CMO Market Update

September 24, 2018

We hosted two webinars last week so please see information on them down below. Activity was steady and picked up later in the week characterized by similar investment patterns we have discussed of late. Front sequentials with slight premiums along with VADMs continue to remain popular. See a comparison below from our recent webinars where we compare and contrast a discount and premium structure on the exact same collateral. Of note, both yield and spread are greater on the premium structure, it has a lower price volatility, and the give up (if rates decline) is manageable. Next week, we have our September Trade Summary Analytics on tap.

Note: Accessing the Webinar Archive below requires a login. We’ve made every effort to make it as convenient as possible and you can register here. The login is free and comes with zero obligations. If you have any issues, email me at and I’ll personally guide your registration through.

Educational Opportunities:

We had two webinars last week focusing on Mortgage Markets and CMOs in particular along with an update on the Single Security Initiative. With a login (mentioned above), you can view them in our Webinar Archive.

Kevin A. Smith, CFA

Manager, Strategic Analytics

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.
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