MBS and ABS participants gathered in Las Vegas this week, discussing volatility and weak demand from investors. The consensus? Buyers will remain cautious until getting a better handle on the Fed’s actions.

S&P Global said its base-case assessment places the risk of recession over the next 12 months at 40%, “with the risk greater in 2023.”

Spreads on various types of residential MBS are wider than they were during the early days of the pandemic, suggesting that the assets aren’t particularly attractive to investors. However, that isn’t necessarily true.

Ginnie Mae issuance of single-family mortgage-backed securities declined 12.2% in the second quarter of 2022, as rising interest rates dragged the refinance market to new lows. (Includes four data charts.)

Rising interest rates had a major impact on non-agency MBS issuance in the second quarter, with volume down nearly 40% on a sequential basis. Expanded-credit MBS issuance held up better than prime volume, though the ECM sector is now in turmoil. (Includes data chart.)

PRP Advisors issued its first non-agency MBS with newly originated mortgages for investment properties. To this point, Balbec’s non-agency MBS issuance has focused on seasoned mortgages.

Two prominent lenders involved in the expanded-credit market shuttered and planned MBS from major issuers are being downsized or pulled altogether.

Ginnie Mae President Alanna McCargo wants industry participants and governments to find more ways to expand liquidity for small lenders and community development financial institutions.

Loans in a new RPL MBS from MFA were originated in 2005, on average.

Five former Ginnie Mae presidents offered advice to current President Alanna McCargo and her staff at a recent roundtable.