Non-agency DNTs hit month high as market continues to soften

The percentage of do-not-trades on non-agency RMBS in the U.S. secondary market has hit the highest mark in a month, adding to earlier signs that the space is weakening. Last week, DNTs in prime and Alt-A paper hit 51.7%, 73.7% and 50% over three consecutive days beginning on February 20. Three week...

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Bibliographic Details
Published inTotal Securitization
Main Author Scully, Matt
Format Trade Publication Article
LanguageEnglish
Published New York Euromoney Institutional Investor PLC 03.02.2014
Subjects
Investors
Mortgage backed securities
Mortgages
Sales
Securitization
Trends
Netherlands
Online AccessGet full text
ISSN1938-7504

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Summary:The percentage of do-not-trades on non-agency RMBS in the U.S. secondary market has hit the highest mark in a month, adding to earlier signs that the space is weakening. Last week, DNTs in prime and Alt-A paper hit 51.7%, 73.7% and 50% over three consecutive days beginning on February 20. Three weeks ago, the highs were barely above 30%, tables from data provider Empirasign show. "Following three big lists in recent weeks we saw a rise in opportunistic sellers who came in on the follow to test the depth of the markets," said Scott Buchta, head of fixed income strategist at Brean Capital. Investors and deal trackers expressed concern earlier in the month after seeing worse-than-expected performance from big trades. Some investors walked away from a second large auction from the Dutch State Treasury Agency after saying dealers were too aggressive in an earlier auction this year.
ISSN:1938-7504