The current rate rally has created a lot of volatility and with rates backing up, the market is beginning to see the run-off in the lower coupons, reported Bob Koets, head of MSR advisory services for hedge fund, AVM, during a hedging strategy workshop held at Institute for Intergovernmental Research’s 12th annual MSR conference in Chicago. In 2005, the runoff was at a much higher coupon than what was being originated, 6.44 percent for runoff and 5.39 percent for...