CMO Market Update

June 3, 2019

CMO spreads to Treasurys widened approximately 5 basis points last week, continuing a methodical trend we have seen since February. As the calendar turns to June, we look back at trade activity during the month of May.

May Trade Summary

Yield Book analytics on fixed rate CMO investments were steady once again. Thanks to widening spreads, yields have held up well despite the 40 basis point drop in Treasury yields this month. Granted, a substantial part of the move occurred last week at the end of the month.

Travis Nauert, CFA

Analyst, Investment Strategies

Vining Sparks IBG, LP

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
This is a publication of Vining-Sparks IBG, L.P.
775 Ridge Lake Blvd., Memphis, TN 38120