Beyond Year Mainstays

The 30-year (single-family, level-payment, etc.) programs dominate trading and investment energies in the pass-through market—in 2004, almost three-fourths of new supply was 30-year programs. The next deepest markets exist for 15-year programs, followed by 20-year, 10-year, and relocation (relo) mortgage pass-throughs. The relative size of these markets, across agencies, is shown in Exhibit 3-19. (Included are all programs with over $2 billion outstanding in January 2005.) All but the relos trade TBA. Periodically, 15-year coupons support attractive roll markets.

Borrowing Basics

Borrowing Basics

Some small business persons cannot understand why a lending institution refused to lend them money. Others have no trouble getting funds, but they are surprised to find strings attached to their loans.

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