inside MBS & ABS
The average daily trading volume in agency MBS hit a yearly high of $224.4 billion in October, according to figures compiled by the Securities Industry and Financial Markets Association. With liquidity improving, the year-to-date average now stands at $206.6 billion, compared to $198.7 billion in 2015. The November reading should be out by the end of next week. Investors might be...
November 23, 2016 - Inside MBS & ABS
An increase in interest rates could take place relatively soon, if incoming economic data warrant it, Federal Reserve Chair Janet Yellen told members of Congress last week. Then again, maybe not. The Fed has held off...
November 18, 2016 - Inside MBS & ABS
Investors are trying to make sense of the new political/economic landscape following the election of Donald Trump to be the next president, and how best to navigate his uncertain, and at times contradictory, signals during his campaign. Much of the conversation over the last week has focused on the likely effect the new regime will have on the Federal Reserve and its chair, Janet Yellen. Trump, who has been a fierce critic of the U.S. central bank, has indicated he wont outright replace Yellen, but neither will he nominate her for a second term. And of course, what happens with the Fed will spill over, one way or the other, into the financial markets. The Fed will normalize...
November 4, 2016 - Inside MBS & ABS
The Federal Reserves Open Market Committee appears to be repeating last years story line of promising multiple increases in interest rates at the start of the year, only to delay and delay until the final month, when it finally raised rates a bare minimum of 25 basis points. This month, the Fed passed on another opportunity to raise rates and suggested to many in the market that it finally will ratchet the federal funds target rate up a notch at its final meeting of the year in mid-December. The FOMC said the labor market has continued to strengthen and economic activity has picked up from the modest pace seen in the first half of this year. Although the unemployment rate is little changed in recent months, job gains have been solid, the committee said. Meanwhile, household spending has risen...
October 21, 2016 - Inside MBS & ABS
The average daily trading volume of agency MBS hit $223.2 billion in September, the strongest reading of the year and a sign that liquidity in the market has improved. According to figures compiled by the Securities Industry and Financial Markets Association, daily trading volume increased by 17.7 percent compared to the same month a year ago. But the year-to-date averages are much closer: $206.6 billion for 2016 compared to $199.9 billion last year. In the agency space there is...
- GSE Private MI Profile 3Q16
- GSE Seller Profile 3Q16
- Top 20 Lender Profiles 2Q16
- Mortgage Profitability 2Q16
- Top Players 2Q16
- GSE Repurchase Activity Thru 2Q16
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