The fed will continue to ease. Poor earnings, low ISM of 41.9 the last time ISM was this low was 2001. The o n going housing recession and more shoes to drop. The fed will ease untill 2008 last quater I am projecting fed funds rate of 2.5 and a 3MLIBOR of 1.5.
thank you for the kind words. Agency mortgage derivatives can be very difficult to valuing and trade. My goal is to change the negative misconception of agency mortgage derivatives. For agency mortgage derivatives is not a bad product if used the right way. I see my role as that of an educator speaking about agency mortgage derivatives from a scholastic point of view.
Can you elaborate on why the inverse floater market will outperform the floater market in mortgage land ?
The Fed keeping easing brings Libor lower. However, as Libor + Y gets discounted on libor, and since funding is cheaper, one could argue that higher prevailing spreads offer compelling opportunities in ‘08 for floaters.
From my past experience when you look at inv floaters, the most vital component is the optionality. http://en.wikipedia.org/wiki/Implied_volatility
Wikipedia has a good explanation of optionality. When looking at inv floaters you should treat it like an options derivative contract. Becareful in treating it like any other instrument. Of cause my explanation is academia driven.
We are seeking CMO buyers. We are direct to seller mandates. If this is an interest to you, Contact me at 956 330-3417 or via email: andy@superior-investors.com
Thanks,
Andy
I WOULD BE INTERESTED IN BUYING CMO WITH FACIAL VALUE UP 500 MM AND TO KNOW THE SELLING PRICE
Comment by Luis Kalinowski — July 10, 2008 @ 5:15 am
The CMO Derivatives market continues to offer higher yields and income returns for investors compared to corp or muni bonds . Agency debts has zero credit risk and default rate is there but you are guranteed you coupon and principal base on were you are on the structure. Make sure you understand and apply the right Speed, OAS or Static model analysis..volatility when you value agency structures.
The GSE will survive this credit crisis. FHA will meet the loans obligation that they insured. Do not be afraid of buying Agency backed securities. You can always sell it back to the GSE via Tradweb or Bloombergs TBA3 trading platform.
I have many clients looking to purchase CMO’s for the purpose of adding to a collateral package for funding their projects. Can someone contact me who is either a seller or direct, to explore how these bonds can help my clients. Thank you. Contact me at:
In spite of the latest news coming out of indymac and the two major GSE’s it is vital to stay the course. Agency CMO/RMBS offers a better return. Do not engage in a fire sale situation, if you do not know the value of your bonds please feel free to let us know. We will be more than glad to offer you a free evaluation on the estimated value of your securities. After all, won’t you seek a second opinion when it comes to our medical doctor? why not do the same for your financial health.
Mr.Trader. Could you please help me understand reverse IO’s (floaters) and how they are beneficial in this current market period. What are the risks that are associated with them? What sort of risks can these instruments hedge? Thank you.
Let me begin by saying thank you for stopping by CMO Derivatives.Org.
My job here is to create a community of mortgage derivatives experts were we get to talk about the next stages of structured mortgage derivatives.
Let me give you some general understanding of the IO/IIO sectors.
There are two types of interest only sectors. We have the Trust and we have the Structure. Both sectors have an IO and IIO. When you say ‘reverse IO’s (floaters)” I take it you mean IIO. Reverse IO’s (floaters) coupon payment is mathematically calculated base on TSY/CMT/COFI or 3MLIBOR depending on the one that was use. Therefore, your major risk here is interest rate risk. For as rates go down it favors you but when rates goes up you loss value.
The next risk is that of collateral risk, as rates go down the 10 TYS is probably following suit as well which leads to a lower mortgage rates. Now I am not going to go into seasoning, burnout and loan size here but few customers tend to refi whenever the rate is palatable to them and if they have no pre-payment penalties. With a reverse IO’s (floaters) you want a slow payer that is people who cannot refi for reasons best know to them a collateral with high pre-payment penalty. Bear in mind when you look at this reverse IO’s (floaters) know when to use PSA or CPR given the vintage.
The next risk is what I called perceptions of other PMs. Most if not all PMs look at the economic data in making investment decisions. They look at the PPI/CPI/RETAIL SALES/UMEMPLOYMENT etc if any of these economic data begins to show trends of being bullish the PM may decide to act on it which will affect the 10 TSY which then ultimately affects the 30 year mortgage rate which in turn affects the consumers ability to refi or not and hence, your reverse IO’s (floaters).
The risk this instrument hedge is your loan and cashflow. For example, a mortgage company or bank that loaned out money when rates were at 5% and the rate are now at 2% with reverse IO’s (floaters) the mortgage or bank is fully protected. Furthermore, asset management firms can use it to manage their portfolio’s duration as well as generate an alpha return if the right reverse IO’s (floaters) is bought, like I asserted earlier in my comment, not all reverse IO’s (floaters) are equal. They all behave differently base on a whole host of factors, it is imperative to have a well seasoned person look at these instruments to avoid having yours eye gauge out.
how do we offer CMO’s to you Trader for
as you said free evaluation
‘Do not engage in a fire sale situation, if you do not know the value of your bonds please feel free to let us know. We will be more than glad to offer you a free evaluation on the estimated value of your securities.’
Jim Martin this place is secure. What is the modified duration, who is the issuer? Is it a vintage deal? What’s the notional? Is it a trust or structured deal? Is it an agency or non agency?
Jim Martin:
CUSIP Number: 31394VL99
Security Type: REMIC: Typically Single-Family MBS-backed
Trust Number: 2006-5
Class: N2
Issue Date: 01/2006
History of not paying the coupon in the pass i.e. this bond did skip a couple of months payments.
Collateral: 100% ARMS loans
Holding this bond means you are bullish on TSY. With the current weak labor market I continue to see a decline in U.S TSY yield in the front end of the curve.
At a 60 PPC the AVL is 1.96 at 30 PPC you get an AVL of 2.72.
Other relative investments that you can put your money to work are: i.e. you can put money to work in anyone of these products instead of the above ARMS IO.
• U.S TSY short term securities
• Commercial papers(triple AAA rated companies)
• Options on rates
• CDs
• Overnight Repos
• Similar Agency backed IIO with the same AVL
Below is an a piece of information from the prospectus to consider if you want to buy or sell.
“The Fannie Mae Guaranty
Our guaranty requires that we pay Certificate holders in a timely manner the amounts
of principal and interest described in the related prospectus supplement. We also must pay the full outstanding principal amount of the Certificates of each class no later than the Final Distribution Date for that class. Our guaranty is effective whether or not sufficient funds are available in the Trust Account for the series. If we were unable to perform our guaranty obligations, Certifcateholders of a series would receive only the amounts paid on the underlying securities of that series. If that happened, those amounts generally would be limited to borrower payments and other recoveries on the mortgage loans backing those underlying securities. As a result, delinquencies and defaults on the mortgage loans backing the underlying securities could directly affect the amounts that Certifcateholders would receive each month.”
This explains the zero payments that was not paid for a couple of months.
After considering all of the above afore mentioned factors the model mark price is between a $2-00 on the low end and a $3-25 handle on the high end.
I just called you - mentioned that I found you through a Reuters article about you.
I am pursuing a business funding structure through the purchase and backend leverage, via a line of credit, of CMO’s. I have an investor that has provided a written commitment letter to invest up to $50M in the purchase of CMO’s, and I have a backend private lender willing to lend 5-7% of face value on multiple CMO’s with an ideal face value of $400M. The lender has lines of credit with Credit Suisse, B of A, and Shearson that they will tap to offer a line of credit program to us.
I am looking for the following:
- Up to four CMO’s
- Ideal Face Value- $400M each
- Rating- AAA
- I/O with a minimum positive floater or better
- Market value at 2%-3% of face value
- Cost to purchase, including fee - 1% of face value
We are seeking to purchase these CMO’s through an escrow environment, providing our investor with a lower level of risk, as well having transparency throughout the transaction. Once we take ownership over the CMO and it has been re-registered under Core Impact Consulting, the bond will need to be transferred via SWIFT to the Line of Credit Program with our lender.
Our next step is to get screen shots of the four CMO’s to our private lender today for them to determine their viability and provide a conditional commitment letter if they are acceptable. With that commitment letter, we will go immediately to our investor and get their final approval to execute the deal. Our desired timing is to commence the purchases by the end of the week.
Please advise if you are available, willing and interested in working with us.
Thank you,
Michael Stay
“Making Small Business Coaching as Commonplace as Having an Accountant”
Comment by Michael Stay — August 19, 2008 @ 1:58 pm
Sure no problem I am willing to work with you in putting your money to work.
We own a $26M CMO of $26M. We are trying to use it as collateral for a loan. Where can we get the best LTV? If you give me an email address, I can send you the bloomberg screen shots. Thanks.
updated price#2:PRIME: SUPER SENIOR 3/1 HYBRID **ORDER**
WMLT 06-A 1A1 30+MM/17+MM 92977TAA0 5.46% NWAC
SUPER SENIOR WITH 8.00% CURRENT CE BACKED BY 3/1 HYBRIDS
60+ DQ: 1.60%
WALA: 36 (30 wala for grp)
WALTV: 68.8% GROUPS 1,2,3,4 ARE CROSSED
CAL: 55%
POOL FACTOR: 0.754
3 MO CPR: 9.7 (grp) ‘offered’ = 81-0
FICO: 739
I am told that my CMO’s current market value of 260M can be leveraged and some type of line of credit for PPP can be put on this CURRENT MARKET VALUE of 260M. Can anyone help with this? I would appreciate an offline answer. Principles who know, only. No intermediaries please.
- racy.prg@gmail.com -
Trader,
Have a client looking at CSTR, IO, NTL tranches (3AX class in trusts I guess). He’s looking for high current balance, low dollar price. I am not familiar with this bond class. Could you give me a little color on what it is and what effects cashflows? One that he gave me as an example was 19075DAG6. Thanks and if anyone is interested in selling these securities, I may have a buyer. Regards, John
Comment by John Coleman — August 27, 2008 @ 6:38 am
I have a secured financing facility in place and looking for IO CMO’s .
The facility is confirmed and available .
The general terms of facility are:
Settlement is T plus 3. The facility is issued in a security house and is secured.
Even though I have posted before on this blog. Those cmo’s are no longer available.
Source of the cmo’s must be able to give bloomberg screens of the cmo’s available,and if accepted i can give ability of doing the trade.
we are a direct trader/institution source for the real buyer looking for a real source for CMO’S. there is no “ridiculous” broker chains on our side & we will only work with no more than 1 or 2 away, who will get out of the way and let the deal CLOSE. we are about CLOSING CMO’S. not wasting time. call us if u need our services. thank u.
To Gene: 26M is too small to use to collaterize. I suggest buying and selling up until you reach a larger amount. We will purchase through escrow for a favorable profit. You can repeat the process as often as you like. Contact: racy.prg@gmail.com
Comment by Frank D — September 12, 2008 @ 12:01 pm
Please let everyone in the agency and non agency mortgage market continue to stay the cause.
I have faith in the American people and the creative minds on wall st. What we are going through is just a hick-up. or as they say a blip….
looking for counterparties to trade with in cmo’s, i have funds on deposit and ready, we are the direct buyers, no brokers involved. we are looking to do trades of 10 m face value in cmo’s.
with the talk of a govt fund to hold all toxic debt, how will this effect the cmo market, is it finished ? will it be more control? Will it be harder to do trades? Will prices move up ?
Remember not all CMOs are bad.You still have honest Americans who pays their mortgages. The people who casued this problem were those borrower who were supported by FHA and GSEs….the private sector woke up one day and decided to compete with FHA(loan insurer) and the GSEs…the system will simply go back to what it use to be…same old stuff…only difference.. the boys and girls on Wall Street have now learnt their lessons.
we have access to the cmo’s and we are looking to sell them,we have several from ginies maes, wells fargo, marm.
we are looking to sell them and are looking for counteparties to trade with feel free to contact at 33 6 13756746 or smt1954@aim.com
2. Sandra Heurtelou says:
September 22nd, 2008 at 3:54 pm e
Dear Mr. Trader
It was a pleasure speaking with you. My company has a client looking to purchase CMOs priced .005 to .01 .
He is scheduled to travel to Austrailia on Wednesday and to go on to Hong Kong from there. He would like to close the transaction before traveling. He can submit a letter of capability from his CPA and show proof of previously closed transaction.
i am seeking a trader/dealer that execute a third party trade for a cmo and with delivery via dtc to the end buyer bank. settlement is t-2,or t-3 as per agreement. the buyers bank has full dtc capabilities, no chains involved at all.
Cash amount of the trade is around 3 m usd . smt1954@aim.com
I have an exclusive opportunity to buy CMO’s at a private level at a significant discount. Typically the average price these CMO’s sell at is around 1-1.75% of face value on a cash basis. We have the contract to obtain these CMO’s at approximately .5% for a billion dollar face value bond.
I also have an exit buyer looking forward to receiving proof of ownership on the bonds so that they may add them to their managed asset account and activate a credit line. The exit buyer has contracted to pay 3% for the billion dollar face value bond.
This transmission is for information only and is not to be construed as a solicitation for funds for or the sale of any securities. These transactions are based on private placements and do not come under the governance of the SEC. These programs are not securities under the U.S. Securities Act of 1933, or The Securities Exchange Act of 1934 and Regulations thereto, or The Investment Company Act of 1940 and the Rules & Regulations thereof. We are not registered with the SEC or NASD as financial advisors or dealers in securities per The Investment Advisers Act of 1940. This is merely for the informational and educational purposes and benefit of qualified accredited investors only.
any real sellers of cmo’s that understand the pricing and know how to read a bloomberg print out, and understand the cash flows of the bonds and know how to do a trade.
Our corporation is actively interested in acquiring cmo’s, if you have anything available please fee free to contact me.
I would like to discuss with you.
Steve touma smt1954@aim.com
skype 20003043
tel 33 6 13756746 fr
Many brokers have contacted us and all they want is fee agreements and say they need to speak to the bank direct.
Lets do some business, surely there is someone that is real and can sell.
Go back find a cusip type it in on your Bloomberg screen look to the right side of the page and tell me what you see.
The non agency bonds are rated by Moody’s, S&P and Fitch. Also the non-agencies do come with enhancement in the form of wraps. Rating agencies may not rate the universe of CMO but they still do via the collateral.
When you say RMBS be careful for CMO is stripped out of RMBS e.g.
A major difference here is the structure waterfall and for IIO, INV and Floaters is the UST10, UST12, COFI or LIBOR that determines how much the owner will get paid.
There are two types of IO’s; structure and trust. In a CMO structure you can have: IO/PO/PAC/SEQ/SUP/IIO/Z
In a Trust ot STRIP you have IO/PO. Rarely will you see an IIO in a trust.
IOs are a perfect hedge for Pos and raw loan portfolios. Some of the major buyers of IO’s are commercial banks and mortgage companies and companies trying to hedged against interest rates. Some IO’s are fixed some are not viz a viz your OPTION ARMS etc.
IIO cash flow are determined by the mathematical formula such as: LIBOR, UST, CMT of COFI (Lagging) IIO’s are extremely volatile(hedge fund play.)
Here FHA insures the loan, GSE buys it and wraps it up and you get a PT/MBS
Risk: Prepayment no credit risk
Non Agency IO/IIO:
These are your Wells Fargo, Citibank, WAMU and other labels. However, as a result of the credit crisis GSE have bought loans from the private labels.
Private labels issues Alt A, Arms etc. The major difference between the two is risk.
Here credit risk is the main issue while as for Agency IO you deal with prepayment risk.
Now to your question “can you comment on the current liquidity of both agency and nonagency IO’s and IIO’s?”
The main buyers of IOs are commercial banks, Central banks, mutual funds e.g PIMCOs, Northern Trust etc were as IIO are tend to be a good tool to bet on your beliefs of the direction of interest rate.
There are over 43million mortgage loans in the United States of America out of these 43million plus loans 2 million are bad. Hence all the crazy hoopla.
The liquidity will improve now that the GSE’s limits to buy has been up lifted plus the government bailout and the takeover of banks by the treasury. The capital that the treasury will invest in these banks will be used to buy IO and IIO because these CMO tyoes tend to swing the most given interest rate moves.
Liquidity will continue to improve given the government intervention that we are seeing from all over the world. The GSE’s will begin to act as the major buyers of these IO’s and IIO’s the key issue is the relative value. As someone one who has being in the industry for over ten years it can get tricky. I began my career as a CDO modeler.
Buy IIO and Fixed IOs. The LIBOR will come back down. It won’t stay at 4ish %.
CMO trade program must have a minimum of $5 MM USD to enter.
We buy CMO direct from trader. We resell the CMO with an exit buyer already in place in about 3 weeks. But here is the kicker. Not only does the buyer make a great return in 3 weeks, but after 13 months the CMO reverts back to the investor and THEY OWN IT.
Please report anyone who is not living up to their words. We will report the individual or individuals to the legal authority.
We at CMO Derivatives are here to facilitate and ensure that the United States of America continues to be the nation of choice and innovattion when it comes to the capital markets.
Long live MBS and the rest of the structured products and yes including CDO’s.
I have a client that owns 1.8 b in CMO’s. Very shortly I will have proo of ownership, account statement and screen shots. My client would like a loan of $30m against them as callateral.
In this capital market environment, it will be difficult for a bank or any institution to take a depreciating asset as collateral for a loan. Not to speak of liquidity concerns.
By providing more information you create transparency which in turns makes everyone feel safe.
We are looking for CMO’s whose holders do not share your cautious optimism (as we do) and are interested in selling at a significant discount.
In todays market, Cash is King and our group is currently liquid. If you know any CMO owners that would prefer to sell in this uncertain market, contact me off board or on board with the Cusip Nos and asking price.
We will not waste your time and get back to you promptly.
If you care to send me your contact information, I will have the principle contact you and disclose the name of his firm. You will know his firm very well.
How is everyone dealing with the all the prepay uncertainty in the market? With Trust IO’s getting crushed to $14-$16 levels, seems like market is pricing in worst case scenarios with blanket streamlined refinancing regardless of FICO, CLTV. However, if I crank in the 2003 Refi wave S-curve into my prepay models, even with those fast speeds, IO’s do look alright here….
Comment by Ian Anderson — December 6, 2008 @ 8:52 pm
Hi Ian,
The prepays will continue to be uncertain. As a seasoned mortgage derivative manager I will recommend you lever your portfolio benchmark be it the Lehman Agg or ML with Options (Commodity, Currency and Equities) in addition with Zero coupon bonds.
I remember vividly when Trust IO was at a 24 dollar handle and Structure IO was at 17. The bottom line is liquidity and choppy cash flow as for the non agency we continue to experience rising deq in the double digits with geo risk viz-a-viz CA, FL and NV areas.
Trader, thnx for the reply. Another weird item I am seeing is that strip floaters are trading close to 92-93 level while PO’s trade at exactly the same price or higher. This to me seems ridiculous and a good opportunity to pick up some arb.
I called the market in Febuary 2008 I predicted 3MLIBOR was heading down. And it has;
Peter says:
“February 11th, 2008 at 4:31 pm
Do you really think the fed will not reverse their position on rates?”
“Trader says:
February 11th, 2008 at 7:05 pm
Yes Peter the fed will continue to ease. Poor earnings, low ISM of 41.9 the last time ISM was this low was 2001. The o n going housing recession and more shoes to drop. The fed will ease untill 2008 last quater I am projecting fed funds rate of 2.5 and a 3MLIBOR of 1.5.”
Jean its all relative. If the bank is a private bank or family owned bank, they could value their cmo like a hedge fund would, since they want to know immediately the value of their assets vis-à-vis mark to market. On the other hand, if both firm are a public entity they could chose a mark to model…especially if the price point will protect the top managements’ job. No one wants to lose their job over poor performing assets.
Good strategy for 2009, would add that buying premium bonds with low loan balance or with seasoned burned out collateral should prepay nice and slow giving one nice carry.
In putting money to work in IIO/INV
make sure you undestand the risk profiles of the colaterals vis-a-vis..STRIPS Vs a PAC/SUP. Take a look at the band and see if it is wide or narrow..window wise.
It is available on a free delivery, t plus 5 days settlement,however before the instrument is sen,the dealer/banker will check to see if the potential buyer has the funds available.
The cmo is available and is rated AAA,there is a account statement to verify the cmo,but will not be sent without getting info about the buyer/investor.
Many people say they can buy but not many have the funds to do so.
I have CMO trade platforms and CMO direct sellers. T1-T3. CUSIP numbers provide, screen shots, etc. Need a real buyer or real owner that can show bond power agreement, and can issue a buy ticket trader to trader.
I would appreciate your oppinion on the position my partner and myself are in. We had purchased AAA commercial cmo, with a face value of 378 million. Got into a contract with a NY hegde fund that has not yet to perform. ( 5 months). Do you have any viable and performing platforms to put these cmo into ? I do appreciate your timely response.
You should provide the cusip, Label, CPR/PSA, YL, Dur, Cnx.
Investment tools and valuation tools are not the same. You have macro and micro factors.
You don’t need to send any screen page to anyone. The other party should be able to go on Bloomberg and analyze the bonds themselves.
If you don’t have access to Bloomberg, intex, IDC pricing or YB you stand a chance of getting ripped off.
Remember the best thing to do is have a specialist on your side for the other parties have top people on their side.
When a doctor tells you that you have a debilitating disease, what do you do? You get a second opinion, right? So in putting your money to work you must seek a second opinion. As a fund manager you want someone who is not intimated by you or else you will have a yes ma.
Furthermore, you have your OAS or a YLD buyer…given the cashflow whipsaw or cripy nature investors may decide to pay or demand a premium. Hence that price becomes the market value irrespective of the ffundamentals or supply/demand.
Look at your empirical dur, mod dur, PC dur etc. If you are a PAC buyer then you want to compare your PAC to a AAA callable corp bond looking at the OAS.
We have CMO’s and derivatives for sale. Please provide us with the following:
Duration that you are looking for?
Vintage year?
Issuer type?
Do you want non agency or agency CMO’s?
Do you want CMO’s or derivatives?
Please clarify. I look forward to hearing back from you two.
To trader:
could you so kindly explain the value and the approx. fair price for this cmo I believe this is a intrest only but i am confused at the amount i should be paying for this type of instrument I am a principal buyer and i am scheduled to purchase this in a 2.4 B transaction for only 6Mil. does anyone that you know of facilitate a credit line or loan against the income of this instrument or what can i do with this and approx how much money will i recieve each month while owning it alabamachip@yahoo.com or
1 205 365-0982 chip
thank you in advance
I have acccess to 32B and would like to know what i should pay for all of it and if there is an exit for this type of paper that you know of I am also a buyer of real discounted notes or reo’s if you know of pools available (I have verification of funds)
Closing prices as of Tuesday, May 26, 2009
Based on the Yield Book default prepayment model and 2-f skew term structure model.
Mark to Model Prices for STRIP IO’s.
Remember when you go to the market you will get an entire different price level.
Disclaimer: This is the private opinion of the writer and not that of any organization or institution the writer is solely responsible for these opinions. This is not advice to buy or sell security. This article is for educational purposes only, and not to be use for any other purpose.
CMO’s ” AAA ” avaliable for seriuos buyers ,pls contact me at 786 201 2414 or decodrems@gmail. com
I will get back with you asap ,
Serious inquries only /No broker chain
Patrik
We have exit for all AAA rated CMO Owners. Private Placement of AAA rated CMOs. Must be minimum of 1B or more face value. LTV 25% for 40 week program. Requirements are Owner must provide current screen shot, prospectus, most recent account statment,and standard compliance docs.
If interested or have any questions, please contact me
I work for the Agency CMO desk at Fannie Mae and I am looking to find additional counterparties to trade with. If you have at least $100 million in capital and have US financial statements, we may be able to set something up. Again, I am looking for institutions that trade Ginnie/Fannie/Freddie CMO’s, I do not trade non-agency / private label CMO’s. I can be reached at ian_anderson@bloomberg.net
I have been an institutional CMO trader for over 20 yrs, and I wonder where some of these so called broker/investors come up with these requests. People do not deliver free unless it is to a primary dealer. For sure an investor is not buying from a brokerage house delivered free. I have traded in excess of $8 billion dollars in MBS paper over the last 7 yrs. Not 8 B. This is the dead giveaway that this is a mystery deal. If you are nor registered with FSA or Finra you cannot collect money for the transfer of securities (CMO’s}. If you have any questions regarding the purchase and sale of roundlots, I will be happy to assist in the understanding. We are a registered BD. Rharvey@sandgrain.com
Anyone interested in purchasing CMOs or taking them into trade, contact me. I can offer you no nonsense approach to this, and im direct. Call Chris 305 613 7632
I might not understand what this website is all about but Like the gentlemen from sandgrain said, you can’t buy or sell these securities without a licensed rep and a broker dealer. I too am a trader, I know the residential private label CMO market very well, and also traffic in agency (gnma, fnma, fhlmc, etc…) mbs and cmos everyday. I am set up with over 150 trading desks across the country and have both institutional and private clients that are currently investing in distressed residential CMOs. We specialize in loan level analysis on private label Mortgage Backed Securities. I can provide analysis on a single security and give you a sell or hold recommendation, or if you are interested in investing in or learning more about residential CMOs in particular feel free to contact me. There is a lot of opportunity in the private label CMO market, BUT, it’s not for everyone, and it is very important to understand your potential upside and DOWNSIDE before investing.
Best of Luck!
my email is cmoinvestor@gmail.com
Our role is to help investors arrive at a value for their securities.
We are not a broker dealer firm. We are here to protect investors from
getting ripped off by your major dealers of the world. Investors meet on our platform
and then move on to their respective clearing house in order to close the deal.
We have been serving as a Feeder Fund for the past couple of years.
Trader, I think this site is a great idea for many reasons. Determining relative value is super important. People get ripped off everyday by dealer desks everywhere because they don’t understand the inputs when arriving at “yield” “spread” “duration” and “average life” on agency MBS and CMO’s. I work with banks and credit unions and assist them in evaluating and purchasing agency MBS and CMO’s. Unfortunately many of my customers have been taken advantage of in the worst ways because they don’t have Bloomberg Terminals and the only statistical parameter that they know to look at is Yield…which we know in irregular cash-flow securities like mbs is a very inaccurate measure of “what you will actually get” from your investment. ROCKHOUSE Capital is the name of my analytics firm and I work for a NON-Positioning B/D in the Southeast. you can contact me at cmoinvestor@gmail.com . Thanks for running this site!
Trader,
Great sight. Decent information. One thing that investors need to know. MBS are a relatively transparent business. Dealers transacting in Govie or private label Securities have reporting and regulatory requirements when transacting a trade. First, and foremost is the “know your customer rule”. At any firm there has to be an account opened and credit approved. Wiring instructions are exchanged, managers have to sign account forms. There are different requirements for retail customers and financial institutions. I just hopes this helps some understand the trading of these securities.
Bond Picks:
Hedge Funds put money to work in IIO and IFL lots of volatility. You should not hold it for more than 30 days.
Bank’s Prop desk do the same but include structured PO’s and IO’s.
Insurance companies MBS (3-7years) and PAC/SEQ with a decent lockout window.
Independently rich folks MBS only your goal is to stay rich. If you must play in the volatile space is vital you that you get yourself an independent adviser.
Mutual Funds MBS, Specified pool, CMBS AAA, ABS Auto and CC all AAA include IIO and IFL for interest rate protection.
Retail brokerage dealers PAC, SEQ and MBS only please do not venture into high volatile space you never know when your clients will come asking for their money. You need liquidity risk totally eliminated.
At the end of the day please consult your tax specialist for adviser regarding your tax concerns. Remember we are here to help you keep your money while at the same time generate more income while bearing in mind the higher the return the higher the risk!
I am currently investing in private label residential mortgage backed securities. I have a number of friends doing the same. This market has firmed up a lot in the larger-institutional sized blocks of 1mm+, but for retails investors 250k a pop there are still virtually no buyers and tons of product available. We just bought 2003-04 vintage loans, 54% LTV, 99% are current, 5x’s credit support, for under .50 on the dollar. The AAA market has become fully priced in my oppinion, but if you are willing to go down to AA you can buy this type of bonds in the 20-55 cent range.
