The Financial Times published a story over the weekend wherein former Federal Reserve chairman Alan Greenspan compared the ABS market to "cocaine", said the ABCP liquidity crisis was a "savings and loan disaster waiting to happen" and that CDOs will never again see the pricing and structures they once enjoyed. Leading up to the release of his memoirs today, "The Age of Turbulence", Greenspan sat for an interview with the newspaper and discussed the current U.S. housing market, which Greenspan has described as "frothy". His most strongly worded terms, however, were reserved for the various sectors of the ABS markets that have been in uproar since February. Risk prices had fallen to unsustainably low levels beforehand, and investors had been addicted to higher-yielding asset-backed securities markets as if they were "cocaine", the newspaper said. The demand in products induced the increase in origination of subprime mortgages via broker networks. As for the ABCP market, Greenspan decried the mismatch between the durations of liabilities and assets of these vehicles, saying that ultimately, ABCP issuance was "probably not going t o get back to where it was." CDOs "will never get back to the levels and structures that they were, because now everybody knows you cannot price them," the newspaper wrote. Greenspan did manage to make encouraging comments about one aspect of the capital markets. Credit default swaps, he said had successfully demonstrated their ability to diversify risk and that that product would continue. Yet, in innovative financial markets, he said "there will always be products that fail.
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Initial analyses of Home Mortgage Disclosure Act data show UWM ahead in 2023 loan numbers and dollar volume, but Rocket's market share still looks competitive.
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There are two series, 2024-1 and 2024-2, that have revolving periods—three for the 2024-1 and five for the 2024-2—during which noteholders will not receive any principal.
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The trust employs a 24-month revolving period. There is an increased risk that collateral quality could deteriorate as the transaction evolves with new collateral.
March 27 -
Harmonizing standards for liquidity coverage ratios and discount window pledges could prevent the type of strains that led to last year's bank failures, according to a new paper whose authors include former Federal Reserve Govs. Dan Tarullo and Jeremy Stein.
March 27 - Yahoo Finance Feed
The banking giant has launched an online platform that links small-business owners and entrepreneurs in need of capital to community development financial institutions. The platform was developed in partnership with Community Reinvestment Fund USA.
March 27 -
Audited financials, proof of fidelity bonds and errors and omissions insurance must be provided on Ginnie Mae Central after May 13.
March 27