Two former members of the Fed’s board called for bank regulators to adjust capital requirements for MBS holdings to better account for interest rate risk.
Bank holding companies reported a solid 5.0% increase in agency MBS held in trading accounts during the fourth quarter. But non-agency MBS and non-mortgage ABS holdings were down. (Includes two data tables.)
The Fed could start cutting rates in June, according to projections by industry analysts. The Fed is also moving toward slowing the runoff of its holdings of Treasury securities and MBS.
Banks, the largest holders of agency MBS among investor groups, aren’t expected to be big buyers this year. Money managers helped to fill the void left by banks last year, but that might not continue into 2024.
Mortgage REITs mostly treaded water in the fourth quarter, although aggregate industry holdings were down slightly from the previous period. (Includes two data tables.)
Nearly all the top bank MBS investors reported gains in the value of their portfolios during the fourth quarter, but values remain well below amortized cost. Ginnie MBS saw the biggest gain. (Includes two data tables.)
MBS account for a small portion of the GSEs’ mortgage portfolios. However, the portfolios increased in the fourth quarter thanks to Fannie adding to its MBS holdings. (Includes data table.)
The Maxex mortgage platform will now connect originators with non-agency buyers of agency-eligible mortgages for investment properties and second homes.
Fed stays course on MBS sales; SFA close to revising data tape for prime non-agency MBS; MBS on watch for rating upgrades by Fitch; subprime auto ABS impairments rise; commercial MBS delinquencies decline; Fannie sees tighter spreads for latest CRT; Morningstar not ready to give positive commercial MBS credit for “mass timber” construction.
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