Our capital markets activity and municipal advisor services
Financial Advisor
Quantitative Consultant
TBA Pipeline Risk Manager
Investment Bidding Agent
Swap Advisor
Technology
Financial
Pricing and negotiation
Financial / Pricing Advisor Services
Caine Mitter provides data and market driven financial advice to housing finance agencies including:
Determining the optimal method of bond sale
Advising on negotiated and competitive bond pricing
Reviewing / drafting official statements and other bond documents
Advising on the selection of underwriters, remarketing agents, bond counsel and liquidity and credit enhancement providers
Fee negotiation
Performance review of underwriters and remarketing agents
Financial analysis and strategic planning
Rating agency consultation / relations
Program design and best execution
Quantitative
Cash flows, structuring, and yield analysis
Quantitative Services
Caine Mitter provides a full range of quantitative services to housing finance agencies including:
Structuring bond issues and financial products
Preparing rating agency and management cash flows
Calculating bond and mortgage yields and universal cap compliance
Calculating 32- and 10-year rule compliance and genealogy
Analyzing and carrying out bond redemption strategies
Analyzing agency financial strength
Arbitrage rebate services
Prepayment speed analysis
Caine Mitter provides quantitative services using software specifically developed to model the activities of housing finance agencies. The software uses a modern platform enabling quick updates to reflect current financing structures and the unique activities of individual housing finance agencies.
Since its inception in 1978, Caine Mitter has been recognized consistently for its leadership and innovation in quantitative analysis for housing finance agencies.
TBA
Hedging and pay-up optimization
TBA Services
Caine Mitter offers all the market analysis, data management, risk assessment, hedging, bidding agent, and advisory services required for an HFA to run a successful, risk mitigated TBA program:
Daily (or more frequent) mortgage rate sheets
Competitive TBA, specified pool, and interest only CMO trading
Rate lock commitment and mortgage pipeline data processing
Risk analysis, dynamic portfolio hedging, and daily reporting
Broker / dealer selection, opening accounts, and document negotiation
Portfolio valuation and margin verification
Trade record keeping, settlement processing, and other portfolio maintenance (rolls, assignments, swaps, etc)
Historical performance, profitability, and performance
Prepayment speed analytics
Consultation on program structure and product offerings
Market informed pooling instructions for pay up optimization
Swap
Derivative Pricing, Valuations, and Monitoring
Swap Services
Caine Mitter provides a full range of services related to derivative products for housing finance agencies including:
Negotiated price verification / competitive bidding
Valuation and accounting calculations
Swap performance / risk assessment
Counterparty selection and monitoring
Document review and negotiation
Federal tax law compliance calculations
Market opportunities and option exercise notification
Derivative structure consultation for housing finance synergy
Regulatory advice
The firm’s combination of housing finance and derivatives expertise makes it uniquely qualified to negotiate terms and discover opportunities that are specifically tailored to housing finance agencies and the special tax rules by which they are governed. No other financial advisor or swap advisor has this combination of expertise.
Investments
Bidding Agent
Investment
Services
Caine Mitter provides a full range of Investment Services for housing finance agencies including:
Bidding agent for guaranteed investment contracts (“GICS”), repurchase agreements (“Repos”) and securities
Maintaining up-to-date records of investment agreement provider credit ratings
Continuously up-to-date on latest rating agency investment criteria
Assist with analysis including negative arbitrage, arbitrage rebate analysis, and rating agency investment methodology
Technology
Technology
As the most complicated form of municipal finance, housing finance requires sophisticated analytics that can be distilled into a logical set of reports. Caine Mitter uses software engineered to handle the most sophisticated, complicated, and innovative practices used in the industry including cross-calling, replacement refunding, mortgage participation blends, variable rate bonds, and a wide range of derivatives products. Caine Mitter’s development team regularly designs software enhancements and develops other powerful analytical tools for analyzing best execution across capital markets sectors, keeping our clients at the cutting edge of innovation.