Non-agency MBS was the fastest-growing niche in residential securities during the second quarter as outstanding volume reached its highest level since 2017. (Includes two data tables.)

Kroll Bond Rating Agency is facing increased competition in assessing non-agency mortgage-backed securities.

Fitch, S&P and Moody’s continued to dominate the ABS market’s key sectors: vehicle and business finance. The residential MBS business is spread out more among the five major ratings services. (Includes two data tables.)

The biggest growth was in agency pass-throughs, while bank trading accounts saw a small decline in agency CMOs. (Includes two data tables.)

While bank call reports showed a small decline in CLO holdings, analysts estimate that CLOs held in loan format were up in the second quarter. (Includes data table.)

Combined, 17 MBS-focused REITs held $213.74 billion of residential MBS at midyear.

Annaly Capital Management remained the biggest REIT MBS investor at midyear, although AGNC had the largest portfolio of agency MBS. REIT holdings of non-agency MBS declined. (Includes two data tables.)

TD Bank ranked as the top U.S. bank investor in non-mortgage ABS at the end of the second quarter, after notching gains in both securitized auto loans and business finance. (Includes two data tables.)

Issuance increased by 7.8% from July and marked the strongest monthly total since November 2024.

Nonbank lenders continued to dominate the agency single-family market, accounting for 76.6% of new business in August. Nonbanks delivered more than 80% of agency refinance loans last month. (Includes two data tables.)