Most of the industry's pullback in ABS holding resulted from portfolio trimming by the three largest bank investors. Total ABS outstanding rose sharply in the second quarter.
Year-to-date CLO issuance lagged behind the pace set in 2018 because of a slowdown in refinance transactions. Octagon Investment Partners was the most active sponsor at midyear.
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.
Some 71% of loans processed through an automated underwriting system last year went through Fannie Mae's Desktop Underwriter platform, including a substantial number of loans securitized by Freddie Mac and Ginnie Mae.