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Wednesday, October 30, 2024
 

MANAGING DIRECTOR:
Scott Carrithers
 
PORTFOLIO SALES AND SERVICE:
Chris Thompson • Sean Doherty • Kevin Doyle • Mark Tranckino • Brian Schaff
Natalie Regan • Aaron Stoffer • David Farris • Jeff Macy 
Josh Kiefer • Tom Toburen • Todd Czinege • Trey Valentine • Cody Kreutziger

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
10/23/24 4.74 4.63 4.49 4.27 4.08 4.03 4.05 4.14 4.24 4.59 4.52
10/24/24 4.75 4.61 4.48 4.25 4.03 3.98 4.00 4.09 4.19 4.54 4.46
10/25/24 4.74 4.64 4.54 4.31 4.11 4.05 4.07 4.15 4.24 4.59 4.50
10/28/24 4.75 4.61 4.50 4.30 4.14 4.10 4.12 4.20 4.28 4.63 4.53
10/29/24 4.75 4.60 4.48 4.28 4.10 4.06 4.08 4.17 4.26 4.60 4.50

The data in the table above is static as of the time it was pulled, so rates may have changed. Treat all data in this table and PMR as indications only and availability is always subject to change. This information was pulled manually from sources we believe to be reliable. New source, as of 12/12/2022, Bloomberg, L.L.P.  As of: close of business 10/29/2024.

                                                                                                                                                                                        

 

Another Tool in the Toolbox - Heat Maps


Heat Maps are graphical representations of data that utilize a color-coded system to assist in the easy review of data. The primary purpose of a Heat Map is to provide a helpful visual aid for the quick dissemination of statistical or data-driven information and directing viewers towards areas that matter most.

In the area of Fixed Income markets, we utilize MBS Heat Maps to visualize market trends and the performance of specific pools. Our Heat Maps create a quick visual portfolio review of your MBS holdings to easily identify any outliers that may need attention, either good or bad. 
Below are the metrics we use in our Heat Maps.
 
 
 
So what does all this mean when applied to the sample portolfio above and how could an investor act on this information?  We would recommend considering the following for this portfolio:
  • Sell the three <$250k 10-year pools, indicated by the red color coding in the “Current Par” column.  If this investor can take losses or needs liquidity, these have low takeout yields and these dollars could be redeployed into the current environment.  
  • There are also the two <$250k 15-year pools in red in the “Current Par” column that this investor could also consider selling at a minimal loss and clean up their portfolio.  
  • Something to keep in mind when pool sizes get this low is that safekeeping fees can quickly eat up the coupon income.  
  • Monitor 30yr 5.5% pools as prepays will pick up over time and consider selling for gains if it makes sense.
If you have more questions regarding Heat Maps or any other portfolio tool or strategy, please reach out to your Country Club Bank Capital Markets Group representative to discuss further. Thank you again for your support and business.


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