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Well, rates moved up last morningOn the wrong side of the tradeAnd now Bonds got to thinkin’About all those things Jay saidAbout rich MBS tradesAnd how they make apps sick.In Japan and Europe, inflation eased, tanking the Dollar and sinking Oil. But, the bearish US news caused rates to rise amid erratic price action.Loans can get adversely priced when locks come in during volatile moves. On Friday afternoon, hedgers that waited to sell the flow discovered the pain of selling below the locked price. It made the locks rich.Secondary tries to fade trades or sell ahead of future flows to Beat the Rich lock. The hedging axiom lives: “You can’t hedge away richness.” But they try.These views are mine.Beat the richDon’t stop them now. They’re going crazyBeat the richNow that’s their idea of a good time, LO———————————Song: Eat the Rich (1993) Aerosmithhttps://www.youtube.com/watch?v=o-0lAhnoDlU
Les Parker, CMB
Former senior vice president of a national technology and service company.
Les Parker is the Managing Director at Transformational Mortgage Solutions Advisory Board Member for Ainsworth Advisors; and has served as the Senior Vice President of Industry Relations and Consulting at LoanLogics, a technology and services provider focused on improving mortgage loan quality, performance, and reliability throughout the loan life-cycle. His responsibilities included managing the company’s life of loan analytics and monitoring capabilities, overseeing consulting services, contributing to the strategic planning team, and communicating with industry leaders to develop and maintain positive relationships. He focused on identifying threats and strategic opportunities.
Parker has executive mortgage banking experience in capital markets, servicing, operations, production, and financial management. Parker has served as director of the largest private issuer of CMOS. His educational background covers music, religious studies, mortgage banking, mathematics, and business administration. Parker holds a BBA in Finance, and other degrees, and has held numerous securities licenses. Parker is a Master Certified Mortgage Banker, a designation conferred by the Mortgage Bankers Association. Parker writes, speaks, and provides audio content, Since the late 1980s, he publishes a daily newsletter connecting global macroeconomics to the US interest rate movement.