Freddie stood out as the only agency to do more single-family business in November than in the previous month, and some of that was because several top sellers shifted some GSE business away from Fannie.
To many in the industry, it looks as though the worm has turned and lower rates are a sure thing, thanks to recent benign inflation readings. But maybe not and that’s why CHLA is continuing its efforts regarding MBS buyers and more.
The red-hot vehicle ABS market saw intense competition between S&P and Fitch for ratings supremacy. Kroll rode the resurgent ECM MBS market to boost its share of rated issuance. (Includes two data tables.)
REIT values can rise and fall depending on interest-rate swings. The good news is that rates have steadily dropped the past five weeks. The bad news: A rate cut by the Fed will need a recession to occur first.
Capitol Federal Savings Bank took a loss of about $200 million on the sale of $1.3 billion of securities (largely MBS) with low interest rates. The bank reinvested the proceeds in higher-yielding assets and paid off some debts. Pacific Premier Bank made a similar move this week.
MBS creation is weak thanks to high mortgage rates and anemic refis but one positive for the market is the October increase in agency trading volumes. A real sign of hope or a head fake?
The Federal Reserve’s push to run MBS off of its balance sheet may cause interest rates to stay high even after quantitative tightening measures cease.
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