The firm recommends selling 15-year 5.0% passthroughs and buying a duration-weighted quantity of 15-year 4.5% passthroughs. 15-year 5.0% have been a very strong performer in recent weeks, driven by strong demand for CMO collateral and outright buying by depositories. As a result, the firm believes that the coupon is rich relative to 15-year 4.5%. In addition, the 5.0%'s combination of high dollar price and relatively low yield spread to swaps is likely to make CMO issuance more difficult in that coupon, which would remove a key source of demand for 5.0% and likely cause the 5.0% / 4.5% relationship to move back toward fair value.
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The capital structure features initial exchangeable notes among the class A, mezzanine and B1 notes. The super senior and senior support tranches will repay noteholders on a pro-rata basis.
11h ago -
The company's branches and loan officers will transition to ML Mortgage but operations staff are not part of the deal.
11h ago -
Note payments are linked to two tranched credit default swap (CDS) transactions, one related to the reference obligation between the issuer and SoFi Bank and SoFi Lending and the Issuer.
May 1 -
The Federal Open Market Committee held the federal funds rate at current levels, citing "lack of further progress" toward meeting inflation goals.
May 1 -
During this week's Federal Open Market Committee meeting, officials voted to lower the cap on the amount of Treasury securities that can roll off the central bank's books each month from $60 billion to $25 billion.
May 1 -
House Republicans held a subcommittee hearing on reforming bank merger M&A, laying the groundwork to counter Biden administration efforts to make it more difficult for mergers to be approved.
May 1