Neutral between 5s and 5.5s (they offer just about equal hedge adjusted carry) with 5s likely to perform better if yield lows are retested. 5.5s are a better long with a more bearish market outlook. Other relative value trades Greenwich still favors include being long Dwarf 4.5s or FNMA 20-year 5s vs. FNMA 5.5s, although both of these issues may require an offsetting curve hedge to protect against further underperformance if the yield curve returns to a flattening bias. GNMAs felt some selling pressure Tuesday, remains overvalued. GNMA II 5s are probably worth a stab vs. Is if CMO activity picks up.
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The fixed, tax-exempt notes have about 137.5% in expected senior bond parity and 124.1% in subordinate bond parity levels.
3h 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 -
Used cars make up virtually American Credit Acceptance entire collateral pool, and while observers said recoveries in this asset group have been lower, the pool includes a higher percentage of better performing called collateral.
April 30 -
The company's attorneys had previously managed to successfully decertify the class in the seven-year long case, but the decision was reversed last year.
April 29