If the proposal is implemented, some mortgage originations that have gone into bank portfolios would likely go into MBS instead. The impact on bank investment in MBS and ABS looks to be much more modest.
Total ABS issuance in the first half of 2023 was running slightly below the level of a year ago, but the key markets — vehicle and business finance — were both up as of the end of June. (Includes two data charts.)
New capital standards proposed for larger banks; CrossCountry Mortgage, Hildene Capital Management join hands on non-agency MBS; LIBOR update; Angelo Gordon boost emphasis on MBS and ABS.
Industry participants continue to try to influence the Securities and Exchange Commission on a proposed rule addressing conflicts of interest in the securitization market.
DBRS issued a new methodology to assess ABS issuance of loans tied to fine art and collectibles. There’s a growing interest in fine art lending among borrowers, lenders and potentially ABS investors.
The federal government’s new income-driven repayment plan, introduced after the Supreme Court decision, should drive prepayments higher to the benefit of seasoned deals, rating services said.
The hedge fund billionaire predicts Treasury will write off its senior preferred shares in the GSEs and exercise its warrants for 80% of their common stock.
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