New issuance of credit-risk debt notes by the GSEs fell 25.5% sequentially in the second quarter, but surging MBS production in recent months will likely spur increased CRT activity in the second half of the year.

The rating service’s proposal regarding the treatment of private mortgage insurance on GSE risk-sharing transactions and non-agency MBS prompted some concerns from industry participants.

With rates continuing to decline, hedging is paramount these days. Meanwhile, certain banks and thrifts are reporting lower MBS holdings.

A debate on whether the fast-growing leveraged loan market will lead to the next financial crisis kicked off on Capitol Hill.

Insurance-linked notes have become all the rage among mortgage insurance firms. The latest deal to hit the market is a $316 million note offering from MGIC via a Bermuda reinsurance affiliate.

Industry participants see promise in credit-risk transfer transactions beyond the government-sponsored enterprises, with possible markets developing involving Ginnie Mae, banks, credit cards and auto loans.

“HARP is dead, long live High LTV Refinance programs!” That’s the title of a recent report by structured finance analysts at Bank of America Merrill Lynch on the impact HARP’s replacements will have on the government-sponsored enterprises’ credit-risk transfer programs.

Fannie/Freddie’s issuance of credit-risk transfer debt notes hit a record high of $15.19 billion in 2018. [Includes one data chart.]