Re: percents es et a read from your team [C (Nav Gupta, 03 Feb 2014)

Subject: Re: percents es et a read from your team [C] From: Nav Gupta Date: Mon, 03 Feb 2014 16:41:27 -0500 To: Tazia Smith Cc: Vinit Sahni Paul Morris Am not a mtge expert but read over the weekend that GS strat prefer po's over io's. Worth checking ry with the db io trader. Mortgage Interest Only strips have become negatively convex Lower coupon IOS (synthetic IO total return swap instruments) currently screen as having negative convexity, meaning that the downside risk from a rate