spite a spike in prepayment rates for resetting loans and dramatic increases in delinquencies, losses to the ABX were relatively contained early last week. Similarly, pricing activity for other securitization sectors was mildly affected.
Delinquencies for the 2006-1 ABX index increased significantly, according to Credit Suisse, reaching nearly 14% by the end of June, an increase of about 8.3%.
For reprint and licensing requests for this article, click here.
Incentives structure and fewer losses drive commercial real estate collateralized loan obligation issuance over conduit commercial mortgage-backed securities.
A split Congress has often been a bullish recipe for Treasuries. Benchmark 10-year yields have been lower on average one and 12 months after midterms that produced such a result.
Single-family mortgage real-estate investment trusts in the market for home loan assets face hurdles and selectively taking on leverage to keep buying.
Since the turmoil in France escalated from the end of last month, moves in that country's bonds have affected Treasuries several times — either by pushing them down in tandem or causing flows into U.S. debt as a haven trade.
During the past few weeks the term premium spiked to levels not seen in over a decade and drove the latest leg of the bond selloff that's sent US Treasury yields to a 24-year high.
