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Re: JusticeWillWin post# 669112

Monday, 09/13/2021 12:10:48 PM

Monday, September 13, 2021 12:10:48 PM

Post# of 749756
They hedge the value of the MSR. They dont use the MSR as a way to make an interest rate bet. If MSR Value goes up, hedge takes a loss of roughly the same amount (hedging is not a perfect science). If MSR Value goes down, then hedge takes a gain.

MSR is a fee business. Not a way to bet on rates.

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