MBS

The deal will repay investors sequentially and through a shifting interest payment structure, according to ratings analysts from Moody's Investors Service. On a weighted average (WA) basis, the rating agency notes, the mortgages have a FICO score of 773.

Banks have been boosting purchases of top-rated CLOs. Commercial bank holdings of mortgage bonds are also on the upswing, climbing 12 of the last 15 weeks.

Flat growth is expected for mortgages and auto loans, while credit card loan growth will slow down.

Loan criteria such as credit scores, loan types and loan-to-value ratios are all weaker than those included in 2022 deals, Fitch said.

Mortgage-backed securities' strong showing since mid-October defies a textbook theory that they typically underperform other types of bonds when yields are falling.

BANK5 stands out from most standard conduit transactions, which have included mostly 10-year term loans. Fitch's historical loan performance analysis, finds five-year loans show a lower probability of default, comparatively.

We believe the Fed has raised rates too high, too quickly, without taking the appropriate time to observe the effects that such drastic changes will have on our economy.

Everything from housing to mergers and acquisitions are being upended, especially after 30-year US Treasury bond yields this week punched through 5% for the first time since 2007.

Purchases of new single-family homes fell 8.7% to a 675,000 annualized pace following an upward revision to July's figures, government data showed Tuesday, marking the largest drop in nearly a year.

Now that the liquidations are nearly over, money managers will be able to turn their attention to the higher coupon mortgage bonds being produced today, effectively an increase in demand.