The outlook for Fed action is largely positive for MBS investors, with interest rate volatility expected to decline. Still, rate cuts will introduce a risk that has been limited for years: prepayments.

AGNC Investment gained some ground on REIT-leader Annaly Capital Management in the agency MBS sector. Industry holdings of non-agency MBS and whole loans fell in the second quarter. (Includes two data tables.)

Common Securitization Solutions looks to use its data and risk management skills to expand the services it provides the GSEs.

Ginnie issuers say cyber reporting standards are too onerous; SEC fines CLO manager; SEC fines rating services for inadequate recordkeeping; T-Mobile ABS sputters; DoubleLine reduces management fee.

Wells Fargo moved deeper into Ginnie Mae pass-throughs while JPMorgan Chase upped its holdings of GSE pass-throughs. Bank of America, Charles Schwab and U.S. Bank all reduced their MBS holdings in the second quarter. (Includes two data tables.)

The executive president of the Mexican Association of Retirement Fund Administrators noted that some Mexican investors see U.S. MBS as a riskier investment than U.S. Treasuries.

Lender liquidity accounts of the government-sponsored enterprises grew faster than profits as volumes increased. (Includes data table.)

Agency MBS investors are looking forward to the Fed cutting interest rates twice this year. However, they warned that something unexpected could prevent the Fed from cutting rates in September.

Two large REIT investors in agency MBS incurred losses in the second quarter, due to interest rate volatility and an unaccommodating monetary policy stance. Still, they are optimistic about the future.

Fed researchers quantify the effect of BTFP’s use of par valuations for collateral during the 2023 banking crisis.