Don’t Judge a Pool by Its Label

In this week’s Convexity Pulse, Kirill Krylov and Steven Scheerer discuss why looking beneath the headline is becoming increasingly important across the mortgage market. They examine how AI’s near-term investment boom could complicate the longer-term disinflationary narrative, and why growing specified-pool issuance masks significant differences in collateral composition, scarcity, and call protection. The episode also explores the shift toward higher-cap CMO floaters, the growing appeal of Guaranteed Maturity Classes for investors seeking a hard final maturity with incremental yield, and what UWM’s recent capital raise could mean for future mortgage production.