The vast amount of market information available today is of little value without the experience, knowledge, and the analytical tools necessary to identify and exploit relative value opportunities. At Amherst, proprietary analytics have always been a key component of our success to date. These propriety analytics have allowed us to identify broad market trends as well as to excel in relative value security selection.

For example, the RMBS sector, in mid-2009 many market participants believed that home price indices had seen their lows, and were on the rebound. We argued that given the amount of shadow inventory, this was an impossibility.

Our identification of broad market trends has provided added value to trading partners in their decision making. Our model has also allowed us to spot opportunities to find sectors where, due to supply and demand imbalances, the pricing did not reflect fundamentals – providing our customers with sector trade ideas. Employing our proprietary tools, we also select individual securities within sectors, another benefit for our institutional clients and trading partners.

The Strategy Group publishes Amherst Mortgage Insight, a market letter for both Residential Mortgage-Backed Securities (RMBS) and Commercial Mortgage-Backed Securities (CMBS). The Strategy Group Publications are available to qualified parties only.