Investors in Freddie’s new When-Issued K-Deal have the right to exchange them for K-deal A-M certificates to be issued in the future.

Experts say a modest taper in Fed MBS purchases is unlikely to have a serious impact on bond prices or the housing market.

MISMO and SFA are separately working to update the ASF dataset for non-agency MBS; BNY Mellon is offering new agency MBS service; a relatively rare downgrade for commercial MBS.

Several top REITs hunkered down in the choppy agency MBS market during the second quarter, while others continued pushing into MSRs and the non-agency mortgage sector. (Includes data chart.)

MBS trading has been relatively quiet the past two months and much lower than early in the year. Then again, traders have other things on their minds, namely what might be said Friday regarding central bank tapering.

Are Ginnie Mae servicers still making 500 basis points to 600 bps on early buyouts? So we hear. Also, there’s an angle for smaller players.

Bank investment in agency MBS, especially Fannie/Freddie paper, continued to grow during the second quarter, though not quite as much as the overall market. (Includes two data charts.)

Late last month, inter-dealer brokers began using SOFR for dollar swaps, allowing ARRC to finally recommend use of Term SOFR. 

Analysts say dollar rolls and spec pools still provide an opportunity for investors in the agency MBS market.