Two Wall Street traders are charged with involvement in a “parking” scheme that arranged for one to purchase several securities with the understanding that the other would repurchase them at a profit in order to skirt around company rules.
The Federal Open Market Committee is going forward with its highly anticipated quantitative easing, version 2. The program announcement should not be a shock, except that the secondary market participants were banking on a Treasury focus. It's still not quite certain that's what they got.
"Fear that the Fed may whisper the word 'mortgage' initiated the emergency MBS buy and hold program," joked an MBS trader in a mass e-mail.
CNN Money released a list of the top 20 highest paying jobs -- and to the surprise of many here in the newsroom -- not one position on Wall Street was listed. Indeed, financial firms employees are persona non grata. Yes, not one hedge fund manager, not one stock trader, not one bank executive, not one mortgage broker made the top 20.
In short, no one who would read this website is on this list.
What gives? We're working hard here!
When I spoke to a trader at one of the two big banks that operate a covered bond platform in the U.S., he told me that his boss would always show a preference to Federal Home Loan Bank advances as long as there is no established covered bond platform in the U.S.
Since then, I wrote an article that referred to advances from FHLB as being less efficient than covered bond financing. Well, the banks disagree. And in the spirit of balance and open dialogue in the financial markets, those concerns are republished below:
HousingWire publisher Paul Jackson just sent me an email in reference to an article by Jody Shenn called "Mortgage-Bond Spreads Surpass Lows Reached During Fed Buying" to which our publisher commented that, "Treasuries are too rich for buyers, so they're flooding the agency MBS space."
This crossed my desk this morning, from a trader at JPM -- those of you in the secondary markets know well who this is from, but I thought I'd share.
Make sure to sing in your best "Free Fallin'" impersonation, a la Tom Petty!
There's no good bid, my 401k lost a comma.
Help me Jesus, Greece and Portugal too!
Hit another back bid, feels like I got kicked in the pelvis
But I throw parties - at the Central Park Zoo.
It's been a long day, just downed my fifth Stoli
Analysts in the residential mortgage-backed securitization (RMBS) arena report that 30-year pass throughs (coupons) outperformed Treasuries last week.
While this is not an indication of a rally, the higher profitability of RMBS pass throughs may begin to entice more investors into the mortgage investment space. A pass through, a hallmark of securitization structuring, represents how much an investor gets paid after all fees and services are taken.
"If you look at what we do, fundamentally, MERS is the mortgagee on behalf of the investor and its assigns, it’s not a whole lot more complicated than that. And that role as an agent is well rooted in the laws of this country. So when you get down to it, and when we get challenged, we typically prevail. We simply take away all the clutter and present what we do, and what the laws actually say, and we get there," MERS CEO Beckmann said in an exclusive profile only in HousingWire magazine..
The CFPB is currently paying close attention to the individuals/small players, as well as the larger institutional mortgage companies. With respect to the small players, the CFPB is looking at the loan officer, real estate agent and developer. A common violation that these smaller firms or individuals commit, in addition to possible violations resulting from social media posts, stems from agreements among themselves. Read More
Ladies and gentlemen, it’s been some time since the mortgage bond world felt shaken to the core. But shaken, right now, it feels, according to several recent conversations I’ve had on the subject. Read More