| ARM Type | Index Value | Effective Margin | OAS | ZVO |
| GNMA | ||||
| 09/30/03 | 1.22 | 183.0 | 138.0 | 141.0 |
| Previous Week | 1.21 | 180.0 | 122.0 | 130.0 |
| Conventional- 1-Year CMT | ||||
| 09/30/03 | 1.21 | 123.0 | 152.0 | 150.0 |
| Previous Week | 1.21 | 119.0 | 141.0 | 141.0 |
| Conventional- Cofi- 11th | ||||
| 09/30/03 | 1.946 | 105.0 | 89.0 | 188.0 |
| Previous Week | 2.018 | 101.0 | 103.0 | 205.0 |
| Source: Capital Management Sciences | ||||
The current portfolio is secured by tax liens from municipalities in eight states and Washington, D.C., that have a redemption value, or the approximate value of the outstanding liens, of about $119.6 million with an original lien rate of 12.2%.
The deal includes subordination in the form of class B notes, a rarity for whole business securitization deals.
When the Trump tax cuts expire next year, the White House will ask for higher corporate taxes and a buyback tax as Congress enters one of its biggest economic fights of the decade, which will have major implications for bankers.
All four of the class A tranches benefit from total initial hard credit enhancement of 13.80%, while the B and C classes of notes are covered by 10.6% and 6.0% in initial hard credit enhancement.
Yields are expected to range from 6.3% on the AAA notes to 7.4% on the BBB notes, which are priced against the three-month interpolated yield curve, and have a final schedule payment date of May 15, 2029.
The 30-year fixed rate mortgage fell for the first time in six weeks as the Federal Open Market Committee meeting outcome is finally priced in.
