Securitization

The real estate investment trust also announced changes to its Sequoia correspondent platform as it seeks to elevate the unit's branding in 2025.

A famous money management firm has identified key developments that previously posed challenges for agency mortgage-backed securities but are now strengthening the market.

Analysts agree recent changes to government agreements will end the Fannie Mae and Freddie Mac conservatorships, but it'll likely happen later rather than sooner.

A vast majority of the collateral pool balance, 82.6%, are mortgages used to purchase primary residences, and just 17.4% finance second homes.

Lenders will need to lean on alternative products as limited mortgage rate relief keeps some consumers on the sidelines, but others will tire of waiting and act.

Alternative documentation accounts for 37.9% of the pool balance, compared with 24.6% on the 2024-NQM4 deal.

Sales of bonds earmarked for supplemental coverage of large windstorms, earthquakes and other events totaled $17.7 billion, up 7% from the previous record set a year ago.

The residential market is expected to face challenges from stubbornly high mortgage rates and limited supply in 2025, particularly after Fed Chair Jerome Powell's comments on Wednesday indicating fewer rate cuts are coming.

A Congressional Budget Office report updating one from four years ago finds 60% of its 250 scenarios will result in the Treasury getting fully repaid, up from 12%.

The deal mitigates mortgage-pool risk with CLO credit strengths

Unlike some recent RMBS deals, both exclude riskier interest-only loans and those supporting investment properties.

Top banks are underwriting the deal, but most of the securitization's loans lack documentation.

The proposal is one of several that aims to address difficulties managing early buyouts from mortgage-backed securities pools.

Underwriting methods have been steadily shifting to traditional full documentation, which accounts for 13.3% in the VERUS 2024-9, KBRA said, its largest share since VERUS 2024-6.

The economist, who runs Roubini Macro Associates, is positioning for a curve steepener, a popular Treasuries trade where the gap between long- and short-dated yields widens.

Freddie Mac is offering a municipal bond option for investors in its ML multifamily securitization offerings starting with its December issuance.

The notes benefit from credit enhancement levels of 30.45%, 24.3%, 13.8%, 8.65%, 5.00% and 2.05% on the A1, A2, A3, M1, B1, B2 and B3 tranches, respectively.

Private-label securitization volume increased 75% this year versus 2023; conditions are right for that to continue, KBRA said.

The rise of private credit has had a surprising side effect: it's made borrowing cheaper for companies in other high-yield markets, and has probably made a key barometer of credit risk less accurate.

Fitch Ratings said Tesla Finance enters the residential solar finance ABS arena with underlying loans that have the highest WA FICO score presented to it for a rating.