Only 4% of MBS and ABS assessed by Fitch received a positive rating impact from ESG factors. Meanwhile, S&P is set to expand its assessments in the ESG space.
The reputation of being a safe, liquid asset adds about 47 basis points to the “convenience premium” of agency MBS over investment grade bonds, according to the National Bureau of Economic Research.
Issuance of agency real estate mortgage investment conduits/collateralized mortgage obligations was essentially flat in 2021, with Ginnie sharply increasing its volume while GSE issuance declined. (Includes data chart.)
Billions of dollars in delinquent FHA/VA mortgages are still available for purchase in the whole-loan market if you have the knack for rehab-and-release. But for how long?
In case you haven’t noticed, MBS prices are sagging a bit these days, courtesy of higher interest rates. Trading volume is lower, but not exceedingly. What’s ahead? Mostly fog.