Banks Taking a Different View of Mortgage Securities Market, Likely to Stay, Study Says
Commercial banks have defied expert predictions and continued to increase their holdings of mortgage securities in recent years, and Credit Suisse analysts suggest that trend reflects a structural change in the industry rather than a cyclical oddity. Banks are now motivated to be more active in the liquid agency MBS market than they have been in the past, according to a new study by Credit Suisse. As a group, banks have defied conventional wisdom by…