With the recent flattening of the curve and drop in fixed mortgage rates, the firm looks for a major pickup in ARM prepayment speeds.They believe that investors looking to reinvest paydowns should consider moving into short PACs off the lowest possible collateral (30-year 5.0s, 15-year 4.5s). They argue that short PACs offer improved call protection and better returns in the current fast prepayment environment, as well as some protection from extension risk if rates back up sharply.They especially like short PACs off Ginnie 5.0s; the relatively slow turnover in Ginnie Maes should help the bonds retain their structural integrity.
-
The prime jumbo RMBS transaction is collateralized by 402 residential mortgage loans.
8h ago -
Diversity and metropolitan focus could provide resiliency in economic downturns
8h ago -
Federal Reserve Chair Jerome Powell was noncommittal about cutting interest rates at the central bank's next monetary policy meeting in July, saying future actions will depend on incoming data. His comments come as President Trump ramps up his criticism of the Fed chair.
11h ago -
Bill Pulte, regulator and conservator of entities that buy and securitize many mortgages, also reaffirmed he's 'not happy with" lenders' main score provider.
June 30 -
Eagle + West is Brookfield's premier luxury building at Greenpoint Landing.
June 30 -
BofA Securities, Australia and New Zealand Banking Group and Japan's SMBC Bank International are joint lead managers.
June 30