CMO Market Update

January 7, 2019

We will start out the 2019 CMO Commentary with our December Trade Summary followed by a quick look at current spread levels compared back against 2018 data we collect weekly from our trading desk.


December Trade Summary



CMO Spreads, Measured on a Weekly Basis

I would expect to see some migration from 3yr to 5yr buying for those investors who can stand the extension. Also, if rates stay +/- where they are, or continue to fall, longer duration and less negative convexity should be a benefit.

Kevin A. Smith, CFA

Director Investment Product Strategies

Vining Sparks IBG, LP

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