EPISODE · Oct 27, 2025 · 18 MIN
QT is Nearing an End while the Hunt for Convexity Lives On
from Baird Fixed Income Insights: Convexity Pulse · host Kirill Krylov
This week on the Convexity Pulse, Kirill Krylov and Steven Scheerer recap a “pre-Halloween rally” in Treasuries as softer inflation and fresh Russia sanctions push yields below 4%. They discuss the approaching end of Quantitative Tightening, a growing call for GSEs to re-enter the MBS market, and how that could reshape spreads and affordability. The duo closes with a deep dive into relative-value trades across the belly and premium coupons, revealing where convexity still hides in plain sight from inefficient Loan Balance 4.5s to high-DTI Mission 5.5s.
What this episode covers
This week on the Convexity Pulse, Kirill Krylov and Steven Scheerer recap a “pre-Halloween rally” in Treasuries as softer inflation and fresh Russia sanctions push yields below 4%. They discuss the approaching end of Quantitative Tightening, a growing call for GSEs to re-enter the MBS market, and how that could reshape spreads and affordability. The duo closes with a deep dive into relative-value trades across the belly and premium coupons, revealing where convexity still hides in plain sight from inefficient Loan Balance 4.5s to high-DTI Mission 5.5s.
NOW PLAYING
QT is Nearing an End while the Hunt for Convexity Lives On
No transcript for this episode yet
Similar Episodes
No similar episodes found.
Similar Podcasts
No similar podcasts found.