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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According to the Federal Reserve Board's latest financial stability report, persistent inflation and policy uncertainty are the primary worries for banks. Survey respondents expressed heightened anxiety over murky policy outlooks due to geopolitical turmoil and rapidly approaching domestic elections.
10h ago -
With a high proportion of fixed-rate, interest-only underlying loans, the notes have almost no amortization, and three CRE loans have standalone, investment-grade opinions.
April 19 -
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.
April 18 -
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