This document is intended for institutional investors and is not subject to all of the independence and disclosure standards applicable to debt research reports prepared for retail investors.
Thursday, April 23, 2020 – 3:30 pm EDT
Even before Congress passed the CARES Act on March 27, Fannie Mae, Freddie Mac and Ginnie Mae had started outlining debt relief for their borrowers. The CARES Act accelerated the process and made it easy for borrowers to get up to 12 months of relief with minimal proof of hardship. A wave of forbearance could have a big impact on MBS prepayments, suppressing speeds initially but raising them later. It could also affect mortgage servicers, forcing them to advance substantial amounts of cash to securities holders. Investors in agency credit risk transfers have exposure, and the market in private MBS is grappling with the right response, too. Join Amherst Pierpont strategists for a review of developments and their impact on the market.
Steven Abrahams, head of investment strategy, host
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