Primary Benefits of Hedging

Greatly improved execution over best efforts. In typical market environments, a 25 to 55 basis point improvement in execution is realized. In high-volume environments, double the typical improvement is not unusual.

Improved flexibility and execution attained through the ability to wait until the last possible day to commit closed loans to a delivery vehicle, while reducing or eliminating interest rate risk from lock to final delivery.

Changing between retaining and releasing servicing can be made with no time lag, as best execution determination can be done on a daily basis, using the specific characteristics of your closed inventory.

Additional Benefits Gained with Vice Capital Markets

By utilizing Vice Capital for your daily hedging activities, avoid having to watch the market every minute of the day, maximizing the value of your time in running your business.

Tap into the expertise of traders and position managers with 20 years of trading experience, including over $100 billion of Mortgage-Backed Securities transactions.

Receive a daily mark-to-market and position report, including a daily stress-test analysis, which projects the change in the value of your position for varying changes in the bond market for the current day.

In setting up and negotiating deals with agency and other investors, utilize the experience that comes with a firm who has been involved in many delivery contracts of varying levels and during different environments.

Receive a complete Fallout Analysis, detailing the performance of your pipeline during differing market environments, and enabling you to get a better handle on the pull-through of your locked pipeline.

We are able to work with a myriad of front-end systems. At Vice Capital, we adjust our systems to match your data format, which results in a greatly simplified and faster conversion process.