Tue, Jun 22 2010, 5:57 PM
Mortgages traded to new record price highs today. The low production volume origination environment continues to support favorable "rate sheet influen...
Tue, Jun 22 2010, 1:32 PM
If you are hoping for reprices you should be watching the August FN 4.5 MBS coupon (and the 4.0), which is currently +0-08 at 102-27. It is possible t...
Mon, Jun 21 2010, 12:37 PM
The mixed messages offered by the market in previous weeks have evolved into no messages. In June, we've witnessed irrational interest rate reactions ...
Mon, Jun 21 2010, 5:21 PM
Thinking forward, because loan officers are closing their loans (pull-through!) and commitment buckets aren't losing much water (salable loan paper), ...
Fri, Jun 18 2010, 7:34 AM
Plain and Simple: the recent stock market rally has yet to grow legs of its own as forced buying has led the indexes higher. This leaves equities susc...
Thu, Jun 17 2010, 10:34 AM
The majors published pricing pretty early this morning...when production coupons were at lower levels. Since then stocks have pulled a complete 180. S...
Thu, Jun 17 2010, 7:07 AM
S&Ps opened lower and traded higher before closing near the same level they opened yesterday. This tells us the stock market is indecisive after S&Ps...
Wed, Jun 16 2010, 8:31 AM
Good Morning. 830am data has been released. Housing Starts were much worse than expected as were Building Permits. The yield curve is flatter and the ...
Tue, Jun 15 2010, 12:27 PM
The Euro, Oil, and the S&P are adding to early session appreciations and interest rates are starting to suffer because of it. The later your lender pu...
Tue, Jun 15 2010, 8:54 AM
Investors seem to be comfortable with the EU crisis discount they have priced into asset valuations...either that or options expiration week is drivin...
Tue, Jun 15 2010, 6:28 PM
Doesn't it feel like the stock market is operating in its own little world again? Doesn't it seem like the bond market is trying to tell us it has no ...
Mon, Jun 14 2010, 9:03 AM
With trader sentiments still reflective of a non-committal bias, headline news remains a primary motivational factor of tactical stances (short term s...
Mon, Jun 14 2010, 4:50 PM
Although the short term behavior of both stock and bond markets has been indicative of a looming long-term trend reversal, neither market was able to ...
Fri, Jun 11 2010, 12:35 PM
Normally we'd expect lenders to pass along better loan pricing when production MBS coupon prices rally up 8 ticks (+0-08 or 8/32). Not 8/32 from the o...
Fri, Jun 11 2010, 8:43 AM
Stocks are lower and bonds are better after the U.S. Census Bureau announced today that advance estimates of U.S. retail and food services sales for M...
Fri, Jun 11 2010, 5:57 PM
The market is still acting non-committal, the biggest difference is open interest is way lower in both stock futures and 10yr TSY futures. One of thes...
Thu, Jun 10 2010, 9:36 AM
MBS prices are backing away from all time highs as stocks rally. The FN 4.0 is -0-11 at 99-31. The FN 4.5 is -0-07 at 102-26. The GN 4.0 is -0-11 at ...
Thu, Jun 10 2010, 3:49 PM
Have you ever wondered why longer term locks are more expensive than short term locks?
Thu, Jun 10 2010, 1:00 PM
Indirect buyers are responsible for me being able to say this auction went well. They were the aggressive bidders. After the auction Benchmark TSYs yi...
Wed, Jun 9 2010, 8:58 AM
We had what I hope was an enlightening conversation yesterday afternoon about the status of loan pipelines and the recent improvement in loan pricing....
Wed, Jun 9 2010, 5:14 PM
FN4.5: +0-06 at 103-02. GN4.5: +0-06 at 103-22. Secondary Market Current Coupon: -1.4bps to 3.98%. CC Yield Spreads:+80.2/10yTSY. +70.5/10yIRS. Went O...
Wed, Jun 9 2010, 1:18 PM
Auction demand was strong but only at higher yields and lower prices. Primary dealers took down more inventory than usual to offset a decline in direc...
Tue, Jun 8 2010, 8:50 AM
Markets are range bound at the moment but teetering on a broader technical breakdown. It's still all about the stock lever and the Euro. If the Euro f...
Tue, Jun 8 2010, 2:09 PM
Depending on fallout, your secondary marketing department is probably underwater on their loan pricing after the recent run-up in MBS prices. You tell...
Mon, Jun 7 2010, 8:40 AM
When do U.S. stocks and bonds disconnect from the directional movements of the Euro? When does the opportunity cost of risk averse investing outweigh ...
