Attendance at the ABS East conference hit another record this week, with investors showing strong demand for structured finance products. Issuance is expected to remain elevated, helped by interest rate moves.

Issuance of MBS with non-qualified mortgages is growing even as insurance companies increase their purchases of non-QMs as whole loans. Investor demand for the products looks likely to remain strong.

Issuance of vehicle ABS is nearing another record and spreads remain tight, indicating that there’s plenty of investor demand for the asset. There are some concerns about performance, particularly for subprime auto ABS.

Mortgage originations typically decline from the second quarter to the third. This year, however, declining interest rates helped increase refinance production and prop up purchase-mortgage lending.

Annaly says it increased its holdings of agency MBS with higher coupons during the third quarter.

Mr. Cooper group has reduced its servicing staff and is adding to its originations unit.

An expected re-proposal of capital requirements for big banks could lead to banks adding to their holdings of agency MBS.

“Everybody is feeling pretty good right now,” said Joseph Lau, president and chief investment officer of LordCap Green, an investment manager, and chair of FIIN, summing up a poll of attendees at the ABS East conference.

A court recently ruled that the fall in Rocket’s stock price following the release of first-quarter 2021 earnings was driven by substantive disclosures rather than public statements by the company’s CEO.

The increase in the use of primary MI during the third quarter was sharpest in refinances.