In the last 100 basis point move in mortgage rates, servicer hedging needs have actually been rather muted, according to Barclays Capital. 

In a report released late last week, analysts pointed out that convexity hedging needs of the MSR universe were close to zero, and that on moves of +/- 50 basis points, their needs are relatively small as their portfolio is mildly positively convex. However, activity could pick up if there is a greater than +/-50 basis point move.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.