"MCT Trading has brought professionalism and value to our loan hedging operations as we continue to grow our business and develop the key secondary marketing competencies required for success in today's competitive mortgage marketplace."
MCT Client

The  HALO Program

Hedging and Loan-Sales Optimization

 

 

Combining Market Proven

Pipeline Hedging Disciplines with

Best Execution Loan Sales Services

 

 

 

MCT’s industry hallmark pipeline hedging and loan sale program – HALO – combines our market-proven pipeline hedging disciplines with best-execution negotiated loan sales services.  The HALO Program enables our clients to lock in higher profitability while efficiently mitigating risk associated with interest rate changes. Throughout each business day, MCT guides client actions to ensure that their pipeline of locked loans is optimally hedged.  When loans are closed and ready for sale, MCT analysts evaluate all possible executions with state-of-the-art pricing tools to determine the best all-in price.

 

Overview of the Daily Cycle

 - Pipeline Review

 - Hedging Guidance/TBA Trade Execution Support

 - Daily Best Execution Calculation

 - Trade Confirmation Verification

 - Daily Mark-to-Market Analysis/Reporting

 


The HALO program combines high bandwidth communications with our clients, industry-leading hedge models, and unparalleled investor executions to provide you with the best return on your loan pipeline.

Pipeline Management


MCT Analysts review your pipeline as it changes in real-time to ensure proper coverage in a dynamic market. Years of experience have enabled us to develop standard disciplines that can be custom fit to client operations of all shapes and sizes. As an additional benefit, our daily disciplines allow us to frequently catch potentially costly errors before they erode your profits.
 

Hedging Program

The HALO Program advocates a conservative hedging program to lock in profitability independent of interest rate market movement. The hedge models used in the HALO Program have been developed, fine-tuned, and market-tested over more than 200 clients and years of operation. However, when it comes to hedging your loan pipeline, one-size definitely DOES NOT fit all. To better fit the specific needs of our clients, MCT has pioneered innovative metrics that provide greater accuracy and performance.
 

Best Execution

MCT has developed internal tools and processes to determine which investors are paying up for which loans at any given time. We also use these tools to calculate the best execution on a flow, bulk, or mini-bulk basis (or, at times, even ‘best-efforts.’) While this process tends to provide good indications on execution, live communication is required to truly get the best value for our clients’ closed loans. MCT Analysts communicate with all relevant investor desks multiple times daily to ensure that our clients receive all the profit to which they are entitled.