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Memphis, TN  38119

901.261.5900 Main | 800.664.5635 

MBS

5/3/19 - - Hey everyone! Happy Friday! Employment news is out! I know their counting methodology is goofy, but a 3.6% headline rate is still impressive. It's at a 49yr low! The change in non-farm payrolls was the real number to brag about. They were looking for a 190k increase, similar to last month, and got +263k!!! The bottom line is if you don't have a job currently you're not looking! The average hourly wage in the U.S. is at $27.77! 


 If you're looking for where you should be invested personally, risk assets (stocks) are still the place to be. Can you say "melt-up"! 


 In the mortgage market, money is still flowing in. Mortgage-related funds saw $217 million in inflows for the week ending May 1. We're still seeing very healthy volume in daily MBS originations, which we'll cover in a minute. Primary dealer MBS holdings rose $3.4 billion week-over-week to $82.8 billion in the week ending April 24th. The bond market today is up a little, with the 10yr T-Note +6/32 to yield 2.52% and 30yr MBS +4/32, yielding 3.31% (+99/Treasury curve). Notice, MBS tightened 5-6 basis points vs USTs in the past few days. MBS origination yesterday was on fire at $3.11 billion, about 2/3 of the volume in 30yr 3.50%. 


 That's it, everyone have a great weekend and remember us if you trade MBS, SBA, CRA products or whole loans. We'd like to meet you!


Mortgage Backed Securities

Five Minute Maturity

Check out this video regarding Mortgage Backed Securities. 

Hanover Securities Cherry Picks

ARMS / FLOATERS

Cost:

Average Life:

Yield:

Speed:

Spread:

Coupon:

Origination:

Lifetime Cap:

WAM:

Factor:

Caps:

Floor:

1 Yr. Libor

$20.6mm+ Fannie Mae 5/1 ARM 3.115% #BM4496 9/48 stated final

$101-01+

2.9 yr

2.68%

15% CPB

+30/Z curve

3.115%

2018

8.115% 

350

.9360

2/2/5

1.611

+1.611

10 YEAR FIXED

Cost:

Average Life:

Yield:

Speed:

Spread:

Coupon:

# Loans:

Origination:

Type:

WAM:

Factor:

$102-25

3.5 yr

2.65%

264 PSA

+35/I curve

3.5%

424

100% 2018

Fannie Major

113

.9535

$10mm+ Fannie Mae 10yr am 3.50% #MA3585   2/29 stated final

15 YEAR FIXED

Cost:

Average Life:

Yield:

Speed:

Spread:

Coupon:

# Loans:

Origination:

Type:

WAM:

Factor:

$99-05+

5.1 yr

2.67%

147 PSA

+35/I curve

2.5%

496

2017/2018

Freddie Giant 

164

.9049

$14mm+ Freddie Mac Nugget 2.50% #G18694  5/33 stated final

20 YEAR FIXED

Cost:

Average Life:

Yield:

Speed:

Spread:

Coupon:

# Loans:

Origination:

Type:

WAM:

Factor:

$102-05

5.4 yr

3.04%

247 PSA

+70/I curve

3.5%

449

2018/2019

Freddie Multi

236

.9917

$9mm+ Fannie Mae 20yr am 3.50% #C92038 3/39 stated final

30 YEAR FIXED

Cost:

Average Life:

Yield:

Speed:

Spread:

Coupon:

# Loans:

Origination:

Type:

WAM:

Factor:

$101-17

7.5 yr

3.24%

161 PSA

+80/I curve

3.5%

24,972

2017

FNMA Major

339

.9044

$68mm+ Fannie Mae 30 yr am 3.50% #MA3210 12/47 stated final

AGENCY CMBS

Cost:

Average Life:

Yield:

Speed:

Coupon:

Call Protection:

Tier

GEO:

DSCR:

LTV:

OCC:

Factor:

$105-02

9.6 yr

3.20 +70/swaps

0% CPY

3.76%

82 mo Yield Maintenance

2

CA

1.27x

70%

93%

1.0000

$6.4mm FNMA 10/7  DUS #BL1451

3.76% coupon  2/2029 stated final

AGENCY CMO - 3 YEAR

Cost:

Average Life:

Yield:

Speed:

Spread:

Collateral:

Coupon:

Band:

Avg Life:

      w/ rates +300:

Factor:

$99-10

3.0 yr

3.19%

569 PSA

+90/I curve

Jumbo 30yr 4.00%

3.00%

none


6.2 yr 

.9188

$50mm Fannie Mae   PAC 3.00% 

#FNR 2018-13  PA 3/48 stated final

AGENCY CMO - 5 YEAR

Cost:

Average Life:

Yield:

Speed:

Spread:

Collateral::

Coupon:

Band:

Avg Life:

   w/ rates +300

Factor:

$99-03

4.6 yr

3.21%

236 PSA

+90/I curve

Jumbo 30yr 3.50%

3.0%

none


7.9 yr 

.8814

$20mm+ Freddie Mac Busted PAC 3.00% 

#FHR 4683 PD   4/46 stated final

AGENCY CMO - LONG END

Cost:

Average Life:

Yield:

Speed:

Spread:

Collateral:

Coupon:

Band:

Avg Life:

  w/ rates +300

IO till:

Factor:


$95-20+

15.1 yr

3.38%

217 PSA

+75/I curve

New Fannie  Jumbo 3.50%

3.0%

129-199


16.9 yr 

4/2029

1.0000

$13.0mm Fannie Mae PAC 3.00% 

#FNR 2018-8 MU   2/48 stated final

Jim Tait is a registered representative with, and offers securities through Hanover Securities, Inc. (Hanover), Member FINRA & SIPC. Although this information has been obtained from sources we believe reliable, we do not guarantee its accuracy, and it may be incomplete or condensed. This is for information purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. Securities which may be shown are subject to availability and changes in price. Past performance is not indicative of future results. Changes in any assumptions may have a material effect on projected results.


This information from Hanover Securities is for your private use and does not constitute an offer or solicitation with respect to the sale of any security. This information was obtained from sources we believe to be reliable but we do not represent that it is accurate or complete, and it should not be relied on as such. Certain transactions may give rise to substantial risk and are not suitable for all investors. This information was based on current market indicators which may vary over time. We may from time to time buy or sell, or have long or short positions in securities identical or related to those identified herein. 


Although this information has been obtained from sources we believe reliable, we do not guarantee its accuracy, and it may be incomplete or condensed. This is for information purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. Loans and/or Securities which may be shown are subject to availability and changes in price. Past performance is not indicative of future results. Changes in any assumptions may have a material effect on projected results. This information from Banes Capital Group (BCG) and/or Hanover Securities is for your private use, and was obtained from sources we believe to be reliable. However, we do not represent that this information is accurate or complete, and it should not be relied on as such. This information is for institutional investors only, and as such certain transactions may give rise to substantial risk and are not suitable for all investors. This information was based on current market indicators which may vary over time. We may from time to time buy or sell, or have long or short positions in loans or securities identical or related to those identified herein. 


The pricing of loans or any Level II or III asset is inherently an exercise in quantifying uncertain variables. As such, great care should be taken when pricing loans for reporting purposes. The information included herein should never be taken as the sole method, or even a method to be relied on, for the pricing of loans or other Level II or III assets as this is for informational purposes only.

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