Question-and-Answer Session
Operator
(Operator instructions) Our first question comes from Steve DeLaney of JMP Securities.
Steven DeLaney – JMP Securities
Hey, good morning guys. How are you?
Ben Hough
Good Steve.
Steven DeLaney – JMP Securities
Good. So, congratulations on getting through a difficult quarter especially on the funding side. That’s great work. So Michael, I was going to ask ? I know everyone wants to talk about repos, I was going to ask you about – if you would give us some color on your view of the MBS spreads and sort of the cause and the cure there on your second set of comments following Ken. I think you did that pretty well so we’ll skip that. But I just ? I do want to clarify on that that given the better market on hybrids and the wide bid asked that both bids were existent at the end of September and continue today, are you saying to us and are you still convinced that staying with 100% hybrids even though we are dealing with a thinner product, that you still like that product versus the fixed rate product?
Michael Hough
Yes, I mean I think obviously it’s been less liquid in the fixed rate market and we’ve seen that in the way spreads have behaved. We still think long term it’s very viable for our product and strong alternative for a home buyer. And as the liquidity situation and the overall market settles down, we think that this value that we see now, on a relative basis, harbors the fix will be recognized and those spreads will ? those yields will come down quickly and spreads will tighten. I think that is where a lot of inherent value is right now.
Steven DeLaney – JMP Securities
Yes, it is thinner but I guess on one respect too, it’s been a little less volatile here lately too because all the action has sort of been on the other side. And is it not true that historically that when the banks have come in to the market which, I think, some of us are hoping happens after these TARP checks get in their hands, have they not focused on the hybrid for the ARM products versus fixed over the years?
Michael Hough
I don’t know how – to what degree that would be but ?
Steven DeLaney – JMP Securities
Okay.
Michael Hough
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