MBS GOING OUT: FLOATING THE ROLL

January Class A Notification began today...January Class A Settlement is January 13

Here's how the Jan coupons closed out the day...

Fn 4.0-> -0-02  to 101-04+           Gn 4.0-> +0-03 at 101-00

Fn 4.5-> -0-02+ to 102-15            Gn 4.5-> +0-10+ to 102-31+

Fn 5.0-> -0-01 to 103-10+            Gn 5.0-> -0-07 to 103-28

Fn 5.5-> 0-00 to 103-22+             Gn 5.5-> -0-06+ to 104-02

Fn 6.0-> +0-01+ to 103-31+         Gn 6.0-> -0-02+ to 104-0

Heres how the Feb. coupons closed the day out...

Fn 4.0-> -0-00+ to 100-24           Gn 4.0-> -0-02+ at 100-06

Fn 4.5-> -0-00+ to 102-06+         Gn 4.5-> +0-03+ to 102-16+

Fn 5.0-> -0-02+ to 103-01+         Gn 5.0-> -0-07 to 103-13

Fn 5.5-> +0-01+ to 103-14          Gn 5.5-> -0-03+ to 103-24

Fn 6.0-> +0-02+ to 103-23+        Gn 6.0-> 0-00 to 103-24+

Reprices for the worse were reported...reprices for the better were reported. All in all the float boat is patiently sailing as we await spread tightening between primary and secondary mortgage rates. We do expect this tightening processes to be aided by the roll. Unfortunately we do not know how quickly lenders are implementing new staff so the extent and pace of improvements remains a mystery.

The one known positive is the re-liquification of funding lines will provide the money necessary to purchase the loans that you are locking. We say wait it out until after the Jan.13 settlement.