The Federal Reserve’s runoff of Treasuries and agency MBS remains far below expectations.

CLOs managers are responding to tough market conditions by making changes to their products, for example proposing to remove buckets for discounted assets.

Freddie recorded the biggest decline in the agency market, while Ginnie dodged the worst of the downturn. Agency multifamily MBS issuance was up, however, as was non-mortgage ABS production. (Includes three data charts.)

Two prominent lenders involved in the expanded-credit market shuttered and planned MBS from major issuers are being downsized or pulled altogether.

It’s not every day that bond-investing giant PIMCO pulls out of a market, but for now the whole-loan buyer is avoiding non-QMs. Also, part of the story: the closures of FGMC, Maverick and Sprout Mortgage.

Moody’s and other rating services are optimistic about the near future of the CMBS market, with continuing drops in delinquencies expected. Some sectors are performing worse than others.

Investors tendered debt notes worth slightly more than 82% of the original principal amount.

Ginnie Mae President Alanna McCargo wants industry participants and governments to find more ways to expand liquidity for small lenders and community development financial institutions.

Western Alliance Bank completes non-agency CRT deal; CME Group plans TBA futures; Hertz ABS upgraded thanks to change involving Teslas.

Sponsors of non-agency mortgage-backed securities have been busy of late. One goal is to clear out older, lower-yielding paper. At least two recent deals fit the bill and more could be on the way.