Four deals were brought to the market in the past two weeks and more are in the works. However, issuance will slow as the recent activity was backed by loans originated before non-QM lenders halted production.
It’s increasingly possible the Federal Reserve will add jumbo MBS to the assets eligible for TALF, according to Structured Finance Association CEO Michael Bright.
The use of extensions on subprime auto ABS more than doubled in April on a monthly basis. The outlook for performance is uncertain with enhanced unemployment benefits set to end in July.