I agree with Trader about 3-7 yr MBS/CMOs for Insurance companies. Banks need to be willing to extend a little bit on the curve given that they don’t know when rates are going to go up and by how much when they do…given the ammt of slope in the curve they are foolish to stay in cash-like alternatives. Short well structured CMO’s have widened a little bit over the last few weeks and while I still don’t like them as much as collateral, they are an attractive option for the buy and hold investor.
I own a $1B Commercial CMO. I also network (directly) with other owners sharing the same frustration looking to place their CMO’s into Trade. These other owners as well as my personal bond total $10 Billion.
Now in all due respect to all of the financial analysts out there I purchased the bond at a deep discount for Cash Flow. It currently provides me a 46% ROI per year, so I am not interested in getting the bond evaluated or sell the bond.
What I am looking for is someone or some group that can legitimately take my Bond and possibly some of the others I network with bonds to trade.
I have now traveled to California, New York, South Florida, Texas, North Carolina and Georgia to meet with groups as well as giving 8 to 10 other groups paperwork over the past year that have resulted in NOTHING!
The only thing that has occurred is my paperwork being shopped all over the Internet by people that claim to be the “Gate keeper” or “right next to the trader or platform”. It has also generated a great deal of “Cease and Desists” but even that didn’t stop the shopping of my paperwork.
It is important to know that I am not willing to transfer my bond to anyone or move it anywhere. I am not going to place anyone on my bond as signatory or allow someone to take my yield payments to use towards a loan. I am also not interested in purchasing an insurance wrap to trade my bond.
What I am willing to do is allow someone to DTC block my bond to hypothecate and place the proceeds into trade.
So, my question to you is how can you prove beyond a shadow of a doubt that you or your group can do this?
Before you tell me there are proprietary or statutory issues for not proving past performance please save your effort. I know for a fact that this is not true.
I work closely with a CASH platform that is totally legitimate. This group is totally transparent, and if the investor qualifies they can meet the group in person at their Law Firm where the program will be explained as well proof of current and past performances. If the investor wishes he may travel to Zurich with the program manager and be introduced to the trader(s) and see the platform run.
Unfortunately for me this group only deals with CASH and will not accept Securities or Bonds so it does not help me but it does give me insight to how a legitimate platform is run.
I have been in business long enough to know that people don’t pass up multi million dollar deals for strict procedures, only brokers in a chain that are not direct to a source do this.
So I know that rules are bent because every deal is different. So anyone doing this “Honestly” should be able to prove they can actually do what they claim.
By now you should have received by email my name, company and contact information.
I can provide Screen Shots, Trade Tickets, account statements, Prospectus, CIS, passport, Blood or anything else needed to transparently prove I am the sole and curent owner of this bond.
But on the flip side of this I need to know what you or your group is going to do to show me you can actually do this.
Bottom line here is I can prove beyond a shadow of a doubt my validity, can you?
Let me know if you or anyone else out there can truly help.
Before you buy a bond contact us here at wwww.cmoderivatives.org…
There is no free lunch. You need an exit strategy you don’t go out there buy a bond only to find out
there is no market for you bond. You have no one to blame but yourself. That being said what everyone should do is leaves their cusip here and we at cmoderivatives.org will see how we can be of assistance to your firm.
We only need your cusip no screen shoots….if we can help you will be informed ASAP.
does anyone have a real client/investor who needs an asset loan? direct n.y. company with history and experience. serious inquiries only. can monitize instruments, bonds, cmo’s and stocks.
Asset based loan simply means the person or people have no money to finance the asset acquisition.
The fundamental question then becomes do they know value? Wining or losing is going to be based
on the value.
What the value is to these three participants: Buyer, seller and the market’s pecerption.
Remember if it sounds too good to be true then you better watch out…
We are living in a brave new world of owner financing if you don’t have the money oh well you may be
out of luck….
“Trader, out of curiosity, why are you so angry? I read your posts on the comderivatives site and you would think that someone kicked your dog and stole your lunch. Do yourself a favor and go see a counselor, you are wasting energy on stuff that doesn’t matter much.”
Comment by Jim Hanson — September 15, 2009 @ 6:09 pm
Has anyone heard about a non-recourse loan program offering 3-8% of face value on performing CMOs? Need to speak to someone as direct as possible or even the principal on this loan. This just doesn’t make sense. They are offering CMBS IO
cusip 36246LAP6 they say there is no prospectus because it was a private placement
These are being offered for $900,000 per $1B . Let me know what you all think.
Comment by Briane Keene — September 16, 2009 @ 5:52 am
I just think this sounds so fishy.. Here they are offering CMOs for sale and then they say they can offer 30-80x the investor’s money in the form of a non-recourse loan.
Comment by Briane Keene — September 16, 2009 @ 5:57 am
So here we go again……When you borrow against a security (government or private label) you are subject to the Margin Requirements of an opened Margin account at a broker dealer or bank. Fed Reserve Board (FRB) REG T, NYSE Rules, and FINRA mandates that on margin accounts, money is loaned against the purchase of a security. FRB dictates the amount of credit margin a brokerage or bank may lend to its customers. REG T defines the minimum amount of margin required. Brokerage and bank internal policy may have a more stringent rule. Reg T requires 50% of the cost of the transaction up front and on options you cannot margin that product. This is called initail Margin. Then there is a maintenance margin requirement, this is the requirement of maintaining at least a 25% equity in that margin account. If yoour margin account drops below that 25% requirement you will recieve a margin call which can be met by either depositing cash or securities in that account. If you cannot deposit cash or securities the whole account is liquidated and you are charged any shortage. I have heard of some cases where derivatives were margined. I do not believe an Interest Only Strip or INVIO should be margined. You are already buying a leveraged instrument, when borrowing you multiply the leverage. Two good examples of this trade going bad are Askin Capital Management and Long Term Capital Management. Self liquidating loans on securities accounts are scams. Loans against face value of derivatives are scams. This is why investors need to have a professional on their side when investing in any type of derivative.
I am in agreement with Bob….Anyone with money should buy SEQ, PAC and MBS bonds.
Stay away from SUP and INV given the principal lost.
If you are buying CMBS IO or some WAC IO you will lose period. Currently there are so many
abandon unfinished buildings.
Once again this site is very usefull no bells and no whistle..whoever that started this platform
thank ya! I have traded with some people on this site.
Comment by Jim Ruthberg — September 17, 2009 @ 6:14 pm
This is the time to buy CMO Floaters and Strip IO’s.
unload your INV, INV and your PO’s now.
Private equity should get involve for you can get a good return dealing in CMO’s
How do I go about raising money to buy lockout PAC and SEQ.?
Can I form a partnership with a firm that can raise the funds and I leverage my contacts in the
industry?
Erik,
Anyone paying $900k for a CMBS IO with a face value of $300m or $2b is
a greedy person who is living in fantansy land. You will get burnt. You will lose
it all.
Buy:
MBS, PAC, SEQ, or INV
Better yet jump into the STRIPS world were the market is a little better compared to CMBS WAC IO
crap that is been paddled around these days.
Have client search for AVAL from acceptable Bank on client P/N.
P/N maturity will be 366 day - Amount of P/N start from USD 25M to
USD 100M . P/N will be new issue.Purpose of P/N real estate.
Advise possibility with name of Bank who shall add his AVAL on
client P/N together with the cost of the AVAL from face value of P/N.
Regards
Mike
E-mail: nicelar@hotmail.com
My partner is looking to leverage his $250M CMO (CUSIP 36246LAP6) to finance a real estate acquisition. Are these being traded? Price? Thanks.
Comment by RE Investor — October 13, 2009 @ 2:45 pm
Class CUSIP Pass-Through Original Beginning Interest
Rate Notional Notional Distribution
Amount Amount
X 36246LAP6 0.008445% 7,562,773,702.00 7,562,140,498.02 53,219.93
the above bond is a pile of crap no one in the right mind should have touched it or
even leverage anyting against it…..RE investor you have a nasty bond.
Trader, thank you for your reply and I’ll let him know. Just curious, why is it crap and nasty/toxic? Is it thinly traded; lousy property? tnx
Comment by RE Investor — October 14, 2009 @ 2:55 pm
@ RE investor,
Anyone buying CMBS WAC IO and wants to leverage is a very greedy person..plus a scam artist..
this person is playing against the house their odds of winning is extreamly slim….
for more advice you have to retain me.I don’t give advice for free.
I have triple AAA RATED CMO’S for sale that are underwritten weekly. If an asset isnt performing it will be pulled. They are returning 25 to 30k a month. Have a trade platform in place if needed(call for more details). I have screen shots, prospectus, etc., etc. Pricing is available on request. All CMO’s are Commercial Assets. Please dont waste my time BROKER JOKERS. I am direct are you?
What will really help now is a bank or private equity that is willing to finance people
like myself who are a buy and sell guys.
Products of interest:
INV Floaters, IIO and POs.
The cost of capital say 6% with a mortgage derivative yielding 20%.
I am looking at capital gain and interest from the bonds.
Now to the downside/negative
How can I protect myself again depreciation/margin calls?
What if I can’t sell the bonds?
What if the financing company needs their money back unexpectedly?
Currently I am in the market for capital….will keep everyone posted on my
failures and success.
Mortgage Opportunity Fund Asset Allocation For 2010:
Buy;
Interest Only Floaters
Floaters (out of the money)
Sell:
IIO, INV, PO, SUP and XPAC
Income Fund:
Buy Agency High Coupon Wrapped Tranch
How do you pay for your transaction?
Private Equity or Commercial Banks…but easy for me to say
if no body jnows who you are you can forget it! Raising money is all about your
track record or good ole boy connection.
U.S Government back mortgage bonds is the place to put money to work.
GN, FHL and FN MAC. Forget the equity market you can make the same amount of money
trading PO, IIO and INV in the STRIPS and Structured products.
The U.S. government should give people like myself an account line to buy and sell
agency cmo. As matter of fact they ought to be a stimulus plane for those of us who wants to buy
U.S gurantted mortgage bonds. But can’t get access to prime brokerage or investors.
Given the current environment…the quant analysis is now looking at the SDA, CRR, CPR and OC.
Yields on non agency deals is between 20% to 45%. When you play in the IO CMBS/ABS/ARMS environment
bear in mind you could loss it all.
Hi friends.
We have some funds,around 1M USD cash.Please,guide me to buy some CMO to leverage the cash with buy with T+ method and I need a trader to trade also.
I will contact you very soon. Money is and continuies to be made in trading
mortgage derivatives. Please do not I repeat do not buy any mortgage bond
without talking to me first. I will offer my services free of CHARGE. I hate it
when people go out there and buy some crappy bond. Stay the hell away from CMBS IO or ABS IOs.
or Mezz CAP NO bonds.
Again DO NOT BUY ANY BOND UNTIL WE TALK THESE LIER BROKER DEALERS WILL RIP YOUR EYES OUT.
Hi Trader,
Thanks for extending a moral support for buying CMO and trading.I am awaiting your communication.
To be specific again,I want to deploy my own cash around 1M USD in buying CMO and trading.So I need your advice on Buying and placing it in trade both.
Have a PPP who is looking to place you CMO into.. must have a value of 160M or more….also can use MTN, CD and cash in th sum of 100M. This is your own account that you can view 24/7…Please be direct or owner I will have to have a isin and cusip numbers to check on confirm the instrument is real!
Contact me at tradecmo@live.com. It will take about a week to have the instrument monetization and trading to began!
Comment by TradeCMO — November 29, 2009 @ 12:41 am
Whatever anyone does please do not do the following:
1. Give out a copy of your social security card.
2. Copy of your birthcertificate.
3. Do not pay any fees just to have someone put money in your account.
Be mindfull the person who gives you the money gets their fees but you won’t or will not be able to use the funds.
4. The more money you want to make, the higher the risk. Please remember the word margin calls.
5. The most vital thing is value, get someonw who knows the value of the CMO don’t EVER trust a lier broker dealer. Remember how hard it took you to make your money please do not throw it away.
Please do not give out your personal information that could lead to identity been stolen.
Do not pay anyone a fee to do anything with your bonds
Do not give your asset to anywho risk losing your tittle to some no name person.
Remember CMBS WAC IO = Garbage buy at your own risk.
The place to put money to work are;
MBS, PAC and SEQ.
If you want to speculate buy:
IIO, IO, INV, Floaters and PO
Remember the amount you make is base on your tolerance for risk..more risk higher pay…less risk less pay.
If your borrower to invest remember margin calls…if your account gets marketed every day you could
be in for a nasty surprise..you could lose it all!
Mr. trader we are looking for a real buyer for cmo. My partner is direct to several bank mandate. She has several good sources and she is also rep. for others. Please help with a real buyer. Tony
@ Tony>
?
1. What type of CMO do you have? So many people say CMO but they have some useless CMBS WAC IO
there have been shopping all over fricking town with a bunch of lier private placement bastards.
2. Do you have money to put to work or are you just another zillion people in some f… chain.
3. No real cash no MBS or CMO trading ahency or non agency period. ANyone who thinks they can jump in between is
smoking crak the days of the bond daddy is gone.
please read
The Death of a Brokerage
Aug 1, 2007 12:00 PM, By John Churchill
How one of the top 25 Independent firms went under in an epic failure of management; an unfortunate example of what can go wrong when business seems to be going right.
Stanley Brooks was living the dream. With a $16,000 investment in 1990, Brooks built Brookstreet Securities of Irvine, Calif., into a $150 million revenue firm — placing it among the top 25 independent broker/dealers. By 2007, the firm had amassed $8 billion in client assets and 680 registered reps. Along the way, Brooks picked up some black marks — nine regulatory “disclosures” on his U4, eight of which were related to supervisory failures. But Brookstreet continued to prosper anyway: “We never had a bad year,” Brooks recalls.
Nonetheless, Brookstreet couldn’t dodge the bullet this time. In what will most surely go down as a colossal failure to supervise (among other potential regulatory violations) and a series of actions motivated by greed, Brookstreet Securities is dead. Its assets were blown on multiple margin calls, its reps were suddenly forced to jump to other firms and perhaps dozens of retail clients were decimated by a risky, complicated investing strategy. As few as five to 10 reps may have been involved, according to one lawyer who is himself representing 30 to 40 disgruntled Brookstreet clients.
Indeed, Brookstreet will probably be remembered as a b/d that was too aggressive, too greedy, too stupid and perhaps even grossly negligent in the way it ran some of its clients’ money. The thing is, when a complicated trade works, and a handful of brokers and their clients are quite literally printing money, some brokers just go for it. The mastermind behind the trades at Brookstreet, a man with a checkered past (see sidebar pg. 34), was living so large that even otherwise clean and prudent reps decided to play the odds, says one observer with knowledge of the case.
In the month since the firm collapsed, regulators have been crawling over Brookstreet headquarters, collecting books, records and trying to find out which rules (if any) Brookstreet reps broke. Along with some individual brokers, Brooks, his reputation and any remaining assets he may have will soon be under attack from the dozen or so law firms trolling for injured Brookstreet clients, several of whom have been described as modest, risk-averse retirees and pre-retirees. The question becomes, how many other broker/dealers are sitting on significantly devalued (or even worthless) securities? Can an individual rep even know what risk other reps may be taking that may potentially damage his firm? One thing is certain, it’s not too often that a broker/dealer goes belly up on bad trades.
DEATH BY CMO
Brookstreet’s sudden change of fortune started on June 14 when an unknown number of institutional and individual customer accounts got hit with margin calls from Brookstreet’s clearing firm, National Financial Services, a unit of Fidelity Investments. The calls were related to investments in collateralized mortgage obligations, many of them in high-risk varieties called “inverse floaters” and “interest only strips,” which had suddenly been priced down, an inherent risk carried by the instruments. The re-pricings resulted in significant devaluations for many of the investors, some of whom had borrowed as much as 90 percent of their total investment from NFS.
Cliff Popper, Brookstreet firm’s top producer, the man who built the CMO program and managed those heavily leveraged portfolios, resigned earlier in June when, according to Brooks, he asked Popper to help him liquidate some customers’ CMO positions. By June 22, Brooks had spent his firm’s entire net capital of $12 million to meet a margin balance. In fact, after reducing margin exposure by 80 percent, “That still left a $70 million margin balance against $85 million of value,” Brooks said in a letter to brokers. Of course, that $85 million was being revalued downward even as he was writing the note, he indicated in the letter. He also warned: “I have told many of you that you are always in danger of not being paid on your last check when working for any broker/dealer… I will try to get enough money from our account at NFS to complete our upcoming payrolls.” Brooks, whose company motto was “press on and never give up,” was forced to close the firm. In the end, he says he still owed NFS $2.5 million; regulators, lawyers and investors are now left to clean up the mess.
What happened? “It’s pretty typical for a regional b/d trafficking in this stuff that’s over its head to lose its shirt,” says a trader at one of Wall Street’s large mortgage trading shops. He’s referring to 1994, the last time the CMO market collapsed, when firms like Piper Jaffray and Alex. Brown lost millions in CMOs and CMO derivative investments. “People see Triple A-rated and think, ‘Oh, how bad can it be?’” he says. (Because CMOs are agency backed, their various tranches, which have completely different risk profiles, retain their triple A rating.) But investing in this area is tricky and complicated. “It’s all about the timing of cash flows, which are dependent on mortgage prepayments, and there’s a very complex system of inputs to determine what those are,” he says. In other words, most reps don’t understand how the investment works — let alone the risk involved — and therefore neither will their clients. The sale of these products to Brookstreet’s retail clients was wrong, he says. “Is an inverse floater CMO a retail product? If I were a compliance guy, no way,” he says.
Collateralized mortgage obligations, first introduced in 1983, are not considered inherently risky investments, but CMO derivatives are. There were between 45 and 75 brokers selling “regular” CMOs to some portion of Brookstreet’s 88,000 customers, according to Stan Brooks. That represents roughly 10 percent of the reps at Brookstreet, most of whom “were insurance and mutual fund guys,” in the words of one rep. But all 680 of them suddenly lost their jobs on June 22. Beyond plain vanilla CMOs, an unknown number of those 75 brokers — some say as many as 10, including some of the firm’s top producers — were also selling “inverse floaters” and “interest only strips,” especially volatile classes of CMOs, which were made even more risky because they were sold on up to 90 percent margin. And yet, the securities were being sold to retail clients as Triple A-rated instruments offering guaranteed returns with no risk to principal, says New York attorney Stuart Meissner, who is representing several Brookstreet clients.
According to Brooks, the CMO business, which was little more than three years old, accounted for 10 percent of monthly firm-wide revenues, which were averaging $14 million to $16 million per month. It was good business — and not just for the firm, he says. Clients in the program were seeing returns in the seven to eight percent range, with up to 14 to 16 percent for some, primarily those who’d stuck it out and reinvested in the program, Brooks says.
What’s A CMO?
A CMO is a security made up of pools of home mortgages backed by U.S. government-sponsored agencies like Freddie Mac and Ginnie Mae. Each pool generates two streams of income: one from the aggregate of the interest payments, the other from the aggregate of the principal payments made on the mortgages. These income streams are divided into “tranches,” which are the securities sold to investors.
In a “Compliance Alert” issued around the time Brookstreet was collapsing, NASD warned members about improper CMO sales to retail customers. Citing “several examinations of broker/dealers,” the regulator said it found that the b/ds “had sold some of the most complex and riskiest classes of securities to their retail customers.” The alert also mentioned that investors had received misleading sales literature (or no disclosure at all) and unsuitable sales recommendations, and warned that adequate supervision of sales materials and sales practices was lacking.
One of the risks associated with CMO derivatives like inverse floaters and interest-only strips — both of which were sold to Brookstreet clients — is that their value fluctuates wildly with small moves in interest rates. They’re also illiquid. For these reasons, most independent b/ds don’t touch these securities.
But Brookstreet found out there’s another major risk with these types of investments: Pricing can be guesswork. Brooks blames the re-pricing of the bonds, an occurrence he says was monthly before June 14, when it became daily, for the collapse of his firm. “I still don’t know why the pricing model changed,” says Brooks who admits to not totally understanding the IDC pricing service NFS uses to price the CMOs. “Did the investment stop paying interest? Principal? No, it didn’t. There may be a lot of smart guys out there that may tell me I’m wrong about this one day, but to my understanding it’s the re-pricing that caused this,” he says.
But like any investment, of course, “pricing” risk, to use Brooks’ term, is always there, especially with derivatives amped with leverage. “With stuff like inverse floaters, guys only get them marked once a month and often by a pricing service, not by a real b/d,” says the same trader that called the CMO derivatives non-retail investments. “So it’s an extrapolated price. In a volatile market, the pricing service’s value may be very different from what you would realize if you needed to get out of a position right away,” he says.
NFS’ decision to re-price may have stemmed from general concern regarding mortgage-related investments. It was that same week in June that Bear Stearns suffered multi-billion dollar losses in two of its hedge funds: the aptly named “High Grade Structured Credit Strategies Enhanced Leverage Fund,” and the “High Grade Structured Credit Strategies Fund.” Both funds’ losses were magnified by 90 percent margin leverage. Brooks says the market pressure created by the Bear Stearns news made Brookstreet’s losing positions in an illiquid market that much harder to offload. Asked why the firm re-priced the securities, NFS spokesman Adam Banker would not say anything further than “we are not responsible” for what happened at Brookstreet, and that client margin lending obligations are clearly laid out in their contracts.
WHO WILL GET SPANKED?
Whether the brokers who sold retail clients risky CMOs violated suitability requirements or misrepresented the investments, or whether inappropriate amounts of leverage were used will come out as regulators and plaintiffs’ lawyers begin to present their cases. Sam Edwards, a Houston attorney with Shephard Smith & Edwards, says his firm is representing 30 to 40 former Brookstreet clients that allege all kinds of wrongdoing on the part of between five and 10 Brookstreet brokers. That list of brokers includes Popper, the mastermind of the strategy (see sidebar) and Barry Kornfeld, a principal in a group of Brookstreet reps in Coral Gables, Fla., called The CMO Bond Group. Neither Popper nor Kornfeld returned calls for comment.
Meissner, who has fielded many calls from former Brookstreet clients, says his clients’ complaints relate to “three or four brokers.” He says most of his clients are reporting losses between $200,000 and $400,000. “None of these people were rich,” he says. Meissner says all of his clients have told him virtually the same thing: their broker sold them the CMO investments as triple-A rated bonds with no risk to principal, and a guaranteed 10 percent return. “That’s the story, no matter where the client is from,” says Meissner, who says fluctuations in price were explained to clients as temporary.
One client, who lost his entire initial investment of $200,000 — all of his liquid assets, according to Meissner — was invested in a portfolio of 14 CMO bond positions, half of which were “inverse floaters” or “interest only strips,” and on 80 percent margin. “This client says he told his broker he wanted an investment that was safe and secure,” says Meissner, who adds that the Brookstreet rep assured him it was. One of the seven inverse floaters his client owned showed a current face value of $3,117,610.92, as of April 30. But, the estimated current market value was only $108,991.68, according to the client’s statement.
Brokers at wirehouse firms contacted repeatedly told Registered Rep. that they stayed away from such investments with clients because the “risk wasn’t worth it.” A top Smith Barney broker that used his Bloomberg station to look up the CUSIP number of the bond mentioned above had this to say upon reading its description: “That’s a bond with a lot of hair on it. You’re in an area here that 98 percent of your readers don’t dabble in, thank God.” He quoted Warren Buffett for emphasis: “Derivatives are what you get when you combine MBAs and ignorance,” and “You never know who’s swimming naked until the tide goes out.”
THE “GENIUS” BEHIND BROOKSTREET’S CMO BIZ
The man who built Brookstreet’s CMO business, managed the portfolios and basked in the glory of being Brookstreet’s top producer was Cliff Popper, a Boca Raton-based broker with a rather active U4. It shows 13 firms in the 15 years prior to joining Brookstreet in 2004. According to an old boss of Popper’s who spoke on the condition of anonymity, the 37-year old Popper had done very well for himself and clients by investing in CMOs and CMO derivatives like inverse floaters and interest-only strips. Besides driving a BMW Z8 and owning a skybox at Miami’s Dolphin Stadium, according to one source, Popper was also rumored to be producing $1 million a month in revenue while at Brookstreet. He was “clever,” says his old boss. Because interest rates were declining or stable for so many years, investors in CMO derivatives juiced with leverage made a lot of money, he says.
But Popper didn’t know when to walk away, says his former boss. It was Popper’s penchant for leverage that eventually made him unwelcome at his firm, as well as other firms Popper later joined, he says. When Popper was working for him, he says he asked him to reign in his leveraged positions in CMO derivatives and, when Popper resisted, he was asked to leave.
Despite working in the buttoned-up world of financial services, Popper’s private life appears to have been anything but. In fact, he is something of a ladies man — or was, on his MySpace page, anyway. The page, which he made private soon after it got the attention of regulators, attorneys and Registered Rep., included a “friends” page chock-full of bikini and thong-wearing women posing (mostly from behind), lying down, bent over or embracing other women. Scrolling down the page several half-naked cartoons danced around the page to a song laced with sexually-explicit lyrics. An SEC official who was asked if he’d seen the page laughed sheepishly, said yes, then said that the SEC is not interested in anything that doesn’t provide facts about Popper’s involvement in Brookstreet’s demise. But he did call the site an aspect of his “character.” Enough said.
Look at prepayment speeds going back six months.
Pick your broker dealer wisely.
Remember the size of the deal matters especially when it comes to third party pricing services.Odd lot vs round lot
Assets to Buy:
IO
IO Floaters
Floaters( ABS HEL and Agency Floaters)
Assets to buy and sell like a hedge fund:
PO
SUP
IIO
Inverese Floaters
Assets to buy/ Use to fight possible income shortfall:
MBS
Agency ARMS: 1/1, 3/1, 5/1,7/1, 10/1
PAC
SEQ
TAC
GFM
I have someone trying to sell me some cmos. They know that I have 1mm dollars. Here are the cusip #’s.
46628FAK7 JP/Chase
36246LAPG Goldman Sachs
61453AAA3 Morgan Stanley
46631BAH8 JP/Chase
2173MBA7 Greenwhich/RBS. Now are these any good or should I stay away. He also says that he has connections to get them monetized at 25-30% buy some German bank that he clames that he is direct with. I know that no one works for free but if possible can someone let me know if I am being scammed or not. I am also in the market for someone to represent me. I also am wandering if it is possible to monetize CMOs at a percentage of face value.
Thanks
Frank fundingsolutionsllc@comcast.net
Comment by frank Nelson — January 2, 2010 @ 10:28 pm
“They know that I have 1mm dollars.” How did there know.?
A fool will soon path with his money. You may never see your allegely $1m again.
Easy come easy go.
46628FAK7 JP/Chase
36246LAPG Goldman Sachs
61453AAA3 Morgan Stanley
46631BAH8 JP/Chase
2173MBA7 Greenwhich/RBS. = to big credit risk.
“He also says that he has connections to get them monetized at 25-30% buy some German bank that he clames that he is direct with”
The above statement is not true.
1. If you truly have $1m like you claim to do you should put your money to work in IIO and IO market.
You want to flip IO Floaters, IIO, and IO on a monthly basis build up your name and the banks/insurance companies
will give you money to trade.
You should not buy some illiquid piece of shit.
1. If you truly have $1m like you claim to do you should put your money to work in IIO and IO market.
You want to flip IO Floaters, IIO, and IO on a monthly basis build up your name and the banks/insurance companies
will give you money to trade.
Generate income?
Retirement?
Speculate?
Make millions?
What is your risk level…tolerance level?
Answer all these questions before you buy..any of these bonds
46628FAK7 JP/Chase
36246LAPG Goldman Sachs
61453AAA3 Morgan Stanley
46631BAH8 JP/Chase
2173MBA7 Greenwhich/RBS. = to big credit risk.
You need to know the expecture return and the standard deviation.
Whats the mean variance?
Which rate model is been used to value these bonds?
How long do you intend to hold on to these bonds?
Can you afford to lose all all your money?
Can somebody explain what is the process to buy a Residencial CMO, how long does the hole process take, adn what is the difference between primary and secondary markets CMO?
