Episode Details

In this week’s episode of Optimal Insights, host Jim Glennon is joined by Alex Hebner and James Cahill to unpack the start of 2026. They cover cooler‑than‑expected CPI (2.6%), nuances in PPI, the narrowing mortgage–Treasury spread as OBMMI briefly touches the “5‑handle,” and what to watch this week (GDP, potential Supreme Court rulings with implications for Fed leadership).

The team also recaps policy ideas circulating in D.C.:

1. instructing GSEs to purchase ~$200B in MBS
2. a proposed one‑year 10% cap on credit‑card APRs
3. allowing 401(k) funds for down payments
4. plus market structure ideas like refi lock‑in/prepay penalties to lower rates.

They close with a fast geopolitical tour (Venezuela, Iran, Cuba, Greenland) and how elevated global uncertainty, defense outlays, and AI capex keep a floor under rates despite occasional dips.

Optimal Insights Team:

1. Jim Glennon, Senior Vice President of Hedging and Trading Operations
2. Alex Hebner, Hedge Account Manager
3. James Cahill, MSF/MSR Account Manager

Production Team:

1. Executive Producer: Sara Holtz
2. Producer: Matt Gilhooly

Commentary included in the podcast shall not be construed as, nor is Optimal Blue providing, any legal, trading, hedging, or financial advice.

Mentioned in this episode:

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