I am not so sure I have ever in my life seen rates move 30-40 basis points down in a single day. I have seen them move up that much but never down.
So I disagree on that point.
However I do absolutely agree with you that the high premiums we saw since the beginning of August may indeed be shortlived. I think many in the industry thought that the reaction was an overreaction and that time was needed to smooth it out. As we have had several weeks of relative calm on that front indeed we are seeing the wheels get a little grease. That will most likely continue until there is major news to disrupt it…I use the term until rather then unless because I feel this will be a recurring theme… credit gets tight on lots of bad news… then no news for awhile so it loosens up… then it tightens up again on bad news… repeat lather rinse…
