luda002

I chose 2013 too, but then I see that we have no idea what the rates are in 2013...if they drop some 200 Bps, then yes there will be more re-financing.

But now that you mentioned this, explain why MBS's have negative convexity, unlike usual bonds! I don't know why but I have this in my notes. Anyone knows why?



Edited 1 time(s). Last edit at Thursday, May 19, 2011 at 05:59PM by Dreary.