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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)
  • 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
  • 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
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