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Quadrant Advisors: Year-End Trades, Market Confidence, and
A New Website (11/30/09)

If you're looking to take a profit or loss on a whole loan sale prior to
the end of the 2009 fourth quarter, you can't wait any longer to get
started. Send us a database and we can have bids for you within a
week with due diligence and funding to follow. First lien residential
and auto loans are the products most in demand.

Market confidence, as evidenced specifically by bid-ask whole loan
spreads in the secondary market, continues to improve. In addition,
the TED spread (the difference between 3-month Treasury and
3-month LIBOR indices) has consistently been in the 20-30bp range
since August, down from over 125bp at the beginning of the year and
its high of over 500bp in August of 2007. As we have noted
previously, the TED spread, an indicator of perceived credit risk in
the general economy, has also proved, in our experience, to be the
single best determinant of portfolio transaction levels in the
secondary market … i.e. the lower the spread the more active the
trading.

Finally, check out our new website at www.qallc.info or
www.quadrantadvisors.com. You'll find background information about
Quadrant Advisors and its services, personal profiles of its
Principals, advice on how to assure efficient sales in the secondary
market, links to significant articles about the market, and answers
to some interesting topical questions (for example, what's the
derivation of the word "mortgage" and what is a mortgage button?).

Give us a call if we can be of assistance.

November 30, 2009

Quadrant Advisors: A Busy Summer, Improving Confidence,
and Income Opportunities (7/6/09)

While summers are typically a quiet time for decision-making in the
secondary mortgage market, this year appears to be an exception
to the rule.

Improving confidence is prompting many financial institutions to take
another look at asset transactions that had been delayed by the
credit crunch. And price spreads have tightened significantly for
some whole loan products, thus allowing buyers and sellers to
complete transactions that were not possible just three months ago.

The improvements in the markets are also evident in certain macro
measures, including the TED spread (the difference between
3-month Treasury and 3-month LIBOR indices) which has
dramatically narrowed back to its tradition 40bp level, down from
over 125bp at the beginning of the year and its high of over 500bp in
August of 2007. The TED spread, an indicator of perceived credit
risk in the general economy, has also proved, in our experience, to
be the single best determinant of portfolio transaction levels in the
secondary market … i.e. the lower the spread the more active the
trading.

Currently, we're seeing growing interest in high quality residential
mortgages and auto loans, relatively small commercial loans, and
agency residential servicing.

If you are a buyer, please send us your updated purchase
parameters. Pricing spreads are still relatively high and purchases
today can help you lock in profits for the future.

If you are potentially a seller of residential, consumer, or commercial
product (especially with high scores and low LTVs), please send us
a related database. Portfolio sales can improve liquidity and prepare
you for increased new origination volumes as the economy
continues to recover.

Thanks for your interest.

July 6, 2009

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