The Wall Street trade group cautioned that releasing the GSEs from conservatorship without an explicit government guarantee will scare investors and reduce the liquidity in the TBA market.
The Federal Deposit Insurance Corp. plans to ease disclosure requirements for privately placed residential MBS under a rule guaranteeing the agency won’t reclaim securitization assets upon a bank’s failure.
Issuance of whole-business ABS is on track to break a record this year, with $4.6 billion in volume at halfway mark. Issuers include fast food companies, aftermarket car services and spa services.
Declining interest rates helped fuel a securitization boom at Fannie and Freddie in the second quarter. However, falling rates will force writedowns tied to derivatives.
A new private activity bond will fund construction of tolled express lanes near Washington, DC. Toll revenues on similar bonds have been strong and rating services affirmed BBB ratings on outstanding issuance.
Grapevine: Declining interest rates can cause MBS investors to fret over prepayment speeds, but several players are using the reduction to sell debt, issue new stock and engage in buyback programs.
It's not everyday that an MBS-investing REIT weighs in on GSE reform, but then again, Annaly Capital Management isn't just any REIT — it's the nation's largest. Bottom line: Annaly wants more MBS guarantors.
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