Capital markets
Liquidity continues to be the name of the game! Chris Bennett from Vice Capital sent, “GNMA 2.0s have struggled from a liquidity standpoint without any support from the Fed like UMBS 2.0s or GNMA 2.5s have, but there is real end-buyer interest there. We recently put out a larger pool of GNMA 2.0s and got bids that ranged from 24/32 below Tradeweb screens to 10/32 above them – in the end they traded well into the 104s. Seems a little crazy to think you can offer 2.25% on a 30yr FHA loan and get 4 points in cash plus keep the servicing for free, but if you’re an issuer that’s where things have evolved to. Wild times.”
This item originally appeared in Rob Chrisman’s Daily Mortgage News and Commentary.
