Issuance of vehicle ABS is nearing another record and spreads remain tight, indicating that there’s plenty of investor demand for the asset. There are some concerns about performance, particularly for subprime auto ABS.

Residential MBS transactions will likely experience a spike in delinquencies, but performance will return to pre-storm levels within a year, according to Moody’s.

An expansion of publicly held agency MBS means that primary dealers’ MBS holdings have also grown, filling a void left by the Fed.

DSCR and investor loans are seeing strong interest from investors due to the housing market and new rating methodologies.

The key vehicle ABS sector slowed in the third quarter and business-finance securitization stalled. But issuance in the first nine months of 2024 was up 22.9% from last year. (Includes three data tables.)

Ginnie Mae must firm up plans to boost nonbank issuer liquidity for times of stress and set policies for transferring MSR in the event a large servicer exits the market, speakers said at a summit this week.

Ginnie continues to grapple with the liquidity challenges that accompany the nonbanks that currently drive MBS issuance.

It’s getting difficult to project mortgage rates in the near term, putting pressure on agency MBS investors. Still, analysts at BofA Global Research maintain an overweight for holdings of agency MBS.

Goldman Sachs analysts said investments in MBS and ABS are looking good heading into 2025.

The SEC alleged Macquarie Investment Management Business Trust’s valuation practices for collateralized mortgage obligations violated the Investment Advisors Act and the Investment Company Act.