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Home » Store » Taxable » Mortgage-Friendly Rate Environment Seen to Continue Strong MBS Performance

Mortgage-Friendly Rate Environment Seen to Continue Strong MBS Performance

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The strong performance of mortgage-backed securities in recent weeks has caused some analysts to think that a mortgage-friendly interest rate environment might not prevail for the rest of the year. Because of the market strength, MBSs now look expensive vs. agency, swap and Treasury securities. This prompted Salomon Smith Barney this week to recommend a neutral weighting for the mortgage sector.
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