I am not interested in trading. I am interested in holding long term for income, and to help fund other projects for clients of mine using this unique stratagy. Yes I do have 1mm, and no it is not a proff of funds, or leased account. I don’t mess with any of that. Can I afford to loose this money? No I can’t. It was not easy to make and I don’t want to loose it. I would just like to know what is the best way to go. Both for my self and my clients. I am not the only one to be represented in these transactions, I also have numerouse clients with money that need to fund large projects. I know it takes money to make money. So if it possible then feel free to contact me.
Thanks
Frank Nelson
Comment by Frank Nelson — January 5, 2010 @ 9:43 am
@ Tony
Can somebody explain what is the process to buy a Residencial CMO, how long does the hole process take, adn what is the difference between primary and secondary markets CMO?
Step 1
1. Most BD Require a certain amount of money: ($1m to $25m)
2. Register a company
2. Hire a good trader
Step 2
Tools of the trade:
YB
BB
Intex Net
Research
Sales Coverage
Step 3
State investment objectives
Risk tolerance
Products Selections
Step 4
Buy and Sell
Primary market = new issaunce
Secondary market = old bonds…usaully investor look at this to get a sense of what could potentially happan to the
bond they want to buy…no one like to see or get bad news…yld volatility and all
@ Frank Nelson
Good to know. I will start interviewing new clients sometime in Febuary.
If you want us to represent you as your advisor please let me know.
I am a complete novice, but I have taken the time to read this wonderful blog in it’s entirety. First of all thank you for the truth in most of these matters. I own a small private placement firm in Atlanta. I have sourced 50 mil in private equity for various clients since October and a col liege suggested that I participate in the purchase of a CMO and leverage it to go in to a trade. coincidentally the CMO prospectus he sent me for the due diligence is also being considered by one of your other blogger. i have written down the questions and made notes of the thing which you say should be of concern to me. But I do want your opinion. Do you think that I should participate with my limited knowledge and If I do purchase this CMO what is the suggested time that I should hold it. The CMO is 46631BAH8. The expected return is 15%. I will inquire with a broker on the mean, the rate model and the standard deviation. I would like it for income and no I can afford to loose a quarter..Let me know?
@Honey If you want income buy Govie backed MBS bonds. You will lose your money if you buy this bond. Below are more details:
JPMCC 2007-LDP11
Overview Bond Stack Loan List Show All
Name
CMBX Series #
2
Cut-off Loan Balance
$5,414,154,806
Cut-off Date
7/1/2007
Current Loan Balance
$5,360,993,653
As of Date
12/15/2009
WAC (Weighted Average Coupon)
5.840437 %
Property Type %
Office 33.15%
Retail 23.52%
Multifamily 16.52%
Hospitality 14.18%
Industrial 5.44%
Mobile Home Park 5.11%
Other 0.99%
Health Care 0.64%
Self-Storage 0.45%
Property State %
New York 21.35%
California 17.68%
Florida 10.28%
Texas 6.85%
Pennsylvania 4.51%
Michigan 4.17%
Massachusetts 2.93%
Maryland 2.90%
Connecticut 2.52%
Georgia 2.24%
Map of securitized properties
Class CUSIP Original Balance Current Balance DBRS Rating S&P Rating Fitch Rating Moody Rating
LR 46631BBD6 $0 $0
R 46631BBC8 $0 $0
S 9ABSDJ40 $0 $0
X 46631BAH8 $5,414,154,806 $5,378,920,806 AAA Aaa
A-1 46631BAA3 $62,183,000 $27,878,816 AAA Aaa
A-1A 46631BAG0 $1,155,652,000 $1,154,722,184 AAA Aaa
A-2 46631BAB1 $915,605,000 $915,605,000 AAA Aaa
A-2FL 46631BAC9 $70,000,000 $70,000,000 AAA Aaa
A-3 46631BAD7 $283,043,000 $283,043,000 AAA Aaa
A-4 46631BAE5 $1,179,634,000 $1,179,634,000 AAA Aaa
A-J 46631BAK1 $426,365,000 $426,365,000 AAA Aaa
A-M 46631BAJ4 $541,415,000 $541,415,000 AAA Aaa
A-SB 46631BAF2 $123,791,000 $123,791,000 AAA Aaa
B 46631BAL9 $33,839,000 $33,839,000 AA+ Aa1
C 46631BAM7 $81,212,000 $81,212,000 AA Aa2
D 46631BAN5 $54,141,000 $54,141,000 AA- Aa3
E 46631BAP0 $27,071,000 $27,071,000 A+ A1
F 46631BAQ8 $47,374,000 $47,374,000 A A2
G 46631BAR6 $54,142,000 $54,142,000 A-
H 46631BAS4 $67,676,000 $67,676,000 BBB+
J 46631BAT2 $47,374,000 $47,374,000 BBB
K 46631BAU9 $74,445,000 $74,445,000 BBB-
L 46631BAV7 $20,303,000 $20,303,000 BB+
M 46631BAW5 $13,535,000 $13,535,000 BB
N 46631BAX3 $20,304,000 $20,304,000 BB-
P 46631BAY1 $6,767,000 $6,767,000 B+
Q 46631BAZ8 $13,536,000 $13,536,000 B
T 46631BBA2 $20,303,000 $20,303,000 B-
NR 46631BBB0 $74,444,806 $74,444,806 NR
Name Amount Interest Rate Maturity Date Property Type City State
GSA Portfolio $284,000,000 6.225 % 5/9/2012 Office Various Various
Maple Drive Portfolio $220,000,000 5.542 % 6/1/2017 Office BEVERLY HILLS CA
315 Park Avenue South $219,000,000 5.825 % 6/9/2012 Office NEW YORK NY
5 Penn Plaza $203,000,000 5.595 % 5/1/2017 Office NEW YORK NY
Save Mart Portfolio $199,458,933 5.620 % 4/9/2017 Retail Various CA
Franklin Mills $174,000,000 5.650 % 6/1/2017 Retail PHILADELPHIA PA
Hyatt Regency - Jacksonville $150,000,000 6.014 % 6/10/2017 Hospitality JACKSONVILLE FL
Americold Portfolio $115,300,000 5.434 % 12/11/2016 Industrial Various Various
Genesee Valley Center $110,668,660 5.950 % 12/5/2016 Retail FLINT MI
ChampionsGate Hotel $98,153,981 6.720 % 2/1/2016 Hospitality CHAMPIONSGATE FL
Lembi Portfolio $90,000,000 6.080 % 6/11/2012 Multifamily SAN FRANCISCO CA
Denmark MHC Portfolio $89,250,000 6.206 % 4/1/2017 Mobile Home Park Various Various
Stadium Towers $83,200,000 5.475 % 5/11/2017 Office ANAHEIM CA
2030 Broadway $80,000,000 5.507 % 4/10/2017 Multifamily NEW YORK NY
Embassy Suites Atlanta $80,000,000 5.675 % 4/10/2012 Hospitality ATLANTA GA
Healthnet Headquarters $74,800,000 6.500 % 4/11/2027 Office SHELTON CT
The Electra Apartments $66,000,000 5.576 % 4/10/2017 Multifamily NEW YORK NY
399 Boylston $65,300,000 5.705 % 3/5/2014 Office BOSTON MA
175 West 72nd St $62,500,000 5.660 % 4/10/2017 Multifamily NEW YORK NY
Southlake Grand Avenue $59,661,271 5.673 % 7/11/2012 Retail SOUTHLAKE TX
The Landings of Brentwood Apartments $59,100,000 5.718 % 5/10/2017 Multifamily FRANKLIN TN
Holiday Inn Hotel & Suites Ocean City $54,498,002 6.284 % 7/1/2014 Hospitality OCEAN CITY MD
Hamptons MHP $52,880,000 5.910 % 6/11/2012 Mobile Home Park AUBURNDALE FL
JQH Hotel Portfolio $50,000,000 5.701 % 5/6/2017 Hospitality Various Various
Greenway Station $49,675,000 6.482 % 7/1/2017 Retail MIDDLETON WI
625 Broadway $47,000,000 6.149 % 6/1/2017 Office NEW YORK NY
Brooklyn/Queens Industrial Portfolio $46,613,495 5.890 % 5/1/2012 Industrial Various NY
510 Sixth Avenue $46,000,000 5.670 % 4/11/2017 Retail NEW YORK NY
101 West Ohio Street $45,000,000 5.688 % 5/9/2017 Office INDIANAPOLIS IN
36-46 33rd Street $42,000,000 5.553 % 4/9/2017 Office LONG ISLAND CITY NY
The Mill $38,950,000 6.417 % 7/1/2017 Office GREENWICH CT
Courtly Manor $37,800,000 5.910 % 6/11/2012 Mobile Home Park HIALEAH GARDENS FL
Burlington Marriott $37,000,000 5.761 % 6/9/2017 Hospitality BURLINGTON MA
Kenley Apartments $36,000,000 5.560 % 7/1/2017 Multifamily BIRMINGHAM AL
Sunflower MHP $36,000,000 5.475 % 5/5/2017 Mobile Home Park SURPRISE AZ
Swedesford Plaza $35,100,000 5.785 % 6/1/2017 Retail BERWYN PA
Doubletree Bakersfield $35,000,000 6.264 % 6/10/2012 Hospitality BAKERSFIELD CA
Michaels Industrial $34,786,593 5.563 % 6/5/2017 Industrial CENTRALIA WA
Carespring Portfolio $34,155,000 5.804 % 5/1/2014 Health Care Various Various
Hilton Garden Inn - Emeryville $33,963,000 5.743 % 6/10/2012 Hospitality EMERYVILLE CA
Embassy Suites Hotel & Executive Meetin $33,600,000 5.588 % 6/1/2017 Hospitality RICHMOND VA
Sheraton Oklahoma City $31,900,500 5.960 % 5/11/2012 Hospitality OKLAHOMA CITY OK
100 W. Broadway $30,500,000 5.848 % 3/1/2012 Office LONG BEACH CA
Venice Shoppes $30,000,000 5.584 % 5/9/2017 Retail VENICE FL
Villas at D Andrea Apartments $29,500,000 5.760 % 5/11/2012 Multifamily SPARKS NV
Rocket Lofts $29,000,000 5.575 % 5/10/2017 Multifamily BROOKLYN NY
Windmill MHP $28,620,000 5.910 % 6/11/2012 Mobile Home Park DAVENPORT FL
Smoketown Plaza $28,500,000 5.600 % 4/5/2017 Retail WOODBRIDGE VA
The Princeton $28,400,000 5.930 % 5/6/2017 Office DALLAS TX
ANA Kalakaua Center $26,900,000 5.990 % 3/11/2017 Office HONOLULU HI
Lee DeForest Drive Center $26,730,254 5.583 % 7/1/2017 Office COLUMBIA MD
15-17 Park Avenue $26,000,000 5.395 % 6/10/2012 Multifamily NEW YORK NY
Owings Mills 4 $25,600,000 5.472 % 4/6/2012 Office OWINGS MILLS MD
439 86th Street $24,000,000 5.822 % 4/10/2017 Retail BROOKLYN NY
Cinemark Valley View $22,074,628 5.659 % 6/1/2017 Retail VALLEY VIEW OH
The River Inn $22,000,000 5.734 % 6/1/2017 Hospitality WASHINGTON DC
Comfort Suites - San Diego; CA $21,845,000 5.860 % 4/11/2017 Hospitality SAN DIEGO CA
Washington Commons $21,300,000 5.939 % 2/1/2012 Office NAPERVILLE IL
Dick s Sporting Goods - Rockaway $20,800,000 5.790 % 6/5/2017 Retail ROCKAWAY NJ
Lyndhurst Shopping Center $20,754,541 5.895 % 12/5/2016 Retail LYNDHURST NJ
PGA Financial Plaza $20,700,000 5.505 % 5/9/2017 Office PALM BEACH GARDENS FL
Volusia Marketplace $20,400,000 5.549 % 6/1/2017 Retail DAYTONA BEACH FL
42 West 48th Street $20,000,000 5.665 % 6/9/2017 Office NEW YORK NY
Shoppes of Victoria Park $20,000,000 5.728 % 6/1/2017 Retail FORT LAUDERDALE FL
The College Suites at Campbell Lane Apa $20,000,000 5.970 % 3/11/2017 Multifamily BOWLING GREEN KY
Lindley Gardens $19,700,000 5.966 % 4/6/2017 Multifamily NORTHRIDGE CA
Ambrose Hotel $18,797,332 5.900 % 1/5/2017 Hospitality SANTA MONICA CA
Farnham Park $18,400,000 5.790 % 5/11/2014 Multifamily HOUSTON TX
400-1 / 400-2 Totten Pond $18,100,000 5.625 % 1/10/2012 Office WALTHAM MA
Center at Split Rock $18,000,000 5.600 % 6/9/2017 Retail SHELTON CT
Park Oaks Shopping Center $17,889,238 6.170 % 5/6/2017 Retail SAN ANTONIO TX
Sandcastle Apartments $16,925,000 5.560 % 7/1/2017 Multifamily CORPUS CHRISTI TX
Bronx Park South Apartments $16,268,508 5.650 % 4/6/2017 Multifamily BRONX NY
Hempstead Retail $16,250,000 5.980 % 6/9/2017 Retail HEMPSTEAD NY
The Shops at Boardman Park - Phase II $16,240,000 5.695 % 6/1/2017 Retail BOARDMAN OH
147-25 Northern Boulevard $15,350,000 5.460 % 5/9/2017 Multifamily FLUSHING NY
Sweetwater Apartments $15,300,000 5.507 % 4/9/2014 Multifamily PENSACOLA FL
Mission Eagle Point $15,060,000 5.917 % 5/1/2037 Multifamily ALLEN TX
Colonial Bank Plaza $15,000,000 5.922 % 6/1/2017 Office DALLAS TX
Edentree Apartment Village $15,000,000 5.750 % 5/11/2012 Multifamily CARROLLTON TX
Park at Waterford Harbor $15,000,000 5.520 % 4/10/2017 Multifamily KEMAH TX
Squire Hill Apartments $14,990,000 5.620 % 4/11/2017 Multifamily RICHMOND VA
Parkway Towers $14,500,000 6.228 % 6/6/2017 Office NASHVILLE TN
Hyattsville Portfolio $14,000,000 5.701 % 5/9/2014 Multifamily HYATTSVILLE MD
Exposition Marketplace $13,000,000 5.658 % 3/7/2017 Retail LOS ANGELES CA
University Corporate Center One $13,000,000 5.485 % 3/9/2012 Office ORLANDO FL
Vermont Avenue Warehouse $13,000,000 5.650 % 6/5/2017 Industrial GARDENA CA
Burns Medical Office $12,887,513 5.580 % 7/1/2017 Office PETOSKEY MI
Cermak Plaza $12,652,559 6.358 % 3/1/2017 Retail CHICAGO IL
The Park @ I-95 $12,322,799 5.605 % 3/1/2012 Office CANTON MA
Highlands Overlook $12,250,000 5.610 % 3/9/2012 Office SMYRNA GA
Worthington on the Beltway $12,200,000 5.927 % 6/1/2012 Multifamily HOUSTON TX
Preston Valley Center $12,000,000 5.674 % 5/9/2017 Retail DALLAS TX
BB Mini Storage Portfolio $11,780,281 5.951 % 6/1/2017 Self-Storage Various LA
Westwood Plaza $11,400,000 6.126 % 6/1/2017 Multifamily SAN ANTONIO TX
Palm Key MHP $11,270,000 5.910 % 6/11/2012 Mobile Home Park DAVENPORT FL
Paramount Parks Vacaville $11,224,225 6.455 % 4/5/2017 Multifamily VACAVILLE CA
Hampton Inn Hunt Valley $10,688,804 5.660 % 4/5/2017 Hospitality HUNT VALLEY MD
Industry Hills Center $10,474,055 5.725 % 7/5/2017 Industrial CITY OF INDUSTRY CA
Glendale Office $10,350,000 6.613 % 6/5/2012 Office GLENDALE CA
Kumho Tires $10,271,376 5.940 % 5/11/2037 Industrial MCDONOUGH GA
Barbanel Multifamily Portfolio $10,200,000 6.175 % 6/6/2012 Multifamily NEW YORK NY
The Overlook at Las Colinas $10,000,000 5.784 % 3/9/2012 Office IRVING TX
Citizen News Building $9,893,790 5.970 % 1/1/2012 Office LOS ANGELES CA
8457 Melrose Place $9,518,107 5.950 % 2/7/2017 Retail LOS ANGELES CA
Rancho Fiesta $9,450,000 5.615 % 5/1/2017 Mobile Home Park VISALIA CA
Whole Foods Cicero $9,446,000 5.760 % 6/7/2017 Retail CHICAGO IL
46-01 67th Street $9,350,000 5.460 % 5/9/2017 Multifamily WOODSIDE NY
Luria Plaza $9,270,000 5.790 % 5/5/2017 Retail VERO BEACH FL
Mellon Bank Office Building $9,250,000 5.935 % 5/5/2012 Office IRWINDALE CA
1370 Washington Avenue and 1345 Drexel $9,200,000 6.290 % 5/1/2017 Other MIAMI BEACH FL
Four Points by Sheraton $9,113,236 6.503 % 7/1/2017 Hospitality YORK PA
525 West 49th Street $9,000,000 5.655 % 6/9/2017 Multifamily NEW YORK NY
Bedford Park Shoppes $8,950,000 5.540 % 6/9/2017 Retail BEDFORD PARK IL
755 Co-Op City Boulevard $8,940,000 5.540 % 3/6/2017 Retail BRONX NY
Wayne State University $8,858,205 6.807 % 7/1/2017 Office DETROIT MI
185 Great Neck Road $8,800,000 5.792 % 5/9/2017 Office GREAT NECK NY
Commonwealth Business Center $8,770,000 5.573 % 6/5/2017 Office LOUISVILLE KY
Valencia Industrial $8,678,955 5.900 % 4/7/2017 Industrial VALENCIA CA
862 Broadway $8,613,000 6.093 % 7/6/2017 Other NEW YORK NY
Foothill Glen Apartments $8,535,000 6.130 % 6/11/2012 Multifamily SYLMAR CA
Saval Industrial $8,200,000 5.620 % 6/5/2017 Industrial ELKRIDGE MD
Sunset Ridge Apartments $8,200,000 5.569 % 5/1/2017 Multifamily MILWAUKEE WI
Southgate Shopping Center $8,150,000 5.556 % 5/5/2017 Retail MILWAUKIE OR
215 South Brea Boulevard $8,100,000 5.512 % 6/5/2017 Other BREA CA
Corona Apartments $8,000,000 5.460 % 5/9/2017 Multifamily CORONA NY
Orpheum Tower Apartments $8,000,000 5.710 % 4/1/2012 Multifamily OMAHA NE
Century Park Apartments $7,800,000 5.806 % 6/5/2017 Multifamily RENO NV
Shadow Oaks $7,800,000 5.560 % 7/1/2017 Multifamily AUSTIN TX
Shops at Breton Bay $7,800,000 5.910 % 4/1/2017 Retail LEONARDSTOWN MD
AT&T Chicago $7,787,805 5.830 % 5/11/2037 Office CHICAGO IL
Town Sports International - Newton; MA $7,733,274 5.588 % 5/1/2017 Retail NEWTON MA
Westview Commons I $7,731,360 6.180 % 1/1/2017 Office FREDERICK MD
Seaway Plaza Ogdensburg $7,523,721 6.150 % 3/5/2017 Retail OGDENSBURG NY
2907-21 Main Street $7,500,000 5.975 % 6/5/2017 Retail SANTA MONICA CA
Comfort Suites Downtown $7,252,842 5.780 % 6/3/2017 Hospitality COLUMBIA SC
Centerline Shopping Center $7,200,000 5.740 % 6/5/2017 Retail CENTER LINE MI
Hunter s Crossing $7,120,000 5.610 % 4/1/2012 Multifamily LONGVIEW TX
The Preakness $7,050,000 5.560 % 7/1/2017 Multifamily HOUSTON TX
Fairmont and Monticello $7,000,000 5.603 % 6/1/2017 Multifamily ST. LOUIS MO
Village of Tampa $7,000,000 5.745 % 3/5/2017 Mobile Home Park TAMPA FL
Santa Luz $6,897,743 5.820 % 5/11/2017 Multifamily TUSCON AZ
Skee s Industrial $6,880,000 6.196 % 7/1/2017 Industrial WEST PALM BEACH FL
Park Place - El Segundo $6,800,000 5.963 % 7/1/2017 Industrial EL SEGUNDO CA
Parkway Villas $6,638,500 5.710 % 5/1/2017 Multifamily WICHITA FALLS TX
Wal-Mart Plaza $6,610,000 6.050 % 6/1/2017 Retail NATCHITOCHES LA
22 West 23rd Street $6,540,000 5.981 % 6/9/2017 Office NEW YORK NY
Wingate Inn Columbia $6,515,289 5.770 % 6/3/2017 Hospitality COLUMBIA SC
Burke Williams Headquarters $6,431,111 6.350 % 12/5/2016 Office CULVER CITY CA
82-06 Northern Boulevard $6,375,000 5.460 % 5/9/2017 Retail JACKSON HEIGHTS NY
6420 Richmond $6,363,495 5.870 % 6/5/2017 Office HOUSTON TX
Spanish Spur $6,363,000 6.126 % 6/1/2017 Multifamily SAN ANTONIO TX
Exeter Industrial Properties $6,360,000 5.662 % 5/1/2012 Industrial MT. LAUREL NJ & LANGHORNE PA
Spring Hills Business Center $6,307,437 6.004 % 6/6/2017 Industrial SPRING TX
Academy Sports Round Rock $6,146,689 5.834 % 5/1/2017 Retail ROUND ROCK TX
Orem Center $6,135,775 5.935 % 4/5/2017 Retail OREM UT
Marston Building $6,100,000 5.650 % 5/11/2017 Other SAN DIEGO CA
Loews Mountainside $6,004,553 5.860 % 5/5/2017 Retail MOUNTAINSIDE NJ
431 Ocean Front Walk $6,000,000 5.852 % 7/6/2017 Other VENICE CA
8950 Beverly Boulevard $5,959,895 6.360 % 7/7/2016 Retail LOS ANGELES CA
Tramz Hampton Inn - Greenville $5,935,531 6.921 % 7/1/2014 Hospitality GREENVILLE SC
The Farrington $5,888,000 5.560 % 7/1/2017 Multifamily SPRING TX
Eagleview Apartments $5,811,678 5.725 % 6/5/2017 Multifamily LOS ANGELES CA
Park Plaza Apartments $5,800,000 5.720 % 3/6/2012 Multifamily WORCESTER MA
8479 Melrose Place $5,786,845 5.970 % 1/7/2017 Retail LOS ANGELES CA
Evergreen Marketplace $5,750,000 5.700 % 5/5/2017 Retail EVERGREEN CO
Ashley Furniture $5,741,465 5.944 % 5/1/2017 Retail GREENVILLE SC
Tramz Hampton Inn - Amarillo $5,733,183 6.921 % 7/1/2014 Hospitality AMARILLO TX
Rite Aid Portfolio $5,704,000 6.117 % 3/10/2017 Retail Various Various
Country Inn & Suites - Champaign; IL $5,702,985 6.060 % 6/5/2012 Hospitality CHAMPAIGN IL
Country Inn & Suites - Bloomington; IL $5,618,321 6.060 % 6/5/2012 Hospitality BLOOMINGTON IL
1050 Warrenvile Road $5,600,000 5.550 % 3/9/2017 Office LISLE IL
320 South Robertson & 819 North La Cien $5,589,936 6.295 % 10/7/2016 Retail LOS ANGELES CA
Lofts of Broadway $5,460,415 6.619 % 7/1/2014 Multifamily LOUISVILLE KY
Tramz Hampton Inn - San Antonio $5,395,937 6.921 % 7/1/2014 Hospitality SAN ANTONIO TX
Grand Twin $5,320,000 5.742 % 6/1/2017 Office BIRMINGHAM AL
Hidden Park Apartments $5,289,986 5.707 % 1/1/2012 Multifamily ST LOUIS MO
Hemet Retail Center $5,250,000 5.950 % 6/9/2017 Retail HEMET CA
BRECO Building $5,200,000 6.207 % 3/1/2012 Office DALLAS TX
Crossgate Center $5,200,000 5.965 % 6/1/2017 Office SCRANTON PA
Lakewood City Center $5,150,000 5.700 % 5/5/2017 Retail LAKEWOOD CO
155 West Street $5,000,000 5.654 % 5/7/2017 Industrial WILMINGTON MA
Lakeside Retail $5,000,000 6.203 % 7/1/2017 Retail STERLING HEIGHTS MI
Tropical Flamingo Village $5,000,000 5.605 % 6/5/2017 Retail LAS VEGAS NV
Tramz Hampton Inn - Eden Prairie $4,991,242 6.921 % 7/1/2014 Hospitality EDEN PRAIRIE MN
366 & 368 Veterans Memorial Highway $4,962,693 5.980 % 4/1/2017 Office COMMACK NY
Falls Parc Apartments $4,943,266 5.828 % 6/1/2017 Multifamily SHEBOYGAN FALLS WI
Tramz Hampton Inn - Albuquerque $4,907,187 6.921 % 7/1/2014 Hospitality ALBUQUERQUE NM
The Executive Building - Cin. Oh $4,857,510 6.188 % 6/1/2017 Office CINCINNATI OH
3443 Boston Post Road $4,800,000 5.842 % 7/6/2017 Retail BRONX NY
9415 Northern Boulevard $4,800,000 6.357 % 7/6/2017 Retail JACKSON HEIGHTS NY
Walgreens - Duluth $4,800,000 5.687 % 4/9/2017 Retail DULUTH MN
Shell - Firestone $4,786,739 5.670 % 4/5/2017 Retail COCONUT CREEK FL
Harbin Springs Apartments $4,760,000 5.658 % 5/1/2017 Multifamily NORCROSS GA
Tramz Hampton Inn - Greensboro $4,732,940 6.921 % 7/1/2014 Hospitality GREENSBORO NC
Winston Square $4,709,000 6.126 % 6/1/2017 Multifamily SAN ANTONIO TX
Western Knitting Mills $4,681,568 5.934 % 6/1/2017 Office ROCHESTER MI
Metro Self Storage - Fort Myers $4,600,000 5.632 % 5/9/2017 Self-Storage FORT MYERS FL
Tramz Hampton Inn - Syracuse $4,591,658 6.921 % 7/1/2014 Hospitality SYRACUSE NY
Best Buy-Witchita Falls $4,533,740 5.827 % 6/1/2017 Retail WICHITA FALLS TX
9-11 Raymond Avenue $4,470,134 6.500 % 4/5/2017 Office POUGHKEEPSIE NY
Holiday Inn Express - Sharonville; OH $4,427,881 5.950 % 6/1/2017 Hospitality SHARONVILLE OH
Ashley Self Storage $4,400,000 5.769 % 6/1/2017 Other CHARLESTON SC
Walgreens - Littleton $4,330,000 5.687 % 4/9/2017 Retail LITTLETON CO
Holiday Inn Express - Elizabeth City; N $4,329,203 6.680 % 7/1/2017 Hospitality ELIZABETH CITY NC
Brooks Brothers Walnut Street $4,275,000 6.066 % 6/9/2017 Retail PHILADELPHIA PA
Florida City - Extra Space Storage $4,200,000 5.633 % 5/1/2017 Self-Storage FLORIDA CITY FL
Walgreens - Utica $4,190,000 5.870 % 2/11/2017 Retail NEW HARTFORD NY
Pecan Manor $4,128,000 6.126 % 6/1/2017 Multifamily SAN ANTONIO TX
Sun West Promenade Building I $4,000,000 5.777 % 6/1/2017 Retail LAS VEGAS NV
Academy Sports San Antonio $3,931,106 5.809 % 5/1/2017 Retail SAN ANTONIO TX
Chestnut Parking Garage $3,921,961 6.070 % 6/1/2017 Other CHICAGO IL
1140-1160 Parsippany Boulevard $3,800,000 5.549 % 6/1/2017 Office PARSIPPANY NJ
Walgreens - Morehead $3,800,000 5.700 % 4/9/2017 Retail MOREHEAD NC
Eagle Village $3,750,000 5.695 % 5/5/2017 Retail STOCKBRIDGE GA
Wharton Commerce Center $3,750,000 5.763 % 5/1/2017 Industrial RANDOLPH NJ
Las Colinas Office $3,734,350 6.248 % 5/1/2022 Office IRVING TX
French Place Apartments $3,720,000 5.705 % 3/9/2017 Multifamily SAN ANTONIO TX
Howland Industrial Portfolio $3,700,000 5.654 % 5/7/2017 Industrial Various MA
Metro Self Storage - Douglasville $3,616,000 5.580 % 3/9/2017 Self-Storage DOUGLASVILLE GA
Spiral Plaza $3,500,000 5.621 % 6/1/2012 Other FLORENCE KY
Walgreens Memphis $3,419,346 5.680 % 5/9/2017 Retail MEMPHIS TN
Comfort Inn - Red Bluff $3,403,734 6.354 % 6/1/2017 Hospitality RED BLUFF CA
170 Post Road $3,356,461 6.212 % 7/1/2017 Other WESTPORT CT
184 Nagle Avenue $3,300,000 5.911 % 5/6/2012 Multifamily NEW YORK NY
Rite Aid - Westover $3,215,000 6.117 % 3/10/2017 Retail WESTOVER WV
926 Haddonfield Road $2,962,007 6.130 % 6/5/2017 Retail CHERRY HILL NJ
3060 East 44th Street $2,904,443 5.810 % 5/5/2017 Industrial VERNON CA
Walgreens - Lancaster $2,900,000 5.700 % 4/9/2017 Retail LANCASTER SC
Academy Sports Houston $2,858,986 5.809 % 5/1/2017 Retail HOUSTON TX
Walgreens - Mocksville $2,800,000 5.700 % 4/9/2017 Retail MOCKSVILLE NC
Lone Tree Town Center $2,720,000 5.851 % 6/7/2014 Retail LONE TREE CO
Raven s Crossing Strip Center $2,700,000 5.380 % 11/11/2012 Retail CARPENTERSVILLE IL
Six Forks - Raleigh $2,630,096 5.950 % 4/5/2017 Office RALEIGH NC
Rite Aid - Chester $2,627,000 6.117 % 3/10/2017 Retail CHESTER VA
389 Knickerbocker Avenue $2,600,000 6.125 % 6/9/2017 Retail BROOKLYN NY
9031 West Sahara Avenue $2,600,000 5.565 % 5/5/2017 Retail LAS VEGAS NV
Glen Oaks Apartments $2,585,780 6.260 % 6/11/2017 Multifamily SPRING HILL FL
Parthenia Twins Apartments $2,518,811 5.750 % 6/5/2017 Multifamily NORTHRIDGE CA
1550 North Congress $2,500,000 6.238 % 7/1/2017 Industrial WEST PALM BEACH FL
Rite Aid - Emporium $2,454,000 6.117 % 3/10/2017 Retail EMPORIUM PA
2937-39 Main Street $2,060,000 5.975 % 6/5/2017 Retail SANTA MONICA CA
North Richland Hills Portfolio $2,050,000 5.700 % 4/10/2017 Retail NORTH RICHLAND HILLS TX
Logan Portfolio-Beavercreek; OH $1,915,000 5.865 % 5/7/2017 Retail BEAVERCREEK OH
Rails End $1,890,000 6.090 % 5/11/2017 Mobile Home Park WILDWOOD FL
Century Drive - Raleigh $1,885,729 5.950 % 4/5/2017 Office RALEIGH NC
CVS Holliston $1,856,238 5.740 % 5/5/2017 Retail HOLLISTON MA
Creedmoor Centre 10 $1,846,392 6.235 % 6/5/2017 Office RALEIGH NC
Logan Portfolio-Decatur; AL $1,755,000 5.865 % 5/7/2017 Retail DECATUR AL
Logan Portfolio-Huntsville; AL $1,750,000 5.865 % 5/7/2017 Retail HUNTSVILLE AL
Logan Portfolio-Flowood; MS $1,655,000 5.865 % 5/7/2017 Retail FLOWOOD MS
Logan Portfolio-Bowling Green; KY $1,630,000 5.865 % 5/7/2017 Retail BOWLING GREEN KY
7772 Santa Monica Boulevard $1,560,985 6.200 % 11/7/2016 Retail WEST HOLLYWOOD CA
Logan Portfolio-Savannah; GA $1,555,000 5.865 % 5/7/2017 Retail SAVANNAH GA
Creedmoor Centre 1 $1,554,857 6.235 % 6/5/2017 Office RALEIGH NC
Logan Portfolio-Murfreesboro; TN $1,545,000 5.865 % 5/7/2017 Retail MURFREESBORO TN
Logan Portfolio-West Monroe; LA $1,540,000 5.865 % 5/7/2017 Retail WEST MONROE LA
Logan Portfolio-Gallatin; TN $1,475,000 5.865 % 5/7/2017 Retail GALLATIN TN
Logan Portfolio-Canton; MI $1,365,000 5.865 % 5/7/2017 Retail CANTON MI
Logan Portfolio-Fort Oglethorpe; GA $1,305,000 5.865 % 5/7/2017 Retail FORT OGLETHORPE GA
Logan Portfolio-Oxford; AL $1,280,000 5.865 % 5/7/2017 Retail OXFORD AL
Logan Portfolio-Evansville; IN $1,245,000 5.865 % 5/7/2017 Retail EVANSVILLE IN
Logan Portfolio-Austin; TX $1,165,000 5.865 % 5/7/2017 Retail AUSTIN TX
Arby s - Grand Rapids $1,000,000 5.750 % 5/9/2017 Retail GRAND RAPIDS MN
HONEY I AM IN THE ATLANTA AREA AND INTERESTED IN SPEAKING WITH YOU.
