Fig.1 beneath reflects an “Intra‐Day” perspective for FNMA existing coupon yields and the decline of ~.18% over the past 3 days, which is in immediate conflict to what would have been expected given the looming debt ceiling issues. Financial fundamentals right now outweighed issues over the debt debate as a weaker-than-expected GDP outcome was released and some sharp revisions were manufactured to prior development benefits. [GDP+1.three% QoQ Annualized]
In short, this drives residence an crucial point: Liquidity danger is just as important as the credit danger connected with investments. It’s possibly even far more essential correct now provided the instance of Greece, which is struggling more from its capacity to cash flow than its outstanding debt.
The decrease yields imply a decrease borrowing price to shoppers, which will support boost affordability (even though that remains at all time highs) but I caution that pressure is building for a likely whipsaw in rates the two from a regulatory and …
COMMERCIALLENDINGRESOURCES.COM
Reside in Yokohama, Japan. March 23, 1991.
Video Rating: 4 / 5