FINRA plans to implement margin requirements for agency MBS transactions in May. The requirements, which have been delayed for years, will apply to broker-dealers.

Fannie had the lowest output of the three agencies in August...

Margin requirements for the to-be-announced market received another approval from the SEC this week. However, a legal challenge could further delay implementation.

Delinquencies were largely up across the board in the agency MBS market in the second quarter. Only 120-plus-day delinquencies declined compared to the end of March. (Includes data chart.)

The Bank Term Funding Program has issued more than $100 billion in outstanding funding tied to agency MBS and Treasury securities held by banks.

Annaly Capital Management highlighted how environmental, social and governance principles factor into its activities. Leaders at the REIT said ESG analysis can help Annaly deliver “superior” returns.

Numerous industry participants support FHFA developing a social bond designation for single-family MBS issuance from the GSEs. There are lingering concerns about the impact on the agency MBS market and borrower privacy.

With the U.S. debt ceiling resolution far from certain, investors in agency MBS are being careful in terms of financing and leverage. A U.S. default also has ramifications for outstanding MBS and ABS.

Banks have gone from being reliable buyers of agency MBS to cautious holders of the securities, prompting wider spreads and opportunities for nonbank investors.

Sure, big banks have sizeable unrealized losses from MBS classified as held-to-maturity. But as long as the banks don’t sell the MBS, the losses remain unrealized.