What the Fed doesn't understand because it's made up of academics, says CYS Investments CEO...


What the Fed doesn't understand because it's made up of academics, says CYS Investments CEO  Kevin Grant - presenting at KBW (presentation) - is the 30-year mortgage market is a forward market, i.e. there's no such thing as a slow adjustment, changes are priced in immediately. 30-year MBS are now priced for Operation Taper, he says, noting the large decline in 30-year vs. 15-year paper. CYS is loving it, picking up assets at spreads it couldn't have hoped to achieve previously.

Comments (2)
  • Joe2922
    , contributor
    Comments (477) | Send Message
     
    Kevin is a fool for printing that because everyone knows the Fed is front-run by traders.
    4 Jun 2013, 09:40 AM Reply Like
  • William Packer
    , contributor
    Comments (1012) | Send Message
     
    Kevin has made so many bad calls I have stopped keeping track. WMC, MTGE, TWO, EFC is where you want to be.
    5 Jul 2013, 01:11 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs