U.S. mortgage bonds without government backing held near the highest prices in two years last week even as sales soared to the most in more than a month. Dealers asked for bids on about $7 billion of the securities, up from less than $2 billion the previous week as “investors sought to take profits or clean up their balance sheets,” according to JPMorgan Chase & Co. analysts. “Pricing remained more or less flat through the heavy volume, indicating that there is strength at these levels,” the New York-based analysts led by Edward Reardon and John Sim wrote in a Sept. 17 report.
Mortgage bond trading jumps as prices hover near two-year highs
September 20, 2010, 2:48pm
Jacob Gaffney is formerly Editor-in-Chief of HousingWire and HousingWire.com. He previously covered securitization for Reuters and Source Media in London before returning to the United States in 2009. While in Europe for nearly a decade, he covered bank loans and the high yield market, in addition to commercial paper, student loan, auto and credit card space(s).see full bio
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Jacob Gaffney is formerly Editor-in-Chief of HousingWire and HousingWire.com. He previously covered securitization for Reuters and Source Media in London before returning to the United States in 2009. While in Europe for nearly a decade, he covered bank loans and the high yield market, in addition to commercial paper, student loan, auto and credit card space(s).see full bio