BP/FUND MANAGER IDIC100@GMAIL.COM
Comment by BP/FUND MANAGER — January 11, 2010 @ 11:49 am
hello Trader.
i wanted to inquire to you regarding MTN’s (medium term notes). its a shot in the dark but thought perhaps since yoou were involved in CMO’s then you may possibly be able to assist with MTN’s as well. A colleague of mine represents a seller who is looking to sell his mtn at 65+1 and is willing to show isins and cusip numbers including the title page once a potential buyer summits a compliance package, which would include some type of fund capability. short version of the of the note is.
BANK INSTRUMENT DESCRIPTION
Instrument : Medium-term, senior, unsubordinated bank debentures
(MTN’s) 322, with 144c exclusions, and subject to the
Uniform Customs and Practices for Documentary Credits,
ICC Publication – 400/500/600 revised
Condition : Seasoned to buyer
Currency : Euros
Term : Ten (10) years and one (1) day
Interest rate : 7.5% per annum
Issuing banks : Top 25 European Banks ‘AA’ rated by S&P (min)
Contract amount : Fifty Billion Euro’s
(Euro $50,000,000,000.00) with R/ E
Denominations : Minimum : $100M
Invoice price : (65%) Sixty-Five Percent plus 1%
)
Initial Tranche : To Be Advised
Purchase mode : Euroclear
would you know of any credible investors looking for this type of instrument? we have come across many “investors” who can not show they are capable financially. and request the title page and other info, so they may shop for a buyer or money.
i know this is off base from CMO’s I just thought i would ask since you seem very knowledgeable regarding instruments.
Dear sir,
We are consulting firm located in United Kingdom .we have a very good contacts /links with triple “A” rated banks in Europe that offer all kinds of loan and can finance project in developed and developing nations and as well provide all kinds of banking instruments(both issuance /discounting) with low charges/commission. Send us your inquiries(clha_ass@yahoo.co.uk) if you interested.
@Honey…dont do it. In most cases the people who try and sell you these junk CMO derivatives and promise that they can liquidate them and then take you into a wonderful trade are mostly cons, or clowns. Either way, the net end result is the same. You will be stuck holding some B.S. paper that you cannot liquidate. CMO is a sketchy game at best even when you know what you are doing. THe richest man in the world suggests that you onle ever invest in what you understand. Read “The Death of a Brokerage”…above…these people lost all their money…their brokers railroaded them….and these brokers supposedly are the experts and at best they didnt understand what they were doing…..or worse…they knew exactly what they were doing.
Comment by The Sheriff — February 1, 2010 @ 7:45 pm
Trader….what is the market value of this CMO? 20173MBA7
Have sellers for CMO as well as a trade CMO program…if you want to know more contact me a hedgefunds33@hotmail.com Must be owner of cmo for trade and able to show POF to buy them. Please be direct.
Comment by CD. Hodge — February 18, 2010 @ 2:31 am
I am looking to buy CMO IO’s must be able to show the cash flows, and the bloomberg screens, and the price offering in usd terms. and confirm how much of the position you have.
Please dont respond if you are a friend of a friend of friend who might know someone that might know.
Comment by steve touma — February 21, 2010 @ 10:45 am
Paul Jenkins,
Run, do not walk away from anyone marketing a (MTN) Medium Term Note Program involving 50 Bln dollars. There is no such animal. These supposed trading programs are the biggest scams in the securities business. Go to the SEC enforcement WEB page and type in MTN Trading program. You will get 82 enforcement actions. Here is the web page related to this type of fraud. {http://www.sec.gov/divisions/enforce/primebank/howtheywork.shtml. If you are choosing an investment make sure it comes from a Registered Representative who is Finra registered and investigate the firm. You can check out the brokerage house and broker via broker check on their website.
So is it fair to say that the “1B and up / 40 week trade programs” with a 1B CMO do or don’t exist? I hear of them through the broker chain, but haven’t ever explored them.
The demise of the structure products did a couple of things:
1. Expose dumb bankers.
2. Over paid bankers.
3. Stupid people who think they can get rich tomorrow.
4. Led to a cottage industry.
The fact remains you must have product knowledge in order to play this game.
If you are lucky to get access to cash count yourself lucky and invest wisely.
Some BD are cheap and some are rich.
The end of the day experince and trick of the trade will win the day.
Seasoned individual + Cash = Profit or Loss depending on game plan.
Further more like anything else the key to exposing a fraud is by asking the right questions.
Once the right questions are asked the house of cards will come tumbling down.
The fed will continue to ease. Poor earnings, low ISM of 41.9 the last time ISM was this low was 2001. The o n going housing recession and more shoes to drop. The fed will ease untill 2008 last quater I am projecting fed funds rate of 2.5 and a 3MLIBOR of 1.5.
Comment by Trader — February 11, 2008 @ 7:05 pm
thank you for the kind words. Agency mortgage derivatives can be very difficult to valuing and trade. My goal is to change the negative misconception of agency mortgage derivatives. For agency mortgage derivatives is not a bad product if used the right way. I see my role as that of an educator speaking about agency mortgage derivatives from a scholastic point of view.
Comment by Trader — March 1, 2008 @ 9:07 am
Can you elaborate on why the inverse floater market will outperform the floater market in mortgage land ?
The Fed keeping easing brings Libor lower. However, as Libor + Y gets discounted on libor, and since funding is cheaper, one could argue that higher prevailing spreads offer compelling opportunities in ‘08 for floaters.
Comment by joel lottar — March 2, 2008 @ 7:55 pm
From my past experience when you look at inv floaters, the most vital component is the optionality.
http://en.wikipedia.org/wiki/Implied_volatility
Wikipedia has a good explanation of optionality. When looking at inv floaters you should treat it like an options derivative contract. Becareful in treating it like any other instrument. Of cause my explanation is academia driven.
Comment by Trader — March 3, 2008 @ 5:44 am
I would be interested in discussing topics related to CMO investments. Please contact me via email or phone at 714-293-2517.
I look forward to working with you.
Comment by Robert T. Jones — May 19, 2008 @ 10:03 pm
We are seeking CMO buyers. We are direct to seller mandates. If this is an interest to you, Contact me at 956 330-3417 or via email: andy@superior-investors.com
Thanks,
Andy
Comment by Andy — July 7, 2008 @ 10:06 pm
I WOULD BE INTERESTED IN BUYING CMO WITH FACIAL VALUE UP 500 MM AND TO KNOW THE SELLING PRICE
Comment by Luis Kalinowski — July 10, 2008 @ 5:15 am
The CMO Derivatives market continues to offer higher yields and income returns for investors compared to corp or muni bonds . Agency debts has zero credit risk and default rate is there but you are guranteed you coupon and principal base on were you are on the structure. Make sure you understand and apply the right Speed, OAS or Static model analysis..volatility when you value agency structures.
The GSE will survive this credit crisis. FHA will meet the loans obligation that they insured. Do not be afraid of buying Agency backed securities. You can always sell it back to the GSE via Tradweb or Bloombergs TBA3 trading platform.
Happy Trade!
Comment by Trader — July 10, 2008 @ 8:55 am
I have many clients looking to purchase CMO’s for the purpose of adding to a collateral package for funding their projects. Can someone contact me who is either a seller or direct, to explore how these bonds can help my clients. Thank you. Contact me at:
funding@rfconline.net or
877-867-8778 Ext. 1
Comment by Ray - RFC — July 15, 2008 @ 8:50 pm
In spite of the latest news coming out of indymac and the two major GSE’s it is vital to stay the course. Agency CMO/RMBS offers a better return. Do not engage in a fire sale situation, if you do not know the value of your bonds please feel free to let us know. We will be more than glad to offer you a free evaluation on the estimated value of your securities. After all, won’t you seek a second opinion when it comes to our medical doctor? why not do the same for your financial health.
Comment by Trader — July 16, 2008 @ 3:49 am
Mr.Trader. Could you please help me understand reverse IO’s (floaters) and how they are beneficial in this current market period. What are the risks that are associated with them? What sort of risks can these instruments hedge? Thank you.
Comment by MV — July 18, 2008 @ 9:47 am
Hi MV,
Let me begin by saying thank you for stopping by CMO Derivatives.Org.
My job here is to create a community of mortgage derivatives experts were we get to talk about the next stages of structured mortgage derivatives.
Let me give you some general understanding of the IO/IIO sectors.
There are two types of interest only sectors. We have the Trust and we have the Structure. Both sectors have an IO and IIO. When you say ‘reverse IO’s (floaters)” I take it you mean IIO. Reverse IO’s (floaters) coupon payment is mathematically calculated base on TSY/CMT/COFI or 3MLIBOR depending on the one that was use. Therefore, your major risk here is interest rate risk. For as rates go down it favors you but when rates goes up you loss value.
The next risk is that of collateral risk, as rates go down the 10 TYS is probably following suit as well which leads to a lower mortgage rates. Now I am not going to go into seasoning, burnout and loan size here but few customers tend to refi whenever the rate is palatable to them and if they have no pre-payment penalties. With a reverse IO’s (floaters) you want a slow payer that is people who cannot refi for reasons best know to them a collateral with high pre-payment penalty. Bear in mind when you look at this reverse IO’s (floaters) know when to use PSA or CPR given the vintage.
The next risk is what I called perceptions of other PMs. Most if not all PMs look at the economic data in making investment decisions. They look at the PPI/CPI/RETAIL SALES/UMEMPLOYMENT etc if any of these economic data begins to show trends of being bullish the PM may decide to act on it which will affect the 10 TSY which then ultimately affects the 30 year mortgage rate which in turn affects the consumers ability to refi or not and hence, your reverse IO’s (floaters).
The risk this instrument hedge is your loan and cashflow. For example, a mortgage company or bank that loaned out money when rates were at 5% and the rate are now at 2% with reverse IO’s (floaters) the mortgage or bank is fully protected. Furthermore, asset management firms can use it to manage their portfolio’s duration as well as generate an alpha return if the right reverse IO’s (floaters) is bought, like I asserted earlier in my comment, not all reverse IO’s (floaters) are equal. They all behave differently base on a whole host of factors, it is imperative to have a well seasoned person look at these instruments to avoid having yours eye gauge out.
Comment by Trader — July 18, 2008 @ 11:43 am
Need buyers for CMO’s. Al 520-299-9383
Comment by Al — August 1, 2008 @ 12:19 pm
Trader,
I would like to take you up on your offer to evaluate a CMO. How do I contact you in a secure manner?
Thanks,
Jim Martin
Comment by Jim Martin — August 5, 2008 @ 12:46 pm
I am a business broker with a client with AAA FNMA securities seeking a loan
do you know of any credit facilities Trader?
I would pay a fee if successful
Comment by m stein — August 5, 2008 @ 4:11 pm
how do we offer CMO’s to you Trader for
as you said free evaluation
‘Do not engage in a fire sale situation, if you do not know the value of your bonds please feel free to let us know. We will be more than glad to offer you a free evaluation on the estimated value of your securities.’
Comment by m a stein — August 5, 2008 @ 4:15 pm
dear Mr Luis Kalinowski
how do i contact you?
M A Stein Lic Fla Business Broker
privateplacement2@yahoo.com
Comment by m a stein — August 5, 2008 @ 4:25 pm
Jim Martin this place is secure. What is the modified duration, who is the issuer? Is it a vintage deal? What’s the notional? Is it a trust or structured deal? Is it an agency or non agency?
Comment by Trader — August 6, 2008 @ 4:30 am
m a stein please kindly post your CMO bonds up right here. You can begin with one or two CMO bonds if you are not comfortable with posting a lot.
Comment by Trader — August 6, 2008 @ 4:37 am
FNR 2006-5 N2 2.6863%
Issuer: Fannie Mae 2/25/06 - 2/25/35
CMO: IO, CSTR, NTL
July 08 Current $674,096,319
Original $2,083,383,770
July, June, May, April, March, Feb, Jan
PSA 572 691 789 784 930 875 973
CPR 34.3 41.4 47.3 47.1 55.8 52.5 58.4
Fact .32 .34 .35 .37 .39 .42. .45
CPN 2.68 2.69 2.85 2.07 2.29 0 0
WAC 5.98
WAM 309
US0012M 78.56%
H15T1Y 19.12%
US0006M 2.09%
Comment by Jim Martin — August 6, 2008 @ 6:36 pm
Jim Martin:
CUSIP Number: 31394VL99
Security Type: REMIC: Typically Single-Family MBS-backed
Trust Number: 2006-5
Class: N2
Issue Date: 01/2006
History of not paying the coupon in the pass i.e. this bond did skip a couple of months payments.
Collateral: 100% ARMS loans
Holding this bond means you are bullish on TSY. With the current weak labor market I continue to see a decline in U.S TSY yield in the front end of the curve.
At a 60 PPC the AVL is 1.96 at 30 PPC you get an AVL of 2.72.
Other relative investments that you can put your money to work are: i.e. you can put money to work in anyone of these products instead of the above ARMS IO.
• U.S TSY short term securities
• Commercial papers(triple AAA rated companies)
• Options on rates
• CDs
• Overnight Repos
• Similar Agency backed IIO with the same AVL
Below is an a piece of information from the prospectus to consider if you want to buy or sell.
“The Fannie Mae Guaranty
Our guaranty requires that we pay Certificate holders in a timely manner the amounts
of principal and interest described in the related prospectus supplement. We also must pay the full outstanding principal amount of the Certificates of each class no later than the Final Distribution Date for that class. Our guaranty is effective whether or not sufficient funds are available in the Trust Account for the series. If we were unable to perform our guaranty obligations, Certifcateholders of a series would receive only the amounts paid on the underlying securities of that series. If that happened, those amounts generally would be limited to borrower payments and other recoveries on the mortgage loans backing those underlying securities. As a result, delinquencies and defaults on the mortgage loans backing the underlying securities could directly affect the amounts that Certifcateholders would receive each month.”
This explains the zero payments that was not paid for a couple of months.
After considering all of the above afore mentioned factors the model mark price is between a $2-00 on the low end and a $3-25 handle on the high end.
Comment by Trader — August 7, 2008 @ 7:27 am
Trader, Thanks for the evaluation. If you would be so kind, Wells Fargo CMO.
CUSIP 94984SAC5. WFMBS 2006AR-18 1AIO
Comment by Jim Martin — August 7, 2008 @ 12:34 pm
Trader, The 2.00 - 3.25 model mark price should be multiplied by what value to determine the value of the CMO?
Comment by B. Wusyk — August 8, 2008 @ 12:16 pm
Jim Martin:
WFMBS 2006-AR18 1AIO
Price 0-15
8.4 CPR
WHARM 6.2 N 6.410(338)22
2 0 0 8
factor 1mo CPR
0.754149486 8.2
0.747475328 9.5
0.739421625 11.5
0.723675836 22.1
0.717182037 9.6
0.704676912 18.1
0.699186114 8.4
Comment by Trader — August 11, 2008 @ 5:19 am
Have cmo’s available for sell, have all the screen shots and settlement details, both agency and residential.
Please contact at:
smt1954@aim.com
tel 33 6 13756746 fr.
Need buyers that are ready to execute.
Comment by steve — August 12, 2008 @ 6:18 am
We are looking to purchase privately owned CMOs with a T+5 settlement. Please contact me at akqj54@hotmail.com or +86 136 4126 1848
Comment by K.A — August 14, 2008 @ 8:56 am
we are looking for the following cmo:
Issuer Ginne Mae
cusip 38375QQE2
One source that said they could deliver failed we have funds available at bank and on deposit to trade.
You are able to deliver please contact with infom such as settlement details, bank officer, and the amount and pricing.
I know the pricing of the cmo, and what to pay for it.
If you can deliver please contact at:
minglinglim@yahoo.com
Comment by ming lim — August 15, 2008 @ 12:42 pm
I am looking for a job trading agency cmo’s. Do you know of anyone that is hiring? I have been in the business for over 20yrs.
Comment by Andrew O'Fee — August 18, 2008 @ 7:41 am
Andrew O’Fee why not leave your contact information…this way firms that are looking can reach out to you.
Comment by Trader — August 18, 2008 @ 2:59 pm
Good morning,
I just called you - mentioned that I found you through a Reuters article about you.
I am pursuing a business funding structure through the purchase and backend leverage, via a line of credit, of CMO’s. I have an investor that has provided a written commitment letter to invest up to $50M in the purchase of CMO’s, and I have a backend private lender willing to lend 5-7% of face value on multiple CMO’s with an ideal face value of $400M. The lender has lines of credit with Credit Suisse, B of A, and Shearson that they will tap to offer a line of credit program to us.
I am looking for the following:
- Up to four CMO’s
- Ideal Face Value- $400M each
- Rating- AAA
- I/O with a minimum positive floater or better
- Market value at 2%-3% of face value
- Cost to purchase, including fee - 1% of face value
We are seeking to purchase these CMO’s through an escrow environment, providing our investor with a lower level of risk, as well having transparency throughout the transaction. Once we take ownership over the CMO and it has been re-registered under Core Impact Consulting, the bond will need to be transferred via SWIFT to the Line of Credit Program with our lender.
Our next step is to get screen shots of the four CMO’s to our private lender today for them to determine their viability and provide a conditional commitment letter if they are acceptable. With that commitment letter, we will go immediately to our investor and get their final approval to execute the deal. Our desired timing is to commence the purchases by the end of the week.
Please advise if you are available, willing and interested in working with us.
Thank you,
Michael Stay
“Making Small Business Coaching as Commonplace as Having an Accountant”
Comment by Michael Stay — August 19, 2008 @ 1:58 pm
Sure no problem I am willing to work with you in putting your money to work.
Comment by Trader — August 19, 2008 @ 2:03 pm
We own a $26M CMO of $26M. We are trying to use it as collateral for a loan. Where can we get the best LTV? If you give me an email address, I can send you the bloomberg screen shots. Thanks.
Comment by Gene — August 19, 2008 @ 7:52 pm
Bond CUSIP Size Price Talk
CFLX 2007-2 M1 16165WAC0 8.700 low 20s
CFLX 2007-2 M2 16165WAD8 1.650 Mid Teens
CFLX 2007-2 M3 16165WAE6 0.700 Low Teens
updated price#2:PRIME: SUPER SENIOR 3/1 HYBRID **ORDER**
WMLT 06-A 1A1 30+MM/17+MM 92977TAA0 5.46% NWAC
SUPER SENIOR WITH 8.00% CURRENT CE BACKED BY 3/1 HYBRIDS
60+ DQ: 1.60%
WALA: 36 (30 wala for grp)
WALTV: 68.8% GROUPS 1,2,3,4 ARE CROSSED
CAL: 55%
POOL FACTOR: 0.754
3 MO CPR: 9.7 (grp) ‘offered’ = 81-0
FICO: 739
Comment by Trader — August 21, 2008 @ 7:12 am
for michael stay, if intreested i have some IO’s from AAA rated, i have screen shots an all please contact at
smt1954@aim.com
tel 33 6 13756746 fr
Comment by steve — August 23, 2008 @ 7:49 am
we have the following
wells fargo cmo
rated AAA
cusip 94984sac5
col maturity 11.25.2036
class 1AIO
TYPE IO
july 2008 balance 541,019,727
smt1954@aim.com
Comment by steve — August 25, 2008 @ 1:38 am
Looking for buyers of CMO’s that can close using an escrow agent.
Comment by Fred — August 26, 2008 @ 12:01 pm
I am told that my CMO’s current market value of 260M can be leveraged and some type of line of credit for PPP can be put on this CURRENT MARKET VALUE of 260M. Can anyone help with this? I would appreciate an offline answer. Principles who know, only. No intermediaries please.
- racy.prg@gmail.com -
Comment by Frank D — August 26, 2008 @ 4:30 pm
Trader,
Have a client looking at CSTR, IO, NTL tranches (3AX class in trusts I guess). He’s looking for high current balance, low dollar price. I am not familiar with this bond class. Could you give me a little color on what it is and what effects cashflows? One that he gave me as an example was 19075DAG6. Thanks and if anyone is interested in selling these securities, I may have a buyer. Regards, John
Comment by John Coleman — August 27, 2008 @ 6:38 am
I have a secured financing facility in place and looking for IO CMO’s .
The facility is confirmed and available .
The general terms of facility are:
Settlement is T plus 3. The facility is issued in a security house and is secured.
Even though I have posted before on this blog. Those cmo’s are no longer available.
Source of the cmo’s must be able to give bloomberg screens of the cmo’s available,and if accepted i can give ability of doing the trade.
Source must be able to do a free delivery.
This facility is available and without delay.
Please feel free to contact:
smt1954@aim.com
tel 33 6 13756746 fr
Comment by steve — August 27, 2008 @ 8:20 am
Looking for buyers of CMO’s that can close using an escrow agent.
reply to: wa352ne@excite.com
Comment by Fred — September 3, 2008 @ 5:36 pm
we are a direct trader/institution source for the real buyer looking for a real source for CMO’S. there is no “ridiculous” broker chains on our side & we will only work with no more than 1 or 2 away, who will get out of the way and let the deal CLOSE. we are about CLOSING CMO’S. not wasting time. call us if u need our services. thank u.
Comment by sue moore — September 9, 2008 @ 3:58 pm
i have cmo’s available a 1 billion cmo for 5 million
Comment by steven — September 11, 2008 @ 11:16 am
i have a 1 billion cmo and need a buyer for 5 million to sell to my client BIG profit!!!
Comment by steven — September 11, 2008 @ 11:17 am
To Gene: 26M is too small to use to collaterize. I suggest buying and selling up until you reach a larger amount. We will purchase through escrow for a favorable profit. You can repeat the process as often as you like. Contact:
racy.prg@gmail.com
Comment by Frank D — September 12, 2008 @ 12:01 pm
Please let everyone in the agency and non agency mortgage market continue to stay the cause.
I have faith in the American people and the creative minds on wall st. What we are going through is just a hick-up. or as they say a blip….
Happy Trades Everyone!
Comment by Trader — September 12, 2008 @ 1:03 pm
looking for counterparties to trade with in cmo’s, i have funds on deposit and ready, we are the direct buyers, no brokers involved. we are looking to do trades of 10 m face value in cmo’s.
If you something available let me know.
steve touma
tel 336 13756746 fr
smt1954@aim.com
Comment by steve — September 14, 2008 @ 11:55 pm
Please make sure to follow the on going Lehman Brothers and ML situation.
Check out The Wall St Jr lots of brilliant articles.
Comment by Trader — September 15, 2008 @ 12:12 am
Trader
How does one go about and buy some CMO’s as per the list you have put on the board here.
