In 2011, we established our Mortgage Group to provide a dedicated to-be-announced (TBA) securities trading desk specializing in liquidity and hedging services for middle-market originators. Today, Cohen & Company Securities is a leading provider of a range of solutions for mortgage originators, insurance companies, banks, hedge funds, and credit unions. The Mortgage Group optimizes mortgage pipeline execution and elevates overall portfolio profitability leveraging our expertise in TBA and Agency MBS Trading along with Gestation Repo Financing.
Our Mortgage Group provides sophisticated liquidity and hedging solutions across TBA and Agency MBS, helping clients effectively manage their portfolios in the mortgage market.
We assist clients by providing direct access to TBA markets for hedging, focusing on managing and hedging the interest rate risk of originator clients’ mortgage pipelines.
We ensure liquidity and execution away from government-sponsored enterprises (GSEs), with a dedicated team of Agency MBS cash traders with experience in fixed-rate pools and adjustable-rate mortgage (ARM) trading.
Our Mortgage Group offers Gestation Repo Financing to provide a short-term solution for institutions seeking incremental yield. This financing option offers investments into a security that meets the definition of a “security” under Section 3(a)(10) of the Securities Act and Section 8-102 of the UCC and is deemed an investment security governed by Article 8 of the UCC. The GNMA security carries the full faith and credit of the U.S. Government, giving it a zero risk weighting. For mortgage originators, this brings essential capital markets financing, freeing them from bank-controlled warehouse funding lines. Gestation repo simultaneously increases the velocity of the pooling capability for GNMA issuers, reduces funding costs, and strengthens client cash positions.
