Fannie and Freddie issued a combined $17.57 billion in CAS and STACR certificates in the first half of 2022, more than in any full year since CRT was invented. (Includes data chart.)

Much like in other parts of the MBS and ABS markets, spreads are widening on CRT issuance from the GSEs, prompting some changes in activity at Fannie Mae and Freddie Mac.

Investors tendered debt notes worth slightly more than 82% of the original principal amount.

Western Alliance Bank completes non-agency CRT deal; CME Group plans TBA futures; Hertz ABS upgraded thanks to change involving Teslas.

The REIT has built up strong residential and MSR businesses to diversify risk and support its agency prowess. And while it’s held back on increasing leverage, once volatility declines, all that may change.

Wider spreads on CAS and STACR deals suggest demand for the credit risk transfer securities is dwindling.

Modest increases in short-term and medium-term debt may indicate Fannie and Freddie are ready to return to the capital markets.

Volume increased in the risk-transfer deals issued by Freddie and Fannie. However, unpaid principal balance on the covered pools declined. (Includes data chart.)

In the secondary market, issuers have had to deal with diminished demand for mortgage products originated prior to the recent runup in interest rates. Is the worst behind the sector?

The enterprise resumed marketing a credit-risk transfer transaction this week after a brief pause tied to volatility in the financial markets.