Capital Assets Weekly Comments

Another One Bites the Dust: CMT ARMS!

As Mitchell Redd discussed in FHN Financial Capital Assets Corp. (Capital Assets) Weekly Comments on February 5 (Adjustable Rate Mortgages: The Change From LIBOR to SOFR), there is a lot going on and a lot to prepare for with the shift from LIBOR and CMT to SOFR. One issue that should not be overlooked is the impact on portfolio lenders with CMT becoming ineligible for agency delivery. At the moment, depositaries have options for CMTs that are likely to go away sooner than you expect.

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