Extension Risk, Increasing Modifications Could Benefit Certain Types of MBS, Analysts Maintain
July 17, 2009
While longer liquidation periods and increasing loan modifications may not be ideal for valuations of non-agency MBS, some mortgage-related bonds may actually benefit from these trends, according to an Amherst Securities Group analysis. Amherst analysts say two trends have become readily apparent: the time from the last payment to liquidation is getting longer, and the number of...