Team Hedge Fund

“Higher coupons generally outperformed Treasury hedges for conventional and Ginnie Mae 30 year mortgages. In the Fannie Mae (FN) 30 year sector, 6.0 years underperformed because of Fannie Mae buyout activity in these coupons in March, which are being reflected in the index one month afterwards. Similarly, FN 5.5year and lower should see large paydown losses next month owing to the buyout, explained analysts.”
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