CMO Market Update

November 13, 2018



Last week we saw investor activity in roughly the same portions we saw for the month of October including full coupon sequentials and VADMs. Of note last week, we saw investor activity in slight discount GNMA CMOs. All else equal, I think we would all agree a GNMA CMO is a good pick when offered at or close to the same risk/return profile of a FN/FH CMO. Below is a snapshot of what those positions looked like on the whole.



I’ve also included the October Trade Summary below again for those wrapped up with other commitments last week.

October Trade Summary

 





Kevin A. Smith, CFA

Director Investment Product Strategies

Vining-Sparks IBG LP

ksmith@viningsparks.com

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