RBSGC recommends select agency and nonagency hybrid ARMs. In particular, RBSGC favors 7/1 agency hybrid ARM bonds over 5/1 hybrid ARMs. Both hybrids have 5/2/5 cap structures, however 7/1s offer the benefit of the curve as well as 10bp-20bp additional spread. RBSGC also suggests using nonagency hybrid ARMs as a vehicle for mortgage index investors to outperform. Nonagency hybrids do not qualify for index inclusion, and as a result, trade cheap relative to conforming mortgage product. Nonagency hybrids are prime quality collateral, and are issued in size from large, well-capitalized mortgage and banking institutions. They are fixed-rate, senior/sub structures, priced off swaps.
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The Philadelphia-based bank's parent company, Republic First Bancshares, had been roiled by a yearslong proxy battle involving activist investors groups and its former CEO.
1h ago -
Known for subprime financing, the sponsor has been making inroads lending to near-prime customers in the last couple of years.
8h 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