Commercial banks upped their MBS holdings by 6.4% in the first quarter, staying ahead of a still-hungry Federal Reserve that boosted its portfolio by 7.1%. (Includes two data charts.)
Nearly two-thirds of the CLO and CDO issuance in the first quarter of 2021 came from restructuring and refinancing of earlier transactions. For new production, broadly syndicated loans were the biggest source of collateral. (Includes two data charts.)
What a difference a year can make. Last spring, the REIT was getting margin-called and selling MBS. Today, it’s buying huge mortgage banking franchises.
Slumping purchase-mortgage business in the agency MBS market was a big factor in the 6% downturn in total MBS-ABS-CMBS issuance in the first quarter of 2021. Agency business rebounded in March, however.