Slower than expected prepay speeds has helped the fuller end of the MBS coupon stack (6.0s and up) outperform 4.0s and 4.5s all day. The short end of the coupon stack has improved off its intraday lows though. 6.5s and 7.0s are up 0-05. I guess those LLPAs might push some borrowers into the 7-7.5 range..the next question is can you tweak those borrowers enough to get a DU/DO approve/eligible??? Don't think there will be much supply of 7.0s and 7.5s for the MBS market to buy up.
....two lenders have improved their pricing today
FN30_________________________ GN30______________________
FN 4.5 -------->>>> +0-00 to 100-23 GN 4.5 -------->>>> +0-00 to 100-31
FN 5.0 -------->>>> +0-00 to 101-23 GN 5.0 -------->>>> +0-03 to 101-31
FN 5.5 -------->>>> +0-00 to 102-10 GN 5.5 -------->>>> +0-02 to 102-16
FN 6.0 -------->>>> +0-00 to 103-01 GN 6.0 -------->>>> -0-01 to 102-29
Bonds have incrementally improved over the past 3 hours...the Dow has been sitting sideways since 1pm