Agency Debt

March 28th, 2008 12:53 pm | by John Jansen |

 The Agency market is another extremely quiet venue. The reduced level of volatility has given a bit of a bid to callable paper. Benchmark bullets are tighter by a couple of basis points in the 2 year and 5 year sectors and a little wider in the 10 year sector.

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  1. 2 Responses to “Agency Debt”

  2. By bgreen on Mar 28, 2008 | Reply

    what are the risks of a carry trade using the sub 1yr treasuries and buying higher yields ideally in usd?

  3. By John Jansen on Mar 28, 2008 | Reply

    It is late on a Friday night .I would suggest that if you do that trade you are postulating that the risk aversion and flight to quality trade spawned by the subprime debacle and attendant credit crunch is over.
    You might want to start with a very small amount and add to it as it goes your way. If it turns sour get out quickly.

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