Two key trades: long the basis and sell the 6.5/6 swap. Maintain long position in the basis but adjust hedge ratios and switch to a long position in FNMA 5s. Added the 6.5/6 swap at even dollar amounts. This is nominally short the market, but the swap is unlikely to compress in a continued rally (as it is already at a historically narrow level). In fact, analysts would not be surprised to see the 6.5/6 swap actually outperform in a further rally as the 6 roll is likely to weaken (if 6s continue appreciating). This trade is similar to just being short the FNMA 6 butterfly. The main difference is that some carry is sacrificed in favor of better convexity
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Initial analyses of Home Mortgage Disclosure Act data show UWM ahead in 2023 loan numbers and dollar volume, but Rocket's market share still looks competitive.
March 28 -
There are two series, 2024-1 and 2024-2, that have revolving periods—three for the 2024-1 and five for the 2024-2—during which noteholders will not receive any principal.
March 28 -
The trust employs a 24-month revolving period. There is an increased risk that collateral quality could deteriorate as the transaction evolves with new collateral.
March 27 -
Harmonizing standards for liquidity coverage ratios and discount window pledges could prevent the type of strains that led to last year's bank failures, according to a new paper whose authors include former Federal Reserve Govs. Dan Tarullo and Jeremy Stein.
March 27 - Yahoo Finance Feed
The banking giant has launched an online platform that links small-business owners and entrepreneurs in need of capital to community development financial institutions. The platform was developed in partnership with Community Reinvestment Fund USA.
March 27 -
Audited financials, proof of fidelity bonds and errors and omissions insurance must be provided on Ginnie Mae Central after May 13.
March 27