| Last | Change | Percent | |
| S&P Futures | 1657.2 | 3.7 | 0.22% |
| Eurostoxx Index | 2788.8 | -14.6 | -0.52% |
| Oil (WTI) | 110.1 | -0.4 | -0.40% |
| LIBOR | 0.256 | -0.001 | -0.20% |
| US Dollar Index (DXY) | 81.99 | -0.160 | -0.19% |
| 10 Year Govt Bond Yield | 2.88% | -0.05% | |
| Current Coupon Ginnie Mae TBA | 103 | 3.1 | |
| Current Coupon Fannie Mae TBA | 102.8 | 0.3 | |
| RPX Composite Real Estate Index | 200.7 | -0.2 | |
| BankRate 30 Year Fixed Rate Mortgage | 4.6 |
Slow news day. Markets are higher this morning on no real news. Bonds and MBS are up.
Now that the jobs report is out of the way, the markets will fret about the upcoming FOMC meeting for the next week and a half. The consensus seems to be that the Fed will make at least a symbolic reduction in asset purchases, and it will probably be Treasuries not MBS.
Are K-deals the future of residential loan securitization? Would future securitizations involve subordinate and mezzanine tranches? Essentially, a pool of mortgages would be cut up into a senior guaranteed tranche, which would resemble what we already have now, with Ginnie or GSE MBS. There would be a two additional tranches - a subordinate tranche which would bear the first losses on the pool, and then a mezzanine tranche which would bear losses after the sub piece is wiped out.
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