Can a financial innovation in the Chinese capital market serve as a hedge for MBS?

SEC exempts MBS and ABS issuers from cybersecurity disclosure requirements; plethora of novel ABS issuance; student loan ABS defaults hit record high.

If the proposal is implemented, some mortgage originations that have gone into bank portfolios would likely go into MBS instead. The impact on bank investment in MBS and ABS looks to be much more modest.

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

New business and MBS issuance jumped in the second quarter. However, those upticks didn’t account for the spike in profitability at Fannie Mae and Freddie Mac. (Includes data chart.)

Real estate investment trusts are optimistic about the agency MBS market even with anticipated short-term volatility amid turmoil in the banking industry.

In a reversal of strategy, regional banks plan to place as much as 70% of their mortgage originations in the secondary market.

The privately-owned financial services company has been offering subprime auto ABS for decades.

There’s an MI-linked CRT from Essent, a seasoned CRT from Freddie Mac and a non-agency deal from Jefferies; Goldman to issue commercial MBS with Amazon shipping facilities.

Investors are getting pickier on what they’re willing to pay for non-QM paper, at least compared to earlier in the year. Meanwhile, Acra Lending is once again toying with the idea of issuing its own MBS.