When the FDIC started to backstop private-label MBS, we called them the fourth GSE.  With the entry of the NCUA into the field following three wholesale credit-union failures on Friday, there’s a fifth.  We do not anticipate immediate market impact (other than perhaps still more pressure on PLS pricing).  However, the more USG guarantees behind PLS, the better the odds for the Fed’s cat-risk concept.

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