ARM Update

August 13, 2018

Last week, ARM activity was primarily focused on the following:

While issuance remains slow, recent supply trends produced adequate volume to result in mostly steady yield spreads versus similar duration Treasuries.

ARM prepayments slowed slightly for July, in line with the slowdowns occurring for most fixed rate MBS. Seasonal trends in housing turnover and fixed rate mortgage quotes holding near the upper end of their recent range limited early ARM payoffs and the trend is expected to continue with slower or stable prepayments in the coming months barring large bond market yield changes.

Ricky Brillard, CPA


Vining Sparks, IBG

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