ARM Update

July 31, 2017

Yield spreads for new-issue hybrid ARMs to Treasuries experienced a limited amount of daily volatility and were unchanged for the week.  The most notable volume in the secondary market consisted of pre-reset 5/1s.  Investors were drawn back to this collateral as valuations have cheapened over a point this year.  There was also continued demand for new issue FNMA and FMLMC 7/1s and 10/1s, especially with traditional buyers of 15-year MBS.

Activity last week included the following:


Metrics for some commonly traded structures are below:



Michael S. Erhardt, CPA

Senior Vice President

Investment Strategist

Vining Sparks, IBG

The information included herein has been obtained from sources deemed reliable, but it is not in any way guaranteed, and it, together with any opinions expressed, is subject to change at any time. Any and all details offered in this publication are preliminary and are therefore subject to change at any time. This has been prepared for general information purposes only and does not consider the specific investment objectives, financial situation and particular needs of any individual or institution. This information is, by its very nature, incomplete and specifically lacks information critical to making final investment decisions. Investors should seek financial advice as to the appropriateness of investing in any securities or investment strategies mentioned or recommended. The accuracy of the financial projections is dependent on the occurrence of future events which cannot be assured; therefore, the actual results achieved during the projection period may vary from the projections. The firm may have positions, long or short, in any or all securities mentioned. Member FINRA/SIPC.
Copyright © 2021
This is a publication of Vining-Sparks IBG, L.P.
775 Ridge Lake Blvd., Memphis, TN 38120