New CLO issuance fell sharply from the first quarter of 2020 to the second. Upheaval caused by COVID-19 led to widespread downgrades of borrowers backing CLO deals, though most senior bonds still have a favorable outlook. (Includes data chart.)
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A new 50-basis-point fee on GSE refis caught the mortgage industry off guard this week. A big deal or much ado about nothing? Either way, lenders are not happy.
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Neither Fannie nor Freddie issued any new credit-risk-transfer bonds during the second quarter, although Freddie resumed production in July. (Includes data chart.)
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Fannie so far has issued $122.23 billion in long-term notes in 2020. That’s almost six times more than in 2019 and more than it issued the past three years combined.
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The HOPE Act seeks to create a liquidity facility for commercial MBS borrowers who weren’t eligible for PPP or MSLP. The bill suggests financial institutions originate Treasury-guaranteed preferred equity instruments to qualified borrowers.
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But another study found income overstatement commonly existed in commercial CMBS underwriting between 2013 and 2019, contributing to the rapid deterioration during the pandemic.
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