CMO Market Update

December 10, 2018

With the Treasury curve so flat, I thought it would be interesting if we took a look this week at relatively short (Highlights 1-4) and one intermediate (Highlight 5) term CMOs. It’s certainly important to note that, even though the reference curve is flat, it is still possible to enhance yields by selectively choosing “add-on” risks. Admittedly, it can be hard to compare and contrast structured products but I’ve done my best to do it as fairly as possible and provide as much details for you to draw your own conclusions if you want.


For example:




November Trade Summary

For those who missed it last week, below is a snapshot of what we saw our CMO buyers investing in last month.

Kevin A. Smith, CFA

Director Investment Product Strategies

Vining Sparks IBG, LP

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