CMO Market Update
June 25, 2018
- Buying was in line with the previous week.
- Over the past few days, if there has been any consistency in what portfolio managers have been investing in, it appears to be 4.0 percent coupons generally priced in the $103 arena.
- The flat yield curve continues to make intra-sector bond swaps harder than usual to make sense. Therefore, most purchases represented spending of built up cash or portfolio cashflow.
Kevin A. Smith, CFA
Manager, Strategic Analytics
Vining-Sparks IBG LP