Economic Insights

In the U.S., hundreds of billions of dollars of mortgages are issued every year. Mortgages that meet certain government requirements (loan size, LTV ratio, etc.) can be sold to or guaranteed by government backed agencies, including Fannie Mae, Freddie Mac, and Ginnie Mae.

The Federal Reserve has long wrestled with stubbornly low inflation. A decade ago few would have expected this to be a problem, but Personal...

What impact will the November 2020 Presidential elections have on the financial markets? When will an economic downturn occur? These are two questions that have been at the forefront of investors’ minds. These concerns will likely continue to grow, reaching a crescendo near next year’s election.

With the Federal Reserve (Fed) set to meet next week some investment banks have come out ahead of the meeting predicting at least three rounds of rate cuts by January 2020.

One of the major contributors to the 2008 credit crisis/financial crisis was the collapse of non-agency mortgage backed securitizations. In its aftermath, the business of non-agency mortgage origination and securitization by U.S. investment banks virtually ceased to exist.

While the risk of another consumer credit meltdown might be rising, the structure of the consumer credit market, particularly with respect to residential mortgage backed securities (RMBS), is fundamentally less vulnerable than it was in the 2005-2008 period.