We are seeing a significant uptick in recent co-issue trades. Supply for this execution is strong, with buyer demand equally matching seller supply. With the introduction of GSE exchange platforms, co-issue is easier than ever.
But as a buyer, is it the best?
Standard grids for co-issue execution, developed in the late 90s, have served buyers well. So did flip phones when companies like Motorola touted the smallest, thinnest phone ever. How times have changed!
History has proved that on a long enough timeline, all things improve. So why not co-issue execution? Sure, platforms for ease of use are great. But what about the buyer? Grid-based pricing can cause buyers to pay up for MSRs when they really don’t need to. So, you’re going to pay more for something that you don’t need to pay more to get? How do you identify that, and more importantly, how do you fix that trade?
What if there was a way to price MSRs in real-time, with dynamic, loan level pricing that reduces slippage to less than 1bps versus grids, saves as much as 78% against a best-ex tape solution and plugs into existing hedge advisors?
There is – Dynamix Pricing Exchange or DPX.
By working with our buyers, we create a pricing framework allowing buyers to buy the right MSRs at the right price – their price. Buyers can now price and buy MSRs in real-time at or near their internal capitalization with near-zero slippage. Contact us for more information on how to ditch that flip phone grid-based pricing tool for state-of-the-art co-issue execution!
Questions? Contact our Blue Water Financial Technology Services Team
Jay Patel, Executive Director of Business Development
jpatel@bluewater-fintech.com
Jason Sweeney, COO/Head of Business Development
jsweeney@bluewater-fintech.com