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MBS investors 'nonchalant' about Fed tapering - JPMorgan

Published 09/18/2017, 09:31 AM
© Reuters.  MBS investors 'nonchalant' about Fed tapering - JPMorgan
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  • Nearly 50% of those surveyed see no impact to MBS spreads from what's expected to be the Fed's balance sheet reduction announcement this week. In fact, 10% of respondents expect spreads to tighten (not an absurd expectation given that investors have had many weeks to price in the news).
  • Forty-six percent see a modest increase in spreads.
  • The survey also shows 60% of investors as being overweight MBS, one of the highest levels in years, according to JPMorgan (NYSE:JPM).
  • Source: Bloomberg's Alexandra Harris
  • ETFs: MORL, REM, MORT, DMO, TSI, JLS, PGZ, CMBS, FMY, JMT, LMBS, MBSD
  • Now read: A 20.4% Dividend Yield For the Last 5 Years

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