CMO Market Update

April 6, 2020



Agency CMO spreads to Treasury yields tightened last week to close out March. Overall, spreads were wider for the month and remain wider for the year, but shed some of that relative value in recent weeks. Investors have been seeking lower-coupon bonds, 1.5% – 2.0%, off of 30-year, mid-level coupon collateral. After widening out in recent weeks, floating-rate spreads tightened as well.

Shifting gears, here are a couple things to have on your radar for the days and weeks ahead.

Below is a condensed view of the Treasury Yield and Spread Snapshot from the Overall Commentary, with CMOs alongside for reference.





Travis Nauert, CFA

Analyst, Investment Strategies

Vining Sparks IBG, LP

INTENDED FOR INSTITUTIONAL INVESTORS ONLY.
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
Member FINRA/SIPC
This is a publication of Vining-Sparks IBG, L.P.
775 Ridge Lake Blvd., Memphis, TN 38120