Monthly Market Commentary

April 2020 Mortgage Pipeline Hedging Commentary

Using TBA MBS as Hedging Alternative to Agencies Could Potentially Save Your Institution Millions Understanding and tracking hedge cost is critical in any mortgage pipeline hedging process. When forward committing loans to investors, there is an implied hedge cost...

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April 2020 Market Commentary

ECONOMIC UPDATE Financial markets experienced extraordinary volatility in March as the COVID-19 pandemic worsenedA self-imposed social lockdown is sending shockwaves across the global economy, but policymakers have responded with substantial monetary and fiscal...

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March 2020 Mortgage Pipeline Hedging Commentary

Recent events have prompted significant volatility in the mortgage market. The 10-year U.S. Treasury rate (10UST) dropped to all-time lows below 1% and significant selling was seen in risk markets. Multi-point swings in pricing have occurred over very short periods of...

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March 2020 Market Commentary

ECONOMIC UPDATE Coronavirus fears paralyzed risk markets in the final week of FebruaryMarkets are now pricing for Fed rate cuts in March and April and an emergency rate cut of 50 bps was announced on March 3Fed Chair Powell issued a short statement on February 28...

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February 2020 Market Commentary

ECONOMIC UPDATE Financial market volatility reemerged in January amid geopolitical concerns and coronavirus fearsThere are some similarities between the current coronavirus outbreak and SARS from 2003/2004, but the response from the Chinese government has been more...

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January 2020 Market Commentary

ECONOMIC UPDATE 2019 was a great year for U.S. financial marketsThe U.S. economy performed above expectations for the year, boosted by strong personal consumption U.S./China trade negotiations should remain a sensitive topic for financial markets, and the Fed appears...

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December 2019 Market Commentary

ECONOMIC UPDATE The presidential impeachment inquiry has not yet had a notable impact on financial marketsBroad market performance in November suggested increased optimism that a U.S./China trade deal would get done before year-endRecent comments from Fed leaders...

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November 2019 Market Commentary

ECONOMIC UPDATE The Fed announced another rate cut in October, but forward guidance suggests that monetary policy is on hold for nowTrade headlines have been less negative, and the U.S. economy appears to be in better shape than some fearedThe Fed is increasing the...

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October 2019 Market Commentary

ECONOMIC UPDATE Risk markets rebounded in September with less negative headlines on the trade front, but many questions loom entering Q4A supply/demand imbalance in overnight funding markets forced the Fed to intervene and inject liquidity into money marketsThe Fed...

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September 2019 Market Commentary

ECONOMIC UPDATE August was atypically volatile for global financial markets in response to escalated U.S./China tensionsThe Fed is expected to cut the fed funds rate again in September, Powell and his colleagues have been hesitant to suggest a new easing cycle has...

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