Federal Reserve guidance issued in 2023 has opened up depositories to issue more synthetic-risk transfer securitizations in a market that was historically dominated by European banks.
Rocket is set to issue its second consumer loan ABS; Golub Capital issues rare long-duration CLO; large jumbo MBS from Chase; ratings performing as expected.
In the early years of Fannie/Freddie conservatorship, investors were seeking an explicit guarantee of GSE MBS as part of any reform effort. More recently, they have shown an acceptance for maintaining an implicit guarantee.
The faster prepayment rates on VA loans skew the churn rate of Ginnie Mae multiple-issuer pools, but separating VA loans into their own pools could throw a wrench in the Ginnie MBS market.
One way to get mortgage rates to decline and stay that way is to entice more institutional investors to buy agency MBS. The Federal Reserve is no longer increasing its holdings, but how much room is there at Fannie and Freddie? Answer: more than you might think.
MBS issuance will continue at the GSEs and Ginnie Mae amid a partial shutdown of the federal government, but some changes will be temporarily in place.
Downgrades of securities issued by the subprime auto lender highlight the challenges ABS investors can experience working with loan originators who also service their own production.
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