MBS AFTERNOON: Staying A Bit Lower, But Stabilized

After dropping to 102-16 in 4.5s (unchanged on the day), we've stabilized at that price level.  Still some potential for reprices for the worse.  No guarantee that your lender will do so, but certainly possible.  Remember that settlement begins tomorrow and will be all wrapped up on Tuesday, so if you have some time, it's worth it to call this bet to see the flop, even if you're not looking at bullets or cowboys right now.  For non poker players, that means it's not a bad idea to stay in the market until after the roll to see what happens.