Interest rate and spread volatility has declined in recent months. That’s leading to a reduction in potential returns from agency MBS along with a more stable investing environment.

Freddie continues to lead Fannie in issuance of specified-pool MBS. In the fourth quarter, there were relatively large gains in pools of mortgages with loan amounts below $275,000, as well as pools of Texas loans. (Includes data table.)

Investors are seeking out Ginnie Mae custom pools with better convexity profiles than those of forward trading multiple-issuer pools, causing the convexity of the multi-pools to further deteriorate.

Lower interest rates and potential policy changes are expected to help drive an increase in prepayment activity this year.

A change in how MBS deals are rated led to more than 1,000 upgrades for tranches of deals backed by HELs and seasoned mortgages.

The deal will expand Pagaya’s point-of-sale platform. The fintech also launched a revolving asset-backed funding structure this month.

The complaint argues that equity investors used their market dominance to pressure CLO managers to keep credit spread adjustments artificially high for leveraged loans transitioning to SOFR.

Car manufacturers accounted for about half of the record $165 billion of vehicle ABS issued last year. The share of nonprime loans to car buyers was up slightly from 2024. (Includes three data tables.)

Some 20 auto ABS have hit the market thus far in January, continuing momentum from a strong 2025. Meanwhile, the outlook for collateral performance is negative, though credit ratings are expected to hold.

The trade association asked the CFPB to exclude asset-backed financing transactions from its rule defining larger participants in the auto loan market, regardless of if they are securities or lending transactions.