
	January 4, 2007 The Pipeline is Andrew Davidson & Co., Inc.'s monthly newsletter. Read on, and you will find that it contains a "pipeline" of relevant and useful information for participants in the fixed income industry. We address recent trends, changes and advances that our consultants, developers and sales force have extensively studied in the marketplace. We value your input and urge you to contact us with questions, comments or article suggestions at mail@ad-co.com.



	Valuation Commentary Model Performance Review AD&Co. Update

Valuation Commentary

The Market & the Model

By Alex Levin

I am writing this article with a brain full of 2006 retrospective kaleidoscopes of TV programs touting "Events of the Year," "Interviews of the Year," "People of the Year," etc. Admittedly, I am tempted to turn this article into another "what happened in the MBS market in 2006" story. But I will spare your such a predictable shortcut and will focus instead on an "ADCo and the market" theme, opening the door to our kitchen and sharing recipes for dealing, interpreting and modeling specific market events. While our views and results don't always agree with those of major brokers, we genuinely reflect on each deviation when it arises. Read on...

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Model Performance Review

v5.2a vs. 5.1f ARM Model

By Dan Szakallas

Last month, we introduced the 5.2a ARM prepayment model and studied its performance across various FHLMC hybrids. This month, we look at not only the 5.2a model performance for November, but also performance of the previous version, 5.1f, to show the differences between the models. Specifically, we are going to focus on FHLMC hybrids, specifically 3/1's, 5/1's, 7/1's and 10/1's, indexed to 1-year Treasury. Read on...

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AD&Co. Update

The Debut of the Loan Dynamics Model

By Rob Landauer

AD&Co's Credit Product Line, featuring the Loan Dynamics Model, will make its official debut at the American Securitization Forum (ASF) 2007 Conference in Las Vegas, NV from January 28-31. Read on...

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