Something’s afoot in the Mortgage-Backed Securities (MBS) market. After this week’s drop-off in secondary market trading for private-label residential MBS, comes Friday’s news that MBS trade settlement failures reached a record… As a reminder these ‘fails to deliver’ happen when an MBS seller fails to deliver (aha) to their buyer on an agreed settlement date. We’re not sure what’s driving this recent fails increase — perhaps it’s all that mortgage uncertainty, or perhaps it’s to do with rates. This summer’s round of MBS fails was largely driven by the Fed’s cornering of much of the market for agency MBS via its QE asset purchases. But that cornering should have eased by now, after the Fed said it will reinvest its MBS into Treasuries….
MBS trade settlement failures hit record
Most Popular Articles
Latest Articles
11 real estate events & conferences to help you thrive in 2024
Forge new connections at these in-person events and conferences that can help take your career to the next level.
-
In quest to grow reverse business, US Mortgage Corporation hires Krajewski
-
NAR wants VA to change rules that prohibit veteran buyers from paying broker commissions
-
Renters gain financial edge over homebuyers in key U.S. markets: Realtor.com
-
Reverse-centric Ibis Software appoints Sivori to board of directors
-
Clear Capital extends its partnership with Cherre