Thanks to restrictions placed on the GSEs, investment-property mortgages are flowing into non-agency MBS. Some lenders are issuing deals on their own while others are turning to aggregators like Credit Suisse.
MBS trading has been relatively quiet the past two months and much lower than early in the year. Then again, traders have other things on their minds, namely what might be said Friday regarding central bank tapering.
Mountain Hawk II CLO class E and Flagship VII class F are the first two collateralized loan obligation tranches to default following the financial crisis more than a decade ago, according to a recent report from S&P.
Despite protests that existing yield maintenance protects investors from prepayment risk on agency CMBS, FHFA directed the Federal Home Loan Banks to limit their exposure.