Investors and issuers are divided on the usefulness of disclosure requirements for MBS and ABS. While investors said disclosures encourage them to buy securities, issuers cited them as a burden.
Morningstar plans to buy fellow rating agency DBRS for $669 million. Currently, there are 10 nationally recognized statistical rating organizations, and speculation is the space could be ripe for consolidation.
The firm this week postponed a $1 billion IPO for a new REIT that will purchase MBS and related assets. Down the road, the REIT likely will dip its toe in the non-QM pond as well.
The average daily trading volume in agency MBS shot up like a rocket to $269.7 billion in March, one of the best readings in quite some time. But what does it indicate?
After years of acquiring mortgages as whole loans, PIMCO and MetLife are set to issue separate non-agency MBS stocked with seasoned mortgages. An affiliate of PIMCO plans a $382.56 million issuance while MetLife's deal could be double that size.
In a positive sign for the non-agency MBS market, JPMorgan Chase is set to issue a $440.54 million MBS stocked with non-qualified mortgages for primary residences. It will be the the first big bank to do so.