ABS

The bond selloff that pushed 10-year Treasury yields to their highest in two years may not lead to a full-on taper tantrum, according to one of the biggest Treasury options market makers.

The rapid wage growth underscored the case for a more aggressive tightening by the Fed and capped a punishing week in the bond market.

Neighborly Issuer’s transaction structure incorporates several features to benefit the notes should payments fall below established debt service coverage ratio (DSCR) thresholds.

The municipal market has a history of outperforming during periods when the Fed hikes rates, because as yields rise, the tax-free interest that munis pay makes them more attractive.

While the mix of vehicle types in GMF originations is shifting, Chevrolet remains the top vehicle make in the 2022-1 deal, comprising about 57.5% of the pool.

Boulmetis will deliver MUFG’s capital markets capabilities to investment-grade debt issuers, and lead coverage of its roster of financial institutions clients.

The selloff worsened after minutes from the Federal Reserve’s latest meeting showed officials considering earlier and faster interest-rate increases than expected.

The Reserve Bank of Dallas data in housing prices hints at a so-called ‘episode of exuberance,’ but the central bank is a long way from sounding the alarm.

First-lien, agency-eligible mortgages secure the notes in the deal, which will issue notes through a senior-subordinate and shifting interest structure.

Treasury yields rose a second day amid increasing conviction that the Federal Reserve will raise rates at least three times beginning in May.