Issuance of agency MBS during April-June rose 43% from the first quarter of the year, with gains posted across the board. Combined issuance by Fan-nie Mae, Freddie Mac and Ginnie Mae hit $330.65 billion.
Grapevine: Declining interest rates can cause MBS investors to fret over prepayment speeds, but several players are using the reduction to sell debt, issue new stock and engage in buyback programs.
It's not everyday that an MBS-investing REIT weighs in on GSE reform, but then again, Annaly Capital Management isn't just any REIT — it's the nation's largest. Bottom line: Annaly wants more MBS guarantors.
FHFA Director Mark Calabria continues to push for the mortgage market to have multiple guarantors to compete against Fannie Mae and Freddie Mac. But Moody's believes there are huge risks in such an endeavor.
Agency MBS trading hit a yearly low in May. What lies ahead will be determined by the Federal Reserve. Will the central bank ease credit? And if so, what will happen to MBS prepayments?
In the MBS Grapevine this week: The lowest rates ever (maybe) and concerns about future GSE earnings from regulator Mark Calabria. Also, Ginnie Mae seeks committed capital.
MBS investors are keeping a close eye on the auction of Ditech Financial. The troubled nonbank is a top-ranked servicer of Ginnie Mae product. The biggest fear: The company will run out of cash.
All eyes are now focused on the TBA market to see if the new single security from Freddie Mac and Fannie Mae creates the expected bump in liquidity and efficiency.
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