Goldman Sachs analysts said investments in MBS and ABS are looking good heading into 2025.

Hodgepodge of non-agency MBS; new commercial MBS tied to Rockefeller Center; limit-order option for lenders looking to sell into TBA MBS; Moody’s downgrades MBS issued by IndyMac in 1997.

Non-agency MBS issuance was up in the third quarter thanks to strong gains in prime and expanded-credit MBS. Home equity and short-term business-purpose loan deals also gained momentum. (Includes three data tables.)

The Blackstone Group wants to make its mark in the non-QM arena and has hired away an executive from Annaly’s Onslow Bay unit.

Non-agency MBS issuers typically ensure properties in the deal are damage free. That standard can be difficult to achieve if a hurricane strikes while the deal is still in the works.

Issuance of non-agency MBS backed by scratch-and-dent mortgages to date this year has surpassed issuance through all of 2023.

Deals rated by Moody’s successfully navigated the end of LIBOR reporting; vintage MBS wrapped by MBIA downgraded; GSEs, Ginnie increase MBS disclosures; ICE offers emissions estimates for MBS; new TBA trading app from South Street Securities.

Delinquencies on securitized non-QMs are increasing. But market participants believe there is so much credit enhancement on the deals, plus home equity, that it’s a non-issue for now.

Delinquencies are projected to increase across asset classes, though some sectors will be hit harder than others.

Initial estimates on Hurricane Helene’s impact; Ginnie to host summit with a focus on nonbanks; MSR financing securitization from Freedom; T-Mobile moves forward with cell phone financing ABS.