Protect the House: Todd Leddon on Capital Markets, AI & Execution Strategy | 8.24.26

Welcome to this week’s episode of Optimal Insights. In this episode, special guest Todd Leddon, EVP and Chief Capital Markets Officer at LeaderOne Financial, joins Jim Glennon and Alex Hebner to discuss changing mortgage market conditions, execution strategy, margin management, and practical applications of AI and automation. The Optimal Insights team also covers Treasury buybacks, long-term yields, inflation, Federal Reserve expectations, geopolitical developments, and the Jackson Hole Economic Symposium. They share their expert opinions and insights into how these factors are shaping the industry and the broader economic landscape.Connect with Todd: https://www.linkedin.com/in/todd-leddon-7a293a5/Learn more about Todd’s book: https://www.amazon.com/Protect-House-Comprehensive-Mortgage-Strategy/dp/B0DSZVSVJXKey topics include:How volatility has affected specified pool values, servicing valuations, agency cash-window bids, and best-efforts executionWhy lenders benefit from maintaining diverse execution options across investors, agencies, servicing strategies, and delivery methodsThe importance of granular hedging and using data to identify, implement, and monitor adjustmentsHow disciplined cost management and best-execution processes can support margins in a competitive environmentPractical uses of AI and automation, including workflow automation, reconciliation, position analysis, product discovery, and lock-desk processesWhy AI may create value through an accumulation of smaller operational improvements rather than a single transformational applicationThe role of education, relationships, and clear communication in making mortgage capital markets more approachableChapters:00:00 – Welcome to Optimal Insights00:34 – Market Update and Treasury Buybacks04:24 – Market Reaction and the Yield Curve09:17 – Inflation Data and Federal Reserve Expectations10:29 – Geopolitical Developments and Economic Pressure12:19 – Jackson Hole Economic Symposium12:57 – Special Guest Todd Leddon14:13 – Mortgage Market Volatility and Execution Changes17:42 – Building a Diverse Execution Strategy22:53 – Granular Hedging and Specified Pool Durations23:13 – Margin Management in a Competitive Market25:52 – Practical Applications of AI and Automation31:50 – AI Tools for Capital Markets Workflows36:35 – The Story Behind Protect the House42:08 – Relationships and Capital Markets Success44:35 – ClosingOptimal Insights Team:• Jim Glennon, SVP, Hedging and Trading Operations• Alex Hebner, Hedge Account Manager• James Cahill, MSF/MSR Account ManagerSpecial Guest:• Todd Leddon, EVP & Chief Capital Markets Officer at LeaderOne FinancialProduction Team:• Executive Producer: Sara Holtz• Producers: Matt Gilhooly & Alex KreuterCommentary 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:Get Ahead of What’s Next at Optimal Blue Summit 2027The mortgage market keeps moving. Optimal Blue Summit 2027 brings together industry leaders, innovators, economists, and technology experts for three days of market intelligence, hands-on learning, and meaningful connections. Join us February 1–3 in Scottsdale, Arizona, to hear from Troy Aikman, Bob Broeksmit, Michael Fratantoni, Joe Tyrrell, and other influential voices shaping the future of mortgage. Optional training sessions and a championship golf experience are also available. Early-bird registration is just $199 through October 31. Register today at Summit.OptimalBlue.com.