Lehman Brothers to Offer $100 Million CMO Deal
April 03, 2011
The CMO securities will be structured around premium Ginnie Mae pass-throughs carrying a 9% coupon. Because of declining interest rates, there has been no new production of 9% coupon mortgages since last year and only tiny amounts of new supply have been finding their way into the market in recent months. The last CMO to use 9% collateral was in mid-June, when Cantu, Lukin & Jenrette Securities Corp. brought a $250 million deal which included some 9s. Lehman Brothers declined to comment on the offering, as did co-manager Blaylock & Partners. Meanwhile, the mortgage-backed market headed downwards with Treasurys, registering slightly smaller declines, as is normal. Thirty-year pass-throughs were 1/4 lower Monday afternoon from Friday's close.
