There were a couple of themes running through last week's market. These were a pick up in bid list activity related to early adopters of FAS 159 and an alignment of various MBS factors that inspired a supportive tone for mortgages.
The Financial Accounting Standards Board voted in February to adopt FAS 159 The Fair Value Option for Financial Assets and Financial Liabilities. The provisions of FAS 159 will take effect at the beginning of a company's first fiscal year that starts after Nov. 15. However, there is a provision for early adoption for entities with a fiscal year that starts before that date. This window for early adoption closes at the end of April.