MBS

Mortgage bonds are on track to deliver their strongest returns in two decades, with the Bloomberg US Mortgage Backed Securities Index having gained 8.35% in 2025 through Friday.

A combination of factors, including the rise of retail investing and sound assets, propelled ETF formation, with at least four issuances over the past year.

Mortgage groups want GSEs to buy MBS to lower rates, but the Chairman of Whalen Global Advisors writes that the plan is risky, unnecessary, and poorly timed.

FHFA's announcement has investors increasingly concerned about the Bozeman, Montana-based FICO losing both pricing power and a competitive edge.

A possible shift in the composition of the Federal Reserve's portfolio of Treasury holdings could result in the central bank buying nearly $2 trillion of bills over the next two years, enough to absorb nearly all of the Treasury's issuance during that period, according to Bank of America Corp.

Alternative asset manager Canyon Partners is committing $250 million to buy new mortgage bonds created by A&D Mortgage LLC, a partnership that will help the mortgage finance company substantially increase the pace of its bond sales. 

The funding round will help Button Finance, which leverages AI to underwrite home equity financing, expand its range of products to more borrowers.

Mortgage bonds supported by government-backed companies like Fannie Mae and Freddie Mac were trading slightly wider Monday morning after Moody's Ratings downgraded the US late last week.

A range of investment residential properties, including single-family homes, condominiums and multi-unit properties, will secure the debt.

Agency mortgage backed securities have slipped about 1.1% since the start of April, trailing Treasuries and the broader US bond market.

The company reported a profitable first quarter and called for loosened regulation to bring more private capital into home finance in its latest earnings call.

Moderate leverage is one example of cleaner credit, as the current collateral pool's original loan-to-value (LTV) ratio is 69.1%, down from 71.7% on the 2024-NQM1 series.

The deal is composed of 11,547 seasoned performing and reperforming loans that are first and second lien. Loan servicing includes a 180-day chargeoff feature.

Second-lien loans make up virtually the entire pool, which carries some risk of poor recovery rates. Yet 78% of the pool is also considered safe-harbor mortgages.

Now the structured mortgage securities are cheap enough that CLO investors are watching them more closely, according to strategists and investors.

Excess cash flow will pay timely interest and protect against realized losses in the rated certificates before being paid out to the class X notes.

If the government were to end the Fannie Mae and Freddie Mac conservatorships, the new status could constrain CRT deal ratings, as they are counterparties.

With President Donald Trump's tariff threats turning into reality and the Federal Reserve likely to hold off on cutting rates, credit investors are continuing to bet on shorter-duration bonds.

If the GSEs are privatized with only their current capital levels, respondents indicated risk premiums on MBS would widen by as much as 45 basis points or more.