MBS WEEKLY: Don’t Miss This One
ByPosted To: MBS Commentary
Yes, I write a lot… I'm working on it, OK!? But read every last word of this one… Once a year, I like to have a passionate revelation… Last year, it was the development of a massive triangle of competing trends that I felt were destined to signal the inception of "something really good" for mortgage rates and spreads. There was nothing especially groundbreaking about thinking that "something's gotta give" in reference to MBS into the Fall of 2008. Spreads were over 300bps–all time wides, and continuing to blow out week after week. To make matters worse, relief was so far out of sight that even the Frannie conservatorship failed to remedy the slide. You were either in one camp or another. On one side of the argument foretold the end of days for the mortgage…(read more)