Trade Matrix: UBS Warburg — ABS

Published 1 Min Read

The perfect current coupon mortgage is now more than 2.5 standard deviations RICH on the firm’s model. Mortgage rates are only 10 bps off their 40 year lows. CMO activity is slowing. Volatility has already dropped dramatically and looks low for this level of rates. Based on these, cut mortgage allocation back to neutral.


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