MBS Abbreviations

dradams01 · July 13th, 2005, 7:51 pm

Does anyone know what these abbreviations stand for: DW, GD?In context:Sell DW 5.5 vs. FN 6Buy GD/FN 5 SwapThanks for the help.

dollaryen · July 14th, 2005, 12:24 am

GD: gold?

Nvassalli · July 16th, 2005, 10:49 pm

DW stands for dwarves which stands for 15 years Fannie..GD stands for Golds (Freddie).Hence the first trade you listed is a short Fannie 5.5 (15yrs) and long Fannie 6s (30yr). Essentially it is a 30yr vs 15yr in premium coupons. The second trade is long Gold 5s and short Fannie 5s (all in 30yrs). That's a current coupon Fannie-Freddie swap.

dradams01 · July 18th, 2005, 12:40 pm

Thanks for the help.