The Day Ahead: Snowstorm Adds Uncertainty as MBS Roll

Posted To: MBS Commentary

Friday was probably already going to be a wild card, but it’s made even more so due to the big, nasty snowstorm set to hit the east coast this morning . With major wind gusts and heavy snow accumulations expected in New York, residents are already in somewhat of an orderly panic mode with long lines at gas stations and bare shelves in some supermarkets. It’s a good time to remember that a lot of what happens day to day in financial markets is the result of actual people being at work. Especially after Sandy, residents are on guard against the weather, and it could keep more than a few market participants out of the game. It’s also good to remember that MBS markets have fewer participants than Treasuries and stocks. When something happens to decrease overall participation, MBS prices are more…(read more)

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