Posted To: Pipeline Press

Did you know that dolphins are so smart that within 2 weeks of being in captivity they can train a human to stand on the edge of a pool and give them fish? There are a lot of smart mortgage traders working at the broker-dealers. Here is a very interesting piece on how Wall Street MBS traders and analysts think. I included nearly the entire research write-up here, leaving the firm off of it, as it touches on many subjects that originators, Realtors, whoever, don't think about very often, but this type of quantitative analysis directly impacts rate sheet pricing : "Although dollar prices of Fannie 3.0's (these securities would include 3.25% and higher mortgages) have skyrocketed over the past few days, there has been very limited originator selling of this coupon. Below we try to estimate at...(read more)