Citigroup Global Markets released a new hybrid ARM model - made available on Citi's Yield Book starting last Monday - utilizing the same modular framework as the firm's fixed-rate models. Analysts said that the existing framework is general and flexible enough so that it can be used to obtain prepayment models for all kinds of mortgages.

However, despite applying the general framework to the new ARM component, analysts considered the differences in prepayment characteristics between hybrids relative to fixed-rate collateral in making the hybrid model.

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