Mortgage demand rises amid MBS volatility
Mortgage rates fell last week, spurring an increase in demand. But a volatile secondary market is causing challenges.
securities
What Are Asian Options and How Are They Priced?
Asian options (also known as average strike options or average options) are a type of exotic option that is priced according to the average price of the underlying commodity, as opposed to the spot price. Read on for how theyâre priced, how they work, pros and cons, and more. What Is an Asian Option? Asian […]
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Fed delivers a 25 bps rate hike amid bank failuresÂ
The Fed has decided to forge ahead in its fight against inflation, despite several bank closures that have caused turbulence in the financial markets.
What Is DIF Insurance (Massachusetts Depositors Insurance Fund) – How It Works
If you have a bank account – or even if not – you’ve likely heard of FDIC insurance. FDIC insurance is deposit insurance overseen by the Federal Deposit Insurance Corporation, a federal entity created by the Banking Act of 1933. FDIC insurance guarantees the safety of deposits in checking, savings, and CD accounts held with FDIC
401(k) Catch-Up Contributions: What Are They & How Do They Work?
Retirement savers age 50 and older get to put extra tax-advantaged money into their 401(k) accounts beyond the standard annual contribution limits. Those additional savings are known as âcatch-up contributions.â If you have a 401(k) at work, taking advantage of catch-up contributions is key to making the most of your plan, especially as retirement approaches. […]
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How to Invest $200,000 and Generate a Solid Return
When at the point of wondering how to invest $200,000, that’s definitely a good sign. After all, having this amount to invest means youâre on the fast path to building long-term wealth. This is especially true if you can invest $200,000 and leave it alone for a decade or two, giving compound interest plenty of […]
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A Guide to Tech IPOs
Tech IPOs involve a technology company going public, and making its stock available for purchase on the open market by any interested investor. Given the tech sectorâs incredible growth over the past couple of decades, tech IPOs tend to garner a lot of attention from investors, who may feel that theyâre investing in the next […]
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How far the Fed’s facility is likely to go in stopping bank MBS woes
The effectiveness of the borrowing facility now available to address the mortgage-backed securities risk that contributed to Silicon Valley Bank’s failure remains to be seen, as it has been tapped for at least $12 billion but institutions are leaning more heavily on other funding sources. But experts are hopeful about its usage. “I think that … [Read more…]
Broker, Efficiency Products; FHA, VA, USDA News; Bank Failures Explained
It hasnât been a good few weeks for banks whose names begin with âSiâ (Silvergate, Silicon Valley, and Signature, with Silicon Valley Bank declaring Chapter 11 bankruptcy this morning; todayâs Rundown discusses how the bank crisis may impact lenders). Ah, those clever secondary marketing folks. Cornerstoneâs Henry S. frets, âI canât believe itâs bank collapse season already. I just finished taking down my train derailment decorations.â Certainly, time flies by, and I hope youâre wearing some green today. Originally a religious holiday to honor St. Patrick, who introduced Christianity to Ireland in the 5th century, St. Patrickâs Day has evolved into a celebration of all things Irish, with the first parade on March 17, 1762, in New York City, featuring Irish soldiers who served in the English military. It certainly is more fun to think about celebrating the Irish than the constant stream of headlines as people race to conjecture about the health of world banking, and people crying âshoulda woulda coulda.â The markets seem to be performing a stress test on the Fed. The Federal Reserveâs (Fedâs) tightening seems to be finally having an effect, and an early victim has been smaller banks that did a poor job of managing interest rate and deposit concentration risk. (Todayâs podcast can be found here and this week is sponsored by Richey May, a recognized leader in providing specialized advisory, audit, tax, technology, and other services in the mortgage industry and in banking.)
Smart Money: Are CDs Worth It, and Managing a Life-Changing Windfall
In this episode of the podcast, the hosts discuss whether CDs are a good option and then talk with a listener about how to manage a financial windfall.