spunkmaster

Homeowners will soon be able to refinance 59 percent of all mortgages outstanding, likely making convexity hedging an ongoing issue, wrote Fidelio Tata, head of derivatives strategy at RBS Greenwich capital in Greenwich, Connecticut. With yields on 30-year current coupon securities dipping below 4.90 percent, mortgages with a 5.5 percent interest rate are now able to be refinanced, while those with a 5 percent rate will soon be eligible, he wrote.

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