With the launch of the uniform MBS just months away, the merger of the markets for Fannie Mae and Freddie Mac securities – worth a combined estimated $3.7tr – is imminent, though hurdles remain before the ‘single security’ goes live and investors lose the ability to buy a specific GSE's bonds in the TBA market.
Most importantly, the “good delivery” rules that govern the TBA market will have to be amended to allow for the delivery of UMBS to investors. Amending those statutes will requiring a vote within the steering committee at the Securities Industry and Financial Markets Association (Sifma), comprised of twenty-two
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