Fed Prepares Second Rate Cut to Cushion Against Global Risks

Markets will seek clues on outlook for further reductions in new projections and at press conference.  The Federal Reserve is likely to cut its short-term benchmark rate by one quarter percentage point to a range between 1.75% and 2% at the conclusion of its two-day meeting on Wednesday. The big question is what kind of clues the central bank offers about any more rate reductions.

Mortgage Rates Decline Ahead of Fed Meeting

Cheaper borrowing costs have prompted a wave of refinancing activity that may help consumer spending.

Fed Intervenes to Curb Soaring Short-Term Borrowing Costs

For first time in over a decade the central bank injects funds into money markets after a sudden shortage of cash.  The Federal Reserve injected cash into money markets Tuesday to pull down interest rates and said it would do so again Wednesday after technical factors led to a sudden shortfall of cash. The pressures relate to shortages of funds banks face resulting from an increase in federal borrowing and the central bank’s decision to shrink the size of its securities holdings in recent years. It reduced these holdings by not buying new ones when they matured, effectively taking money out of the financial system.

US Treasury yields fall ahead of Federal Reserve interest rate decision.

The 10yr UST price is up 11+/32 to yield 1.77% as of 9:18 AM ET, and UMBS 2.50% prices are up 9/32, 3.0% are up 5+/32, 3.50% are up 2/32, 4.0% are up 1/32, and 4.5% are up 1/32.
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Maximize your Execution The mortgage pipeline is a very dynamic component of a mortgage banking business. Each day, new locked applications are coming in, loans are closing, locked applications are being denied or withdrawn and terms of existing locks are

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At Vice Capital Markets, our hedging philosophy and process is both conservative and analytical.  Using your own historical data, we determine the expected fallout levels for each type of mortgage product in your pipeline.  Using this information along with the

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Since 2001, Vice Capital Markets has successfully managed the interest rate risk and maximized the profitability on over $400 billion of mortgage-backed securities trades and mortgage-related transactions.

Our expertise and familiarity with many types of executions and end investors has yielded superior results for our clients.

Through long rallies, swift declines, and multiple interest rate shocks our fallout models and risk management strategies have steadily and successfully weathered market fluctuations of all degrees.

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