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MANAGING DIRECTOR:
Scott Carrithers
 
PORTFOLIO SALES AND SERVICE:
George Morris • Chris Thompson • Sean Doherty • Kevin Doyle • Mark Tranckino
Nicole Burczyk • Natalie Regan • Aaron Stoffer • David Farris • Lonnie Harris • Brian Schaff
Josh Kiefer • Robert Schuyler • Tom Toburen • Aaron Hemphill • Jeff Macy • Todd Czinege

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
08/19/22 2.23 2.74 3.16 3.26 3.25 3.28 3.11 3.06 2.98 3.44 3.22
08/22/22 2.27 2.82 3.23 3.32 3.32 3.36 3.17 3.12 3.03 3.48 3.24
08/23/22 2.28 2.80 3.21 3.29 3.29 3.35 3.18 3.14 3.05 3.49 3.26
08/24/22 2.29 2.82 3.28 3.35 3.36 3.40 3.20 3.20 3.11 3.55 3.32
08/25/22 2.42 2.88 3.25 3.33 3.35 3.37 3.15 3.11 3.03 3.47 3.25

Source: U.S. Department of the Treasury, as of 8/25/2022   


5 Year SOFR ARM Opportunity

 
Country Club Bank is currently offering a Fannie Mae 5 year hybrid SOFR ARM that presents what we believe to be a rare opportunity in the current market. Quality 5 year ARM production has been extremely limited as many tier 1 servicers have been keeping individual loans on their own balance sheets. The below pool is 100% serviced by JP Morgan with third party originators making up less than 25% of the loans, which typically provides a less risky prepayment profile.

The current market is seeing the widest mortgage backed product spreads since the onset of Covid. With 43 basis points of spread to a 3.29 WAL, this ARM offers what would have demanded a larger premium—3 points or greater—in recent years. With a near par dollar price, the variance between actual yield and projected book yield will likely remain extremely close until the first reset.

Other key highlights:
  • 5yr lock out with semi-annual coupon resets
  • 2/1/5 rate cap structure
  • Lock in yield to reset with close to par coupon
  • 16% TX, 14% CA, 10% FL, and 8% NY geographic profile
  • Solid 101 loan count

Please contact your CCB representative to further discuss this investment opportunity.

 


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