The Federal Reserve’s runoff of Treasuries and agency MBS remains far below expectations.

Freddie recorded the biggest decline in the agency market, while Ginnie dodged the worst of the downturn. Agency multifamily MBS issuance was up, however, as was non-mortgage ABS production. (Includes three data charts.)

When the financial outlook weakens, equity prices suffer and debt prices soon follow. Mortgage REITs are no exception. But overall, the cohort is holding up better than nonbank lender/servicers.

Industry groups argue that assessing fees on commingled collateral could undermine market confidence in the UMBS.

The REIT has built up strong residential and MSR businesses to diversify risk and support its agency prowess. And while it’s held back on increasing leverage, once volatility declines, all that may change.

An unexpected surge in inflation briefly created a “no-bid” moment for agency MBS.

Weak MBS trading activity usually isn’t a good sign. To some it portends a lack of liquidity, to others cloudiness in a market that has lost its way. Regardless, daily MBS trades in May were not pretty.

Fannie Mae will publish refi application activity on a weekly basis, helping MBS investors better gauge prepayment trends.

When it comes to borrowing money in the secondary market these days, mortgage servicing rights are a great form of collateral. Reason? Rates are high and the asset will stick around for a long time.

The impact of the Federal Reserve’s balance sheet reduction is expected to be equivalent to a 50-basis-point increase in the federal funds rate.