More stable and somewhat higher rates brought banks back and revived the interest in various CMO structures. Additionally, even more so than before the rally, the duration offered by CMOs is unavailable in other mortgage products. Consequently, while banks focus on short CMOs, long structures enjoy the attention of duration-seeking accounts. The most dealable coupons are 30-year 5s and 15-year 4.5s. For duration-minded investors, recommends last-cash-flow PACs and sequentials backed by current-coupon new collateral. Among shorter trenches, favors deals backed by 15-year collateral for prepayment risk profiles.
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The fixed-rate loans are divided into three sub-pools that relied on rating methods from the RMBS, CMBS and ABS sectors to assess their risks.
8h ago -
The House Financial Services Committee also sent to the full House two bipartisan bills, including one that would prevent large banks from opting out of having to recognize Accumulated Other Comprehensive Income in regulatory capital.
April 18 -
The portfolio does not have any meaningful originations that have completed a full repayment cycle, making the company's performance data thin.
April 18 -
Formerly of Wells Fargo, she will coordinate several key units to create a structure for a sustained capital markets program that capitalizes on recent innovation and growth in home equity finance.
April 17 -
The Structured Finance Association questions whether funding closed-end seconds is an appropriate role for the government-sponsored enterprise, while newer lenders welcome the liquidity support.
April 17 -
The CFPB has dissolved the Office of Supervision, Enforcement and Fair Lending and eliminated the job of associate director in a move that impacts how it designates nonbanks for supervision.
April 17