Securitized Products Weekly

Research evidence excerpt

Securitized Products Weekly

Global Markets Research

18 June 2026Securitized Products Weekly

Securitized Products - North America

Research Analysts

Securitized Products Weekly US Securitized Products

Paul Nikodem - NSI

paul.nikodem@nomura.com

Agency MBS +1 212 667 2130

We remain neutral on the MBS basis near term but constructive medium term after the Rohit Sinha - NSI

seasonal supply peak. In the stack, we prefer TBA 5.0s-5.5s and specs in 6.0s. Rohit.Sinha@nomura.com

+1 212 298 4905Separately, we discuss prepay burnout trends for seasoned higher coupons. Burnout

varies across spec pools as stories with weaker early prepay protection (like TX and very Chinmay Kulkarni - NSI

high LB pools) exhibit faster burnout with seasoning. In contrast, low LB, low FICO, and chinmay.kulkarni1@nomura.com

+ 1 212 298 4598high LTV pools show slower burnout. Impaired credit and financial constraints limit early

refinancing ability of lower FICO and high LTV borrowers. We also discuss issuance and Joseph Gais - NSI

buyout trends in ET pools following the recent changes to the FHA and VA loss mitigation joseph.gais@nomura.com

waterfalls (addition of trial period requirement and restriction on modification frequency). +1 212 667 2028

With the recent decline in ET payups and expectations of slower buyout activity under the Vivek Chauhan - NSI

new programs, ET pools now appear more attractive on a relative value basis. Further, vivek.chauhan@nomura.com

FHA ET issuance is now recovering after a temporary decline, as borrowers complete + 1 212 667 2290

their payment plans. We expect a similar decline and recovery for VA ET loans over the Shreya Pal - NSI

coming months. shreya.pal1@nomura.com

+ 1 212 667 2183

Mortgage Credit Daivaksh Patel - NSI