REITs, which have become key investors in MBS and MSRs, may get another crack at FHLB membership if the Trump administration gets its way. The golden chalice: discount advances available via the borrowing window.
If the U.S. economy enters a recession, MBS and ABS are expected to perform relatively well, according to S&P. Subprime auto ABS, certain commercial MBS and CLOs are most at risk for downgrades.
Switching from LIBOR to another reference rate looks to be difficult for vintage non-agency MBS. Adopting a replacement rate will require significant communication and cooperation among investors.
Redwood has suggested a number of changes that could boost issuance of non-agency MBS. The REIT wants reforms regarding risk retention and disclosures for non-agency MBS.
New Residential Investment Corp. is pulling an about-face, of sorts. After issuing new shares of common earlier in the year, it’s now embarked on a $200 million buyback program.