Ginnie Mae MBS GN-SF 30/360 3.5 SF — Single family, level payment mortgages 10/01/10 - Issue 09/15/40 - Maturity 3.5 Coupon.

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Presentation transcript:

Ginnie Mae MBS GN-SF 30/ SF — Single family, level payment mortgages 10/01/10 - Issue 09/15/40 - Maturity 3.5 Coupon

GN-SF 4% Coupon 4.5 WAC

Increasing yield as CPR increases if MBS bought at discount

GN-SF 4% Coupon 4.5 WAC Decreasing yield as CPR increases if MBS bought at premium

Dr. Prevost, wouldn’t these assumptions seem more relevant than the 10, 20, 30, 40..etc assumptions given by Bloomberg considering that CPR is suppose to level off at 6 over 30 months of the MBS? So far this MBS has paid constant prepayments of.2 why would they give such huge assumptions in comparison to the given data? I took the liberty of changing the CPR assumptions to something more realistic from my viewpoint.