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

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