Securitization

Bond traders boosted bets that the Federal Reserve may re-accelerate the pace of rate increases at the policy meeting later this month.

Interest rate increases and economic concerns led the government entity to lower the required amount from $1 million to $250,000.

Various affiliated companies participated in the creation of the transaction, including its publicly traded REIT, which owned a significant portion of the mortgages.

Among its major accomplishments in the past year were an update to its Reference Model, the foundation for most of its standards.

The company's recently purchased subsidiary, Blue Water Financial, will provide tools for asset pricing, transfer, due diligence and other tasks to ease secondary market trading functions.

Deterioration in credit quality should put strain on collateral originated in late 2021 and early 2022, affecting performance, Barclays Credit Research said.

These types of transactions largely disappeared from the market for years after the Great Recession.

While Bids Wanted in Competition have been used by MBS sellers in the past, a lack of standardization of data points has reduced competition and price, the organization said.

The uptick in cash balances might indicate the challenges issuers are facing originating new loans for reinvestment in commercial real estate CLOs.

Scores will be assigned to all loan pools created since 2010, including future securitizations, and are expected to help investors determine the share of mortgages meeting specific characteristics.