Finance

To bond investors hit by deep losses this year, it may mean any further pain will be short-lived, as a recession will spark the US central bank to cut rates next year.

Fitch lowered its outlooks to ‘neutral’ from ‘improving’ for the hotel, industrial and multifamily CMBS sectors while DBRS expects falling CMBS payoff rates.

The McLean, Virginia, company is starting to “trim around the edges” of its auto portfolio, CEO Richard Fairbank said. That move stands in contrast with Capital One's leaning into its credit card business, which helped push marketing spending above $1 billion.

MF1 2022-FL10, MF1’s third this year, securitizes 24 floating-rate mortgage loans secured by 34 transitional multifamily and manufactured housing properties.

Tesla said Wednesday its digital assets have shrunk to $218 million and that a Bitcoin impairment dragged on profitability in the second quarter.

The deal has a $40 million subordinated portion that compares to the $497 million Dryden 108 CLO Ltd., which has a much larger ‘AAA’-rated class A-1 portion.

The risk of a global downturn and Europe’s energy crisis doused optimism about the US earnings season and confidence the Federal Reserve will take a more measured approach to tightening.

Unlike some of its peers, the Dallas bank says the U.S. economy is strong, clients are upbeat and lending momentum continues.

The latest expense guidance also stems from rising operating losses at the North Carolina bank. Cost-cutting was a key rationale for the 2019 merger of BB&T and SunTrust, which created Truist.

Of note is a step-up interest feature on classes A-1, A-2 and A-3, where certificates will receive the sum of the applicable fixed coupon and a step-up interest rate of 1.0%.

Excluding the early Covid-19 lockdown, sales were at the lowest level since April 2008, when a housing bubble was bursting after subprime mortgages dried up.

The agency also put out a request for public comment on the role of fintech in housing finance.

Inflation and higher interest rates are hurting distressed borrowers, but low unemployment, remaining forbearance and loss mitigation options are still blunting their impacts, recent loan-performance numbers suggest.

The trust slashed the representation of loans with lower credit quality, while so-called custom loans made up about 45% of the deal’s collateral balance.

Delinquencies are likely to rise if both interest rates and inflation continue their upward movements, a DBRS Morningstar report said.

The main battleground has shifted to how long the overnight benchmark might remain at its peak level and how much, if at all, it will decline next year.

Loans made to individuals pose a potential credit risk to the timely payment of the notes, particularly if the loans are involved in bankruptcy filings.

Like other mortgage lenders, the San Francisco megabank has been cutting staff since refinancing volumes started to fall. Additional layoffs are expected over the next couple of quarters, according to the bank’s chief financial officer.

Neglia will work alongside Rosemary Kelley to lead the rating agency’s senior analytical managers in expanding the firm’s analytical service offerings.

Second-quarter profit soared past analysts’ estimates, driven by unexpectedly large hauls from currencies, commodities and interest-rates trading.