Clue #2 Mystery Anniversary; Fed Minutes – No Surprises
July 11, 2013
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Clue #2 to My Mystery Anniversary
My wife, The Travel Mama, is taking me to a mystery location with a mystery agenda for our 12th wedding anniversary. We leave Friday and I have no idea where we’re going…no idea…no clue…clueless. That is until yesterday when she revealed that we’re boarding an airplane…that was Clue #1. Clue #2 is “he will need more jeans/pants than shorts.” She posted this on her TravelMamas Facebook page today and will posting more clues periodically…. Where the hell am I going?!
My Schedule: On a corporate conference call this morning…I have a luncheon presentation this afternoon…available the remainder of the day….
My Market Watch: Bonds Were Up…Now Down – Fixed Better For Now…
Bonds were trading up this morning which was good because we got back yesterday morning’s pricing before the price worsening yesterday afternoon. Bonds are down enough off of morning highs to warrant a mid-day reprice for the worse.
Yesterday’s Fed Meeting Minutes were as I expected…more of the same regarding the tapering of QE. In fact, half of the members agreed. So, you can either interpret that as 50% believe in QE tapering, or that 50% do not believe in it. Hmmmm…as a trader how do you use that to help you in deciding whether to buy or sell bonds?
Perspective. 30-Year Fixed Average Rates:
Past 40 years: 8.15% Past 20 years: 6.52%
Past 30 years: 7.45% Past 10 years: 5.72%
A Word On Pricing. We have corporate calls on our pricing strategy. Interbank has traditionally been hyper-aggressive in price but with so much volatility in the bond market we have backed off temporarily while remaining competitive. This is good smart business.
A word on locks. Even though turn-times are fast, I advise longer term locks or at least a pricing cushion to account for possible lock extensions. Flexibility in getting additional days is not as elastic. I advise 45 day Locks. If you must lock 30 days then be sure to build in additional rebate in case you need to pay for an extension. This is good smart business.
|Distinguish Yourself. In order to succeed in this business and in this market, you must find a way to distinguish yourself from other LOs. That is, if you are going to get more reliable referral sources, you must be able to clearly convey several compelling reasons why they should use you….My calendar is getting full – I am scheduling presentations to discuss (1) How to Be Successful In The Future Market, (2) Where to Look For Additional Referral Sources, and (3) How To Distinguish Yourself From Other LOs. Let me know if you’re interested in a presentation….