Price Update...sellers are pushing the low end of the stack into the discount. Cheaper MBS means buying opportunity!!!! Once Negative Convexity takes over thinner coupons will start to look increasingly inexpensive. We aren't losing the faith...
Fn 4.0-> -0-21 to 99-09
Fn 4.5-> -0-19 to 100-19 Gn 4.5-> -0-15 to 100-19
Fn 5.0-> -0-13 to 101-19 Gn 5.0-> -0-14 to 101-25
Fn 5.5-> -0-09 to 102-10 Gn 5.5-> -0-09 to 102-12
Fn 6.0-> -0-03 to 103-02 Gn 6.0-> -0-03 to 102-27
The Federal Reserve Purchased $16.836 billion MBS between Jan. 22 and Jan.28. That is an average of $3.367 per day. It Is clear the Fed saw value in the FN 5.0s
31.75% was Freddie's
42.71% was Fannie's
25.55% was Ginnie's
(I rounded so the total doesn't equate to exactly 100%)