The latest multifamily transaction continues the enterprise’s move toward Secured Overnight Financing Rate-based bonds.

The severity of some of the proposals in FHFA’s request for information on PACE financing suggests the agency intends to take some drastic steps.

Over the last decade, the U.S. has averaged nearly 56,000 wildfires a year, covering more than 6.5 million acres, and destroying thousands of homes. The problem is acute enough that discussions are underway to create a reinsurance market for wildfire damage.

The new strategic plan lays out three objectives. However, the agency’s parameters are both general and vague. Don’t bet on legislation.

SOFR-linked debt is vulnerable to much higher rate volatility than those referencing LIBOR. This risk was highlighted last month when surging repo rates sent SOFR briefly to a record 5.25%.

Although the non-QM portion of the non-agency market accounted for less than $10 billion in 2018, it could absorb more than $50 billion in former patch loans if it continues its current annual growth rate.

A major influx of refinance business pushed Fannie and Freddie MBS issuance to $120.25 billion in August, their biggest monthly production since January 2013.

The bond market is upside down. Since Aug. 27, all Treasury notes with maturities of one year and lower have had greater yields than the 10-year.