Trading & Valuing Agency CMO Derivatives: An Execution Trader's Reference Guide Part Art & Part Science

In an effort to help portfolio managers understand the values and risks inherent in mortgage-backed securities, Udo Onwuachi, New York City-based Agency CMO expert, has launched. Trading & Valuing Agency CMO Derivatives An Execution Trader's Reference Guide Part Art & Part Science There are so many problems inherent in the mortgage securities industry that it is hard for portfolio managers to keep up with trends in how to price and bid," Onwuachi said. "I have seen the struggles fund managers and commercial banks' trading desks have in arriving at a bid/ask price due lack of trading experience. The Book will help portfolio managers and traders find value within the mortgage derivative space. Mr. Onwuachi, an NYU graduate with an MBA from The City College of New York, has been working with agency collateralized mortgage obligation (CMO mortgage derivatives), principal-only stripped mortgage-backed securities (PO and PO Floaters), interest-only stripped mortgage-backed securities (IO and Inverse IO Floaters), price structures and trades for over eight years. His website, cmoderivative.org, contains numerous articles about valuating PO and Inverse Floaters. "This year, 2008, is the year of the Inverse Interest Only bond, PO and Inverse Floater," says Onwuachi. "I believe these sectors will out perform all others." But, he cautions, "Not all mortgage derivatives are equal--when a hedge fund manager buys a mortgage derivative it is imperative that his or her proprietary trader is experienced in how to value and trade the mortgage derivative."