Class differentiation and future dollar roll settlement dates

I stumbled across this after a little research, fueled by the initial direction/guidance of Matt and Adam.

The following is a link to the 2009 SIFMA (Securities Industry and Financial Markets Association) Settlement Dates calendar:

http://www.sifma.org/services/stdforms/settlement-dates.shtml

At the top, you'll also find a brief breakdown of the the differences between Class A, B, C, and D securities.

Note that the pending pass-through of recent gains that Matt and Company have been discussing in the blog since late 2008 completely coincide with this week's Class A settlement date, set to occur on the Tuesday January 13, 2009.

Also note that the GNMA (FHA/VA) 4.5% 30YR MBS has been "trading" within the 103/32nd range, but the lowest rate most of us have seen is 4.875% on a 30-day lock.  We should assume that this drop special for FHA and the pass-through for these rates also occur on their corresponding Class C settlement date, Wednesday January 21, 2009.

Although MBSLive has a decided "focus" on agency/conforming MBS bonds, these days especially, I personally am writing two FHA loans for every one FNMA loan.  This information I believe is relevant, because I believe that what we are expecting to occur tomorrow or on Tuesday will be solely for conventional products, with government products not seeing the same gains and similar pass-through until a week later.

"And then the Master realized, he was ready." (something I think Adam and Matt are sitting around saying after posts like this.)

Nice job Steven. FHA & VA loans are in abundance right now and I would bet that 95% of us thought they were breaking around the 13th as well (I did).

5 Stars

Looks like we are in the midst of "Roll Week"!

Dammit Flotay Bote.

I can't tell you how many times we've given you that link.  Maybe we need to make our stuff easier to find.  Second of all, good job on the analysis.  Not sure what you said, but seems like you think we did something right, so good job!

oh, i see what you're saying now.  Not that we did something right, but that you figured out why we've been saying 13th = good.  I guess we need to do a better job of explaining these things.  It wasn't supposed to be a secret...

Matthew Graham:

oh, i see what you're saying now.  Not that we did something right, but that you figured out why we've been saying 13th = good.  I guess we need to do a better job of explaining these things.  It wasn't supposed to be a secret...

 

It wasn't, and someone wasn't paying attention to/or reading back through the chat.  We discussed several times the GNMA settlement dates several times, but Kudos to the Float Bote for doing his own research!

Even before the settlement next week Steve, Asia is back from their vacation on 1/13 and God knows they love the Ginnie Maes...could be a good day for you even before we settle out!

Hey just say "good job" or "your on the right track" or anything nice an positive darn it. We get enough sarcastic attitude from lenders, realtors and clients you MBS geek. Not like we have time to read every post, everyday jeez.