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Thursday, April 25, 2019
 
MANAGING DIRECTOR:
Scott Carrithers
 
PORTFOLIO SALES AND SERVICE:
Steve Panknin • George Morris • Jeff Goble • Chris Thompson • Sean Doherty
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
04/18/19 2.44 2.42 2.47 2.44 2.38 2.36 2.38 2.46 2.57 2.78 2.96
04/19/19 2.44 2.42 2.47 2.44 2.38 2.36 2.38 2.46 2.57 2.78 2.96
04/22/19 2.44 2.44 2.47 2.46 2.38 2.36 2.39 2.49 2.59 2.82 2.99
04/23/19 2.43 2.45 2.46 2.43 2.36 2.34 2.36 2.46 2.57 2.81 2.98
04/24/19 2.42 2.44 2.46 2.42 2.32 2.28 2.32 2.41 2.53 2.76 2.94
                                                                                                                                        Source: U.S. Department of the Treasury, as of 04/24/2019
DUS Bonds:  Delegated Underwriting Servicing

A Fannie Mae DUS bond is backed by a commercial loan, typically on a single multifamily property. It has prepayment protection with a large penalty for refinancing, classified as Yield Maintenance.  This security might particularly hold value to the portfolio manager who believes the Fed is at or near the end of their tightening cycle.

Fannie Mae posts three tiers on the underlying loans of the DUS bond. 



A current recommendation on a DUS bond is Fannie Mae Pool BL1451
  • Y I E L D:  3.25% Final Maturity (0 CPY)  +75 bps to the curve
  • Y I E L D:  3.03% at Yield Maintenance scenario (100 CPY)
  • Average Life at Yield Maintenance is 6.71 years
  • Sacramento, CA – Rosedown Apartments
  • TIER 2






We recommend DUS bonds as they are currently offered at attractive yields vs. U.S. Treasuries.  Currently there is $3.4MM available of the recommended FN BL1451.

Please contact your portfolio representative for questions and current market availability on DUS offerings.

<All Details are subject to change and should be viewed as indications only, as of 04/25/2019>
 
 

 
 


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