SFA and other trade groups are seeking major changes to the re-proposed bank capital requirements. MBA raised concerns that non-agency MBS would receive more favorable capital treatment than GSE MBS.
Most analysts say that higher inflation means rate cuts are off the table for Fed Chair Kevin Warsh, even though President Trump still says he still wants lower rates.
A number of nonbanks involved in the ABS market have opted for bank charters in recent years. The capital requirements and oversight that come with that status will benefit nonbank ABS, Moody’s said.