ARM Update

June 19, 2017



Yield spreads for new-issue hybrid ARMs to Treasuries were 3 to 4 bps wider on the week, in response to the broader market rally.  Strong origination volumes and seasoned selling in the secondary market contributed to the pressure on yield spreads.  We continue to see relative value in longer reset ARMs, given their recent widening of yield spreads and under-performance versus fixed rates.

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

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