General World News

Market for private label securities projected to shrink in 2022

HW+ Federal Reserve

The residential mortgage-backed securities (RMBS) market is reeling from an unfavorable interest-rate environment, which is expected to suppress private-label securities offerings for at least the rest of the year, a recent market outlook report concludes.

The private-label securities (PLS) market update from Kroll Bond Rating Agency (KBRA) places the bulk of the blame for the market’s woes on fast-rising mortgage rates, fueled by the Federal Reserve’s inflation-fighting rate bumps.  Adding to market tumult, the agency notes, are the uncertainty and inflationary pressures caused by ongoing geopolitical upheaval, including the war in Ukraine. 

For the year, KBRA projects RMBS issuance of details ⇒

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