CMBS collateral saw $842.6 million in new appraisal reduction amounts in the first six months of this year and may double the 2023 total by yearend, putting pressure on recoveries.

The smoothie maker has some differing characteristics compared with other fast-food operators with whole-business ABS.

Used equipment inventories are on the rise, adding to other agriculture equipment ABS risks posed by high interest rates and lower equipment demand, according to Moody’s Investors Service.

UBS disclosed that it’s set to sell Select Portfolio Servicing, a major servicer of loans in non-agency MBS, to an unidentified buyer.

Sen. Jack Reed, D-RI, warned that credit-risk transfer issuance by banks could prompt a financial crisis. He asked the Fed to place limits on bank CRT activity.

A bank sought approval from the OCC to have a special purpose vehicle treated as a securitization for capital requirement purposes. The OCC demurred, noting that just because the transaction was an SPV didn’t make it an ABS.

JPMorgan Chase has begun marketing a rare prime jumbo MBS backed entirely by adjustable-rate mortgages.

The executive president of the Mexican Association of Retirement Fund Administrators noted that some Mexican investors see U.S. MBS as a riskier investment than U.S. Treasuries.

Residential MBS is projected to do fairly well during a mild economic downturn, while auto and student loan ABS may experience some issues, according to projections by Moody’s Investor Service.

Finally, a true bond market rally and lower mortgage rates! Well, don’t bet the bank quite yet.