Some interesting issues
Thanks
steve
Comment by steve — September 15, 2008 @ 9:30 am
Need CMO’s DTC Free delivery T 3
Please email me at notesfunding@gmail.com
Also have a program to get loans for BG’s up to 90% with no repayment.
Comment by Ricardo — September 20, 2008 @ 1:48 pm
with the talk of a govt fund to hold all toxic debt, how will this effect the cmo market, is it finished ? will it be more control? Will it be harder to do trades? Will prices move up ?
Comment by steve — September 22, 2008 @ 1:02 pm
Steve,
Remember not all CMOs are bad.You still have honest Americans who pays their mortgages. The people who casued this problem were those borrower who were supported by FHA and GSEs….the private sector woke up one day and decided to compete with FHA(loan insurer) and the GSEs…the system will simply go back to what it use to be…same old stuff…only difference.. the boys and girls on Wall Street have now learnt their lessons.
Comment by Trader — September 22, 2008 @ 4:19 pm
” 1. steve says:
July 3rd, 2008 at 5:06 am e
we have access to the cmo’s and we are looking to sell them,we have several from ginies maes, wells fargo, marm.
we are looking to sell them and are looking for counteparties to trade with feel free to contact at 33 6 13756746 or smt1954@aim.com
2. Sandra Heurtelou says:
September 22nd, 2008 at 3:54 pm e
Dear Mr. Trader
It was a pleasure speaking with you. My company has a client looking to purchase CMOs priced .005 to .01 .
He is scheduled to travel to Austrailia on Wednesday and to go on to Hong Kong from there. He would like to close the transaction before traveling. He can submit a letter of capability from his CPA and show proof of previously closed transaction.
Kind regards,
Sandra Heurtelou
“
Comment by Trader — September 22, 2008 @ 4:27 pm
Due to the popular demand I am now accepting new clients. I will be your CMO Derivatives Consultant.
For those who are interested please leave your contact information.
No chain brokers please.
I will only deal with legitimate institutions that have a DTC procedure in place.
Comment by Trader — September 23, 2008 @ 11:27 am
i am seeking a trader/dealer that execute a third party trade for a cmo and with delivery via dtc to the end buyer bank. settlement is t-2,or t-3 as per agreement. the buyers bank has full dtc capabilities, no chains involved at all.
Cash amount of the trade is around 3 m usd .
smt1954@aim.com
Comment by steve — September 24, 2008 @ 7:55 am
Trader,
I have a large hedge fund client that purchases distressed CMO’s. They are looking for non-agency, prime, principal and interest, senior tranches.
The hard part is that they do not want CMO’s that are on the Street….will only buy unshopped paper.
No broker chain here. I deal direct with the buyer, will make direct intro for you.
Comment by jeff — September 25, 2008 @ 8:10 am
I have an exclusive opportunity to buy CMO’s at a private level at a significant discount. Typically the average price these CMO’s sell at is around 1-1.75% of face value on a cash basis. We have the contract to obtain these CMO’s at approximately .5% for a billion dollar face value bond.
I also have an exit buyer looking forward to receiving proof of ownership on the bonds so that they may add them to their managed asset account and activate a credit line. The exit buyer has contracted to pay 3% for the billion dollar face value bond.
If you are interested, you may contact me at jgarfin@mhdnyc.com
This transmission is for information only and is not to be construed as a solicitation for funds for or the sale of any securities. These transactions are based on private placements and do not come under the governance of the SEC. These programs are not securities under the U.S. Securities Act of 1933, or The Securities Exchange Act of 1934 and Regulations thereto, or The Investment Company Act of 1940 and the Rules & Regulations thereof. We are not registered with the SEC or NASD as financial advisors or dealers in securities per The Investment Advisers Act of 1940. This is merely for the informational and educational purposes and benefit of qualified accredited investors only.
Comment by Jeff — September 28, 2008 @ 2:38 pm
any real sellers of cmo’s that understand the pricing and know how to read a bloomberg print out, and understand the cash flows of the bonds and know how to do a trade.
Our corporation is actively interested in acquiring cmo’s, if you have anything available please fee free to contact me.
I would like to discuss with you.
Steve touma
smt1954@aim.com
skype 20003043
tel 33 6 13756746 fr
Many brokers have contacted us and all they want is fee agreements and say they need to speak to the bank direct.
Lets do some business, surely there is someone that is real and can sell.
Comment by steve — October 2, 2008 @ 9:45 am
With all these bank acquisition going on….M & A bonus will look good this year.
Comment by Trader — October 3, 2008 @ 7:21 am
Portfolio Rebalancing:
With LIBOR at 4% and up…
Your IIO, INV and PO value will take a hit.
Your IOs and Floaters should appreciate.
The key here is formula for cash flow distributuion, seasonality, WAC,convexity and eff dura.
For non agencies you have to include the credit analysis..geo, deq rate, loss piece, label and surbordination…wraps.
Comment by Trader — October 6, 2008 @ 10:26 am
Hi, I am always be confused by CMO and RMBS. Why Moody’s rates CDO and RMBS but not CMO? Thanks.
Comment by Mbottle — October 7, 2008 @ 7:57 pm
Hi Mbottle,
Go back find a cusip type it in on your Bloomberg screen look to the right side of the page and tell me what you see.
The non agency bonds are rated by Moody’s, S&P and Fitch. Also the non-agencies do come with enhancement in the form of wraps. Rating agencies may not rate the universe of CMO but they still do via the collateral.
When you say RMBS be careful for CMO is stripped out of RMBS e.g.
Loans→MBS/PT→CMO(PAC/SEQ/SUP/IO/IIO/INV/PO/FLOATER/STICKY) Z/IOETTE etc
The CMO is structured out of the rated MBS/PT.
A major difference here is the structure waterfall and for IIO, INV and Floaters is the UST10, UST12, COFI or LIBOR that determines how much the owner will get paid.
Comment by Trader — October 8, 2008 @ 6:24 am
Trader,
I have an institutional client who is looking to buy 3-4 Billion worth of CMO’s can you help please contact me off board regards.
Winston
Comment by winston — October 9, 2008 @ 9:52 am
Stay the cause…with LIBOR at 4%ish and up.
Buy Floaters that are paged to UST12,10 or prime rate.
Stay within the agency sector for now. Buy all the agency papers you can lay your hands on.
Comment by Trader — October 10, 2008 @ 1:38 pm
can you comment on the current liquidity of both agency and nonagency IO’s and IIO’s?
Comment by brian — October 13, 2008 @ 11:59 am
Hi Brain,
Agency IO/IIO:
There are two types of IO’s; structure and trust. In a CMO structure you can have: IO/PO/PAC/SEQ/SUP/IIO/Z
In a Trust ot STRIP you have IO/PO. Rarely will you see an IIO in a trust.
IOs are a perfect hedge for Pos and raw loan portfolios. Some of the major buyers of IO’s are commercial banks and mortgage companies and companies trying to hedged against interest rates. Some IO’s are fixed some are not viz a viz your OPTION ARMS etc.
IIO cash flow are determined by the mathematical formula such as: LIBOR, UST, CMT of COFI (Lagging) IIO’s are extremely volatile(hedge fund play.)
Here FHA insures the loan, GSE buys it and wraps it up and you get a PT/MBS
Risk: Prepayment no credit risk
Non Agency IO/IIO:
These are your Wells Fargo, Citibank, WAMU and other labels. However, as a result of the credit crisis GSE have bought loans from the private labels.
Private labels issues Alt A, Arms etc. The major difference between the two is risk.
Here credit risk is the main issue while as for Agency IO you deal with prepayment risk.
Now to your question “can you comment on the current liquidity of both agency and nonagency IO’s and IIO’s?”
The main buyers of IOs are commercial banks, Central banks, mutual funds e.g PIMCOs, Northern Trust etc were as IIO are tend to be a good tool to bet on your beliefs of the direction of interest rate.
There are over 43million mortgage loans in the United States of America out of these 43million plus loans 2 million are bad. Hence all the crazy hoopla.
The liquidity will improve now that the GSE’s limits to buy has been up lifted plus the government bailout and the takeover of banks by the treasury. The capital that the treasury will invest in these banks will be used to buy IO and IIO because these CMO tyoes tend to swing the most given interest rate moves.
Liquidity will continue to improve given the government intervention that we are seeing from all over the world. The GSE’s will begin to act as the major buyers of these IO’s and IIO’s the key issue is the relative value. As someone one who has being in the industry for over ten years it can get tricky. I began my career as a CDO modeler.
Buy IIO and Fixed IOs. The LIBOR will come back down. It won’t stay at 4ish %.
Comment by Trader — October 13, 2008 @ 10:14 pm
CMO trade program must have a minimum of $5 MM USD to enter.
We buy CMO direct from trader. We resell the CMO with an exit buyer already in place in about 3 weeks. But here is the kicker. Not only does the buyer make a great return in 3 weeks, but after 13 months the CMO reverts back to the investor and THEY OWN IT.
Call me now at 720-375-5001.
Thank you
Mark E. Abel
Comment by Mark Abel — October 15, 2008 @ 7:06 pm
Please report anyone who is not living up to their words. We will report the individual or individuals to the legal authority.
We at CMO Derivatives are here to facilitate and ensure that the United States of America continues to be the nation of choice and innovattion when it comes to the capital markets.
Long live MBS and the rest of the structured products and yes including CDO’s.
Trader
Comment by Trader — October 15, 2008 @ 8:24 pm
I have a client that owns 1.8 b in CMO’s. Very shortly I will have proo of ownership, account statement and screen shots. My client would like a loan of $30m against them as callateral.
contaxct me at chris@rescomfg.com
Comment by Christopher — October 20, 2008 @ 12:18 pm
Selling or buying bonds will be a lot easy if the participants provides the following about their CMO’s.
Cusip, WAM, WALA, CPN, PSA/CPR, Issuer, AGE, Notional Amount and payment cycle.
In this capital market environment, it will be difficult for a bank or any institution to take a depreciating asset as collateral for a loan. Not to speak of liquidity concerns.
By providing more information you create transparency which in turns makes everyone feel safe.
Comment by Trader — October 20, 2008 @ 2:59 pm
I know this board/blog is about CMO’s but i have some mortgage back securities, and other bonds available for sale.
Buyer must be able to post up a buy ticket, bonds to be delivered normal t plus 3.Dtc settlement.Matching tickets.
Bonds are available below market.
Feel free to contact :
smt1954@aim.com
Comment by steve — October 22, 2008 @ 1:24 pm
Trader,
We are looking for CMO’s whose holders do not share your cautious optimism (as we do) and are interested in selling at a significant discount.
In todays market, Cash is King and our group is currently liquid. If you know any CMO owners that would prefer to sell in this uncertain market, contact me off board or on board with the Cusip Nos and asking price.
We will not waste your time and get back to you promptly.
Jim
Comment by Jim — October 28, 2008 @ 8:26 am
Trader,
We are looking to purchase CMO’s please respond off the board so we can discuss.
Comment by Martin — October 29, 2008 @ 1:15 pm
Collaterized Mortgage Obligations
Spread of CMO yields above U.S. Treasury securities of comparable maturity,
in basis points (100 basis points=1 percentage point of interest)
Maturity Spread
SEQUENTIALS
2-year 285 …
5-year 265 …
7-year 265 …
10-year 250 …
20-year 190 …
PACS
2-year 250 …
5-year 225 …
7-year 225 …
10-year 215 …
20-year 150 …
Source: WSJ October 31, 2008
Comment by Trader — October 31, 2008 @ 6:14 am
Greetings, Can you tell me what these bonds are worth? for CUSIP 74958AAM6
Comment by Paul — October 31, 2008 @ 3:25 pm
RFMS Series 2006-S7 Trust
2006-S7 A-V AAA
Prime Jumbo RMBS
Value Range: $88.00 to $92.00
Comment by Trader — October 31, 2008 @ 5:40 pm
Hi Paul,
RFMS Series 2006-S7 Trust
2006-S7 A-V AAA
Prime Jumbo RMBS
Value Range: $88.00 to $92.00
Cusip 74958AAM6
Comment by Trader — October 31, 2008 @ 5:41 pm
Asset Allocation for an income fund given the current cost of capital environment:AAA
Senior Tranhces
40%
MBS dwafs
Agency Debs 15 year
20%
MBS 30 year
Agency Bullet
20%
PAC
20%
Equity Options(Strangles)
Delta Hedge…share/delta=shares needed
Comment by Trader — November 2, 2008 @ 7:46 am
Asset Allocation given the current cost of capital environment:
Senior Tranhces
40%
INV
IIO
PO
20%
PAC
SEQ
20%
IO
FLOATERS
20%
Equity Options(Strangles)
Comment by Trader — November 2, 2008 @ 7:47 am
Bond: RAMP 2006-RZ4 A2
Cusip: 75156XAB7
Offer: 67-0
Comment by Trader — November 4, 2008 @ 10:33 am
Trader,
Reference to responses 48. & 64., how would we go about negotiating a purchase?
Comment by James — November 4, 2008 @ 6:19 pm
Mr. James,
I only deal with direct buyers. I don’t deal with middle dealers.
Trader
Comment by Trader — November 4, 2008 @ 7:05 pm
Hi Trader, is that per 1000 face?
Hi Paul,
RFMS Series 2006-S7 Trust
2006-S7 A-V AAA
Prime Jumbo RMBS
Value Range: $88.00 to $92.00
Cusip 74958AAM6
Comment by Paul — November 5, 2008 @ 2:51 pm
Trader,
If you care to send me your contact information, I will have the principle contact you and disclose the name of his firm. You will know his firm very well.
Comment by James — November 5, 2008 @ 3:30 pm
Looking for seller’s of CMO’s that will free deliver. Need min 150m. Please reply to wa352ne@excite.com.
Comment by Fred — November 13, 2008 @ 5:31 pm
WANTED
Fannie Mae CMO’s, 25B $500M
Tranches, 1 cent , Free Delivery,
T-2, Can show POF, DTC Delivery
ToddsDocuments@Gmail.com
Comment by Todd — November 15, 2008 @ 3:45 pm
Structured Asset Portfolio Rebalancing for 2009:
Group 1
IO
FLOATERS
Equity Options
Currency Options
Commodity Options
Group 2
PO
IIO
INV
Equity Options
Currency Options
Commodity Options
Comment by Trader — November 17, 2008 @ 10:58 pm
CUSIP 19075DAG6 CWCapital Cobalt
1billion available now
Comment by craig cason — November 18, 2008 @ 9:29 am
seriuos buyer requested
Comment by craig cason — November 18, 2008 @ 9:31 am
interested in any fannie mae or freddie mac bonds, and repos with those securities, if you have access to them please contact me.
steve touma
tel 33613756746 fr
email smt1954@aim.com
Comment by steve — December 1, 2008 @ 6:50 am
How is everyone dealing with the all the prepay uncertainty in the market? With Trust IO’s getting crushed to $14-$16 levels, seems like market is pricing in worst case scenarios with blanket streamlined refinancing regardless of FICO, CLTV. However, if I crank in the 2003 Refi wave S-curve into my prepay models, even with those fast speeds, IO’s do look alright here….
Comment by Ian Anderson — December 6, 2008 @ 8:52 pm
mcland4u@zoominternet.net
i want to buy up to 10B in cmo
Comment by Michael Campbell — December 9, 2008 @ 11:10 am
Im looking to buy up to 5Billion in CMO PLEASE FEEL FREE TO CALL ME
4438073030
Comment by Michael Campbell — December 9, 2008 @ 11:11 am
Hi Ian,
The prepays will continue to be uncertain. As a seasoned mortgage derivative manager I will recommend you lever your portfolio benchmark be it the Lehman Agg or ML with Options (Commodity, Currency and Equities) in addition with Zero coupon bonds.
I remember vividly when Trust IO was at a 24 dollar handle and Structure IO was at 17. The bottom line is liquidity and choppy cash flow as for the non agency we continue to experience rising deq in the double digits with geo risk viz-a-viz CA, FL and NV areas.
Comment by Trader — December 9, 2008 @ 12:01 pm
Trader, thnx for the reply. Another weird item I am seeing is that strip floaters are trading close to 92-93 level while PO’s trade at exactly the same price or higher. This to me seems ridiculous and a good opportunity to pick up some arb.
Comment by Ian — December 11, 2008 @ 8:03 pm
Ian my good friend I predicted it last year and I was the first one to make the call!
http://cmoderivatives.org/pdfs/TRS.pdf
Comment by Trader — December 11, 2008 @ 8:21 pm
have access to a CMO IO, willing to do a free delivery, if interested please contact
steve
33 6 13756746 fr
smt1954@aim.com
Comment by steve — December 12, 2008 @ 7:25 am
Comment by Anonymous — December 12, 2008 @ 8:43 am
WANTED CMO”S UP TO 1B Had a few callbacks so far 1 for looks good
STILL NEED MORE 14438073030 or send info to mcland4u@zoominternet.net
Comment by Michael Campbell — December 17, 2008 @ 9:19 am
I called the market in Febuary 2008 I predicted 3MLIBOR was heading down. And it has;
Peter says:
“February 11th, 2008 at 4:31 pm
Do you really think the fed will not reverse their position on rates?”
“Trader says:
February 11th, 2008 at 7:05 pm
Yes Peter the fed will continue to ease. Poor earnings, low ISM of 41.9 the last time ISM was this low was 2001. The o n going housing recession and more shoes to drop. The fed will ease untill 2008 last quater I am projecting fed funds rate of 2.5 and a 3MLIBOR of 1.5.”
Target Rate .25
3-Month Libor 1.52
Source Bloomberg Date 12/18/2008 9:04:11 PM
Comment by Trader — December 18, 2008 @ 7:03 pm
$75m Prime Auto Loan available for sale.
Please contact me if you are interested.
No chain brokers please.
Comment by Trader — December 19, 2008 @ 7:48 am
Do banks value cmo’s differently than hedge funds?
Comment by jean — December 20, 2008 @ 5:35 am
Jean its all relative. If the bank is a private bank or family owned bank, they could value their cmo like a hedge fund would, since they want to know immediately the value of their assets vis-à-vis mark to market. On the other hand, if both firm are a public entity they could chose a mark to model…especially if the price point will protect the top managements’ job. No one wants to lose their job over poor performing assets.
Comment by Trader — December 20, 2008 @ 9:04 am
Trade Strategy for 2009:
Unload all your: IIO/PO/INV
Buy:IO/FLO and brokern PAC/SEQ bands
2009 will be the year of the dollar yield carry trade.
MBS and CMO offers a higher yield in addition to the government guranttee.
Comment by Trader — December 23, 2008 @ 7:50 am
Good strategy for 2009, would add that buying premium bonds with low loan balance or with seasoned burned out collateral should prepay nice and slow giving one nice carry.
Comment by Ian — December 26, 2008 @ 9:14 am
CMO dealers/sellers
we are a group 4 investors interested in purchasing quality CMO with good returns.
we have funds verifiable and ready for purchase.
Please contact us at kol98@yahoo.com
Thanks
Michael
Comment by M ISM — January 4, 2009 @ 3:51 pm
I received your call. I need to send you CMO screen in confidence we have been offered.
please send your email
Comment by M ISM — January 5, 2009 @ 12:05 pm
In putting money to work in IIO/INV
make sure you undestand the risk profiles of the colaterals vis-a-vis..STRIPS Vs a PAC/SUP. Take a look at the band and see if it is wide or narrow..window wise.
Comment by Trader — January 5, 2009 @ 8:41 pm
We have a CMO available that is a IO,CSTR,NTL.
It is available on a free delivery, t plus 5 days settlement,however before the instrument is sen,the dealer/banker will check to see if the potential buyer has the funds available.
The cmo is available and is rated AAA,there is a account statement to verify the cmo,but will not be sent without getting info about the buyer/investor.
Many people say they can buy but not many have the funds to do so.
If interested please contact.
steve
33 1 72319694 fr
33 6 13756746 fr
Comment by steve — January 11, 2009 @ 4:20 am
Anyone tired of dealing with Broker daisy chains for CMO’s or other instruments let me know.
Our senior Trader has 20 plus years on Wall Street specializing in bonds.
There are no fee agreements or NCND’s, you pay us nothing we get paid by the bond seller.
We can currently sell bonds for around 1/20 of a cent with factors in the 90’s. We specialize in both residential and Commercial CMO bonds.
contact me at belowgroun@aol.com
Comment by Dale — January 20, 2009 @ 6:35 am
One more comment to go along with my above post.
We can supply Screen shots and trade tickets within 3 hours of a request.
Comment by Dale — January 20, 2009 @ 6:42 am
We are looking for some inverse floaters cmo. Please contact with what you have , if you have a bloomberg and the prospectus please contact.
steve touma
alicante crossbow trading
33 1 72329694 fr
33 1 613756746
skype smt20003043
Comment by steve — January 28, 2009 @ 8:54 am
We are a fund located in the US. We have CMO I/O available for .35 of 1%. + commission. We can customize any portfolio.
We require same day, desk to desk, no free delivery. No JVA, no nonsense, no tire kickers.
If you have POF and are ready to transact, please contact me at:
robcee.00@gmail.com
Comment by Robert C — February 21, 2009 @ 7:15 pm
By the way, AAA
Comment by Robert C — February 21, 2009 @ 7:16 pm
We have a NEW procedure for T5-T7. Please contact…
robcee.00@gmail.com
Comment by Robert C — March 6, 2009 @ 11:59 am
I have CMO trade platforms and CMO direct sellers. T1-T3. CUSIP numbers provide, screen shots, etc. Need a real buyer or real owner that can show bond power agreement, and can issue a buy ticket trader to trader.
No broker chain please.
Serious inquires only.
Brian Matthew Sheridan
CFO
Clear Blue Investments, LLC
Mat1Sheridan@aol.com
Comment by Brian Matthew Sheridan — March 10, 2009 @ 9:16 pm
Price drivers:
CPR..PSA
Convexity
OAS
Size of the transaction..Px quoted for PIMCO will not be the same px that will be quoted for your local FA.
IFL, SUP IFL, PAC IFL, STRIP IFL will not command the same price even if the AVL or MD or Dur is the same.
At the end the buyers conviction is also a factor and the condition he/she is in…
happy trade boys and girls..
Comment by Trader — March 14, 2009 @ 7:34 pm
we are looking to purchase cmo’s with returns
Comment by C. Thomas — April 5, 2009 @ 7:44 am
Seeking to purchase AAA CMOs from private sellers. Must provide screen shots, and proof of ownership (account statement)
Ready to purchase immediately.
No broker chains, only principals please.
Please contact me:
kaltexinternational@yahoo.com
skype id: cd_hodge
(713) 635-8774
Comment by C. Hodge — April 9, 2009 @ 9:10 am
For Steady Income:
Agency MBS
AAA ABS Auto
AAA ABS CC
AAA CMBS
TSY(5/10)
Don’t Care ABout Risk:(Structured)
IFL
IIO
PO
IO
Comment by Trader — April 12, 2009 @ 3:12 pm
I would appreciate your oppinion on the position my partner and myself are in. We had purchased AAA commercial cmo, with a face value of 378 million. Got into a contract with a NY hegde fund that has not yet to perform. ( 5 months). Do you have any viable and performing platforms to put these cmo into ? I do appreciate your timely response.
Kindest Regards, Chad Bell
Comment by Chad Bell — April 18, 2009 @ 2:17 pm
Chad,
yes.
Comment by Trader — April 18, 2009 @ 3:41 pm
Trading CMO’s
You should provide the cusip, Label, CPR/PSA, YL, Dur, Cnx.
Investment tools and valuation tools are not the same. You have macro and micro factors.
You don’t need to send any screen page to anyone. The other party should be able to go on Bloomberg and analyze the bonds themselves.
If you don’t have access to Bloomberg, intex, IDC pricing or YB you stand a chance of getting ripped off.
Remember the best thing to do is have a specialist on your side for the other parties have top people on their side.
When a doctor tells you that you have a debilitating disease, what do you do? You get a second opinion, right? So in putting your money to work you must seek a second opinion. As a fund manager you want someone who is not intimated by you or else you will have a yes ma.
Comment by Trader — April 19, 2009 @ 3:00 pm
Furthermore, you have your OAS or a YLD buyer…given the cashflow whipsaw or cripy nature investors may decide to pay or demand a premium. Hence that price becomes the market value irrespective of the ffundamentals or supply/demand.
Look at your empirical dur, mod dur, PC dur etc. If you are a PAC buyer then you want to compare your PAC to a AAA callable corp bond looking at the OAS.
Happy trades boys and girls.
Comment by Trader — April 19, 2009 @ 3:07 pm
we are interested in buying CMO’s both IO and inverse, we have funds on deposit and are ready to transact.
Also interested in tresuries or agency strips, any maturity.
Feel free to contact .
steve
tel 33 6 13756746 fr
smt1954@aim.com
Comment by steve touma — May 12, 2009 @ 7:49 am
Hello
Have direct buyer for CMO IO
Buyer ready to proceed.
Must have complete details and
prices.
Regards
Joe
E-mail: joejim74@yahoo.com
Comment by Joe — May 14, 2009 @ 7:09 am
Joe and Steve,
We have CMO’s and derivatives for sale. Please provide us with the following:
Duration that you are looking for?
Vintage year?
Issuer type?
Do you want non agency or agency CMO’s?
Do you want CMO’s or derivatives?
Please clarify. I look forward to hearing back from you two.
Comment by Trader — May 16, 2009 @ 10:23 am
Hello Trader
Interested party looking for
CMO’s (
Issuer must be AAA rated must have
names of issuer’s.
Your offer must be with CMO IO
screen shot.
Advise what will be the price
for 1B . The quantity needed
is more than 15B.
You can contact the undersigned
at ” bankersbrokers@hotmail.com ”
Johny
Comment by Johny — May 21, 2009 @ 7:28 am
Hi
Looking to purchase CMO interest only .
Duration between 20 to 30 years.
Quantity is large
Seller must provide screen shots,
and proof of ownership/account
statement.
No broker, only direct seller
to contact us at our below mail
(elialion2003@yahoo.com)
Elia
Comment by Elia — May 23, 2009 @ 7:24 am
Elia,
You are WRONG….there are no CMO’s with a duration of 20 to 30y.
Please read up on CMO.
Comment by CMO Bonds — May 23, 2009 @ 8:31 am
To trader:
could you so kindly explain the value and the approx. fair price for this cmo I believe this is a intrest only but i am confused at the amount i should be paying for this type of instrument I am a principal buyer and i am scheduled to purchase this in a 2.4 B transaction for only 6Mil. does anyone that you know of facilitate a credit line or loan against the income of this instrument or what can i do with this and approx how much money will i recieve each month while owning it
alabamachip@yahoo.com or
1 205 365-0982 chip
thank you in advance
I have acccess to 32B and would like to know what i should pay for all of it and if there is an exit for this type of paper that you know of I am also a buyer of real discounted notes or reo’s if you know of pools available (I have verification of funds)
Comment by chip — May 23, 2009 @ 9:08 am
I forgot the cusip number
46631BAH8 Issuer JP MORGAN SERIES 2007-LD11 CLASS X RATED AAA S&P Aaa MOODYS
Comment by chip — May 23, 2009 @ 9:15 am
Chip,
I will get the valuation on next week Tuesday.
Please do not buy untill you get an idea of how much it is worth, plus with your kind of money you can get extra leverage.
Stay put…
Trader
Comment by Trader — May 23, 2009 @ 12:36 pm
TO: CMO BONDS
We clarify duration 20 to 30 yrs
mean:
Duration not less than 20 yrs
and not more than 30 yrs
Tks
Elia
Comment by Elia — May 24, 2009 @ 9:33 am
i have a trade ticket from a dealer that shows a CMO IO under the following terms and conditions.
maturity 9/28/2037
issue date 2/01/08
orginal face 190 m
current face 168 m
principal value 1.6 m
ytm 36.3
price 1-00
regards
steve
Comment by steve touma — May 24, 2009 @ 11:29 am
Hi
Re: T-Strips
Looking for a private seller only
no daisy chains ?.
50B with rolls and extension 28+1,
30 year.
Our mail
Nicole
Comment by Nicole — May 26, 2009 @ 11:40 am
In all honesty, the price of 30 year strips are around 28.9-29.3 range, spreads are tight around 0.25 bps, yet you ask for plus 1 on the buy.
