Moody's

ABS overall should outperform, but risks remain in specific areas

The push for assurances on collateral is coming despite fierce competition for deals, and indicates borrowers face limits on their ability to change the standing of existing creditors to get the financing they need. 

The meager increase suggests the largest boost in inventory possible would likely still leave the backlog of homes on the market at historic lows.

The second securitization from the joint venture AGCO Finance is preparing to issue $1 billion in notes backed by payments on retail installment loans and lease contracts on new and used agricultural equipment.

The Mello Warehouse Securitization Trust 2021-2 is preparing a $500 million deal, the latest transaction collateralized by newly originated mortgages that are eligible for purchase by Freddie Mac, Fannie Mae and Ginnie Mae.

Progress Residential 2021-SFR4 is making a huge bet on the continued demand for single-family rental properties.

But existing deals are likely to experience issues resulting from higher defaults, faster prepayment speeds.

Lenders’ loan modifications have temporarily reduced the delinquency rate of loans in CMBS deals for the second month in a row, according to Moody’s Investors Service, but the temporary nature remains cause for concern.

Bondholders could see principal losses if, due to the way the documents are worded, the rate is frozen at the last published amount.

The measures currently ensuring mortgage companies have sufficient cash to cover advances aren't necessarily sustainable, warns Ted Tozer, a senior fellow at the Milken Institute and a former government official.