MBS
March 27th, 2009 10:41 am | by John Jansen |Mortgages are about 3 1/2 ticks tighter to the swaps curve. Flows have been light but the buyers are in control.
The Federal Reserve has been a modest buyer. One commentator suggested that the Federal Reserve would lay low until more supply hits and its sustenance and succor are more necessary than currently.
Originators have been very light sellers of (mostly) 4 1/2 coupons.
Money managers have been buying the middle of the coupon stack while Asain investors continue to feast on GNMAs.
