Over the pas few weeks the FNMA 5.5 butterfly in April has moved from around 29/32nds to 10/32nds last night (04/08). With this in mind , will stick with this issue for several reasons. First, 5s are a 1 to 2 month phenomenon at most. Once the bank buying abates and the forward month supply pulls through, the rolls will cool off. Also, the convexity profile of this coupon is worse than the theoretical models suggest. If the market makes new lows in yield,5s will become the exclusive production issue. If the market pierces the bottom end of the trading range, extension takes over and 5s are just long and spreadless.
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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.
5h 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.
9h ago -
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