Favors 30s over 15s.Based on CSFB’s regression model, 15s are cheaper across the coupon stack. However, the market is re-pricing 15-/30-year swaps to a new interest rate regime, contributing to CSFB’s favoring 30s. Move into 15-years once a stable outlook for curve shape and level of rates is achieved. Maintains overweight on current coupons (30-year 5s and 15-year 4.5s). 5s remain only viable choice in 30s. Rich dollar roll valuations on 5.5s make them especially vulnerable. A 10-15bp rally in mortgage rates could significantly weaken dollar rolls on 30-year 5.5s. Fifteen-year 4.5s will likely benefit from CMO demand and buying from indexed investors.
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Known for subprime financing, the sponsor has been making inroads lending to near-prime customers in the last couple of years.
5h ago -
Spreads ranging from 16-18 basis points over the three-month, interpolated yield curve on the P1 (Moody's) and F1+ (Fitch) notes, to 160 to 170 over the benchmark on the class D notes.
April 25 -
Mortgage rates rose 7 basis points this week, Freddie Mac said, and more increases are likely following a weaker than expected gross domestic product report.
April 25 -
Broken down by product type, the agency's NJCLASS Standard Fixed product should account for a large majority of the loans, 75.4%. NJCLASS Consolidation will account for the next-largest group, 14.1%.
April 24 -
Congressional Review Act resolutions are ramping up ahead of the 2024 election cycle. Experts say that, although none are likely to become law, the resolutions are still powerful messaging and political tools.
April 24 -
The notes will price against Treasurys, with spreads expected to fall between 85 and 90 basis points over the benchmark.
April 24