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SPDR Barclays Capital Mortgage Backed Bond ETF

5/24/2013, 8:39 AM ET

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Thursday, July 5, 2012, 5:50 AM California's San Bernardino County and two of its biggest cities, Ontario and Fontana, want to use the concept of eminent domain to forcibly buy underwater mortgages from investors, lower the loan principal to match the value of the property, and then resell the reduced mortgages. Proponents believe they have a strong legal case, but mortgage investors are unsurprisingly opposed. (See Shiller) 5 Comments [U.S. Economy, Consumer]
Friday, June 8, 2012, 4:30 AM The FHA is expected to announce a bulk sale program today in which it will attempt to offload more troubled loans to investors, potentially preventing or delaying foreclosures for thousands of homeowners. The agency has more than 700K loans in default, amounting to more than 9% of the $1T in loans it insures. Comment! [U.S. Economy]
Monday, April 16, 2012, 12:03 PM Credit Suisse (CS) and Goldman Sachs (GS) paid $10.3B to the NY Fed for the remainder of the Maiden Lane II mortgage bonds that belonged to AIG until its bailout. The transactions took place in February. Comment! [Financials, M&A]
Sunday, April 8, 2012, 9:00 AM The most exciting returns are to be had from an asset class where those who know it best love it least. Add MetWest's Tad Rivelle (MWTRX) to the list of star bond-fund managers bearish on Treasury prices. He's finding the best values in emerging-market corporate bonds, high-yield paper, and nonagency MBS. 1 Comment [Quick Ideas]
Monday, April 2, 2012, 9:59 AM A bet on better fortunes for MBS allows Bill Gross' Total Return Fund (TRXT) to beat its bogey and move to the top 11% of all bond funds in Q1. Gross believes another round of Fed QE is in store and that it will target mortgage bonds. Comment! [U.S. Economy]
Monday, March 26, 2012, 8:01 AM The Fed is likely to hint at QE3 in its April meeting, tweeted Bill Gross over the weekend. The opinion is at odds with the Fed's last policy statement in which it upgraded its view of the economy. Pimco's Total Return Fund has boosted its holdings of MBS, likely to benefit from more QE as the paper would be a target of Fed purchases. 1 Comment [U.S. Economy]
Tuesday, February 28, 2012, 11:29 AM HUD Secretary Shaun Donovan warns that the FHA faces "considerable risk" to its financial position which will lead the government to gradually reduce its presence in the market. The agency currently back about a third of all new mortgages. Comment! [U.S. Economy]
Wednesday, February 15, 2012, 1:11 PM Kyle Bass - who made a fortune for his investors betting against subprime debt - is starting a fund to buy the beaten-down securities. "Even using severe assumptions on tings such as home prices and defaults," the payoff could be very high, says Larry Penn of Ellington Financial. Comment! [U.S. Economy]
Tuesday, February 7, 2012, 5:55 AM The NY Fed is set to auction off another $6B of ex-AIG mortgage bonds this week, the WSJ reports, and has invited Barclays (BCS), Credit Suisse (CS), Goldman Sachs (GS), Morgan Stanley (MS) and RBS to participate. Last month, CS bought debt with a principal value of $7B and quickly resold it. Comment! [Financials]
Wednesday, February 1, 2012, 4:48 AM President Obama is expected to detail today a program to let millions of homeowners refinance their mortgages with lower-interest federally insured loans. Borrowers would qualify even if they were in negative equity, although Obama is likely to face opposition over plans to levy a bank tax to pay for the proposal. 2 Comments [Financials, U.S. Economy]
Wednesday, January 18, 2012, 5:21 AM Goldman Sachs (GS), Barclays (BCS), BofA (BAC) and Credit Suisse (CS) are reportedly set to bid in an auction tomorrow for $7B in mortgage bonds held by the NY Fed and formerly owned by AIG. A strong sale could prompt a rally in sub-prime debt prices, as the auction will remove a large amount of supply. (previous) Comment! [Financials, M&A]
Friday, January 13, 2012, 5:37 AM The NY Fed may reportedly auction $7B worth of mortgage bonds it obtained when it rescued AIG in 2008 after receving an approach from a potential buyer. A group of up to five dealers, including Goldman Sachs (GS) may be asked to bid. The Fed suspended sales in June after dealers blamed the auctions for a fall in the markets. 1 Comment [Financials, M&A, Top Stories]
Wednesday, December 21, 2011, 8:30 AM As European banks scramble to raise cash, they're increasingly doing so by selling off foreign assets such as U.S. mortgage-backed securities (MBS), and depressing their prices along the way. With Deutsche estimating Euro banks hold about $100B in MBS not backed by Fannie or Freddie, further declines could occur, and affect the balance sheets of U.S. banks in the process. 2 Comments [Financials]
Wednesday, November 16, 2011, 8:53 AM JP Morgan (JPM) plans to next year issue mortgage-backed securities supported by defaulted loans that it bought from EU and other financial institutions, the WSJ reports. The move would revive a practice that regulators used in the early 1990s to solve a savings and loan crisis. 5 Comments [Financials]
Monday, August 8, 2011, 1:47 PM Mortgage-backed securities (MBB +0.2%) gain slightly even after S&P lowers its rating on Fannie Mae (FNMA.OB), Freddie Mac (FMCC.OB) and FHLBs, although yield spreads versus Treasurys widened. Analysts expect the bigger concern for mortgage securities is increased interest-rate volatility and uncertainty on prepayments. Comment! [Financials, On the Move]