J.P. Morgan is rethinking its forecast for non-agency RMBS issuance; it now expects 2014 volume to fall short of the $15 billion it had anticipated at the start of the year.
“It seems unlikely to expect that much this year given we are already two months into the year and we’ve barely seen $1 billion in issuance,” John Sim, head of non-agency MBS research the firm, said at a securitized products research conference Thursday.
For reprint and licensing requests for this article, click here.
Yields are soaring into the double digits on bonds and loans funding the AI infrastructure buildout. Bankers are finding it more difficult to offload risk to insurers and other investors.
Morgan Stanley this month has struggled to attract demand for a $301 million commercial real estate bond tied to a data center in Kansas City.
The pool is primarily composed of multifamily mortgages, but includes a range of properties, and one third of the pool structured with future funding.
Fannie, Freddie and Ginnie loan eligibility now rests on AUS findings, with scores kept for pricing. KBW cut UWM's price target to $1.50 as it launches a $400M rights offering.
The chief risk officer's oversight extends to the modernization of loan pricing and scoring, which the GSEs' oversight agency has been accelerating.
