Annaly Capital Management Corp. and AGNC Investment Corp. continued their MBS-hoarding ways during the first quarter but have had to deal with paper losses and negative hedging marks thanks to lower interest rates.
Ginnie Mae has completed liquidity talks with its 14 largest nonbank issuers, but has yet to say what transpired during the meetings. But all that could change when the agency hosts its annual summit in June.
Quicken Loans and United Shore Financial Services ranked as the top two agency MBS producers in April, dumping the market's long-time leader, Wells Fargo, into third. The megabank still ranked number one on a year-to-date basis.
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]
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