Torn between 5s and 5.5s as both offer just about the same amount of carry on a hedge adjusted basis. The 5.5 roll needs to move higher between now (06/04) and next Tuesday (06/10) as the stratification of every favorable loan type created too big a short in TBAs. Pay-ups for the various specified pool types exploded in the past month and seeming to price most retail investors out of the market. CMO and derivative deal execution seem the best bids for this paper in more current coupons. GNMAs aren’t breaking down vs. conventionals. But if the FNMA 5.5 roll the GNMA/FNMA 5.5 should collapse and carry the entire GNMA sector lower.
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The Federal Open Market Committee held the federal funds rate at current levels, citing "lack of further progress" toward meeting inflation goals.
2h ago -
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.
2h ago -
The fixed, tax-exempt notes have about 137.5% in expected senior bond parity and 124.1% in subordinate bond parity levels.
4h ago -
Moody's took note of several credit strengths in the portfolio, including that on a weighted average (WA) basis, the contracts have a weighted average FICO score of 767 and only a point higher for the upsized pool.
April 30 -
Plaintiffs seeking class certification claim the bank uses an underwriting system that discriminates against minority mortgage applicants.
April 30 -
Consolidation has slowed since the pandemic, but UMB's agreement to buy Heartland Financial — the largest deal in three years — is one of several merger announcements in the past two weeks. Talks among other potential buyers and sellers are said to be picking up.
April 30