Despite protests that existing yield maintenance protects investors from prepayment risk on agency CMBS, FHFA directed the Federal Home Loan Banks to limit their exposure.
At one point during the pandemic, used car prices were up 50% year over year. Now, appreciation is around 20%, prompting speculation that auto ABS performance will take a hit.
While ESG factors have mattered since the 1990s, KBRA analyst Eric Thompson said questions such as whether an asset will be impacted by rising sea levels are gaining more prominence.
Over $60 billion of new CLO issuance came to market in the second quarter of 2021, along with a whopping $70 billion in refinance and restructuring activity. (Includes two data charts.)
With Fannie’s Connecticut Avenue Securities on ice for over a year, the supply of single-family credit-risk transfer debt in the market has declined significantly. (Includes data chart.)
Any reform to the executive compensation structure at Fannie Mae and Freddie Mac should be made with an eye toward the companies eventually exiting conservatorship, the trade group said in a comment letter to the FHFA.