CMO Market Update

November 26, 2018

Last week was a relatively light week with the Thanksgiving holiday. Of note last week, we saw investor activity in Sequential full coupons and in cut coupon GNMA CMOs. Below are snapshots of what an investor could reasonably expect to see in CMO investments such as those. The GNMA has a 7bps yield give-up compared to the Conventional but it is not as “whippy” and is 0% Risk-Weighted for investors sensitive to that. Next week, we’ll be able to dive into November’s trade activity.

Kevin A. Smith, CFA

Director Investment Product Strategies

Vining-Sparks IBG LP

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