Refinances of outstanding single-family rental securitizations are accounting for a growing share of new issuance. The trend has been prompted, in part, by home price appreciation, which has made it more difficult for some firms to source new properties. Some $4.41 billion of single-family rental securities were issued in the first half of 2018, according to Inside MBS & ABS. Blackstone Group’s Invitation Homes dominates the sector. The firm, which merged with Starwood Waypoint Homes ...
Closures of stores that issued credit cards haven’t prompted a significant uptick in charge-offs in recent years, according to Fitch Ratings. Analysts suggest that consumer-related trends remain the main driver of credit card ABS performance, and performance looks poised to decline. A number of retail card issuers have declared bankruptcy, closed large numbers of stores or liquidated in recent years. Fitch analyzed the relevance of the aggregate number of locations closed per ...
Fannie Mae and Freddie Mac reported $6.96 billion in net income during the second quarter, down 3.2 percent from the previous quarter, and the duo have actively been working to trim their retained portfolios. Freddie has reduced its portfolio to $236.4 billion in the second quarter, well below the 2018 yearend purchase agreement cap of $250.0 billion. Its portfolio declined 1.9 percent in the second quarter but was down 16.7 percent from June 2017. Some 41.8 percent of ...
A report from a Standard & Poor’s structured finance team says several collateralized loan obligation transactions rated between 1994 and 2009 are about to close with minimal defaults while a re-port from Moody’s Investors Service warns that apparently harmless provisions of CLOs can actually increase risks to investors. It has been nearly a decade since the last CLO 1.0 deal was issued, and the last of these transactions are nearing the end of their lives, according to ...
The prepayment rates for ABS backed by Property Assessed Clean Energy programs are on the rise which can have mixed effects on the notes, warned Morningstar Credit Ratings in a new report. The monthly annualized conditional prepayment rates averages for residential PACE ABS rated by Morningstar have been increasing from “single digits to high teens” since 2016, said the credit rating service. “Investors should pay attention to prepayment rates because they can have ...
Sales of agency mortgage servicing rights were up in the second quarter, mostly as a result of heavier coissuance volume, according to an exclusive new Inside Mortgage Trends analysis and ranking. Servicing rights on $129.57 billion of agency mortgages changed hands during the second quarter, up 6.4 percent from the first three months of the year. The data are culled on Fannie Mae, Freddie Mac and Ginnie Mae mortgage-backed securities ... [Includes three data charts]
As the financial markets begin transitioning from the London Interbank Offered Rate, which is set to go away in 2021, Fannie Mae became a pioneer in a replacement index by issuing Secured Overnight Financing Rate (SOFR) securities. The government-sponsored enterprise announced that the three-tranche $6 billion SOFR debt transaction was created to accelerate the development of the SOFR market. And Fannie encourages other issuers in debt markets to follow. The inaugural transaction garnered strong investor demand for the floating rate notes from a diverse investor base, according to Fannie.
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