Fintech firm Pagaya will issue an ABS backed by small, short-term consumer loans originated through point-of-sale service Klarna.

The Federal Reserve is allowing its MBS holdings to run off in a predictable manner; Ginnie provides more details on change to buydown policy; Cerberus affiliate issues securitization of closed-end second liens.

Investors are showing a greater interest in ABS this month, following a rocky April. The recent softer tone taken by President Trump on tariffs seems like the reason.

It’s not clear how the Federal Housing Finance Agency’s decision to cut the DEI and ESG programs at the GSEs will impact MBS issuance.

A survey by Moody’s found that a relatively small share of banks have issued credit-risk transfer deals in recent years.

Amid a volatile month, Ellington Financial paused plans to issue an expanded-credit MBS and instead invested in MBS and ABS from other firms.

Vehicle retailer AutoNation has so far focused on nonprime borrowers.

CMBS securitizers can exploit an exemption in risk retention rules to unload riskier tranches. Researchers said this may signal lower loan quality to investors.

The agency moved to limit the volume of mortgages with buydowns flowing into its MBS program. The restrictions apply only to temporary buydowns, which are less concerning to investors than mortgages with a permanent buydown.

With specified pools accounting for half of GSE single-family MBS issued in the first quarter, the most popular option was MBS with high social-mission scores. (Includes data table.)