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.)

Hedging experts recommend to-be-announced strategies for the post-QE world.

Ginnie Mae could take additional actions on new eligibility requirements if problems emerge in the MSR market.

Issuance of GSE Supers appeared to take a hit in July when Fannie and Freddie implemented new fees on commingled collateral, but production rebounded in August. (Includes two data charts.)

Balance sheet reduction continues to focus on the Fed's Treasury holdings, with falling prepayments limiting the runoff of agency MBS.

The Federal Reserve remained the largest single investor in single-family MBS, though its portfolio finally began to decline during the second quarter. Ginnie led the agency market gains, while non-agency posted a fourth straight quarterly gain. (Includes two data charts.)