MBS production coupon spreads have climbed back to where they were sitting during the Fed's quantitative easing programs—though the mechanics driving it look pretty different on the surface. Call it GSE buying instead of QE if you want. Technically true, maybe. But from a trading perspective? The market sees what it sees. When OAS levels mirror what we had back in the active purchasing phase, that's the signal that matters most.
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GweiObserver
· 3h ago
GSE shell QE, the market doesn't care what alias you change to
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gas_fee_therapy
· 3h ago
MBS is so competitive, GSE is taking over QE activities, and the market simply can't tell the difference.
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NFTRegretDiary
· 4h ago
Same old story, still the same old tricks.
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GasFeeTherapist
· 4h ago
Same old, same old; it's all just buying and buying anyway.
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consensus_whisperer
· 4h ago
GSE takes over, QE changes its disguise, anyway the market's intuition is sharp.
MBS production coupon spreads have climbed back to where they were sitting during the Fed's quantitative easing programs—though the mechanics driving it look pretty different on the surface. Call it GSE buying instead of QE if you want. Technically true, maybe. But from a trading perspective? The market sees what it sees. When OAS levels mirror what we had back in the active purchasing phase, that's the signal that matters most.