And you ask for private sellers, have you never heard of street convention,
Keep dreaming
Comment by steve touma — May 26, 2009 @ 2:12 pm
Steve
Is the investor indication not
me.
Let the investor dream not me.
Nicole
Comment by Nicole — May 27, 2009 @ 12:51 am
Closing prices as of Tuesday, May 26, 2009
Based on the Yield Book default prepayment model and 2-f skew term structure model.
Mark to Model Prices for STRIP IO’s.
Remember when you go to the market you will get an entire different price level.
CPN Deal Price Handle
5.0 PC 232 14-09
TR 360 14-06+
TR 357 14-26
TR 353 14-29
TR 340 15-02+
TR 337 14-02
CPN Deal Price Handle
5.5
TR.379 12-07+
PC.244 11-26+
PC.240 13-08
PC.237 12-30
PC.235 13-00
TR.367 13-02
TR.363 13-12+
PC.231 12-16
TR.354 13-09
TR.352 13-09
TR.350 13-11
TR.346 13-11
CPN Deal Price Handle
6.0
TR.391 9-31+
PC.242 12-04+
TR.372 12-21+
TR.370 13-21
TR.361 15-21+
CPN Deal Price Handle
6.5
TR.380 13-31+
TR.371 14-19+
TR.321 13-30+
Disclaimer: This is the private opinion of the writer and not that of any organization or institution the writer is solely responsible for these opinions. This is not advice to buy or sell security. This article is for educational purposes only, and not to be use for any other purpose.
Comment by CMO Bonds — May 28, 2009 @ 2:44 pm
Have Security House buyer
for CMO IO - 30 yrs.
Buyer need ONE T contract
at .65 of a point but always need
screen shot first
CMO IO must be AAA rated
Any possibility
Nicole
Comment by Nicole — June 4, 2009 @ 9:29 am
CMO’s ” AAA ” avaliable for seriuos buyers ,pls contact me at 786 201 2414 or decodrems@gmail. com
I will get back with you asap ,
Serious inquries only /No broker chain
Patrik
Comment by PATRIK — June 11, 2009 @ 10:12 pm
We have exit for all AAA rated CMO Owners. Private Placement of AAA rated CMOs. Must be minimum of 1B or more face value. LTV 25% for 40 week program. Requirements are Owner must provide current screen shot, prospectus, most recent account statment,and standard compliance docs.
If interested or have any questions, please contact me
CD. Hodge
kaltexinternational@gmail.com
skype id: cd_hodge
(713) 635-8774
Comment by CD — June 18, 2009 @ 12:46 pm
Hi
We can offer MT 760 on lease basis from AA rated Western European Bank.
Duration 1 year + 1 day
MT 760 is suitable for all trade programs
If you are the beneficiary please contact us at the below
mail ( nicelar@hotmail.com )
Comment by Nicole — July 1, 2009 @ 8:35 am
I work for the Agency CMO desk at Fannie Mae and I am looking to find additional counterparties to trade with. If you have at least $100 million in capital and have US financial statements, we may be able to set something up. Again, I am looking for institutions that trade Ginnie/Fannie/Freddie CMO’s, I do not trade non-agency / private label CMO’s. I can be reached at ian_anderson@bloomberg.net
Comment by Ian Anderson — July 1, 2009 @ 9:42 am
Need REAL CMO buyers that purchase IO CMO’s. Desk to Desk closing. Send reply to wa352ne@gmail.com
Comment by Fred — July 9, 2009 @ 2:09 pm
i have access to tresurie strips and i seek counterparties to trade with please contact at:
smt1954@aim.com
33 6 13756746
Comment by steve touma — July 13, 2009 @ 12:17 pm
I have been an institutional CMO trader for over 20 yrs, and I wonder where some of these so called broker/investors come up with these requests. People do not deliver free unless it is to a primary dealer. For sure an investor is not buying from a brokerage house delivered free. I have traded in excess of $8 billion dollars in MBS paper over the last 7 yrs. Not 8 B. This is the dead giveaway that this is a mystery deal. If you are nor registered with FSA or Finra you cannot collect money for the transfer of securities (CMO’s}. If you have any questions regarding the purchase and sale of roundlots, I will be happy to assist in the understanding. We are a registered BD. Rharvey@sandgrain.com
Comment by Bttbbob — July 13, 2009 @ 12:33 pm
Anyone interested in purchasing CMOs or taking them into trade, contact me. I can offer you no nonsense approach to this, and im direct. Call Chris 305 613 7632
Comment by CF trader — July 23, 2009 @ 1:12 pm
Sir,
Would you please contact me regarding several CMO’s I am attempting to sell.
Comment by Morgan — August 14, 2009 @ 12:18 pm
Hello
Have request for US$ 25M loan for a period of 10 to 12 year
Purpose: 1000 Housing Units
Requested loan to be on basis of interest only payment without repayment
for principal at maturity.
Payment for interest will be made by AAA security from acceptable Insurance.
Please only principal to contact us
Regards
Mike
E-mail: nicelar@hotmail.com
Comment by Nicole — August 21, 2009 @ 3:03 pm
I might not understand what this website is all about but Like the gentlemen from sandgrain said, you can’t buy or sell these securities without a licensed rep and a broker dealer. I too am a trader, I know the residential private label CMO market very well, and also traffic in agency (gnma, fnma, fhlmc, etc…) mbs and cmos everyday. I am set up with over 150 trading desks across the country and have both institutional and private clients that are currently investing in distressed residential CMOs. We specialize in loan level analysis on private label Mortgage Backed Securities. I can provide analysis on a single security and give you a sell or hold recommendation, or if you are interested in investing in or learning more about residential CMOs in particular feel free to contact me. There is a lot of opportunity in the private label CMO market, BUT, it’s not for everyone, and it is very important to understand your potential upside and DOWNSIDE before investing.
Best of Luck!
my email is cmoinvestor@gmail.com
Comment by Dan — August 22, 2009 @ 7:59 pm
Our role is to help investors arrive at a value for their securities.
We are not a broker dealer firm. We are here to protect investors from
getting ripped off by your major dealers of the world. Investors meet on our platform
and then move on to their respective clearing house in order to close the deal.
We have been serving as a Feeder Fund for the past couple of years.
Comment by Trader — August 23, 2009 @ 9:03 am
Trader, I think this site is a great idea for many reasons. Determining relative value is super important. People get ripped off everyday by dealer desks everywhere because they don’t understand the inputs when arriving at “yield” “spread” “duration” and “average life” on agency MBS and CMO’s. I work with banks and credit unions and assist them in evaluating and purchasing agency MBS and CMO’s. Unfortunately many of my customers have been taken advantage of in the worst ways because they don’t have Bloomberg Terminals and the only statistical parameter that they know to look at is Yield…which we know in irregular cash-flow securities like mbs is a very inaccurate measure of “what you will actually get” from your investment. ROCKHOUSE Capital is the name of my analytics firm and I work for a NON-Positioning B/D in the Southeast. you can contact me at cmoinvestor@gmail.com . Thanks for running this site!
Comment by Dan — August 23, 2009 @ 5:08 pm
Trader,
Great sight. Decent information. One thing that investors need to know. MBS are a relatively transparent business. Dealers transacting in Govie or private label Securities have reporting and regulatory requirements when transacting a trade. First, and foremost is the “know your customer rule”. At any firm there has to be an account opened and credit approved. Wiring instructions are exchanged, managers have to sign account forms. There are different requirements for retail customers and financial institutions. I just hopes this helps some understand the trading of these securities.
Comment by Bob Harvey — September 1, 2009 @ 9:08 am
In this current market: 2009
Bond Picks:
Hedge Funds put money to work in IIO and IFL lots of volatility. You should not hold it for more than 30 days.
Bank’s Prop desk do the same but include structured PO’s and IO’s.
Insurance companies MBS (3-7years) and PAC/SEQ with a decent lockout window.
Independently rich folks MBS only your goal is to stay rich. If you must play in the volatile space is vital you that you get yourself an independent adviser.
Mutual Funds MBS, Specified pool, CMBS AAA, ABS Auto and CC all AAA include IIO and IFL for interest rate protection.
Retail brokerage dealers PAC, SEQ and MBS only please do not venture into high volatile space you never know when your clients will come asking for their money. You need liquidity risk totally eliminated.
At the end of the day please consult your tax specialist for adviser regarding your tax concerns. Remember we are here to help you keep your money while at the same time generate more income while bearing in mind the higher the return the higher the risk!
Comment by Trader — September 2, 2009 @ 6:51 pm
I am currently investing in private label residential mortgage backed securities. I have a number of friends doing the same. This market has firmed up a lot in the larger-institutional sized blocks of 1mm+, but for retails investors 250k a pop there are still virtually no buyers and tons of product available. We just bought 2003-04 vintage loans, 54% LTV, 99% are current, 5x’s credit support, for under .50 on the dollar. The AAA market has become fully priced in my oppinion, but if you are willing to go down to AA you can buy this type of bonds in the 20-55 cent range.
I agree with Trader about 3-7 yr MBS/CMOs for Insurance companies. Banks need to be willing to extend a little bit on the curve given that they don’t know when rates are going to go up and by how much when they do…given the ammt of slope in the curve they are foolish to stay in cash-like alternatives. Short well structured CMO’s have widened a little bit over the last few weeks and while I still don’t like them as much as collateral, they are an attractive option for the buy and hold investor.
Comment by Dan — September 5, 2009 @ 9:10 pm
To CD Hodge:
I own a $1B Commercial CMO. I also network (directly) with other owners sharing the same frustration looking to place their CMO’s into Trade. These other owners as well as my personal bond total $10 Billion.
Now in all due respect to all of the financial analysts out there I purchased the bond at a deep discount for Cash Flow. It currently provides me a 46% ROI per year, so I am not interested in getting the bond evaluated or sell the bond.
What I am looking for is someone or some group that can legitimately take my Bond and possibly some of the others I network with bonds to trade.
I have now traveled to California, New York, South Florida, Texas, North Carolina and Georgia to meet with groups as well as giving 8 to 10 other groups paperwork over the past year that have resulted in NOTHING!
The only thing that has occurred is my paperwork being shopped all over the Internet by people that claim to be the “Gate keeper” or “right next to the trader or platform”. It has also generated a great deal of “Cease and Desists” but even that didn’t stop the shopping of my paperwork.
It is important to know that I am not willing to transfer my bond to anyone or move it anywhere. I am not going to place anyone on my bond as signatory or allow someone to take my yield payments to use towards a loan. I am also not interested in purchasing an insurance wrap to trade my bond.
What I am willing to do is allow someone to DTC block my bond to hypothecate and place the proceeds into trade.
So, my question to you is how can you prove beyond a shadow of a doubt that you or your group can do this?
Before you tell me there are proprietary or statutory issues for not proving past performance please save your effort. I know for a fact that this is not true.
I work closely with a CASH platform that is totally legitimate. This group is totally transparent, and if the investor qualifies they can meet the group in person at their Law Firm where the program will be explained as well proof of current and past performances. If the investor wishes he may travel to Zurich with the program manager and be introduced to the trader(s) and see the platform run.
Unfortunately for me this group only deals with CASH and will not accept Securities or Bonds so it does not help me but it does give me insight to how a legitimate platform is run.
I have been in business long enough to know that people don’t pass up multi million dollar deals for strict procedures, only brokers in a chain that are not direct to a source do this.
So I know that rules are bent because every deal is different. So anyone doing this “Honestly” should be able to prove they can actually do what they claim.
By now you should have received by email my name, company and contact information.
I can provide Screen Shots, Trade Tickets, account statements, Prospectus, CIS, passport, Blood or anything else needed to transparently prove I am the sole and curent owner of this bond.
But on the flip side of this I need to know what you or your group is going to do to show me you can actually do this.
Bottom line here is I can prove beyond a shadow of a doubt my validity, can you?
Let me know if you or anyone else out there can truly help.
Comment by DEG — September 6, 2009 @ 10:44 am
Here is how to find out what you will get for your bond:
Invoice = size * factor * price * 0.01
Comment by CMO Bonds — September 6, 2009 @ 11:56 am
Before you buy a bond contact us here at wwww.cmoderivatives.org…
There is no free lunch. You need an exit strategy you don’t go out there buy a bond only to find out
there is no market for you bond. You have no one to blame but yourself. That being said what everyone should do is leaves their cusip here and we at cmoderivatives.org will see how we can be of assistance to your firm.
We only need your cusip no screen shoots….if we can help you will be informed ASAP.
Comment by CMO Bonds — September 6, 2009 @ 12:56 pm
does anyone have a real client/investor who needs an asset loan? direct n.y. company with history and experience. serious inquiries only. can monitize instruments, bonds, cmo’s and stocks.
Comment by TWilliams — September 7, 2009 @ 9:23 am
TWwilliams,
Do you have a website? Do you provide cash? Do you have a balance sheet? Do you think you have what it
takes to pass the broker-dealer test?
What’s the minimum/maximum amount you are talking of here?
Please state you terms and amount.
Comment by Trader — September 7, 2009 @ 10:09 am
Remember these are the only bonds that you should be buying:
STRIP IO/PO/INV
IFL/IIO
MBS
Make sure you have at least $5m to $10m
Comment by CMO Bonds — September 7, 2009 @ 10:47 am
TWilliams,
I am interested in a asset based loan for my CMO. How do I contact you?
Comment by DEG — September 7, 2009 @ 12:45 pm
To CMO Derivatives:
I don’t mind posting my Cusip number, it’s 20173MBA7.
I own a $1B strip of this bond.
Comment by DEG — September 7, 2009 @ 12:48 pm
Asset based loan simply means the person or people have no money to finance the asset acquisition.
The fundamental question then becomes do they know value? Wining or losing is going to be based
on the value.
What the value is to these three participants: Buyer, seller and the market’s pecerption.
Remember if it sounds too good to be true then you better watch out…
We are living in a brave new world of owner financing if you don’t have the money oh well you may be
out of luck….
Deep discount CMBS IO = Crap no body wants!
Comment by CMO Bonds — September 7, 2009 @ 6:35 pm
“Trader, out of curiosity, why are you so angry? I read your posts on the comderivatives site and you would think that someone kicked your dog and stole your lunch. Do yourself a favor and go see a counselor, you are wasting energy on stuff that doesn’t matter much.”
Dan
Comment by Trader — September 10, 2009 @ 5:53 am
31394VL99 lead mgr RBS Greenwich
312813PA8 lead mgr Bear Stearns
3129142C7 lead mgr Bear Stearns
3133T4PB6 lead mgr DLJ
Please let me know if anyone is interested in the above cmos. I have screenshots and can get bank statments.
Comment by Jim Hanson — September 15, 2009 @ 5:39 pm
Jim Hanson james.hanson.mort@0sg.net
Comment by Jim Hanson — September 15, 2009 @ 6:09 pm
Has anyone heard about a non-recourse loan program offering 3-8% of face value on performing CMOs? Need to speak to someone as direct as possible or even the principal on this loan. This just doesn’t make sense. They are offering CMBS IO
cusip 36246LAP6 they say there is no prospectus because it was a private placement
These are being offered for $900,000 per $1B . Let me know what you all think.
Comment by Briane Keene — September 16, 2009 @ 5:52 am
I just think this sounds so fishy.. Here they are offering CMOs for sale and then they say they can offer 30-80x the investor’s money in the form of a non-recourse loan.
bk.port@inboxclean.com
Comment by Briane Keene — September 16, 2009 @ 5:57 am
So here we go again……When you borrow against a security (government or private label) you are subject to the Margin Requirements of an opened Margin account at a broker dealer or bank. Fed Reserve Board (FRB) REG T, NYSE Rules, and FINRA mandates that on margin accounts, money is loaned against the purchase of a security. FRB dictates the amount of credit margin a brokerage or bank may lend to its customers. REG T defines the minimum amount of margin required. Brokerage and bank internal policy may have a more stringent rule. Reg T requires 50% of the cost of the transaction up front and on options you cannot margin that product. This is called initail Margin. Then there is a maintenance margin requirement, this is the requirement of maintaining at least a 25% equity in that margin account. If yoour margin account drops below that 25% requirement you will recieve a margin call which can be met by either depositing cash or securities in that account. If you cannot deposit cash or securities the whole account is liquidated and you are charged any shortage. I have heard of some cases where derivatives were margined. I do not believe an Interest Only Strip or INVIO should be margined. You are already buying a leveraged instrument, when borrowing you multiply the leverage. Two good examples of this trade going bad are Askin Capital Management and Long Term Capital Management. Self liquidating loans on securities accounts are scams. Loans against face value of derivatives are scams. This is why investors need to have a professional on their side when investing in any type of derivative.
Comment by Bob Harvey — September 16, 2009 @ 11:34 am
I am in agreement with Bob….Anyone with money should buy SEQ, PAC and MBS bonds.
Stay away from SUP and INV given the principal lost.
If you are buying CMBS IO or some WAC IO you will lose period. Currently there are so many
abandon unfinished buildings.
Once again this site is very usefull no bells and no whistle..whoever that started this platform
thank ya! I have traded with some people on this site.
Comment by Jim Ruthberg — September 17, 2009 @ 6:14 pm
This is the time to buy CMO Floaters and Strip IO’s.
unload your INV, INV and your PO’s now.
Private equity should get involve for you can get a good return dealing in CMO’s
Comment by Trader — September 17, 2009 @ 6:16 pm
TO DEG
I can truly assist you in placing your CMO with a genuine trade program.
Please contact me at r_morjaria@yahoo.co.uk
Thanks
Regards
Rishi Morjaria
Comment by Rishi — September 22, 2009 @ 2:40 am
We have interest in INV FLTs, INVIO or pure IO’s…Odd lot or roundlot
B.harvey1@bloomberg.net
Comment by Bob Harvey — September 22, 2009 @ 6:57 am
For Bob,
How do I go about raising money to buy lockout PAC and SEQ.?
Can I form a partnership with a firm that can raise the funds and I leverage my contacts in the
industry?
Comment by Trader — September 22, 2009 @ 5:53 pm
Trader, I am not sure what you are asking…call me if you like 1-516-750-7911
There are several avenues, private equity? Hedge Fund?
Comment by Bob Harvey — September 23, 2009 @ 8:25 am
Trader can you price cusip 46631BAH8. Thank you!
Comment by Erik — October 9, 2009 @ 10:46 am
Erik,
Your CMBS IO is worth $0.32 to $0.65 the most.
JPM shelf….Laselle Bank Trustee…..current face $31m ish.
Why on Gods earth do you want this piece of crap!
Comment by Trader — October 9, 2009 @ 5:46 pm
My client has it and wants to get out.
Comment by Erik — October 12, 2009 @ 10:31 am
Erik,
Anyone paying $900k for a CMBS IO with a face value of $300m or $2b is
a greedy person who is living in fantansy land. You will get burnt. You will lose
it all.
Buy:
MBS, PAC, SEQ, or INV
Better yet jump into the STRIPS world were the market is a little better compared to CMBS WAC IO
crap that is been paddled around these days.
Comment by Trader — October 12, 2009 @ 3:07 pm
Hi
Have client search for AVAL from acceptable Bank on client P/N.
P/N maturity will be 366 day - Amount of P/N start from USD 25M to
USD 100M . P/N will be new issue.Purpose of P/N real estate.
Advise possibility with name of Bank who shall add his AVAL on
client P/N together with the cost of the AVAL from face value of P/N.
Regards
Mike
E-mail: nicelar@hotmail.com
Comment by Nicole — October 13, 2009 @ 10:49 am
My partner is looking to leverage his $250M CMO (CUSIP 36246LAP6) to finance a real estate acquisition. Are these being traded? Price? Thanks.
Comment by RE Investor — October 13, 2009 @ 2:45 pm
Class CUSIP Pass-Through Original Beginning Interest
Rate Notional Notional Distribution
Amount Amount
X 36246LAP6 0.008445% 7,562,773,702.00 7,562,140,498.02 53,219.93
the above bond is a pile of crap no one in the right mind should have touched it or
even leverage anyting against it…..RE investor you have a nasty bond.
Comment by Trader — October 13, 2009 @ 7:03 pm
Trader, thank you for your reply and I’ll let him know. Just curious, why is it crap and nasty/toxic? Is it thinly traded; lousy property? tnx
Comment by RE Investor — October 14, 2009 @ 2:55 pm
@ RE investor,
Anyone buying CMBS WAC IO and wants to leverage is a very greedy person..plus a scam artist..
this person is playing against the house their odds of winning is extreamly slim….
for more advice you have to retain me.I don’t give advice for free.
Comment by Trader — October 14, 2009 @ 5:20 pm
I have triple AAA RATED CMO’S for sale that are underwritten weekly. If an asset isnt performing it will be pulled. They are returning 25 to 30k a month. Have a trade platform in place if needed(call for more details). I have screen shots, prospectus, etc., etc. Pricing is available on request. All CMO’s are Commercial Assets. Please dont waste my time BROKER JOKERS. I am direct are you?
Nick
616-914-2631
Comment by Nick — October 23, 2009 @ 1:20 pm
Trader, If yoou get a chance give me a call…1-516-750-7913 Thanks Bob Harvey
Comment by Bob Harvey — November 16, 2009 @ 1:53 pm
Valuable thoughts and advices. I read your topic with great interest.
comprar zithromax online
Comment by Arsento — November 18, 2009 @ 7:42 pm
What will really help now is a bank or private equity that is willing to finance people
like myself who are a buy and sell guys.
Products of interest:
INV Floaters, IIO and POs.
The cost of capital say 6% with a mortgage derivative yielding 20%.
I am looking at capital gain and interest from the bonds.
Now to the downside/negative
How can I protect myself again depreciation/margin calls?
What if I can’t sell the bonds?
What if the financing company needs their money back unexpectedly?
Currently I am in the market for capital….will keep everyone posted on my
failures and success.
Comment by Trader — November 22, 2009 @ 4:08 pm
Hello
Have client want to lease SBLC for 1 yrs + 1 day
Amount US$ 10M
Advise possibility with the lease fee and the name of issuer Bank
Purpose: Buy & Sell Real Estate Worldwide
Please only direct provider to contact us
Regards
Mike
E-mail: nicelar@hotmail.com
Comment by Nicole — November 23, 2009 @ 1:48 pm
Mortgage Opportunity Fund Asset Allocation For 2010:
Buy;
Interest Only Floaters
Floaters (out of the money)
Sell:
IIO, INV, PO, SUP and XPAC
Income Fund:
Buy Agency High Coupon Wrapped Tranch
How do you pay for your transaction?
Private Equity or Commercial Banks…but easy for me to say
if no body jnows who you are you can forget it! Raising money is all about your
track record or good ole boy connection.
Comment by Trader — November 25, 2009 @ 10:41 pm
U.S Government back mortgage bonds is the place to put money to work.
GN, FHL and FN MAC. Forget the equity market you can make the same amount of money
trading PO, IIO and INV in the STRIPS and Structured products.
The U.S. government should give people like myself an account line to buy and sell
agency cmo. As matter of fact they ought to be a stimulus plane for those of us who wants to buy
U.S gurantted mortgage bonds. But can’t get access to prime brokerage or investors.
Comment by Trader — November 25, 2009 @ 10:50 pm
Given the current environment…the quant analysis is now looking at the SDA, CRR, CPR and OC.
Yields on non agency deals is between 20% to 45%. When you play in the IO CMBS/ABS/ARMS environment
bear in mind you could loss it all.
Buyer beware.
Comment by Trader — November 26, 2009 @ 10:30 am
Hi friends.
We have some funds,around 1M USD cash.Please,guide me to buy some CMO to leverage the cash with buy with T+ method and I need a trader to trade also.
AM,
International.abid@gmail.com.
Comment by Abid — November 27, 2009 @ 10:24 pm
Hi Trader,
would you let me know your email id to communicate.
Regards
AM
Comment by Abid — November 27, 2009 @ 10:45 pm
I added your blog to bookmarks. And i’ll read your articles more often!
Comment by Kouba — November 28, 2009 @ 5:52 am
AM,
I will contact you very soon. Money is and continuies to be made in trading
mortgage derivatives. Please do not I repeat do not buy any mortgage bond
without talking to me first. I will offer my services free of CHARGE. I hate it
when people go out there and buy some crappy bond. Stay the hell away from CMBS IO or ABS IOs.
or Mezz CAP NO bonds.
Again DO NOT BUY ANY BOND UNTIL WE TALK THESE LIER BROKER DEALERS WILL RIP YOUR EYES OUT.
Comment by Trader — November 28, 2009 @ 11:27 am
Hi Trader,
Thanks for extending a moral support for buying CMO and trading.I am awaiting your communication.
To be specific again,I want to deploy my own cash around 1M USD in buying CMO and trading.So I need your advice on Buying and placing it in trade both.
Regards
AM
Email:-International.abid@gmail.com
Comment by Abid — November 28, 2009 @ 7:03 pm
Have a PPP who is looking to place you CMO into.. must have a value of 160M or more….also can use MTN, CD and cash in th sum of 100M. This is your own account that you can view 24/7…Please be direct or owner I will have to have a isin and cusip numbers to check on confirm the instrument is real!
Contact me at tradecmo@live.com. It will take about a week to have the instrument monetization and trading to began!
Comment by TradeCMO — November 29, 2009 @ 12:41 am
Whatever anyone does please do not do the following:
1. Give out a copy of your social security card.
2. Copy of your birthcertificate.
3. Do not pay any fees just to have someone put money in your account.
Be mindfull the person who gives you the money gets their fees but you won’t or will not be able to use the funds.
4. The more money you want to make, the higher the risk. Please remember the word margin calls.
5. The most vital thing is value, get someonw who knows the value of the CMO don’t EVER trust a lier broker dealer. Remember how hard it took you to make your money please do not throw it away.
Comment by Trader — November 29, 2009 @ 10:53 am
Please contact me at: lrkelly67@gmail.com I can assist you in placing your bond into trade.
Renee
Comment by To DEG — December 7, 2009 @ 1:59 pm
To DEG
Please contact me at: lrkelly67@gmail.com. I would like to help you place your instrument into trade.
Thank you
Renee
Comment by lrkelly67 — December 7, 2009 @ 2:02 pm
To mcland4u@zoominternet.net:
Please contact me at: lrkelly67@gmail.com I can assist you with your CMO purchase.
Thank you
Comment by lrkelly67 — December 7, 2009 @ 5:40 pm
Please do not give out your personal information that could lead to identity been stolen.
Do not pay anyone a fee to do anything with your bonds
Do not give your asset to anywho risk losing your tittle to some no name person.
Remember CMBS WAC IO = Garbage buy at your own risk.
The place to put money to work are;
MBS, PAC and SEQ.
If you want to speculate buy:
IIO, IO, INV, Floaters and PO
Remember the amount you make is base on your tolerance for risk..more risk higher pay…less risk less pay.
If your borrower to invest remember margin calls…if your account gets marketed every day you could
be in for a nasty surprise..you could lose it all!
Comment by Trader — December 7, 2009 @ 6:22 pm
To Michael Campbel
Please contact me if you have not been assisted in your $5B CMO purchase or for any future CMO purchases..
Thank you
lrkelly67@gmail.com
Comment by lrkelly67 — December 7, 2009 @ 6:38 pm
Mr. trader we are looking for a real buyer for cmo. My partner is direct to several bank mandate. She has several good sources and she is also rep. for others. Please help with a real buyer. Tony
Comment by tony — December 13, 2009 @ 12:09 am
What is the cusip? Why would a bank give you CMO to sell if they can go to Tradeweb for MBS or Cantor for CMO or
Barclays or CFSB.?
When people use the word “mandate” it sounds kind of funny.
The CMO market comes in different form:
Income generating assets: MBS/PT/SPECIFIED POOL/ABS(CC/AUTO) TRIPPLE AAA CMBS.
Speculation/hedging tool: IIO/PO/INV.
Any mandate or pp is nothing but a fraud and a waste of time.
Comment by Trader — December 13, 2009 @ 1:25 pm
Mr trader the question were do we find a buyer for cmo. Thank you
Comment by tony — December 13, 2009 @ 5:36 pm
@ Tony>
?
1. What type of CMO do you have? So many people say CMO but they have some useless CMBS WAC IO
there have been shopping all over fricking town with a bunch of lier private placement bastards.
