Fannie and Freddie pared back their portfolio holdings designated to support future business in the third quarter. Earnings were down from an eight-year high reached in the second quarter. (Includes data chart.)
After the FHFA revealed its intent to reduce GSE capital requirements for CRT exposure, Fannie announced plans to get back in the market. (Includes data chart.)
A slowdown in primary market originations and new Ginnie MBS issuance is reflected in lower loan liquidation as borrower payoff remains the largest reason for removal.
Structured finance production held at historically high levels in the third quarter, though most sectors were down. Growth pockets included non-agency MBS and ABS. (Includes four data charts.)
The definitions used by non-agency MBS lenders and issuers aren’t consistent and many terms haven’t been updated since 2009. The MISMO and the SFA are separately working on setting new standards.
Most of the modest gain in bank ABS investment came from a handful of large banks buying deals backed by unsecured consumer loans, a fast-growing market. (Includes two data charts.)
Mountain Hawk II CLO class E and Flagship VII class F are the first two collateralized loan obligation tranches to default following the financial crisis more than a decade ago, according to a recent report from S&P.
Over $60 billion of new CLO issuance came to market in the second quarter of 2021, along with a whopping $70 billion in refinance and restructuring activity. (Includes two data charts.)
With Fannie’s Connecticut Avenue Securities on ice for over a year, the supply of single-family credit-risk transfer debt in the market has declined significantly. (Includes data chart.)
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