“The opportunity for us is clear,” said Christopher Abate, president of Redwood. “Capital needs in this still emergent sector of housing finance continue to rise..."
Pershing Square Holdings, one of the largest institutional investors in Fannie Mae and Freddie Mac common stock, is doubling down on its investment in the two mortgage giants. But it’s taking a different tack, buying up junior preferred stock rather than increasing its holdings of common. The change in strategy was mentioned in the firm’s annual report to shareholders and comes at a time when the chances of housing-finance reform look nil for 2018. How much PSH paid for the junior preferred is unknown. According to the annual report, “Our preferred stock represents approximately 21 percent of our total investment in Fannie and Freddie, or about 1 percent of net assets.”
Securitization of commercial mortgages got off to a solid start in the first quarter of 2018, with the non-agency sector showing more strength than it did a year ago. [Includes one data chart.]
A sharp increase in recent months in the volume of mortgages eligible for sale to the government-sponsored enterprises being placed in non-agency MBS is exposing investors to higher potential losses than deals backed solely by prime jumbo loans, according to Kroll Bond Rating Agency.
The average daily trading volume in agency MBS fell to $215.2 billion in March, the lowest reading of the year and the worst showing since August of 2017, according to figures compiled by the Securities Industry and Financial Markets Association.
The performance and returns offered by credit card ABS differ significantly by the type of firm issuing the deal, according to a recent analysis by Moody’s Investors Service.
PennyMac Mortgage Investment Trust plans to issue $450 million worth of secured term notes collateralized by Fannie Mae mortgage servicing rights and excess receivables. The paper matures in April 2023.
Agency issuance of real estate mortgage investment conduits backed by single-family MBS jumped significantly higher in the first quarter of 2018, led by a huge increase in Freddie Mac production, according to a new Inside MBS & ABS analysis. [Includes one data chart.]
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