Game for the Weekend
Find a set of Mortgage-Backed Securities that are (1) still rated AAA by S&P, (2) have a WAL the same as (close to) an on-the-rin US Treasury, and (3) still have a Factor within 5% of the expectation of a generic MBS of that maturity (that is, are not clearly impaired).
Post the CUSIP(s) in comments, along with that of the reference UST, and let’s track relative values on a regular basis for the next several months.
Anyone betting on where the relative value will be?
Eclectically esoteric
The deltas in value of the two entities will likely not be as be as significant as the deltas in value for the chosen ownership of commodities, equities, and real estate vice the ownership of dollar based US debt instruments or AAA rated MBS.
More fractal gobblygook of saturation macroeconomics.
Next week will complete a Wlshire 6/15/12/9 day fractal series which is a replica of the series which contained the 6 May flash crash and forms the incipient third fractal of a 13/32/26 day fractal series with the 26th day 22 July high analogous to the 11 October 2007 40th day high of a 20/50/40 dayfractal series.
After the events of next week the linear thinking post hoc ergo propter hoc logicians will ascribe unneeded superpowers to the the S and P credit raters as long term US interest rates paradoxically to the raters expectations … and appropriately for saturation macroeconomics … reach historical 150 year lows.
Meanwhile Keynesian stimulous so needed in this situation has been thrown by pachyderm pirates into Boston Harbor.
The last sentence is the only part I understood. And it is a minor brilliance.
Cheers!
JzB