The first quarter should be another earnings blowout for Fannie Mae and Freddie Mac. Right? Maybe, maybe not. MBS issuance is down quarter over quarter and falling rates should translate into negative hedging marks.
The average daily trading volume in agency MBS shot up like a rocket to $269.7 billion in March, one of the best readings in quite some time. But what does it indicate?
The transition away from the London Inter-bank Offered Rate could prompt significant tax issues for MBS and ABS investors. The Structured Finance Industry Group wrote to the Internal Revenue Service and Treasury last week requesting guidance on the issue. LIBOR won’t be available after 2021 and market participants are looking for an alternative reference rate. Various securities are tied to the London benchmark rate in terms of the loans that back the deals and their ...
Thanks to rising long-term interest rates, the negative yield curve that investors fretted about two weeks ago has been snuffed out, causing some market watchers to worry less about a coming recession. As Inside MBS & ABS went to press, the yield on the benchmark 10-year Treasury was at 2.51%, compared to 2.33% for the two-year and 2.44% for the three-month T-bill. As recently as March 25, the 10-year was at 2.36%, lower than short-term rates. Opinions differ, but some analysts ...
Production of new MBS and ABS fell in almost every category during the first quarter of 2019, but several markets showed rebounding volume in March, a new Inside MBS & ABS analysis shows. Preliminary estimates indicate that a total of $310.04 billion of MBS and ABS was issued in the first three months of 2019, a 10.3% decline from the previous three-month period. It marked the softest quarter in new issuance since the April-June cycle ... [Includes three data charts]
A panel of the 8th Circuit Court of Appeals, in a ruling earlier this month, said a reseller of mortgages can demand that an originator repurchase defective loans, even though the contract between the two companies did not specify a timeframe within which the originator had to cure any defects. The decision reversed a lower court’s ruling.
In a class action lawsuit filed last month in the U.S. District Court for the Southern District of New York, a group of institutional investors allege that several Fannie Mae- and Freddie Mac-approved dealers colluded in a systematic scheme to manipulate prices in the secondary market for agency debt.
The Federal Reserve lost its top ranking among residential MBS investors during the fourth quarter of 2018, giving way to the commercial banking sector, according to a new In-side MBS & ABS analysis. [Includes three data charts.]
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