3 high level lender execs have all alluded to the fact that bond investors have all but stopped buying securitized conforming ARMS. Did you see what happened to rates today...
...this is flat out crazy, we could be seeing some "unprecedented" market and government activity in the next 4 trading days. Fridays are not so good from a historical perspective.
I'm not saying...but.....
I was wondering why with the stock market down over 200 points that the bond market was not rallying!
Do you have any places where folk actually said this? Would love to see the verbage
Matthew, I've got some college friends that are in the right places and occassionally they blow off steam, need someone to text their "insider" information. Yesterday, there were some "freaked out" secondary people because they were given indication that people in the TBD (to-be-delivered) market, the folks that buy the bundled pools of securitized conforming ARMS, were pulling their money to the sidelines. When they did this previously, the bulk of their available funds were shifted to Treasuries.
When I say the ARM pricing worsening radically yesterday I fired off a couple of text messages and got the information.
We'll see if the money comes back off th sidelines, but until then...
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