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The New and Improved Daily Offering Sheet is Now Online

By: Jeff Smith
Director of Investment Sales

We wrote in last monthís newsletter that the Daily Offering sheet was going to be re-formatted to make it a more useful and user-friendly document for SunCorp members who are looking to add marketable securities to their portfolios. Ta da! You can view the results of this new format on www.suncorp.coop. Go the Rates section on the SunCorp Home page and select the menu option, Marketable Securities. To make your security selection process easier, CU-IS LLC now separates the offering sheet into two sections: New Issue and Secondary Bullets, Callables and Step-ups; and Agency Mortgage Backed Securities (MBS) and Collateralized Mortgage Obligations (CMO).

SunCorp has scheduled a Webinar for September 26th to discuss this new format in greater detail. You will be able to register for the webinar online at SunCorpís Online Learning Center. We encourage you to join us to hear the various ways that you can use the new offering sheet for your investment decision-making.

New issue agency bullets, callables and step ups

The overall layout of the agency offerings has not really changed that much but by splitting mortgage paper into a different spreadsheet CU-IS LLC is able to provide a greater number of securities from which to choose. You will notice the biggest change in the number of bullets we are able to present. To review, CU-IS LLC doesnít carry bond inventory. The securities posted are gleaned from what is being offered in the street. We have no specific ax to grind to sell a given bond, but are motivated to find the most attractive offerings along the yield curve.

Mortgage Backed securities

The most obvious change you will find in this offering page is a much-expanded list of securities available for purchase. We have expanded both the collateral offerings (MBS) as well as the CMO offers. To assist our members in determining relative value we have added the section labeled TBA Offer levels. We have always indicated where the Treasury yield curve was priced at the opening of the dayís trading, but we now include where the prices are of the more generic MBS paper is trading. We show pricing for both FNMA and FHLMC 15-year paper over a variety of coupons. You will be able to compare the offering of a generic issue to the specific bonds listed higher up on the sheet.

CMO Offers

There have been two key changes in the CMO Offer section. We added the change in price of a given CMO in a +300 rate shock. Many members have a portfolio limit on the kind of price risk they can take and this will help you refine your selection process. We have also added a column which provides the type of CMO tranche we are showing. Again, this may help our members focus on bonds that are within their portfolio guidelines.

I encourage you to contact your SunCorp/CU-IS LLC sales representative for additional discussion on the value that our new offering sheets bring to your thought process. I also look forward to having you join us in the Webinar where you will hear a more complete discussion of the Daily Offering Sheet changes.


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