The Fed won’t alter its plans for runoff in its MBS holdings amid recent bank failures; fate of Select Portfolio Servicing remains unclear.

On any given day, a buyer can be found for two of the most liquid assets out there: Treasuries and MBS. But that doesn’t mean they can be sold at a profit. If anything, the bank liquidity crisis reminded us: Don’t put all your assets in one held-to-maturity basket. (Includes data chart.)

The Bank Term Funding Program comes in the wake of Silicon Valley Bank incurring losses on sales of MBS at current prices, which it undertook to pay back depositors.

Second-level GSE MBS issuance involving excess spread from servicing increased in 2022. Private-equity firms and real estate investment trusts are among the investors buying excess servicing.

In a book released this week, former FHFA Director Mark Calabria provides insight into some of the key policy decisions during his abbreviated tenure.

About half of recent loan curtailments have been followed by recasts. For investors in smaller MBS pools, that could be mean a higher weighted average maturity than expected, RiskSpan said in a recent analysis.

The RMBS rating business nearly ground to a halt in the fourth quarter, but ECM was the place to be in 2022. ABS fared a little better, with business-finance and consumer deals showing relative strength. (Includes two data charts.)

What ails the mortgage market? Answer: high interest rates. But would creating more MBS buyers ease the pain? At this point, it’s an academic equation.

Agency MBS industry insiders recently discussed specified pools, prepayment rates, home price growth and problems with ESG investing.

After undertaking drastic leadership changes in December, Chimera is now looking to expand its investments beyond reperforming loans.