Although traditional underwriting can adequately predict and price for the risk of default on individual mortgages, large pools are subject to risks from unobserved correlations between those loans.

FICC proposes volatility event charge; securitization-as-a-service offering from Financely; Morningstar acquires DealX.

If the GSEs are released from conservatorship, some participants in the agency MBS market insist the to-be-announced market, uniform MBS and Fannie/Freddie CRT activity should remain untouched.

The Trump administration is likely to take actions that will reduce regulation for the MBS and ABS markets. Industry participants are working to shape the actions while also staying nimble.

Fannie/Freddie MBS pools with maximum credit scores of 700 or less were the most sought-after “story” in 2024, with issuance jumping 64% from the previous year. (Includes data table.)

Public disclosure of credit-risk transfer issuance by banks is limited, but investor demand looks strong and activity is likely to increase.

The investment in the Figure Connect loan marketplace will be used for the purchase of non-agency assets.

Threats of the potential closure of the Department of Education could massively expand private student loan ABS issuance.

A bankruptcy could impact the firm’s outstanding securitizations, including forced replacements of the transaction manager/servicer.

Demand for MBS/ABS remains high, helped by interest rate trends. But President Trump is a wildcard, prompting some caution among investors.