Bank Demand Returns, GSEs Still Anchor, and Chasing VA Waterfalls

Kirill Krylov and Steven Scheerer discuss the evolving technical backdrop for agency MBS, including continued support from GSE portfolios and renewed demand from banks. They also examine how market stability has benefited from the absence of forced selling. The episode concludes with a discussion of changes to the VA loss mitigation waterfall and the potential impact on Ginnie Mae prepayment speeds and buyout activity.