Andy Constan on Lessons From Bridgewater, Equity Valuations and Top Trades
Macro Hive Conversations With Bilal Hafeez
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How Does Mortgage Convexity Affect Regular Bonds?
Mortgage convexity has shifted through the years as fanny and freddy were the dominant force to mortgage services becoming the dominant force. Now fed owning a good portion of the mortgages and not hedging their conexity. Mortgage is something that in the us, which is, i think only netherlands has this type of security unique to the us. And so when does one refi? When interest rates are lower. The world now wants to buy more bonds when intrestrates rise. But there are economic interests that have that are both levered and have tight pianel restrictions.
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