MBS trading bounced back in September to highs not seen since the spring. As for meaning, that’s a hard one. At the very least, newer higher yielding securities might be in short supply.

Declining home prices have MBS investors worried about potential losses and downgrades. Officials from rating services said their assessments include significant stresses.

Credit Suisse settles legacy non-agency MBS lawsuit; Fannie and Freddie to publish aligned social disclosures for single-family MBS; bank trade groups seek change in FHFA’s capital treatment relating to access of FHLBs; Ginnie portal to re-open Oct. 25; aviation ABS investors in holding pattern on collateral in Russia.

AGNC Investment and Annaly Capital Management provided preliminary third-quarter results this week. Book value declined and leverage increased on a sequential basis.

Ginnie Mae believes the year-plus implementation period should give potentially affected issuers enough time to plan and execute strategies for coming into compliance its new risk-based capital requirements.

Agency single-family MBS production continued to erode in the third quarter despite a modest pickup in purchase loans. Meanwhile, issuance fell sharply in the commercial MBS and ABS markets. (Includes three data charts.)

Investors tend to buy mortgage REIT stocks for the dividends they pay. But the sector, overall, has suffered this year, thanks in part to the widening spread between Treasuries and MBS.

The cocktail of recessionary risk and inflation is putting pressure on the performance of MBS and ABS. Some sectors will perform better than others.

The government guarantor is considering making its pandemic-era pass-through assistance program credit facility for nonbanks permanent. And it comes at a pressing time.

JPMorgan Chase continued to hold the biggest portfolio of MBS/ABS in trading accounts. Bank holding companies posted a 14.9% increase in agency MBS held in trading accounts. (Includes data chart.)