A strong pipeline should help keep momentum going for commercial MBS issuance in the fourth quarter. But long-term challenges remain due to the government shutdown.

Fintech firm Pagaya inked a forward flow agreement with investment firm Castlelake for up to $500 million in auto loans.

Home improvement ABS are attractive for investors because borrowers have high credit scores and low delinquency rates.

The company negotiates debt settlements on behalf of struggling consumers, charging fees for the service. The $153.2 million ABS is linked to fees that have yet to be collected by Americor.

Beginning in December, the Federal Reserve will adjust its balance sheet strategy and no longer reinvest proceeds from payoffs of agency MBS into more MBS.

Pennymac is issuing a non-agency MBS with owner-occupied loans that are eligible for sale to the government-sponsored enterprises.

Non-agency MBS issuance is up sharply this year and is expected to rise again in 2026. Delinquencies on the loans are increasing but investors are counting on cushions from home equity to help prevent losses.

SEC is looking to revise disclosure requirements to boost issuance of publicly-registered deals. Investors see some positives in private placements, which might not be easy to replicate in the public market.

Rising delinquencies on auto loans and recent bankruptcy filings by subprime auto lenders may have spooked some ABS investors.

MBS is the place to be right now with average daily trading volumes at their peaks for the year.