Investors in vintage non-agency MBS have seen strong returns in recent months, particularly in August. Industry analysts suggest that returns are likely to remain elevated as there are few remaining risks for non-agency MBS and supply is limited. Despite increased profit taking on this years impressive performance, bonds continue to trade well, according to analysts at Bank of America Merrill Lynch. While demand for non-agency bonds will likely grow as home prices recover, it will not be met with more new supply as is seen in the broader high-yield bond universe. This is a very strong backdrop for further price appreciation. From the beginning of June through the end of September, pricing on the ABX index that tracks subprime MBS has...