Good morning and happy half-day Friday! I hope everyone is getting ready for a long Labor-Day weekend with a bond market close today at 2:00 eastern. We don’t have any new housing data being released today. We do need to play catch-up on autos from yesterday, however. Ward’s Total Vehicle Sales was expected to be at 13.3 million annualized, and it came in at 13.18 million. Not enough of a difference to be noteworthy.

Bonds today are rallying in price. 10yr T-Notes are +13/32 to yield 3.20%. In MBS, FNMA 30yr 4.50% are +12/32 to $99-15, which is a 4.58% yield and +131 basis points to the 7.8yr treasury curve. Have a great day and a wonderful Labor Day. Call or email your MBS and whole loan inquiries.

Cherry Picks

ARMS / FLOATERS

Cost
$103-20
$32mm+ Fannie Mae 7/1 ARM 3.299%, #BM7014, 5/47 stated final
Average Life
2.7 yr
Yield
3.54%
Speed
30% CPR
Spread
+36/I curve
Coupon
3.299%
MTR
8
Loans
1,361
Caps
Periodic 5/2/5, Lifetime 7.732%
Floor
1.715%
1 Yr. Libor
+1.715%
WAM
275
Factor
.9295

10 Year Fixed

Cost
$98-08
$3mm+ Fannie Mae 10yr am 2.50%, #MA4636, 6/32 stated final
Average Life
3.7 yr
Yield
2.98%
Speed
244 PSA
Spread
-11/I curve
Coupon
2.50%
# Loans
743
Origination
2022
Type
Fannie Major
WAM
115
Factor
.9676

15 Year Fixed

Cost
$94-16
$20mm Fannie Mae Dwarf 2.00%, #MA4602, 5/37 stated final
Average Life
5.8 yr
Yield
3.06%
Speed
128 PSA
Spread
+13/I curve
Coupon
2.00%
# Loans
3,996
Origination
2021/2022
Type
Fannie Major
WAM
175
Factor
.9674

20 Year Fixed

Cost
$97-00
$18mm+ Fannie Mae 20yr am 3.00%, #MA4643, 5/42 stated final
Average Life
7.0 yr
Yield
3.50%
Speed
143 PSA
Spread
+60/I curve
Coupon
3.00%
# Loans
3,205
Origination
2021/2022
Type
Fannie Major
WAM
235
Factor
.9823

30 Year Fixed

Cost
$92-12
$10mm Fannie Mae 30 yr am 2.50%, #MA4438, 10/51 stated final
Average Life
9.6 yr
Yield
3.52%
Speed
109 PSA
Spread
+69/I curve
Coupon
2.50%
# Loans
32,734
Origination
2021
Type
Fannie Major
WAM
346
Factor
.9194

Agency CMBS

Cost
$98-15
$60mm+ FNMA 10/9.5 DUS #BS5564, 3.14% coupon, 6/2032 stated final
Average Life
9.8yr
Yield
3.37% + 48/swaps
Speed
0% CPY
Coupon
3.14%
Call Protection
112mo Yield Maintenance
Tier
2
GEO
VA
DSCR
--
LTV
58.4%
OCC
85.7%
Interest Only Until
82 Months
Factor
1.0000

Agency CMO – 3 Year

Cost
$96-11
$3.8mm Freddie Mac "Pass-Thru" 2.50%, FHR 22-15 AB, 11/39 stated final
Average Life
4.7 yr
Yield
3.36%
Speed
191 PSA
Spread
+37/I curve
Collateral
Seas Fannie 30yr 6.00% reperformers
Coupon
2.50%
Band
Pass Thru
Avg Life w/ rates +300
5.4 yr
Factor
.8678

Agency CMO – 5 Year

Cost
$98-17
$21mm+ Fannie Mae "Pass-Thru" 3.00%, #FNR 17-24 E, 4/47 stated final
Average Life
5.3 yr
Yield
3.30%
Speed
172 PSA
Spread
+35/I curve
Collateral
FNMA 30yr Seasoned 4.50%
Coupon
3.00%
Band
Pass-Thru
Avg Life w/ rates +300
6.2 yr
Factor
.2886

Agency CMO – Long End

Cost
$81-26
$10mm Freddie Mac "Sequential" 2.00%, #FHR 5142 BD, 1/51 stated final
Average Life
13.8 yr
Yield
3.74%
Speed
83 PSA
Spread
+75/I curve
Collateral
New Freddie Jumbo 30yr 2.00%
Coupon
2.00%
Band
Sequential
Avg Life w/ rates +300
14.1 yr
Interest Only until
7/28
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.