Conditions are improving, according to analysts at BofA Securities, citing lower rate volatility...

More than $1 trillion of agency servicing rights changed hands in 2022. While bulk MSR transfers soared last year, the coissuance market was hammered by the sharp decline in agency business. (Includes three data charts.)

The key vehicle ABS sector took a big hit in the fourth quarter but still accounted for over 40% of total ABS issuance last year. Analysts say market fundamentals are moving in the right direction. (Includes two data charts.)

The insured-mortgage market was more resilient because 65.2% of agency purchase loans carried some primary coverage in 2022.

Average loan sizes generally declined in the agency market last year. But rising mortgage rates pushed agency DTI ratios higher as the year went on. (Includes three data charts.)

The only gain was the niche market in securitized second-lien mortgages.

The non-agency MBS market fizzled badly at the end of 2022 as new issuance declined in all the key product categories. The ECM sector held up a little better than the prime non-agency market, while NPL/RPL securitization tanked. (Includes three data charts.)

Despite a sharp decline in primary market originations, the agency MSR market continued to grow in the fourth quarter. Ginnie servicing was the fastest-growing segment. (Includes two data charts.)

Another way to view it: 2022 was the seventh-highest annual output ever...

Residential MBS issuance took the biggest hit from skyrocketing interest rates in 2022, but commercial MBS and ABS production were also down significantly from the previous year. (Includes three data charts.)