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Re: Digra Ive post# 618409

Friday, 07/03/2020 6:59:50 PM

Friday, July 03, 2020 6:59:50 PM

Post# of 795693

Can smb please explain why there is such big difference between FNMA and FMCC short levels ?



My guess is that FMCC usually trades at a small discount to FNMA (3-7%), so when it trades higher than FNMA some people put on a long FNMA/short FMCC pair trade, expecting a reversion to the historical mean.