Wednesday, November 22, 2017
MANAGING DIRECTOR: Scott Carrithers   PORTFOLIO SALES AND SERVICE: Steve Panknin • George Morris • Jeff Goble • Chris Thompson • Sean Doherty Robert Brickson • Kevin Doyle • Lonnie Harris •  Mark Tranckino • Robert Schuyler  Tom Toburen • Josh Kiefer • Nicole Burczyk • Kelley Frye • Natalie Regan • Aaron Stoffer • Chuck Honeywell

US Treasury Market
Date	1 mo	3 mo	6 mo	1 yr	2 yr	3 yr	5 yr	7 yr	10 yr	20 yr	30 yr
11/15/17	1.08	1.25	1.39	1.55	1.68	1.79	2.04	2.21	2.33	2.58	2.77
11/16/17	1.08	1.27	1.42	1.59	1.72	1.83	2.07	2.25	2.37	2.62	2.81
11/17/17	1.08	1.29	1.42	1.60	1.73	1.83	2.06	2.23	2.35	2.59	2.78
11/20/17	1.09	1.30	1.46	1.62	1.77	1.86	2.09	2.26	2.37	2.60	2.78
11/21/17	1.15	1.30	1.45	1.62	1.77	1.88	2.11	2.27	2.36	2.58	2.76

                                                                                                                                         Source: U.S. Department of the Treasury, as of 11/21/17  

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Higher Rates are Allowing You to Step Up Your Coupon Game!

Today’s higher rates are allowing you to move up the coupon stack on seasoned MBS pools without paying outrageous premiums.  If you are a seasoned pool buyer and have been reluctant to consider higher coupon pools because of the higher premiums, it might be time to reconsider.  We still love the seasoned 15YR 2.50% coupon pools for portfolios because of their cash flow consistency and limited extension risk. 

However, when you have the opportunity to step up in coupon at a reasonable premium, go for it! Higher coupons can only offer added protection against a rising rate scenario as it relates to both prices and extension risk.  Please refer to the simple table below which stacks up a few of the more important characteristics we like to consider when purchasing Agency MBS pools.  If you have any questions or want to discuss the specifics please give us a call.

 

Finally from all of us here at Country Club Bank, a wish for you at Thanksgiving:

Your warmest traditions, your happiest memories. The closeness of friendship and family too. A home bright with laughter, a heart filled with joy…………….May Thanksgiving bring all of these good things to you.

 

This information is intended for institutional investors only. The material provided in this document/presentation is for informational purposes only and is intended solely for private use. Past performance is not indicative of future results. This material is not intended as an offer or solicitation for the purchase or sale of any financial instruments.

•Not FDIC Insured •No Bank Guarantee •May Lose Value