2. Do you have money to put to work or are you just another zillion people in some f… chain.
3. No real cash no MBS or CMO trading ahency or non agency period. ANyone who thinks they can jump in between is
smoking crak the days of the bond daddy is gone.
please read
The Death of a Brokerage
Aug 1, 2007 12:00 PM, By John Churchill
How one of the top 25 Independent firms went under in an epic failure of management; an unfortunate example of what can go wrong when business seems to be going right.
Stanley Brooks was living the dream. With a $16,000 investment in 1990, Brooks built Brookstreet Securities of Irvine, Calif., into a $150 million revenue firm — placing it among the top 25 independent broker/dealers. By 2007, the firm had amassed $8 billion in client assets and 680 registered reps. Along the way, Brooks picked up some black marks — nine regulatory “disclosures” on his U4, eight of which were related to supervisory failures. But Brookstreet continued to prosper anyway: “We never had a bad year,” Brooks recalls.
Nonetheless, Brookstreet couldn’t dodge the bullet this time. In what will most surely go down as a colossal failure to supervise (among other potential regulatory violations) and a series of actions motivated by greed, Brookstreet Securities is dead. Its assets were blown on multiple margin calls, its reps were suddenly forced to jump to other firms and perhaps dozens of retail clients were decimated by a risky, complicated investing strategy. As few as five to 10 reps may have been involved, according to one lawyer who is himself representing 30 to 40 disgruntled Brookstreet clients.
Indeed, Brookstreet will probably be remembered as a b/d that was too aggressive, too greedy, too stupid and perhaps even grossly negligent in the way it ran some of its clients’ money. The thing is, when a complicated trade works, and a handful of brokers and their clients are quite literally printing money, some brokers just go for it. The mastermind behind the trades at Brookstreet, a man with a checkered past (see sidebar pg. 34), was living so large that even otherwise clean and prudent reps decided to play the odds, says one observer with knowledge of the case.
In the month since the firm collapsed, regulators have been crawling over Brookstreet headquarters, collecting books, records and trying to find out which rules (if any) Brookstreet reps broke. Along with some individual brokers, Brooks, his reputation and any remaining assets he may have will soon be under attack from the dozen or so law firms trolling for injured Brookstreet clients, several of whom have been described as modest, risk-averse retirees and pre-retirees. The question becomes, how many other broker/dealers are sitting on significantly devalued (or even worthless) securities? Can an individual rep even know what risk other reps may be taking that may potentially damage his firm? One thing is certain, it’s not too often that a broker/dealer goes belly up on bad trades.
DEATH BY CMO
Brookstreet’s sudden change of fortune started on June 14 when an unknown number of institutional and individual customer accounts got hit with margin calls from Brookstreet’s clearing firm, National Financial Services, a unit of Fidelity Investments. The calls were related to investments in collateralized mortgage obligations, many of them in high-risk varieties called “inverse floaters” and “interest only strips,” which had suddenly been priced down, an inherent risk carried by the instruments. The re-pricings resulted in significant devaluations for many of the investors, some of whom had borrowed as much as 90 percent of their total investment from NFS.
Cliff Popper, Brookstreet firm’s top producer, the man who built the CMO program and managed those heavily leveraged portfolios, resigned earlier in June when, according to Brooks, he asked Popper to help him liquidate some customers’ CMO positions. By June 22, Brooks had spent his firm’s entire net capital of $12 million to meet a margin balance. In fact, after reducing margin exposure by 80 percent, “That still left a $70 million margin balance against $85 million of value,” Brooks said in a letter to brokers. Of course, that $85 million was being revalued downward even as he was writing the note, he indicated in the letter. He also warned: “I have told many of you that you are always in danger of not being paid on your last check when working for any broker/dealer… I will try to get enough money from our account at NFS to complete our upcoming payrolls.” Brooks, whose company motto was “press on and never give up,” was forced to close the firm. In the end, he says he still owed NFS $2.5 million; regulators, lawyers and investors are now left to clean up the mess.
What happened? “It’s pretty typical for a regional b/d trafficking in this stuff that’s over its head to lose its shirt,” says a trader at one of Wall Street’s large mortgage trading shops. He’s referring to 1994, the last time the CMO market collapsed, when firms like Piper Jaffray and Alex. Brown lost millions in CMOs and CMO derivative investments. “People see Triple A-rated and think, ‘Oh, how bad can it be?’” he says. (Because CMOs are agency backed, their various tranches, which have completely different risk profiles, retain their triple A rating.) But investing in this area is tricky and complicated. “It’s all about the timing of cash flows, which are dependent on mortgage prepayments, and there’s a very complex system of inputs to determine what those are,” he says. In other words, most reps don’t understand how the investment works — let alone the risk involved — and therefore neither will their clients. The sale of these products to Brookstreet’s retail clients was wrong, he says. “Is an inverse floater CMO a retail product? If I were a compliance guy, no way,” he says.
Collateralized mortgage obligations, first introduced in 1983, are not considered inherently risky investments, but CMO derivatives are. There were between 45 and 75 brokers selling “regular” CMOs to some portion of Brookstreet’s 88,000 customers, according to Stan Brooks. That represents roughly 10 percent of the reps at Brookstreet, most of whom “were insurance and mutual fund guys,” in the words of one rep. But all 680 of them suddenly lost their jobs on June 22. Beyond plain vanilla CMOs, an unknown number of those 75 brokers — some say as many as 10, including some of the firm’s top producers — were also selling “inverse floaters” and “interest only strips,” especially volatile classes of CMOs, which were made even more risky because they were sold on up to 90 percent margin. And yet, the securities were being sold to retail clients as Triple A-rated instruments offering guaranteed returns with no risk to principal, says New York attorney Stuart Meissner, who is representing several Brookstreet clients.
According to Brooks, the CMO business, which was little more than three years old, accounted for 10 percent of monthly firm-wide revenues, which were averaging $14 million to $16 million per month. It was good business — and not just for the firm, he says. Clients in the program were seeing returns in the seven to eight percent range, with up to 14 to 16 percent for some, primarily those who’d stuck it out and reinvested in the program, Brooks says.
What’s A CMO?
A CMO is a security made up of pools of home mortgages backed by U.S. government-sponsored agencies like Freddie Mac and Ginnie Mae. Each pool generates two streams of income: one from the aggregate of the interest payments, the other from the aggregate of the principal payments made on the mortgages. These income streams are divided into “tranches,” which are the securities sold to investors.
In a “Compliance Alert” issued around the time Brookstreet was collapsing, NASD warned members about improper CMO sales to retail customers. Citing “several examinations of broker/dealers,” the regulator said it found that the b/ds “had sold some of the most complex and riskiest classes of securities to their retail customers.” The alert also mentioned that investors had received misleading sales literature (or no disclosure at all) and unsuitable sales recommendations, and warned that adequate supervision of sales materials and sales practices was lacking.
One of the risks associated with CMO derivatives like inverse floaters and interest-only strips — both of which were sold to Brookstreet clients — is that their value fluctuates wildly with small moves in interest rates. They’re also illiquid. For these reasons, most independent b/ds don’t touch these securities.
But Brookstreet found out there’s another major risk with these types of investments: Pricing can be guesswork. Brooks blames the re-pricing of the bonds, an occurrence he says was monthly before June 14, when it became daily, for the collapse of his firm. “I still don’t know why the pricing model changed,” says Brooks who admits to not totally understanding the IDC pricing service NFS uses to price the CMOs. “Did the investment stop paying interest? Principal? No, it didn’t. There may be a lot of smart guys out there that may tell me I’m wrong about this one day, but to my understanding it’s the re-pricing that caused this,” he says.
But like any investment, of course, “pricing” risk, to use Brooks’ term, is always there, especially with derivatives amped with leverage. “With stuff like inverse floaters, guys only get them marked once a month and often by a pricing service, not by a real b/d,” says the same trader that called the CMO derivatives non-retail investments. “So it’s an extrapolated price. In a volatile market, the pricing service’s value may be very different from what you would realize if you needed to get out of a position right away,” he says.
NFS’ decision to re-price may have stemmed from general concern regarding mortgage-related investments. It was that same week in June that Bear Stearns suffered multi-billion dollar losses in two of its hedge funds: the aptly named “High Grade Structured Credit Strategies Enhanced Leverage Fund,” and the “High Grade Structured Credit Strategies Fund.” Both funds’ losses were magnified by 90 percent margin leverage. Brooks says the market pressure created by the Bear Stearns news made Brookstreet’s losing positions in an illiquid market that much harder to offload. Asked why the firm re-priced the securities, NFS spokesman Adam Banker would not say anything further than “we are not responsible” for what happened at Brookstreet, and that client margin lending obligations are clearly laid out in their contracts.
WHO WILL GET SPANKED?
Whether the brokers who sold retail clients risky CMOs violated suitability requirements or misrepresented the investments, or whether inappropriate amounts of leverage were used will come out as regulators and plaintiffs’ lawyers begin to present their cases. Sam Edwards, a Houston attorney with Shephard Smith & Edwards, says his firm is representing 30 to 40 former Brookstreet clients that allege all kinds of wrongdoing on the part of between five and 10 Brookstreet brokers. That list of brokers includes Popper, the mastermind of the strategy (see sidebar) and Barry Kornfeld, a principal in a group of Brookstreet reps in Coral Gables, Fla., called The CMO Bond Group. Neither Popper nor Kornfeld returned calls for comment.
Meissner, who has fielded many calls from former Brookstreet clients, says his clients’ complaints relate to “three or four brokers.” He says most of his clients are reporting losses between $200,000 and $400,000. “None of these people were rich,” he says. Meissner says all of his clients have told him virtually the same thing: their broker sold them the CMO investments as triple-A rated bonds with no risk to principal, and a guaranteed 10 percent return. “That’s the story, no matter where the client is from,” says Meissner, who says fluctuations in price were explained to clients as temporary.
One client, who lost his entire initial investment of $200,000 — all of his liquid assets, according to Meissner — was invested in a portfolio of 14 CMO bond positions, half of which were “inverse floaters” or “interest only strips,” and on 80 percent margin. “This client says he told his broker he wanted an investment that was safe and secure,” says Meissner, who adds that the Brookstreet rep assured him it was. One of the seven inverse floaters his client owned showed a current face value of $3,117,610.92, as of April 30. But, the estimated current market value was only $108,991.68, according to the client’s statement.
Brokers at wirehouse firms contacted repeatedly told Registered Rep. that they stayed away from such investments with clients because the “risk wasn’t worth it.” A top Smith Barney broker that used his Bloomberg station to look up the CUSIP number of the bond mentioned above had this to say upon reading its description: “That’s a bond with a lot of hair on it. You’re in an area here that 98 percent of your readers don’t dabble in, thank God.” He quoted Warren Buffett for emphasis: “Derivatives are what you get when you combine MBAs and ignorance,” and “You never know who’s swimming naked until the tide goes out.”
THE “GENIUS” BEHIND BROOKSTREET’S CMO BIZ
The man who built Brookstreet’s CMO business, managed the portfolios and basked in the glory of being Brookstreet’s top producer was Cliff Popper, a Boca Raton-based broker with a rather active U4. It shows 13 firms in the 15 years prior to joining Brookstreet in 2004. According to an old boss of Popper’s who spoke on the condition of anonymity, the 37-year old Popper had done very well for himself and clients by investing in CMOs and CMO derivatives like inverse floaters and interest-only strips. Besides driving a BMW Z8 and owning a skybox at Miami’s Dolphin Stadium, according to one source, Popper was also rumored to be producing $1 million a month in revenue while at Brookstreet. He was “clever,” says his old boss. Because interest rates were declining or stable for so many years, investors in CMO derivatives juiced with leverage made a lot of money, he says.
But Popper didn’t know when to walk away, says his former boss. It was Popper’s penchant for leverage that eventually made him unwelcome at his firm, as well as other firms Popper later joined, he says. When Popper was working for him, he says he asked him to reign in his leveraged positions in CMO derivatives and, when Popper resisted, he was asked to leave.
Despite working in the buttoned-up world of financial services, Popper’s private life appears to have been anything but. In fact, he is something of a ladies man — or was, on his MySpace page, anyway. The page, which he made private soon after it got the attention of regulators, attorneys and Registered Rep., included a “friends” page chock-full of bikini and thong-wearing women posing (mostly from behind), lying down, bent over or embracing other women. Scrolling down the page several half-naked cartoons danced around the page to a song laced with sexually-explicit lyrics. An SEC official who was asked if he’d seen the page laughed sheepishly, said yes, then said that the SEC is not interested in anything that doesn’t provide facts about Popper’s involvement in Brookstreet’s demise. But he did call the site an aspect of his “character.” Enough said.
Comment by Trader — December 17, 2009 @ 8:50 pm
Look at prepayment speeds going back six months.
Pick your broker dealer wisely.
Remember the size of the deal matters especially when it comes to third party pricing services.Odd lot vs round lot
Assets to Buy:
IO
IO Floaters
Floaters( ABS HEL and Agency Floaters)
Assets to buy and sell like a hedge fund:
PO
SUP
IIO
Inverese Floaters
Assets to buy/ Use to fight possible income shortfall:
MBS
Agency ARMS: 1/1, 3/1, 5/1,7/1, 10/1
PAC
SEQ
TAC
GFM
Comment by Trader — December 20, 2009 @ 7:26 pm
The above is the strategies for 2010.
Comment by Trader — December 26, 2009 @ 8:00 pm
Tools of the Trade;
YB
Intex Net
Bloomberg
CMS Bondedge
State Street
Tradeweb
Broker dealer go with a regional broker dealer
It is not cost effective to build your own OAS model. I won’t go into details as to why
you should not here.
Comment by Trader — December 26, 2009 @ 8:34 pm
I have someone trying to sell me some cmos. They know that I have 1mm dollars. Here are the cusip #’s.
46628FAK7 JP/Chase
36246LAPG Goldman Sachs
61453AAA3 Morgan Stanley
46631BAH8 JP/Chase
2173MBA7 Greenwhich/RBS. Now are these any good or should I stay away. He also says that he has connections to get them monetized at 25-30% buy some German bank that he clames that he is direct with. I know that no one works for free but if possible can someone let me know if I am being scammed or not. I am also in the market for someone to represent me. I also am wandering if it is possible to monetize CMOs at a percentage of face value.
Thanks
Frank
fundingsolutionsllc@comcast.net
Comment by frank Nelson — January 2, 2010 @ 10:28 pm
“They know that I have 1mm dollars.” How did there know.?
A fool will soon path with his money. You may never see your allegely $1m again.
Easy come easy go.
46628FAK7 JP/Chase
36246LAPG Goldman Sachs
61453AAA3 Morgan Stanley
46631BAH8 JP/Chase
2173MBA7 Greenwhich/RBS. = to big credit risk.
“He also says that he has connections to get them monetized at 25-30% buy some German bank that he clames that he is direct with”
The above statement is not true.
1. If you truly have $1m like you claim to do you should put your money to work in IIO and IO market.
You want to flip IO Floaters, IIO, and IO on a monthly basis build up your name and the banks/insurance companies
will give you money to trade.
You should not buy some illiquid piece of shit.
Comment by Trader — January 3, 2010 @ 12:57 pm
1. If you truly have $1m like you claim to do you should put your money to work in IIO and IO market.
You want to flip IO Floaters, IIO, and IO on a monthly basis build up your name and the banks/insurance companies
will give you money to trade.
Frank stick with Agency Backed IIO/IO…for now.
Comment by Trader — January 3, 2010 @ 1:07 pm
The question here is
what are/is your objectives?
Generate income?
Retirement?
Speculate?
Make millions?
What is your risk level…tolerance level?
Answer all these questions before you buy..any of these bonds
46628FAK7 JP/Chase
36246LAPG Goldman Sachs
61453AAA3 Morgan Stanley
46631BAH8 JP/Chase
2173MBA7 Greenwhich/RBS. = to big credit risk.
You need to know the expecture return and the standard deviation.
Whats the mean variance?
Which rate model is been used to value these bonds?
How long do you intend to hold on to these bonds?
Can you afford to lose all all your money?
I hope your $1m is not from some POF account!
Comment by Trader — January 3, 2010 @ 1:19 pm
Can somebody explain what is the process to buy a Residencial CMO, how long does the hole process take, adn what is the difference between primary and secondary markets CMO?
Thank You In Advance
Comment by Tony — January 4, 2010 @ 9:39 pm
I am not interested in trading. I am interested in holding long term for income, and to help fund other projects for clients of mine using this unique stratagy. Yes I do have 1mm, and no it is not a proff of funds, or leased account. I don’t mess with any of that. Can I afford to loose this money? No I can’t. It was not easy to make and I don’t want to loose it. I would just like to know what is the best way to go. Both for my self and my clients. I am not the only one to be represented in these transactions, I also have numerouse clients with money that need to fund large projects. I know it takes money to make money. So if it possible then feel free to contact me.
Thanks
Frank Nelson
Comment by Frank Nelson — January 5, 2010 @ 9:43 am
@ Tony
Can somebody explain what is the process to buy a Residencial CMO, how long does the hole process take, adn what is the difference between primary and secondary markets CMO?
Step 1
1. Most BD Require a certain amount of money: ($1m to $25m)
2. Register a company
2. Hire a good trader
Step 2
Tools of the trade:
YB
BB
Intex Net
Research
Sales Coverage
Step 3
State investment objectives
Risk tolerance
Products Selections
Step 4
Buy and Sell
Primary market = new issaunce
Secondary market = old bonds…usaully investor look at this to get a sense of what could potentially happan to the
bond they want to buy…no one like to see or get bad news…yld volatility and all
Comment by Trader — January 5, 2010 @ 6:45 pm
@ Frank Nelson
Good to know. I will start interviewing new clients sometime in Febuary.
If you want us to represent you as your advisor please let me know.
Comment by Trader — January 5, 2010 @ 6:49 pm
Happy new year Mr. Trader,
I am a complete novice, but I have taken the time to read this wonderful blog in it’s entirety. First of all thank you for the truth in most of these matters. I own a small private placement firm in Atlanta. I have sourced 50 mil in private equity for various clients since October and a col liege suggested that I participate in the purchase of a CMO and leverage it to go in to a trade. coincidentally the CMO prospectus he sent me for the due diligence is also being considered by one of your other blogger. i have written down the questions and made notes of the thing which you say should be of concern to me. But I do want your opinion. Do you think that I should participate with my limited knowledge and If I do purchase this CMO what is the suggested time that I should hold it. The CMO is 46631BAH8. The expected return is 15%. I will inquire with a broker on the mean, the rate model and the standard deviation. I would like it for income and no I can afford to loose a quarter..Let me know?
Thanks
Honey
Comment by Honey — January 10, 2010 @ 8:19 pm
@Honey If you want income buy Govie backed MBS bonds. You will lose your money if you buy this bond. Below are more details:
JPMCC 2007-LDP11
Overview Bond Stack Loan List Show All
Name
CMBX Series #
2
Cut-off Loan Balance
$5,414,154,806
Cut-off Date
7/1/2007
Current Loan Balance
$5,360,993,653
As of Date
12/15/2009
WAC (Weighted Average Coupon)
5.840437 %
Property Type %
Office 33.15%
Retail 23.52%
Multifamily 16.52%
Hospitality 14.18%
Industrial 5.44%
Mobile Home Park 5.11%
Other 0.99%
Health Care 0.64%
Self-Storage 0.45%
Property State %
New York 21.35%
California 17.68%
Florida 10.28%
Texas 6.85%
Pennsylvania 4.51%
Michigan 4.17%
Massachusetts 2.93%
Maryland 2.90%
Connecticut 2.52%
Georgia 2.24%
Map of securitized properties
Class CUSIP Original Balance Current Balance DBRS Rating S&P Rating Fitch Rating Moody Rating
LR 46631BBD6 $0 $0
R 46631BBC8 $0 $0
S 9ABSDJ40 $0 $0
X 46631BAH8 $5,414,154,806 $5,378,920,806 AAA Aaa
A-1 46631BAA3 $62,183,000 $27,878,816 AAA Aaa
A-1A 46631BAG0 $1,155,652,000 $1,154,722,184 AAA Aaa
A-2 46631BAB1 $915,605,000 $915,605,000 AAA Aaa
A-2FL 46631BAC9 $70,000,000 $70,000,000 AAA Aaa
A-3 46631BAD7 $283,043,000 $283,043,000 AAA Aaa
A-4 46631BAE5 $1,179,634,000 $1,179,634,000 AAA Aaa
A-J 46631BAK1 $426,365,000 $426,365,000 AAA Aaa
A-M 46631BAJ4 $541,415,000 $541,415,000 AAA Aaa
A-SB 46631BAF2 $123,791,000 $123,791,000 AAA Aaa
B 46631BAL9 $33,839,000 $33,839,000 AA+ Aa1
C 46631BAM7 $81,212,000 $81,212,000 AA Aa2
D 46631BAN5 $54,141,000 $54,141,000 AA- Aa3
E 46631BAP0 $27,071,000 $27,071,000 A+ A1
F 46631BAQ8 $47,374,000 $47,374,000 A A2
G 46631BAR6 $54,142,000 $54,142,000 A-
H 46631BAS4 $67,676,000 $67,676,000 BBB+
J 46631BAT2 $47,374,000 $47,374,000 BBB
K 46631BAU9 $74,445,000 $74,445,000 BBB-
L 46631BAV7 $20,303,000 $20,303,000 BB+
M 46631BAW5 $13,535,000 $13,535,000 BB
N 46631BAX3 $20,304,000 $20,304,000 BB-
P 46631BAY1 $6,767,000 $6,767,000 B+
Q 46631BAZ8 $13,536,000 $13,536,000 B
T 46631BBA2 $20,303,000 $20,303,000 B-
NR 46631BBB0 $74,444,806 $74,444,806 NR
Name Amount Interest Rate Maturity Date Property Type City State
GSA Portfolio $284,000,000 6.225 % 5/9/2012 Office Various Various
Maple Drive Portfolio $220,000,000 5.542 % 6/1/2017 Office BEVERLY HILLS CA
315 Park Avenue South $219,000,000 5.825 % 6/9/2012 Office NEW YORK NY
5 Penn Plaza $203,000,000 5.595 % 5/1/2017 Office NEW YORK NY
Save Mart Portfolio $199,458,933 5.620 % 4/9/2017 Retail Various CA
Franklin Mills $174,000,000 5.650 % 6/1/2017 Retail PHILADELPHIA PA
Hyatt Regency - Jacksonville $150,000,000 6.014 % 6/10/2017 Hospitality JACKSONVILLE FL
Americold Portfolio $115,300,000 5.434 % 12/11/2016 Industrial Various Various
Genesee Valley Center $110,668,660 5.950 % 12/5/2016 Retail FLINT MI
ChampionsGate Hotel $98,153,981 6.720 % 2/1/2016 Hospitality CHAMPIONSGATE FL
Lembi Portfolio $90,000,000 6.080 % 6/11/2012 Multifamily SAN FRANCISCO CA
Denmark MHC Portfolio $89,250,000 6.206 % 4/1/2017 Mobile Home Park Various Various
