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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (26536)	2/16/2005 8:07:51 AM
From: russwinter	Read Replies (1) \| Respond to of 110194

<debunked that 2.75 long ago> Indeed, I reversed the CMT and Libor margin in the exercise, it is 2.25 on the most common 1 year Libor, and 1.875 on the shorter adjusted one and six month ARMs. The 3.03 I used is for the 1 CMT, it's 3.36 on the 1 Libor. libor-loans.com The new rate would still be 5.61% on one year Libor ARMS. The margin on CMT is 2.75, plus the 3.03 index= 5.78. Here are the prior January index values on all commonly used ARMs indexes. As rates are up about 8-10 bps across the board so far, there should be another good jump on Feb. 28th when it's set again. Even the 6 month Libor (at 3.03) , which is set to the 1.875 margin is closing in on 5.00%: mortgage-x.com