Good morning and happy hump day. We do have scheduled news today in the form of Mortgage Applications for the week ending Aug. 27th and auto sales in Ward’s Total Vehicle Sales for Aug. after the close of the stock market. Ward’s is coming off a 14.75 million annualized July number and the surveys are calling for a slightly down number to 14.50 million. There were no projections for Mortgage Applications, but the latest week printed a +1.6%. This week didn’t follow, unfortunately, and had a poor showing of -2.4%.

The bond market today is mostly unchanged, with the 10yr T-Notes UNC to yield 1.31%. In the MBS market, FNMA 30yr 2.50% are -4/32 to $103-27, yielding 1.52% and +87 basis points to the 4.2yr treasury curve. Everyone have a great day and email or call us with your MBS or loan inquiries.

Cherry Picks

ARMS / FLOATERS

Cost
$104-22
$1.56mm Fannie Mae 5/1 ARM 2.497%, #BP6432, 7/50 stated final
Average Life
2.8 yr
Yield
0.71%
Speed
15% CPB
Spread
+10/z curve
Coupon
2.497%
MTR
47
Loans
30
Caps
Periodic 2/2/5, Lifetime 7.465%
Floor
1.62%
1 Yr. Libor
+1.62%
WAM
347
Factor
.7842

10 Year Fixed

Cost
$104-01
$10mm+ Fannie Mae 10yr am 2.00%, #MA4368, 5/31 stated final
Average Life
3.1 yr
Yield
.63%
Speed
396 PSA
Spread
+20/I curve
Coupon
2.00%
# Loans
2,191
Origination
2021
Type
Fannie Major
WAM
115
Factor
.9615

15 Year Fixed

Cost
$103-26
$5mm Fannie Mae Dwarf 2.00%, #MA4383, 7/36 stated final
Average Life
4.4 yr
Yield
1.07%
Speed
288 PSA
Spread
+41/I curve
Coupon
2.00%
# Loans
15,841
Origination
2021
Type
Fannie Major
WAM
177
Factor
.9841

20 Year Fixed

Cost
$102-18
$5mm+ Fannie Mae 20yr am 2.00%, #MA4287, 3/41 stated final
Average Life
4.9 yr
Yield
1.42%
Speed
269 PSA
Spread
+67/I curve
Coupon
2.00%
# Loans
6,205
Origination
2020/2021
Type
Fannie Major
WAM
233
Factor
.9643

30 Year Fixed

Cost
$106-16
$10mm Fannie Mae 30 yr am 3.50%, #MA4296, 2/51 stated final
Average Life
4.0 yr
Yield
1.72%
Speed
412 PSA
Spread
+113/I curve
Coupon
3.50%
# Loans
85
Origination
2020/2021
Type
Fannie Major
WAM
352
Factor
.8648

Agency CMBS

Cost
$101-27
$6.0mm+ FNMA 12/11.5 DUS #BS2592, 1.75% coupon, 7/2033 stated final
Average Life
10.3 yr
Yield
1.57% + 25/swaps
Speed
0% CPY
Coupon
1.75%
Call Protection
137mo Yield Maintenance
Tier
2
GEO
OH
DSCR
--
LTV
78.9%
OCC
97%
Factor
.9983

Agency CMO – 3 Year

Cost
$103-25
$5mm Freddie Mac "Busted PAC" 2.50%, FHR 4926 BL, 10/48 stated final
Average Life
3.4 yr
Yield
1.29%
Speed
412 PSA
Spread
+80/I curve
Collateral
New Fannie 30yr 3.50%
Coupon
2.50%
Band
Busted PAC
Avg Life w/ rates +300
8.8 yr
Factor
.6197

Agency CMO – 5 Year

Cost
$106-10
$6.6mm+ Fannie Mae "AD Busted PAC" 3.00%, #FNR 20-11 JW, 3/50 stated final
Average Life
4.9 yr
Yield
1.62%
Speed
645 PSA
Spread
+85/I curve
Collateral
New FNMA 30yr Jumbo 3.00%
Coupon
3.00%
Band
AD Busted PAC
Avg Life w/ rates +300
20.1 yr
Interest Only until
7/24
Factor
1.0000

Agency CMO – Long End

Cost
$97-08
$4.7mm Freddie Mac "AD PAC" 2.00%, #FHR 5055 PL, 12/50 stated final
Average Life
18.3 yr
Yield
2.18%
Speed
243 PSA
Spread
+40/I curve
Collateral
New 30yr Jumbo 2.00%
Coupon
2.18%
Band
104-272 PAC
Avg Life w/ rates +300
18.5 yr
Interest Only until
5/36
Factor
1.0000

Jim Tait is a registered representative with and offers securities through Hanover Securities, Inc. (Hanover), Member FINRA & SIPC. Although this information has been obtained from sources we believe reliable, we do not guarantee its accuracy, and it may be incomplete or condensed. This is for information purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. Securities that may be shown are subject to availability and changes in price. Past performance is not indicative of future results. Changes in any assumptions may have a material effect on projected results.

 This information from Hanover Securities is for your private use and does not constitute an offer or solicitation with respect to the sale of any security. This information was obtained from sources we believe to be reliable but we do not represent that it is accurate or complete, and it should not be relied on as such. Certain transactions may give rise to substantial risk and are not suitable for all investors. This information was based on current market indicators which may vary over time. We may from time to time buy or sell, or have long or short positions in securities identical or related to those identified herein. 

Although this information has been obtained from sources we believe reliable, we do not guarantee its accuracy, and it may be incomplete or condensed. This is for information purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. Loans and/or Securities which may be shown are subject to availability and changes in price. Past performance is not indicative of future results. Changes in any assumptions may have a material effect on projected results. This information from Banes Capital Group (BCG) and/or Hanover Securities is for your private use, and was obtained from sources we believe to be reliable. However, we do not represent that this information is accurate or complete, and it should not be relied on as such. This information is for institutional investors only, and as such certain transactions may give rise to substantial risk and are not suitable for all investors. This information was based on current market indicators which may vary over time. We may from time to time buy or sell, or have long or short positions in loans or securities identical or related to those identified herein. 

The pricing of loans or any Level II or III asset is inherently an exercise in quantifying uncertain variables. As such, great care should be taken when pricing loans for reporting purposes. The information included herein should never be taken as the sole method, or even a method to be relied on, for the pricing of loans or other Level II or III assets as this is for informational purposes only.