With the Fed widely expected to reduce the federal funds rate next week, demand for agency MBS is rising. Banks are also projected to add to their holdings, though their buying might be somewhat delayed.
Upcoming changes to federal student loan payment options, combined with the resumption of payments and reporting on outstanding loans, will impact ABS, according to analysts at Morningstar DBRS.
Truist hasn’t issued a similar deal since its formation by merger. And U.S. Bank is marketing its second commercial and industrial loan CRT deal of the year.
The sharp decline in GSE Supers issuance was the result of the Federal Reserve wrapping up the conversion of its Fannie/Freddie MBS into aggregated form in the first quarter. (Includes two data tables.)
Issuers of MBS backed by non-qualified mortgages are starting to include floating-rate tranches, a feature more commonly seen in jumbo MBS and certain other asset classes.