Mon, Jun 7 2010, 6:18 PM
Although S&Ps still haven't broken 1050 support, it's hard not to sit back and watch how far this interest rate rally goes. The million dollar MBS que...
Fri, Jun 4 2010, 12:04 PM
The S&P has broken 1080 support and benchmark 10s are testing 3.20 resistance. This has helped MBS prices extend their rally.
Fri, Jun 4 2010, 8:30 AM
MAY NONFARM PAYROLLS +431,000 (CONSENSUS +513,000) VS APRIL UNREVISED AT +290,000
MAY PRIVATE SECTOR JOBS +41,000, GOVT 390,000, CENSUS JOBS +411,000...
Fri, Jun 4 2010, 5:57 PM
If the Euro is doomed to trade toward parity, does that mean the U.S. is destined for a double dip? With housing teetering on a ledge and 6.7 million...
Thu, Jun 3 2010, 8:48 AM
Traders have closed longs and covered shorts and are now ready to react to whatever news and information is offered in the next 24 hours. The big ques...
Thu, Jun 3 2010, 4:41 PM
I know many of you are probably sitting on a few loans trying to decide if you should float into the 15 day window in hopes of another rally and bette...
Thu, Jun 3 2010, 1:28 PM
Auction sizes continue to trend lower. Less debt supply is always a great thing for the market's state of mind. However we may be battling greater for...
Wed, Jun 2 2010, 8:34 AM
While there were a few news headlines to account for in valuations today, price action and trading flows really didn't teach us anything new about the...
Wed, Jun 2 2010, 7:39 PM
Stocks closed near three day highs and benchmark TSY yields went out...near three day highs too! We did manage to make it through the day without repr...
Wed, Jun 2 2010, 1:44 PM
The on again, off again, on again appetite for risk has led the benchmark 10 yr TSY note yield 4.8bps higher all the way up to the 3.31% pivot. Conseq...
Tue, Jun 1 2010, 8:23 AM
The WEEK AHEAD is busy with the release of NonFarm Payrolls on Friday (The Official Employment Report) headlining the schedule. Over the last month, d...
Tue, Jun 1 2010, 6:01 PM
Thanks to a lack of liquidity in the 4.0 TBA MBS market, securitizing 4.5 and 5.0 MBS is a lender's best execution option (how do you hedge 4.0s right...
Tue, Jun 1 2010, 1:54 PM
It's been a choppy, back and forth, up and down trading session with no clear bias in motion. Rate sheet influential MBS have performed admirably as T...
Fri, May 28 2010, 9:42 AM
It is still unclear whether the stock market rally we witnessed yesterday was simply a short term correction in the context of a broader downtrend or ...
Fri, May 28 2010, 2:46 PM
"For these men are lately drawn from the ways of peace. They fight not for the lust of conquest. They fight to end conquest. They fight to liberate. T...
Thu, May 27 2010, 11:11 AM
Mortgages are experiencing some localized weakness thanks to a modest pick up in originator selling (5.0s) and servicer duration dumping. The FNCL 4....
Thu, May 27 2010, 8:21 AM
FNCL 45 -11 at 101-31. Current Coupon:+7.5bps at 4.132%. MBS Yield Spreads Tighter In Busy Flows. 10s: +11.5bps at 3.307%. 2s/10s: +8 at 245bps. S&Ps:...
Thu, May 27 2010, 4:47 PM
The violent spike in rates we witnessed today will force market participants to re-evaluate their strategic and tactical biases as bullish interest ra...
Thu, May 27 2010, 1:09 PM
Average auction. Demand was there but at higher yields. We're lucky stocks weren't selling today because this issuance would have gone worse if yields...
Wed, May 26 2010, 10:15 AM
U.S. equities rallied into the close yesterday. This momentum extended into the overnight session all the way into this morning. A WAY BETTER THAN EXP...
Wed, May 26 2010, 5:45 PM
Rate sheet influential MBS valuations had another volatile day thanks to some violent swings in the stock market. We did however make it through norma...
Wed, May 26 2010, 2:05 PM
Our fate rests mostly in the stock lever. If the S&P breaks 1090 and 10s push through 3.25% support...reprices for the worse are likely. Some smaller ...
Tue, May 25 2010, 9:38 AM
Housing did nothing to reverse the risk averse bias in stocks. The flight to quality into government bonds continues...mortgage rates should improve t...
Tue, May 25 2010, 5:45 PM
MBS close +8 ticks on the day, at 102-11, but that's off highs around 102-15. 10yr notes have backed up aggressively and directionally, rising from 3....
Tue, May 25 2010, 2:17 PM
In and of itself, the auction wasn't good, at least not when comparing metric to metric vs recent averages. But how much should we have expected thos...
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