Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: russwinter who wrote (41966)	9/21/2005 10:09:25 AM
From: orkrious	Read Replies (2) \| Respond to of 110194

Lance last night dailymarketsummary.com The 10yr junk spread to treasuries widened by nearly 10 bps to 327 bps over treasuries, which brings junk spreads back to just shy of last week’s highs. Junk spreads appear to be resuming the next leg up that should take spreads to new highs, and that’s obviously not a good sign for the stock market.

To: russwinter who wrote (41966)	9/21/2005 2:46:54 PM
From: ild	Read Replies (2) \| Respond to of 110194

<<<Incredibly, a refi boomlet going on at higher rates. Just refiing into fixed rates out of ARMs, and doing equity extractions while at it?>>> Berson thinks you are right: Since 30-year FRM rates today are less than the upwardly adjusted ARM rates (and much less than the expected ARM rates a year from now), ARM borrowers have an incentive to refinance into FRM loans. This may help explain both the falling ARM share as well as the surprisingly strong refinance applications in the MBA survey. fanniemae.com OTOH many may be refinancing into Option ARM as they can't afford neither increased ARM rates nor fixed.