Interest rates have fallen recently but are now going the other way. As for MBS trading and creation, it’s not a pretty picture these days.

Financial issues at Bed Bath & Beyond and Tuesday Morning could lead to performance problems in commercial MBS.

Music investment company Hipgnosis Song Management is set to issue an ABS tied to royalties on 980 songs. The deal received a slightly lower rating than similar ABS from other firms.

The Federal Reserve giveth and taketh away in the agency MBS market. And now that the central bank’s investment activity is significantly curtailed, investors are seeing some opportunities in the sector.

Both the size and the composition of the portfolios of Fannie Mae and Freddie Mac have shifted as the mortgage market slows. (Includes data chart.)

Two prominent non-QM lenders failed in recent months amid volatility in the market. Non-agency aggregators suggest that the issues were lender-specific and the market is improving.

Net interest income in the second quarter was up 28% year over year at Fannie, while investment gains were down 75% at Freddie.

A study by the European Central Bank found evidence that rating services respond to their competitive environments by either inflating ratings or altering the strictness of their rating standards.

The Department of Housing and Urban Development is bolstering efforts to expand and support secondary market access for community development financial institutions through Ginnie Mae.

Various tech developments are helping to improve operations in the MBS market. Digital mortgages, blockchain and loan-level disclosures are areas of particular interest.