The agency market is responding to the decline in mortgage rates since early September with rate-term refinance business doubling in October. ARMs and 15-year loans are also surging. (Includes two data tables.)

The Fed’s shift to rate cuts is helping to increase demand for agency MBS. And other activity at the federal level has prompted a reduction in volatility, providing stability for investors.

With the near-term outlook hazy for the government’s SNAP food assistance program as the shutdown drags on, any reduction or end to payments could add to the mounting financial pressures recipients already face, putting pressure on ABS performance.

While the Fed is moving away from purchases of agency MBS, portfolio managers at PIMCO believe additional purchases are warranted. In the meantime, the GSEs are increasing their investments.

A strong pipeline should help keep momentum going for commercial MBS issuance in the fourth quarter. But long-term challenges remain due to the government shutdown.

Fintech firm Pagaya inked a forward flow agreement with investment firm Castlelake for up to $500 million in auto loans.

Home improvement ABS are attractive for investors because borrowers have high credit scores and low delinquency rates.

The company negotiates debt settlements on behalf of struggling consumers, charging fees for the service. The $153.2 million ABS is linked to fees that have yet to be collected by Americor.

Big increases in securitization of mortgages on office properties, retail and lodging fueled a 30% increase in non-agency CMBS issuance in the third quarter. Agency multifamily MBS volume was up 4% from the second quarter. (Includes two data tables.)

Amid pressure from some lender trade groups, Fannie Mae and Freddie Mac increased their investments in agency MBS during the third quarter. The move can drive down mortgage rates and goose GSE profits. (Includes data table.)