For issuers that are able to demonstrate a history of successful hedging, Ginnie Mae could allow them to reduce the level of capital they must hold, according to a senior Ginnie official.
By taking steps to shore up the financial standing of nonbank lenders and servicers, Ginnie Mae is providing confidence to both MBS investors and warehouse lenders.
Investors are showing strong demand for various types of esoteric ABS, including data center securitizations, whole-business transactions and deals tied to music royalties.
Attendance at the ABS East conference hit another record this week, with investors showing strong demand for structured finance products. Issuance is expected to remain elevated, helped by interest rate moves.