CMB$
CMBS. Commercial Mortgage Backed Securities. Although the prepayment risk is lower than a RMBS, CMBSecurities are not standardized. Given the default and reports which will be coming out as of the next week, a pullback in the markets should not surprise you a bit. Rather, anticipate it, judge it and watch if this next downtick will test bottoms [or either of the double bottoms in our case haha] either way we probably will re-test them. But at the least, calculate the spread between each day of next week and our most recent historical bottom .i.e. the lowest pt in the past 6 months. Calculate the spread for each day between that low-point over the 5 days of m-fri, compose the mean……hypothecate that number on a daily basis for m-fri and then a quick do the same for week ending Dec 5th.
Just talking to myself.
Happy Turkey Day!
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