Speeds and Spreads

re: Speeds and Spreads

Jason Wilborn — Mon, 06 Apr 2009 03:39:48 GMT

Hey Adam or Matt. Quick question. If the overall disposition because such that lower rates seem inevitable, will the 4.5 coupon still be the benchmark against the 10 year treasury?

re: Speeds and Spreads

Reichert — Mon, 09 Feb 2009 22:22:10 GMT

Jake, Investors are guaranteed money because that is the guarantee that Fannie and Freddie make to their investors. No doubt part of a strategy to help entice investors so that we have a secondary market for mortgages.

re: Speeds and Spreads

Mark Auh — Thu, 05 Feb 2009 03:26:52 GMT

Bobby, the Fed was involved on that day. I believe that was the day after the Fed cut rates to 0 to 25 bps. What a nightmare! That morning I had 4.625% with 1.10% rebate in my hand and no one wanted to lock. By 1PM reprice for the worse had 4.625% at 0.7% cost. I haven't recovered since.

re: Speeds and Spreads

Lisa — Thu, 05 Feb 2009 01:29:22 GMT

There are a few reports coming out tomorrow, here is hoping they are bond / MBS friendly!

re: Speeds and Spreads

David Gomez — Thu, 05 Feb 2009 01:09:45 GMT

The money line on price improvements is +320 right now.

re: Speeds and Spreads

Nate Miller — Thu, 05 Feb 2009 00:49:06 GMT

Place your picks, who thinks tomorrow we have improvement to pricing? I vote yes; 2 bunk days in a row we gotta be due for at least a slight rebound!~ Here's to manana!!~

re: Speeds and Spreads

Bobby Kurpinsky — Wed, 04 Feb 2009 23:19:22 GMT

it's seems crazy the FED has pumped 69 Bil into MBS without much price improvement. it also seems that our best prices were when the fed wasn't even involved back on Dec 17th 2008. if the fed has pumped 69 bil without any improvement does that mean they are one of the few bidders on MBS right now?

re: Speeds and Spreads

skysthelimit — Wed, 04 Feb 2009 21:35:31 GMT

I appologize in advance if my questions are elementary, but I am new to this site...I am however very impressed with the content. why are the investors guaranteed "timely payment of principle and interest?" If the borrower doesn't pay, then how are the investors getting paid? When you say spreads blowing out to all time highs, does that mean that because of new risk in MBS they are returning a higher yield (therefore a cheaper price) compared to TSY's than normal? Sending mtg rates higher than they would be if the new speed concerns weren't there... Above you referred to "tightening," when that happens, do more investors buy TSY's because they can get a similar return for less risk...therefore hurting MBS's further because they are competing for investor dollars? Any insight would be appreciated. Thanks.