Hello All. I was out for the majority of the day so I missed most of the MBS session...on a positive note I did manage to travel the DC beltway with no periods of protracted braking riding/bumper hovering/bubble gum machine watching" (slowing down to look at police officer on side of road)/or general delay...."great success"!!! (movie quote)
It was a generally slow day as many global markets were closed in observance of Easter. MBS traded in a tight range (see chart below) and stocks moved higher most of the day on optimism that banks would report "better than expected" quarterely earnings in the near future. If you're interested in reading some of the intraday market movements.... Matt aptly outlined the mundane musings of an MBSrs day to day trading strategy (READ MORE).
5 pm "Going Out" Marks...
FN30_______________________________
FN 4.0 -------->>>> +0-06 to 99-29 from 99-23
FN 4.5 -------->>>> +0-07 to 101-26 from 101-19
FN 5.0 -------->>>> +0-07 to 103-04 from 102-29
FN 5.5 -------->>>> +0-05 to 104-01 from 103-28
FN 6.0 -------->>>> +0-04 to 104-25 from 104-21
GN30________________________________
GN 4.0 -------->>>> +0-09 to 100-05 from 99-28
GN 4.5 -------->>>> -+0-08 to 102-02 from 101-26
GN 5.0 -------->>>> +0-07 to 103-24 from 103-17
GN 5.5 -------->>>> +0-05 to 104-10 from 104-05
GN 6.0 -------->>>> +0-04 to 104-22 from 104-18
Today one reader (it was Edgar!) asked us what the prospects were for Fannie Mae getting into the Warehouse Lending Business....
Here is an appropriate answer from Tim Rood, a former Fannie Mae Executive and friend of the blog....
"I think GNMA would be a more likely and logical candidate for either funding, or more likely guaranteeing, warehouse funds for bankers. Fannie Mae is challenged by:
1) Charter issues (warehouse lending is too close to the primary market)
2) strategic issues (strategic goals are essentially established by FHFA, and their long term objectives appear biased towards reducing reliance on the GSEs), and
3) they have lack operational capacity to take it on w/o a mandate, and funding, from FHFA...not to mention it wouldn't appear that they have the balance sheet to guarantee the lines."
Doesnt that sound better than giving a dying government sponsored agency more responsibilities?
In other news...
Barack Obama made comments that his plans for economic stimulus we're progressing along nicely and even ahead of schedule! Part of this plan includes funds to rebuild the road and bridge national infrastructure. President Obama will give a "major" speech tomorrow..."major" came right from the White House by the way.
GM shares were slumping again on concerns that the government is just buying them some time to put their affairs in order before the company is "reorganized" by the Obama Administration. GM has until June 1 to renegotiate their debt with bondholders and the UAB union.
I will be up bright and early to listen into Goldman Sach's conference call...you can listen in by reading these instructions:
"Members of the public who would like to listen to the conference call should dial 1-888-281-7154 (U.S. domestic) or 1-706-679-5627 (international). The number should be dialed at least 10 minutes prior to the start of the conference call. The conference call will also be accessible as an audio webcast through the Investor Relations section of our web site, www.gs.com/shareholders/. There is no charge to access the call. For those unable to listen to the live broadcast, a replay will be available on our web site or by dialing 1-800-642-1687 (U.S. domestic) or 1-706-645-9291 (international) passcode number 91133807 beginning approximately two hours after the event."
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