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Home » Store » Issuance » Analysts Warn that Credit Quality of New MBS in the TBA Market Is Declining, Increasing Prepayment Risk

Analysts Warn that Credit Quality of New MBS in the TBA Market Is Declining, Increasing Prepayment Risk

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Issuance

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A number of factors are making new MBS in the to-be-announced market less attractive to investors than MBS issued a few years ago, according to a report from Deutsche Bank Securities. “Aggressive servicers keep picking up market share, credit quality keeps softening and loan balances edge up,” the analysts said. “It adds up to declining quality for TBA MBS.” While those trends certainly aren’t new, Deutsche Bank said...
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