The timing lag between primary market originations and MBS issuance led to a sharp increase in securitization rates in the first quarter of 2022. (Includes data chart.)

Bank holding companies reported a hefty 17% decline in the value of MBS in trading accounts during the first quarter. ABS and commercial MBS investment was up slightly. (Includes data chart.)

Sponsors of non-agency mortgage-backed securities have been busy of late. One goal is to clear out older, lower-yielding paper. At least two recent deals fit the bill and more could be on the way.