Stadium Towers $83,200,000 5.475 % 5/11/2017 Office ANAHEIM CA
2030 Broadway $80,000,000 5.507 % 4/10/2017 Multifamily NEW YORK NY
Embassy Suites Atlanta $80,000,000 5.675 % 4/10/2012 Hospitality ATLANTA GA
Healthnet Headquarters $74,800,000 6.500 % 4/11/2027 Office SHELTON CT
The Electra Apartments $66,000,000 5.576 % 4/10/2017 Multifamily NEW YORK NY
399 Boylston $65,300,000 5.705 % 3/5/2014 Office BOSTON MA
175 West 72nd St $62,500,000 5.660 % 4/10/2017 Multifamily NEW YORK NY
Southlake Grand Avenue $59,661,271 5.673 % 7/11/2012 Retail SOUTHLAKE TX
The Landings of Brentwood Apartments $59,100,000 5.718 % 5/10/2017 Multifamily FRANKLIN TN
Holiday Inn Hotel & Suites Ocean City $54,498,002 6.284 % 7/1/2014 Hospitality OCEAN CITY MD
Hamptons MHP $52,880,000 5.910 % 6/11/2012 Mobile Home Park AUBURNDALE FL
JQH Hotel Portfolio $50,000,000 5.701 % 5/6/2017 Hospitality Various Various
Greenway Station $49,675,000 6.482 % 7/1/2017 Retail MIDDLETON WI
625 Broadway $47,000,000 6.149 % 6/1/2017 Office NEW YORK NY
Brooklyn/Queens Industrial Portfolio $46,613,495 5.890 % 5/1/2012 Industrial Various NY
510 Sixth Avenue $46,000,000 5.670 % 4/11/2017 Retail NEW YORK NY
101 West Ohio Street $45,000,000 5.688 % 5/9/2017 Office INDIANAPOLIS IN
36-46 33rd Street $42,000,000 5.553 % 4/9/2017 Office LONG ISLAND CITY NY
The Mill $38,950,000 6.417 % 7/1/2017 Office GREENWICH CT
Courtly Manor $37,800,000 5.910 % 6/11/2012 Mobile Home Park HIALEAH GARDENS FL
Burlington Marriott $37,000,000 5.761 % 6/9/2017 Hospitality BURLINGTON MA
Kenley Apartments $36,000,000 5.560 % 7/1/2017 Multifamily BIRMINGHAM AL
Sunflower MHP $36,000,000 5.475 % 5/5/2017 Mobile Home Park SURPRISE AZ
Swedesford Plaza $35,100,000 5.785 % 6/1/2017 Retail BERWYN PA
Doubletree Bakersfield $35,000,000 6.264 % 6/10/2012 Hospitality BAKERSFIELD CA
Michaels Industrial $34,786,593 5.563 % 6/5/2017 Industrial CENTRALIA WA
Carespring Portfolio $34,155,000 5.804 % 5/1/2014 Health Care Various Various
Hilton Garden Inn - Emeryville $33,963,000 5.743 % 6/10/2012 Hospitality EMERYVILLE CA
Embassy Suites Hotel & Executive Meetin $33,600,000 5.588 % 6/1/2017 Hospitality RICHMOND VA
Sheraton Oklahoma City $31,900,500 5.960 % 5/11/2012 Hospitality OKLAHOMA CITY OK
100 W. Broadway $30,500,000 5.848 % 3/1/2012 Office LONG BEACH CA
Venice Shoppes $30,000,000 5.584 % 5/9/2017 Retail VENICE FL
Villas at D Andrea Apartments $29,500,000 5.760 % 5/11/2012 Multifamily SPARKS NV
Rocket Lofts $29,000,000 5.575 % 5/10/2017 Multifamily BROOKLYN NY
Windmill MHP $28,620,000 5.910 % 6/11/2012 Mobile Home Park DAVENPORT FL
Smoketown Plaza $28,500,000 5.600 % 4/5/2017 Retail WOODBRIDGE VA
The Princeton $28,400,000 5.930 % 5/6/2017 Office DALLAS TX
ANA Kalakaua Center $26,900,000 5.990 % 3/11/2017 Office HONOLULU HI
Lee DeForest Drive Center $26,730,254 5.583 % 7/1/2017 Office COLUMBIA MD
15-17 Park Avenue $26,000,000 5.395 % 6/10/2012 Multifamily NEW YORK NY
Owings Mills 4 $25,600,000 5.472 % 4/6/2012 Office OWINGS MILLS MD
439 86th Street $24,000,000 5.822 % 4/10/2017 Retail BROOKLYN NY
Cinemark Valley View $22,074,628 5.659 % 6/1/2017 Retail VALLEY VIEW OH
The River Inn $22,000,000 5.734 % 6/1/2017 Hospitality WASHINGTON DC
Comfort Suites - San Diego; CA $21,845,000 5.860 % 4/11/2017 Hospitality SAN DIEGO CA
Washington Commons $21,300,000 5.939 % 2/1/2012 Office NAPERVILLE IL
Dick s Sporting Goods - Rockaway $20,800,000 5.790 % 6/5/2017 Retail ROCKAWAY NJ
Lyndhurst Shopping Center $20,754,541 5.895 % 12/5/2016 Retail LYNDHURST NJ
PGA Financial Plaza $20,700,000 5.505 % 5/9/2017 Office PALM BEACH GARDENS FL
Volusia Marketplace $20,400,000 5.549 % 6/1/2017 Retail DAYTONA BEACH FL
42 West 48th Street $20,000,000 5.665 % 6/9/2017 Office NEW YORK NY
Shoppes of Victoria Park $20,000,000 5.728 % 6/1/2017 Retail FORT LAUDERDALE FL
The College Suites at Campbell Lane Apa $20,000,000 5.970 % 3/11/2017 Multifamily BOWLING GREEN KY
Lindley Gardens $19,700,000 5.966 % 4/6/2017 Multifamily NORTHRIDGE CA
Ambrose Hotel $18,797,332 5.900 % 1/5/2017 Hospitality SANTA MONICA CA
Farnham Park $18,400,000 5.790 % 5/11/2014 Multifamily HOUSTON TX
400-1 / 400-2 Totten Pond $18,100,000 5.625 % 1/10/2012 Office WALTHAM MA
Center at Split Rock $18,000,000 5.600 % 6/9/2017 Retail SHELTON CT
Park Oaks Shopping Center $17,889,238 6.170 % 5/6/2017 Retail SAN ANTONIO TX
Sandcastle Apartments $16,925,000 5.560 % 7/1/2017 Multifamily CORPUS CHRISTI TX
Bronx Park South Apartments $16,268,508 5.650 % 4/6/2017 Multifamily BRONX NY
Hempstead Retail $16,250,000 5.980 % 6/9/2017 Retail HEMPSTEAD NY
The Shops at Boardman Park - Phase II $16,240,000 5.695 % 6/1/2017 Retail BOARDMAN OH
147-25 Northern Boulevard $15,350,000 5.460 % 5/9/2017 Multifamily FLUSHING NY
Sweetwater Apartments $15,300,000 5.507 % 4/9/2014 Multifamily PENSACOLA FL
Mission Eagle Point $15,060,000 5.917 % 5/1/2037 Multifamily ALLEN TX
Colonial Bank Plaza $15,000,000 5.922 % 6/1/2017 Office DALLAS TX
Edentree Apartment Village $15,000,000 5.750 % 5/11/2012 Multifamily CARROLLTON TX
Park at Waterford Harbor $15,000,000 5.520 % 4/10/2017 Multifamily KEMAH TX
Squire Hill Apartments $14,990,000 5.620 % 4/11/2017 Multifamily RICHMOND VA
Parkway Towers $14,500,000 6.228 % 6/6/2017 Office NASHVILLE TN
Hyattsville Portfolio $14,000,000 5.701 % 5/9/2014 Multifamily HYATTSVILLE MD
Exposition Marketplace $13,000,000 5.658 % 3/7/2017 Retail LOS ANGELES CA
University Corporate Center One $13,000,000 5.485 % 3/9/2012 Office ORLANDO FL
Vermont Avenue Warehouse $13,000,000 5.650 % 6/5/2017 Industrial GARDENA CA
Burns Medical Office $12,887,513 5.580 % 7/1/2017 Office PETOSKEY MI
Cermak Plaza $12,652,559 6.358 % 3/1/2017 Retail CHICAGO IL
The Park @ I-95 $12,322,799 5.605 % 3/1/2012 Office CANTON MA
Highlands Overlook $12,250,000 5.610 % 3/9/2012 Office SMYRNA GA
Worthington on the Beltway $12,200,000 5.927 % 6/1/2012 Multifamily HOUSTON TX
Preston Valley Center $12,000,000 5.674 % 5/9/2017 Retail DALLAS TX
BB Mini Storage Portfolio $11,780,281 5.951 % 6/1/2017 Self-Storage Various LA
Westwood Plaza $11,400,000 6.126 % 6/1/2017 Multifamily SAN ANTONIO TX
Palm Key MHP $11,270,000 5.910 % 6/11/2012 Mobile Home Park DAVENPORT FL
Paramount Parks Vacaville $11,224,225 6.455 % 4/5/2017 Multifamily VACAVILLE CA
Hampton Inn Hunt Valley $10,688,804 5.660 % 4/5/2017 Hospitality HUNT VALLEY MD
Industry Hills Center $10,474,055 5.725 % 7/5/2017 Industrial CITY OF INDUSTRY CA
Glendale Office $10,350,000 6.613 % 6/5/2012 Office GLENDALE CA
Kumho Tires $10,271,376 5.940 % 5/11/2037 Industrial MCDONOUGH GA
Barbanel Multifamily Portfolio $10,200,000 6.175 % 6/6/2012 Multifamily NEW YORK NY
The Overlook at Las Colinas $10,000,000 5.784 % 3/9/2012 Office IRVING TX
Citizen News Building $9,893,790 5.970 % 1/1/2012 Office LOS ANGELES CA
8457 Melrose Place $9,518,107 5.950 % 2/7/2017 Retail LOS ANGELES CA
Rancho Fiesta $9,450,000 5.615 % 5/1/2017 Mobile Home Park VISALIA CA
Whole Foods Cicero $9,446,000 5.760 % 6/7/2017 Retail CHICAGO IL
46-01 67th Street $9,350,000 5.460 % 5/9/2017 Multifamily WOODSIDE NY
Luria Plaza $9,270,000 5.790 % 5/5/2017 Retail VERO BEACH FL
Mellon Bank Office Building $9,250,000 5.935 % 5/5/2012 Office IRWINDALE CA
1370 Washington Avenue and 1345 Drexel $9,200,000 6.290 % 5/1/2017 Other MIAMI BEACH FL
Four Points by Sheraton $9,113,236 6.503 % 7/1/2017 Hospitality YORK PA
525 West 49th Street $9,000,000 5.655 % 6/9/2017 Multifamily NEW YORK NY
Bedford Park Shoppes $8,950,000 5.540 % 6/9/2017 Retail BEDFORD PARK IL
755 Co-Op City Boulevard $8,940,000 5.540 % 3/6/2017 Retail BRONX NY
Wayne State University $8,858,205 6.807 % 7/1/2017 Office DETROIT MI
185 Great Neck Road $8,800,000 5.792 % 5/9/2017 Office GREAT NECK NY
Commonwealth Business Center $8,770,000 5.573 % 6/5/2017 Office LOUISVILLE KY
Valencia Industrial $8,678,955 5.900 % 4/7/2017 Industrial VALENCIA CA
862 Broadway $8,613,000 6.093 % 7/6/2017 Other NEW YORK NY
Foothill Glen Apartments $8,535,000 6.130 % 6/11/2012 Multifamily SYLMAR CA
Saval Industrial $8,200,000 5.620 % 6/5/2017 Industrial ELKRIDGE MD
Sunset Ridge Apartments $8,200,000 5.569 % 5/1/2017 Multifamily MILWAUKEE WI
Southgate Shopping Center $8,150,000 5.556 % 5/5/2017 Retail MILWAUKIE OR
215 South Brea Boulevard $8,100,000 5.512 % 6/5/2017 Other BREA CA
Corona Apartments $8,000,000 5.460 % 5/9/2017 Multifamily CORONA NY
Orpheum Tower Apartments $8,000,000 5.710 % 4/1/2012 Multifamily OMAHA NE
Century Park Apartments $7,800,000 5.806 % 6/5/2017 Multifamily RENO NV
Shadow Oaks $7,800,000 5.560 % 7/1/2017 Multifamily AUSTIN TX
Shops at Breton Bay $7,800,000 5.910 % 4/1/2017 Retail LEONARDSTOWN MD
AT&T Chicago $7,787,805 5.830 % 5/11/2037 Office CHICAGO IL
Town Sports International - Newton; MA $7,733,274 5.588 % 5/1/2017 Retail NEWTON MA
Westview Commons I $7,731,360 6.180 % 1/1/2017 Office FREDERICK MD
Seaway Plaza Ogdensburg $7,523,721 6.150 % 3/5/2017 Retail OGDENSBURG NY
2907-21 Main Street $7,500,000 5.975 % 6/5/2017 Retail SANTA MONICA CA
Comfort Suites Downtown $7,252,842 5.780 % 6/3/2017 Hospitality COLUMBIA SC
Centerline Shopping Center $7,200,000 5.740 % 6/5/2017 Retail CENTER LINE MI
Hunter s Crossing $7,120,000 5.610 % 4/1/2012 Multifamily LONGVIEW TX
The Preakness $7,050,000 5.560 % 7/1/2017 Multifamily HOUSTON TX
Fairmont and Monticello $7,000,000 5.603 % 6/1/2017 Multifamily ST. LOUIS MO
Village of Tampa $7,000,000 5.745 % 3/5/2017 Mobile Home Park TAMPA FL
Santa Luz $6,897,743 5.820 % 5/11/2017 Multifamily TUSCON AZ
Skee s Industrial $6,880,000 6.196 % 7/1/2017 Industrial WEST PALM BEACH FL
Park Place - El Segundo $6,800,000 5.963 % 7/1/2017 Industrial EL SEGUNDO CA
Parkway Villas $6,638,500 5.710 % 5/1/2017 Multifamily WICHITA FALLS TX
Wal-Mart Plaza $6,610,000 6.050 % 6/1/2017 Retail NATCHITOCHES LA
22 West 23rd Street $6,540,000 5.981 % 6/9/2017 Office NEW YORK NY
Wingate Inn Columbia $6,515,289 5.770 % 6/3/2017 Hospitality COLUMBIA SC
Burke Williams Headquarters $6,431,111 6.350 % 12/5/2016 Office CULVER CITY CA
82-06 Northern Boulevard $6,375,000 5.460 % 5/9/2017 Retail JACKSON HEIGHTS NY
6420 Richmond $6,363,495 5.870 % 6/5/2017 Office HOUSTON TX
Spanish Spur $6,363,000 6.126 % 6/1/2017 Multifamily SAN ANTONIO TX
Exeter Industrial Properties $6,360,000 5.662 % 5/1/2012 Industrial MT. LAUREL NJ & LANGHORNE PA
Spring Hills Business Center $6,307,437 6.004 % 6/6/2017 Industrial SPRING TX
Academy Sports Round Rock $6,146,689 5.834 % 5/1/2017 Retail ROUND ROCK TX
Orem Center $6,135,775 5.935 % 4/5/2017 Retail OREM UT
Marston Building $6,100,000 5.650 % 5/11/2017 Other SAN DIEGO CA
Loews Mountainside $6,004,553 5.860 % 5/5/2017 Retail MOUNTAINSIDE NJ
431 Ocean Front Walk $6,000,000 5.852 % 7/6/2017 Other VENICE CA
8950 Beverly Boulevard $5,959,895 6.360 % 7/7/2016 Retail LOS ANGELES CA
Tramz Hampton Inn - Greenville $5,935,531 6.921 % 7/1/2014 Hospitality GREENVILLE SC
The Farrington $5,888,000 5.560 % 7/1/2017 Multifamily SPRING TX
Eagleview Apartments $5,811,678 5.725 % 6/5/2017 Multifamily LOS ANGELES CA
Park Plaza Apartments $5,800,000 5.720 % 3/6/2012 Multifamily WORCESTER MA
8479 Melrose Place $5,786,845 5.970 % 1/7/2017 Retail LOS ANGELES CA
Evergreen Marketplace $5,750,000 5.700 % 5/5/2017 Retail EVERGREEN CO
Ashley Furniture $5,741,465 5.944 % 5/1/2017 Retail GREENVILLE SC
Tramz Hampton Inn - Amarillo $5,733,183 6.921 % 7/1/2014 Hospitality AMARILLO TX
Rite Aid Portfolio $5,704,000 6.117 % 3/10/2017 Retail Various Various
Country Inn & Suites - Champaign; IL $5,702,985 6.060 % 6/5/2012 Hospitality CHAMPAIGN IL
Country Inn & Suites - Bloomington; IL $5,618,321 6.060 % 6/5/2012 Hospitality BLOOMINGTON IL
1050 Warrenvile Road $5,600,000 5.550 % 3/9/2017 Office LISLE IL
320 South Robertson & 819 North La Cien $5,589,936 6.295 % 10/7/2016 Retail LOS ANGELES CA
Lofts of Broadway $5,460,415 6.619 % 7/1/2014 Multifamily LOUISVILLE KY
Tramz Hampton Inn - San Antonio $5,395,937 6.921 % 7/1/2014 Hospitality SAN ANTONIO TX
Grand Twin $5,320,000 5.742 % 6/1/2017 Office BIRMINGHAM AL
Hidden Park Apartments $5,289,986 5.707 % 1/1/2012 Multifamily ST LOUIS MO
Hemet Retail Center $5,250,000 5.950 % 6/9/2017 Retail HEMET CA
BRECO Building $5,200,000 6.207 % 3/1/2012 Office DALLAS TX
Crossgate Center $5,200,000 5.965 % 6/1/2017 Office SCRANTON PA
Lakewood City Center $5,150,000 5.700 % 5/5/2017 Retail LAKEWOOD CO
155 West Street $5,000,000 5.654 % 5/7/2017 Industrial WILMINGTON MA
Lakeside Retail $5,000,000 6.203 % 7/1/2017 Retail STERLING HEIGHTS MI
Tropical Flamingo Village $5,000,000 5.605 % 6/5/2017 Retail LAS VEGAS NV
Tramz Hampton Inn - Eden Prairie $4,991,242 6.921 % 7/1/2014 Hospitality EDEN PRAIRIE MN
366 & 368 Veterans Memorial Highway $4,962,693 5.980 % 4/1/2017 Office COMMACK NY
Falls Parc Apartments $4,943,266 5.828 % 6/1/2017 Multifamily SHEBOYGAN FALLS WI
Tramz Hampton Inn - Albuquerque $4,907,187 6.921 % 7/1/2014 Hospitality ALBUQUERQUE NM
The Executive Building - Cin. Oh $4,857,510 6.188 % 6/1/2017 Office CINCINNATI OH
3443 Boston Post Road $4,800,000 5.842 % 7/6/2017 Retail BRONX NY
9415 Northern Boulevard $4,800,000 6.357 % 7/6/2017 Retail JACKSON HEIGHTS NY
Walgreens - Duluth $4,800,000 5.687 % 4/9/2017 Retail DULUTH MN
Shell - Firestone $4,786,739 5.670 % 4/5/2017 Retail COCONUT CREEK FL
Harbin Springs Apartments $4,760,000 5.658 % 5/1/2017 Multifamily NORCROSS GA
Tramz Hampton Inn - Greensboro $4,732,940 6.921 % 7/1/2014 Hospitality GREENSBORO NC
Winston Square $4,709,000 6.126 % 6/1/2017 Multifamily SAN ANTONIO TX
Western Knitting Mills $4,681,568 5.934 % 6/1/2017 Office ROCHESTER MI
Metro Self Storage - Fort Myers $4,600,000 5.632 % 5/9/2017 Self-Storage FORT MYERS FL
Tramz Hampton Inn - Syracuse $4,591,658 6.921 % 7/1/2014 Hospitality SYRACUSE NY
Best Buy-Witchita Falls $4,533,740 5.827 % 6/1/2017 Retail WICHITA FALLS TX
9-11 Raymond Avenue $4,470,134 6.500 % 4/5/2017 Office POUGHKEEPSIE NY
Holiday Inn Express - Sharonville; OH $4,427,881 5.950 % 6/1/2017 Hospitality SHARONVILLE OH
Ashley Self Storage $4,400,000 5.769 % 6/1/2017 Other CHARLESTON SC
Walgreens - Littleton $4,330,000 5.687 % 4/9/2017 Retail LITTLETON CO
Holiday Inn Express - Elizabeth City; N $4,329,203 6.680 % 7/1/2017 Hospitality ELIZABETH CITY NC
Brooks Brothers Walnut Street $4,275,000 6.066 % 6/9/2017 Retail PHILADELPHIA PA
Florida City - Extra Space Storage $4,200,000 5.633 % 5/1/2017 Self-Storage FLORIDA CITY FL
Walgreens - Utica $4,190,000 5.870 % 2/11/2017 Retail NEW HARTFORD NY
Pecan Manor $4,128,000 6.126 % 6/1/2017 Multifamily SAN ANTONIO TX
Sun West Promenade Building I $4,000,000 5.777 % 6/1/2017 Retail LAS VEGAS NV
Academy Sports San Antonio $3,931,106 5.809 % 5/1/2017 Retail SAN ANTONIO TX
Chestnut Parking Garage $3,921,961 6.070 % 6/1/2017 Other CHICAGO IL
1140-1160 Parsippany Boulevard $3,800,000 5.549 % 6/1/2017 Office PARSIPPANY NJ
Walgreens - Morehead $3,800,000 5.700 % 4/9/2017 Retail MOREHEAD NC
Eagle Village $3,750,000 5.695 % 5/5/2017 Retail STOCKBRIDGE GA
Wharton Commerce Center $3,750,000 5.763 % 5/1/2017 Industrial RANDOLPH NJ
Las Colinas Office $3,734,350 6.248 % 5/1/2022 Office IRVING TX
French Place Apartments $3,720,000 5.705 % 3/9/2017 Multifamily SAN ANTONIO TX
Howland Industrial Portfolio $3,700,000 5.654 % 5/7/2017 Industrial Various MA
Metro Self Storage - Douglasville $3,616,000 5.580 % 3/9/2017 Self-Storage DOUGLASVILLE GA
Spiral Plaza $3,500,000 5.621 % 6/1/2012 Other FLORENCE KY
Walgreens Memphis $3,419,346 5.680 % 5/9/2017 Retail MEMPHIS TN
Comfort Inn - Red Bluff $3,403,734 6.354 % 6/1/2017 Hospitality RED BLUFF CA
170 Post Road $3,356,461 6.212 % 7/1/2017 Other WESTPORT CT
184 Nagle Avenue $3,300,000 5.911 % 5/6/2012 Multifamily NEW YORK NY
Rite Aid - Westover $3,215,000 6.117 % 3/10/2017 Retail WESTOVER WV
926 Haddonfield Road $2,962,007 6.130 % 6/5/2017 Retail CHERRY HILL NJ
3060 East 44th Street $2,904,443 5.810 % 5/5/2017 Industrial VERNON CA
Walgreens - Lancaster $2,900,000 5.700 % 4/9/2017 Retail LANCASTER SC
Academy Sports Houston $2,858,986 5.809 % 5/1/2017 Retail HOUSTON TX
Walgreens - Mocksville $2,800,000 5.700 % 4/9/2017 Retail MOCKSVILLE NC
Lone Tree Town Center $2,720,000 5.851 % 6/7/2014 Retail LONE TREE CO
Raven s Crossing Strip Center $2,700,000 5.380 % 11/11/2012 Retail CARPENTERSVILLE IL
Six Forks - Raleigh $2,630,096 5.950 % 4/5/2017 Office RALEIGH NC
Rite Aid - Chester $2,627,000 6.117 % 3/10/2017 Retail CHESTER VA
389 Knickerbocker Avenue $2,600,000 6.125 % 6/9/2017 Retail BROOKLYN NY
9031 West Sahara Avenue $2,600,000 5.565 % 5/5/2017 Retail LAS VEGAS NV
Glen Oaks Apartments $2,585,780 6.260 % 6/11/2017 Multifamily SPRING HILL FL
Parthenia Twins Apartments $2,518,811 5.750 % 6/5/2017 Multifamily NORTHRIDGE CA
1550 North Congress $2,500,000 6.238 % 7/1/2017 Industrial WEST PALM BEACH FL
Rite Aid - Emporium $2,454,000 6.117 % 3/10/2017 Retail EMPORIUM PA
2937-39 Main Street $2,060,000 5.975 % 6/5/2017 Retail SANTA MONICA CA
North Richland Hills Portfolio $2,050,000 5.700 % 4/10/2017 Retail NORTH RICHLAND HILLS TX
Logan Portfolio-Beavercreek; OH $1,915,000 5.865 % 5/7/2017 Retail BEAVERCREEK OH
Rails End $1,890,000 6.090 % 5/11/2017 Mobile Home Park WILDWOOD FL
Century Drive - Raleigh $1,885,729 5.950 % 4/5/2017 Office RALEIGH NC
CVS Holliston $1,856,238 5.740 % 5/5/2017 Retail HOLLISTON MA
Creedmoor Centre 10 $1,846,392 6.235 % 6/5/2017 Office RALEIGH NC
Logan Portfolio-Decatur; AL $1,755,000 5.865 % 5/7/2017 Retail DECATUR AL
Logan Portfolio-Huntsville; AL $1,750,000 5.865 % 5/7/2017 Retail HUNTSVILLE AL
Logan Portfolio-Flowood; MS $1,655,000 5.865 % 5/7/2017 Retail FLOWOOD MS
Logan Portfolio-Bowling Green; KY $1,630,000 5.865 % 5/7/2017 Retail BOWLING GREEN KY
7772 Santa Monica Boulevard $1,560,985 6.200 % 11/7/2016 Retail WEST HOLLYWOOD CA
Logan Portfolio-Savannah; GA $1,555,000 5.865 % 5/7/2017 Retail SAVANNAH GA
Creedmoor Centre 1 $1,554,857 6.235 % 6/5/2017 Office RALEIGH NC
Logan Portfolio-Murfreesboro; TN $1,545,000 5.865 % 5/7/2017 Retail MURFREESBORO TN
Logan Portfolio-West Monroe; LA $1,540,000 5.865 % 5/7/2017 Retail WEST MONROE LA
Logan Portfolio-Gallatin; TN $1,475,000 5.865 % 5/7/2017 Retail GALLATIN TN
Logan Portfolio-Canton; MI $1,365,000 5.865 % 5/7/2017 Retail CANTON MI
Logan Portfolio-Fort Oglethorpe; GA $1,305,000 5.865 % 5/7/2017 Retail FORT OGLETHORPE GA
Logan Portfolio-Oxford; AL $1,280,000 5.865 % 5/7/2017 Retail OXFORD AL
Logan Portfolio-Evansville; IN $1,245,000 5.865 % 5/7/2017 Retail EVANSVILLE IN
Logan Portfolio-Austin; TX $1,165,000 5.865 % 5/7/2017 Retail AUSTIN TX
Arby s - Grand Rapids $1,000,000 5.750 % 5/9/2017 Retail GRAND RAPIDS MN
Comment by Trader — January 10, 2010 @ 8:34 pm
The above analysis is for Honey.
Comment by Trader — January 10, 2010 @ 8:34 pm
HONEY I AM IN THE ATLANTA AREA AND INTERESTED IN SPEAKING WITH YOU.
BP/FUND MANAGER
IDIC100@GMAIL.COM
Comment by BP/FUND MANAGER — January 11, 2010 @ 11:49 am
hello Trader.
i wanted to inquire to you regarding MTN’s (medium term notes). its a shot in the dark but thought perhaps since yoou were involved in CMO’s then you may possibly be able to assist with MTN’s as well. A colleague of mine represents a seller who is looking to sell his mtn at 65+1 and is willing to show isins and cusip numbers including the title page once a potential buyer summits a compliance package, which would include some type of fund capability. short version of the of the note is.
BANK INSTRUMENT DESCRIPTION
Instrument : Medium-term, senior, unsubordinated bank debentures
(MTN’s) 322, with 144c exclusions, and subject to the
Uniform Customs and Practices for Documentary Credits,
ICC Publication – 400/500/600 revised
Condition : Seasoned to buyer
Currency : Euros
Term : Ten (10) years and one (1) day
Interest rate : 7.5% per annum
Issuing banks : Top 25 European Banks ‘AA’ rated by S&P (min)
Contract amount : Fifty Billion Euro’s
(Euro $50,000,000,000.00) with R/ E
Denominations : Minimum : $100M
Invoice price : (65%) Sixty-Five Percent plus 1%
)
Initial Tranche : To Be Advised
Purchase mode : Euroclear
would you know of any credible investors looking for this type of instrument? we have come across many “investors” who can not show they are capable financially. and request the title page and other info, so they may shop for a buyer or money.
i know this is off base from CMO’s I just thought i would ask since you seem very knowledgeable regarding instruments.
thank you for your time.
Paul Jenkins
Comment by Paul — January 13, 2010 @ 8:21 pm
Dear sir,
We are consulting firm located in United Kingdom .we have a very good contacts /links with triple “A” rated banks in Europe that offer all kinds of loan and can finance project in developed and developing nations and as well provide all kinds of banking instruments(both issuance /discounting) with low charges/commission. Send us your inquiries(clha_ass@yahoo.co.uk) if you interested.
Thanks you
Charlton Davids
Comment by Charlton Davids — January 30, 2010 @ 5:06 pm
@Honey…dont do it. In most cases the people who try and sell you these junk CMO derivatives and promise that they can liquidate them and then take you into a wonderful trade are mostly cons, or clowns. Either way, the net end result is the same. You will be stuck holding some B.S. paper that you cannot liquidate. CMO is a sketchy game at best even when you know what you are doing. THe richest man in the world suggests that you onle ever invest in what you understand. Read “The Death of a Brokerage”…above…these people lost all their money…their brokers railroaded them….and these brokers supposedly are the experts and at best they didnt understand what they were doing…..or worse…they knew exactly what they were doing.
Comment by The Sheriff — February 1, 2010 @ 7:45 pm
Trader….what is the market value of this CMO? 20173MBA7
Comment by Help — February 1, 2010 @ 8:10 pm
Trader…this one also please: 20173MBA7…they want 1.2M for this…the seller…
Comment by Help — February 1, 2010 @ 8:21 pm
Have sellers for CMO as well as a trade CMO program…if you want to know more contact me a hedgefunds33@hotmail.com Must be owner of cmo for trade and able to show POF to buy them. Please be direct.
Comment by Lee — February 6, 2010 @ 3:43 pm
Seeking to purchase 1B JPMorgan CMOs from Private Seller.
Please contact me at kaltexinternational@gmail.com
Comment by CD. Hodge — February 18, 2010 @ 2:31 am
I am looking to buy CMO IO’s must be able to show the cash flows, and the bloomberg screens, and the price offering in usd terms. and confirm how much of the position you have.
contact at smt1954@aim.com
Please dont respond if you are a friend of a friend of friend who might know someone that might know.
Comment by steve touma — February 21, 2010 @ 10:45 am
Paul Jenkins,
Run, do not walk away from anyone marketing a (MTN) Medium Term Note Program involving 50 Bln dollars. There is no such animal. These supposed trading programs are the biggest scams in the securities business. Go to the SEC enforcement WEB page and type in MTN Trading program. You will get 82 enforcement actions. Here is the web page related to this type of fraud. {http://www.sec.gov/divisions/enforce/primebank/howtheywork.shtml. If you are choosing an investment make sure it comes from a Registered Representative who is Finra registered and investigate the firm. You can check out the brokerage house and broker via broker check on their website.
Comment by Bob Harvey — February 22, 2010 @ 12:00 pm
Tools of The Trade:
Bloomberg
YB
Intex Net
CMS Bondedge
Custodian(State Street)
Broker Dealers:
Sandgrain Securities
Armhest Securities
RBS
Noruma
Wells Fargo
Guggehiem
Research Papaers/ Market commentary.
Cash to buy and sell…Prime Brokerage or team up with someone
with connections.
In this business PM tend to buy from people they know…if they PM don’t
know you or have never met you…is going to be a long short….
Comment by Trader — February 22, 2010 @ 5:42 pm
So is it fair to say that the “1B and up / 40 week trade programs” with a 1B CMO do or don’t exist? I hear of them through the broker chain, but haven’t ever explored them.
Comment by Question — March 8, 2010 @ 11:43 am
The demise of the structure products did a couple of things:
1. Expose dumb bankers.
2. Over paid bankers.
3. Stupid people who think they can get rich tomorrow.
4. Led to a cottage industry.
The fact remains you must have product knowledge in order to play this game.
If you are lucky to get access to cash count yourself lucky and invest wisely.
Some BD are cheap and some are rich.
The end of the day experince and trick of the trade will win the day.
Seasoned individual + Cash = Profit or Loss depending on game plan.
Comment by Trader — March 9, 2010 @ 4:51 am
Further more like anything else the key to exposing a fraud is by asking the right questions.
Once the right questions are asked the house of cards will come tumbling down.
Comment by CMO Bonds — March 9, 2010 @ 4:52 am