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Fintech Focus For March 24, 2021

·2 min read
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Quote To Start The Day: Before anything else, preparation is the key to success.

Source: Alexander Graham Bell

One Big Thing In Fintech: M1 is staking its claim as an alternative to the gamification of investing popularized by apps like Robinhood but also an alternative to traditional asset management shops like Fidelity and Schwab.

The Chicago-based firm is growing at a bristling pace. The company announced a $75 million Series D funding round on March 9, revealing that it had grown to $3.5 billion in assets under management.

Source: Axios

Other Key Fintech Developments:

Watch Out For This: On March 23, Minnesota Senator Amy Klobuchar, with fellow Democratic Senator Tim Kaine of Virginia and Republican Senator Rob Portman of Ohio, will introduce the Housing Supply and Affordability Act. The bipartisan bill would authorize $1.5 billion for federal grants to local governments that commit to increase their supply of local housing, to be distributed over the next five years.

Source: Bloomberg

Interesting Reads:

Market Moving Headline: Rising rates have a silver lining for mortgage investors. To be sure, a sharp increase in rates can increase the likelihood of a convexity event occurring. But a convexity event is less likely today than in the past, given the increase in the Fed’s holdings of MBS and the reduction in the GSEs’ portfolios. Moreover, a modest rate increase can place downward pressure on MBS net supply, lower prepayment risk, and narrow mortgage spreads.

When making investment decisions, MBS investors must consider the multi-dimensional impact of rate movements on mortgage collateral as well as the complex interactions between mortgage market hedging activity and rates themselves.

Source: FactSet

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