Investors Urged to Consider Callable MBS as They Look to Boost Yield in Tight Agency MBS Market
November 23, 2009
At a time when yield in the agency MBS market is looking dire, investors can whet their appetites on callable MBS, which promise to boost current yield without taking too much risk, according to a new analysis from Barclays Capital. A callable MBS is essentially a long MBS position with a call option sold against it, said Barclays analyst Kumar Velayudham. “It is equivalent to...