The rating service proposed more closely aligning its criteria for rating U.S. residential MBS with how it assesses residential MBS in other countries. The likely result: no downgrades and many upgrades.
Issuance of vehicle ABS is nearing another record and spreads remain tight, indicating that there’s plenty of investor demand for the asset. There are some concerns about performance, particularly for subprime auto ABS.
Residential MBS transactions will likely experience a spike in delinquencies, but performance will return to pre-storm levels within a year, according to Moody’s.
The key vehicle ABS sector slowed in the third quarter and business-finance securitization stalled. But issuance in the first nine months of 2024 was up 22.9% from last year. (Includes three data tables.)
Ginnie Mae must firm up plans to boost nonbank issuer liquidity for times of stress and set policies for transferring MSR in the event a large servicer exits the market, speakers said at a summit this week.
It’s getting difficult to project mortgage rates in the near term, putting pressure on agency MBS investors. Still, analysts at BofA Global Research maintain an overweight for holdings of agency MBS.
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