[cobra de capell]

An update - data just received:

All the big financial institutions estimate the FF rate into the future, BofA, etc - all of them have the rate steady at 5.25 through the third quarter with a few projecting a downturn in the fourth quarter, specifically Countrywide has it at 4.75, Merrill at 4.50 and Bear Stearns has it going up to 5.50. The median is 5.25 through the fourth quarter - interesting - no bailout scenario.

Countywide must be praying for 4.75!

Merrill has the rate going down to 3.75 by the first quarter 08 - this is the only entity that projects such a downdown with others only moving 25 BPS over the next year, up or down. Does Merrill know something that others don't know or do they know nothing at all?